Friday, 4 December 2015
Kitchen Appliances Market - Growth Size And Forecasts, 2015 To 2022
Global kitchen appliances market is expected to be driven by high technology penetration in appliances development. Kitchen appliances are now-a-days forming an integral part of cooking specifications and are replacing traditional cooking tools.
Changing lifestyle and urbanization have led to transfer of cuisines from one region to the other, which can be evident in the form of increasing operational presence of overseas food franchises such as Mc Donald’s, Starbucks, KFC and Pizza corners in Asian markets. Similar trends can be observed in western consumers adopting Asian cuisines in their dietary patterns.
Technology has played a large role in the development of industry over the recent past. Companies operating in the market compete on the basis of product differentiation, which they achieve on the basis of features and facilities offered in respective product segments. Also, increased scale of operations and localization of production & distribution network have aided in stabilizing appliance prices. Thus greatly improving affordability and end-user reach in developing regions.
A few examples of widely used kitchen appliances include blenders, ovens, refrigerators, countertop stoves, dishwashers, food processors, ice cream makers, mixers, grills, coffee vending machines, toasters and chimneys.
Due to ease of availability and higher disposable income, the industry has been primarily concentrated among populace in urban areas. However, evolving distribution network and localization of economies are expected to increase kitchen appliances penetration in rural areas.
Supply network in the industry is divided on various levels from corporations tending to provide products through flagship stores, to marketing their products through shared retail platforms. For example, Haier markets its products through exclusive brand stores such as ‘Haier Experience Zones’ while companies such as Samsung & LG approaching consumers through more traditional methods.
Regulations related to environment and sustainability, coupled with corporate-social initiatives by companies to reduce carbon footprint has also played a vital role in shaping industry dynamics. This has resulted in companies offering products with energy savings certifications, and smart interfaces.
North America is major region and has dominated the global industry over the recent past. The region is characterized by high consumerism, advanced consumer appliance technologies, and well established environmental regulations & policies.
Asia Pacific on the other hand has a lot of untapped potential with populace in the region experiencing surge in income levels and gaining exposure towards urbanization. Technological revolution and evident growth of Chinese and Taiwanese appliance manufacturers are also expected to aid in Asia Pacific growth over the forecast period.
Latin America is another high growth potential region with Brazil, Argentina, Venezuela and Chile offering promising opportunities. The end of government’s IPI tax incentive in Brazil is a minor threat for the region’s growth as this could impact product prices, as most appliances in the region are imported. Comparing the aforementioned threat to the scale of consumer income increase and middle class upgradation to value added appliances, the threat might be offset to a large extent.