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Small Appliance Industry: Get Market Insights

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Global Small Appliance Industry

The global small appliance industry (part of the home goods industry) is forecast to record volume growth across all market segments to 2016, reports Euromonitor International. In certain markets, lower price options will facilitate market entry, but consumers in established markets will pay more for appliance upgrades. Popular appliances will target health issues, time savings on housework and promise consumers restaurant experiences at home. Growth in the worldwide small appliance market over the coming years will be driven by product innovation, revamping of existing product lines and value-added features.

Key Segments

The global microwave oven market is expected to reach a volume of almost 73 million units by 2015, reports Global Industry Analysts. In the US and the EU, growth will be fuelled by niche products and overhauling existing product. In Eastern Europe and Asia Pacific growth will be driven by rising incomes and living standards. China dominates the Asia Pacific small appliance market, accounting for more than 35% of the market in 2009. Rising income levels and a cultural trend toward consumerism will also fuel demand for new generation products in China going forward.

The global small cooking appliance industry involves the manufacture and sale of kitchen tools like coffee makers, electric grills, freestanding hobs, bread makers, deep fat fryers and electric steamers. Trends in the market in 2011 were irregular due to the wide price range difference between various appliances, reports Euromonitor International. With many consumers opting to cook at home, products catering to non-traditional cooking methods are faring well in the market.

Industry Leaders

Leading players operating in the global small appliance industry include Sony, Bose, Samsung, Groupe Seb and DeLonghi. Established in 1946, Sony now employees 160,000 people worldwide. Samsung generated sales of $220 billion in 2011, and recorded net income of over $21 billion.

Regional Market Share

In the US small appliance market, the electric kettle market segment continues to record strong growth, reports Euromonitor International. Market growth is being fuelled by the penetration of tea products for the home, a strengthening tea-drinking culture and a growing coffee culture, with non-electric French press machines proving particularly popular.

In China’s small appliance market, popular products include electric kettles, soymilk makers, electric pressure cookers, multi-functional food processors, induction cookers, microwave ovens, juice extractors and kitchen ventilators. Research in China reports strong growth in the market, which exceeded a yearly rate of 18% between 2006 and 2009 to reach almost $14 billion in 2010.

In 2010, the Chinese market saw a 14% rise in electric cooker sales compared with 2009 to total output of 170 million units. Panasonic, Midea and SUPOR held 70% of the market share combined in 2010. Microwave oven demand in second and third tier markets grew as rural penetration rose in 2010, bringing yearly output to over 12% compared with 2009 to reach 670 million units. Microwave oven export volume rose more than 18% compared with 2009 to reach almost 5.5 million.

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Parent industry: Home Goods
Related industries: DIY and Garden Equipment, Major Appliance, Household Products, Houseware, Furniture and Decoration

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