Why kitting is driving UK ecommerce growth

‘Kitting’ in the form of subscription boxes, gift hampers and other bundled products is driving growth in the UK ecommerce market.

The UK subscription box market value is rising fast:

In turn, this is driving demand for UK ecommerce logistics services, with solutions like kitting, labelling and custom packaging expected to post growth of 7.5% a year through 2030, against an overall market rate of just under 6%.[2]

What is kitting in ecommerce?

‘Kitting’ is when multiple related but independent products are combined or bundled into a box under a single SKU (stock-keeping unit), to create a new product such as an advent calendar or subscription box.

This has numerous benefits for ecommerce operators. It’s a way to revitalise old stock by bundling old items with new. It’s an easy way to create seasonal merchandise and value-added promotional ‘loot boxes’.

Kitting is also beneficial for warehouse picking and packing. Multiple stock lines are combined into a single product – more efficient for storage and faster for fulfilment.

Global trends: influencers, unboxing and merch

The UK is not the only country whose ecommerce market is buoyed by kitting and related ecommerce logistics services.

Influencers generate 60% of blind box sales

‘Blind boxes’ and ‘mystery bags’ have become a cultural trend in their own right. These can contain one or multiple items and their exact contents are not known until the packaging is opened.

More than 60% of purchases of toy-category blind boxes in 2024 were a result of influencers or social media.[3]

Unboxing videos reach 500 million views

Unboxing videos – where the contents of a blind box are revealed ‘live’ – hold huge global popularity, tapping into the same sense of anticipation as the Japanese vending machine phenomenon of gachapon and 2025’s breakthrough collectible toy, Labubu.

In 2024, these videos passed 500 million views within the 12-month period alone, and retailers report 35% more repeat purchases when they offer blind boxes.[4]

1 in 3 UK children watch unboxing videos

In the UK, one in three (32%) children watch unboxing videos[5] including 38% of 6-9 year olds.

This compares closely with other popular types of video, and significantly outperforms some conventional genres:

Unboxing videos are slightly more popular with girls than they are with boys, reaching 35% of the female under-18 UK population vs. 29% of males.[6]

Fan merch market grows at 15.2%

Globally, the market for fan merchandise subscriptions stood at $2.1 billion in 2024 and is expected to reach $7.8 billion by 2033, a 15.2% growth rate.[7]

“Subscription models provide fans with curated, exclusive and often limited-edition merchandise directly to their doorsteps, enhancing customer engagement and fostering brand loyalty.”

– Fan Merchandise Subscription Market Research Report 2033, Market Intelo

UK ecommerce logistics responds to kitting demand

This perfect storm of social trends is contributing to the growth of demand for UK ecommerce logistics services such as kitting, along with associated warehousing and despatch.

“Value-added lines, covering labelling, kitting and custom packaging, are pacing ahead with a 7.5% compound annual growth rate to 2030. The segment thrives on rising SME direct-to-consumer orders that need branded unboxing and SKU personalisation.”

– UK E-Commerce Logistics Market Report 2025-2030, Mordor Intelligence

At the same time, ecommerce operators face other challenges, such as the limited availability of distribution capacity in major cities in England and rising consumer expectations for same-day delivery.

East Midlands’ importance for domestic despatch

Consumers in England contribute 87.5% to the UK’s combined ecommerce turnover,[8] with distribution via the M1 and M6 an important element in fulfilling those orders.

Warehousing and distribution vacancy rates are low in London and the south-east, pushing rents higher, and restrictive planning rules mean new construction is difficult in the region around the M25.

In contrast, warehouses in the East Midlands and Northamptonshire continue to see new capacity development, as well as offering a central location for domestic despatch across the UK with optimised delivery times.

Same-day delivery grows 10% a year

Expectations are growing among consumers that when ordering via ecommerce sites, express delivery should be an option – including next-day and even same-day delivery.

On the logistics side, this is being facilitated by an increase in ecommerce delivery lockers rather than direct-to-door drop-off, and by micro-fulfilment centres with local coverage.

With these developments in infrastructure, same-day despatch volume is forecasted to grow at a compound annual rate of 9.6% until 2030.[9]

Customisation caters to UK ecommerce consumers

Packaging is a key element in kitting. The right packaging:

Customised packaging – personalised to the customer, tailored to the product, or both – is another fast-growing component in the UK ecommerce sector.

“The surge in ecommerce adoption within the UK has prompted a notable shift in consumer behaviour towards online shopping. This change is driving heightened demand for customised ecommerce packaging solutions that cater specifically to the unique requirements of digital retailers.”

– E-Commerce Packaging Market 2025-2035, Future Market Insights

UK ecommerce packaging on the global stage

While the global ecommerce packaging sector is growing fast, the UK – driven by this demand for customised packaging solutions – is closely matching or even outpacing some of the biggest geographic markets.

Country	CAGR 2025-35	Difference
UK	11.7%
Japan	11.8%	+0.1%
China	11.3%	-0.4%
USA	10.8%	-0.9%

Table 1: Predicted compound annual growth rate (CAGR) in ecommerce packaging market, 2025-35 by country. Source: Future Market Insights[10]

Consumer desire for customisation in ecommerce shopping experiences was a key trend in 2024, enabled by emerging AI platforms. This is only likely to continue in the coming years as machine learning delivers ever-deeper insights into shoppers’ behaviour.

“Advances in AI and machine learning have enabled retailers to offer personalised product recommendations, tailored search results, and customised shopping experiences based on individual consumer preferences and behaviour.”

– Global Scientific Journals 13:2, February 2025[11]

Mastering the logistics of kitting and customisation

All of this creates a complex pattern of AI-driven customisation, personalised packaging and fast despatch and delivery, of which kitting is a key component.

In a study of major markets in the UK, USA, Germany, India and China published in ASEJ Scientific Journal,[12] Vladimir Kochnev noted the benefits of ecommerce logistics efficiency:

“Firms that achieve efficiency with their logistics network realise stronger growth in revenue as they diversify product lines, as strong distribution is one way to mitigate risk.”

– Vladimir Kochnev, ASEJ Scientific Journal, February 2025[13]

Choose the right UK ecommerce logistics partner

For those looking to incorporate kitting into their business in the form of subscription boxes, gift hampers, blind boxes and other bundles, the right logistics partner is essential.

MRM have expertise across repackaging, warehousing, domestic despatch and other important areas of the direct-to-door ecommerce supply chain – making us your first choice for ecommerce campaigns of all kinds.