Kitchen Appliances Market to Reach $377.7 Bn, Globally, by 2027 at 6.0% CAGR: Allied Market Research PORTLAND, Oregon, June 16, 2020 /PRNewswire/ -- Allied Market Research published a report, titled,"Kitchen Appliances Market by Product Type (Refrigerator, Cooking Appliance, Dishwasher, and Others), User Application (Commercial and Household), Fuel Type (Electric, Cooking Gas, and Others), Product Structure (Built-in and Free Stand), andDistribution Channel (Offline and Online): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global kitchen appliances market garnered $237.3 billion in 2019, and is estimated to reach $377.7 billion by 2027, registering a CAGR of 6.0% from 2020 to 2027. Drivers, restraints, and opportunities- Technological advancement and rise in health concerns among the customersdrive the growth of the global kitchen appliances market. However, high energy consumption hinders the market growth. On the other hand, increase in adoption of smart kitchen appliance, availability of quality product at affordable prices, and rise of social media marketingare anticipated to offer new opportunities in the coming years. COVID-19 Scenario- China is the main supplier of raw material required for kitchen appliances. However trading with China has been stopped to curb the spread of novel COVID-19 virus during the lockdown. The supply chain of non-essential goods, on the other hand, has been greatly impacted during lockdown across the globe. In addition, the major distribution channels for kitchen appliances including specialty stores and e-commerce have been halted in certain regions, based on lockdown measures. The refrigerator segment to maintain its lead status- Based on product type, the refrigerator segment accounted for more than two-fifths of the global kitchen appliances market in 2019, and is expected to maintain its lead status in terms of revenue throughout the forecast period. This is due to changes in food consumption habits, growth in seafood export and fast food chain, and increase in processed food consumption across the globe. However, the dishwasher segment is estimated to portray the highest CAGR of 7.6% from 2020 to 2027. Changes in lifestyle, rise in disposable income especially in the developing Asian countries and increase in the number of working women drives the growth of the segment. The household segment to maintain its leadership position- Based on user application, the household segment contributed to the highest market share with nearly three-fifths of the global kitchen appliances market in 2019, and is estimated to maintain its leadership position during the forecast period. This is attributed to the launch of technology driven kitchen appliances, increase in disposable income, and change in lifestyle. However, the commercial segment is estimated to generate the fastest CAGR of 6.6% from 2020 to 2027. This is attributed to increase in number of commercial restaurants & other catering services and rise in trend of eating out at cafes, restaurants, hotels, and other food establishments. North Americais anticipated to dominate the market by 2027 Based on region, North America accounted for the highest share based on revenue, holding for nearly one-third of the global kitchen appliances market in 2019, and is projected to maintain its dominant position throughout the forecast period.This is attributed to the rise in trend of modular kitchen among consumers and increase in working class population. However, the Asia-Pacific is estimated to generate the fastest CAGR of 7.1% from 2020 to 2027. This is attributed to the increase in demand for energy efficient and advanced technology kitchen appliances and surge in urban population paired with improved living standard, in this region.
China: import is growing and gives new opportunities to international retailers According to Deloitte, “China’s economic growth model is becoming more focused on consumption. This will present an opportunity for international producers as innovation and technological advances reshape the retail value chain.” There are different reason that make this market a more and more interesting one for export. As Deloitte goes on explaining, in fact, with the deepening of reform and economic expansion, China’s consumer market will embrace international producers with renewed openness and dynamism. “Stimulated by strong consumer demand – Deloitte experts say – overseas brands will enter a new era of opportunity.” The economic contribution and growth rates of China’s FCE exceed the consumer goods markets in the United States, the Eurozone, and Japan. Between 2013 and 2016, the average annual contribution of China’s FCE to global consumption growth was 23.4 percent, higher than that of the United States (23 percent), Eurozone (7.9 percent), and Japan (2.1 percent) (figure 1). Over the same period, China’s annual FCE growth rate of 7.5 percent was also higher than FCE growth in the United States (2.2 percent), Eurozone (1 percent), and Japan (0.6 percent). This shows China’s outstanding contribution to global consumption. Import to China is growing fast. With improved spending power and sustained progress in opening-up, China has been steadily increasing its proportion of imported consumer goods. According to data from the World Integrated Trade Solution (WITS), China’s consumer goods imports accounted for about 2 percent of the global total in 2006. By 2016, the proportion reached 4.4 percent, and the absolute value of China’s consumer goods imports in USD had reached 2.7 times that in 2006. A very key role in this trend is that of technology, that has given retail new opportunities. “The innovation and popularization of retail technology based on a series of underlying technologies, including cloud computing, the Internet of Things, big data, and artificial intelligence (AI), are driving the entire retail ecosystem to become more digitized, intelligent, and efficient. This gives retail market participants the opportunity to connect and interact seamlessly with consumers across multiple channels. It is also enabling market participants to optimize and integrate their supply chains with real-time, multidimensional data, improving their operational efficiency and customer service and making them more competitive in the process of reshaping the value chain.” Moreover, digital marketing has a very big influence on consumers’ perception of and demand for goods: e-commerce websites, social media, and multiple on-line services (information/entertainment/search) have become important channels for influencing and attracting consumers, and interactive content has become an essential element of on-line marketing. All these changes give high-quality, diversified imported brands more opportunities to influence consumers directly. Support from digital media is particularly important for brands and categories that lack exposure in China. This positive trend also involves the advanced categories of technical consumer goods. “In 2017 – Deloitte explaines – the growth in imports of electronic and electrical product consumption declined (-23.4 percent), mainly due to falling demand for large and mid-sized home appliances. That said, declines in the import volume and growth of certain categories of goods does not necessarily mean consumers no longer want these types of product. It can also mean consumer demand is concentrated in categories that domestic products are unable to satisfy. According to the Ministry of Commerce, Chinese consumers still want to buy imported smart hardware, including water and air purifiers, electric toothbrushes, robotic vacuum cleaners, and photographic equipment.”
Retail is moving towards a new phase Italy and other countries are entered to the new phases of coronavirus emergency and people can now decide if coming back to physical shops or going on shopping on-line. It is a new era for distribution of every sector that must reinvent itself with new rules and organizations. GfK has made a survey in Italy asking consumers how they intend to do and which will be their approach to traditional shops. Data show that, although on-line sales have grown significantly in recent weeks as a result of the lockdown, 63% of Italians still want to buy in the physical store. A fundamental aspect to attract the consumer back to the store will be to focus on safety. In fact, according to the GfK surveys, 68% of Italians intend to go to shops able to guarantee maximum hygiene and safety conditions. Communicating and transmitting a sense of security will be fundamental for having visitors, but it will also be necessary to find new ways to make the visit to the store pleasant, because protective devices (masks, gloves, hand gels, spacing…) can weaken the pleasure of shopping in-store. Italian consumers are divided in half, among those who wish to rediscover human contact in the shops (49%) through the presence of staff, in-store assistance or promoters and those who would prefer to find greater use of digital technologies (51%), including virtual assistants and artificial intelligence systems, which can help maintain a high level of security in the store.