Consumer spending on subscriptions rose 7.7% year over year in July, outpacing total spending growth by more than a percentage point and a half, according to a Bank of America Institute report published yesterday that is based on the bank’s internal payments data.
The report said subscription spending has grown faster than overall spending per household for two consecutive years, though non-utility subscriptions remain a small share of total outlays. The analysis covers recurring payments across entertainment, retail, reading and information, home services, fitness, fashion and food, and excludes utilities. It seems applicable because what is a payment plan but a form of a limited subscription?
Entertainment and retail subscriptions, a category that includes music, television, movie and video game streaming along with large retailer memberships, drove most of the growth and accounted for roughly 43% of subscription spending in 2026, up from 41% in each of the prior two years. Food, fitness and fashion made up 26%, followed by home services at 24% and reading and information at 7%. Home services, defined as mostly home security, lawn care, pool services and pest control, has been a slight drag on subscription growth so far this year.
Growth varied sharply by generation. Gen Z posted the fastest increase at nearly 14% year over year in July, followed by younger Millennials at about 10% and older Millennials at about 8%. Gen Z and older Millennials grew at four times last year’s rate, and younger Millennials at six times. Gen X and Baby Boomers rose more than 3% and 5%, respectively, with steadier growth from year to year.
Gen X spent the most on subscriptions over the 12 months through July, narrowly ahead of older Millennials. Both groups spent around 40% more than Gen Z, while Baby Boomers spent more than 30% more and younger Millennials outspent Gen Z by 20%.
Sixty percent of Gen Z subscription spending went to entertainment and retail. Older Millennials, Gen X and Baby Boomers directed about half of their subscription budgets to home services, food, fitness and fashion.
Reading and information, which includes magazines, newspapers, audiobooks and AI services, posted the strongest growth of any category. Spending rose more than 60% among Gen Z, 51% among younger Millennials and 42% among older Millennials. Entertainment and retail grew more than 10% across all generations except Gen Z, which recorded almost 10%.
