Cocooning and Single Family Households to Impact Global Appliance Industry

Author: Lauren Beth

Date published: 5 Feb 2008

New report from Euromonitor International highlights trends making an impact.

The domestic electrical appliances market, like many markets in today's global economy, is in a state of constant change. Though traditional economic factors such as income and raw materials continue to affect the market, socio-demographic changes and trends will have a greater impact in years to come for the appliance industry.

According to Euromonitor's new Global Domestic Electrical Appliances Report, the growing population of working women, the cocooning trend, and single family households are drastically changing the landscape of the appliances market. The global number of working women rose by 6% between 2001 and 2006 to reach one billion and is forecast to grow by a further 4% by 2011. The rise in the number of women entering the workforce has boosted demand for convenient, timesaving devices which help women fit in working and looking after the home. This has resulting in increased sales of microwaves, dishwashers and washer-dryers. The rise in the number of economically-active women means that they have greater spending power than ever before. They are therefore a key segment of consumers which domestic electrical appliances manufacturers need to target.

In another trend, consumers worldwide are showing an increased interest in the home. This trend, known as "nesting" or "cocooning" is characterised by consumers wanting to go out less and instead stay home with family and friends. “Spending more time in the home means that consumers want to spend more money on their homes,” said Fflur Roberts, Research Manager for Euromonitor International. In addition to making their homes comfortable to live in, the home is becoming increasingly complex. “Cocooning has the potential to make a huge impact on sales of domestic electrical appliances. Not only will consumers buy more types of appliances, they will spend more on those they buy. They will increasingly opt for premium products with added features that make their lives easier but also can be shown off to friends and family,” said Roberts.

Single households also boost demand for domestic electrical appliances as they still require the same quantity of household appliances as all other households, each requiring their own cooker, washing machine and refrigerator. With many single consumers living in small urban flats and apartments, space-saving features become important. According to Euromonitor's research, this has boosted sales of integrated appliances, slim-line dishwashers, upright fridge-freezers and washer-dryers. “Younger singles are more interested in technology and require timesaving appliances to help them deal with their hectic lifestyles, which will help increase sales of labour-saving devices such as microwaves and dishwashers. Older singles will focus on luxury, driving sales of premium domestic electrical appliances,” said Roberts.

The World Market for Domestic Electrical Appliances

Domestic Electrical Appliances

For further information, please contact:

Lauren Beth, International Public Relations Manager, Euromonitor International

312.922.1115 ext 8215 lauren.beth@euromonitorintl.com