Appliance prices have been rising since Q2 2020. Although aluminium and copper are approaching pre-pandemic prices, and logistics costs are coming down, high energy prices and labour costs continue to drive inflation. The industry also faces a high interest rate environment with deteriorating housing markets. High prices and low demand could be a worst case scenario for the industry.
Only 55 companies have remained on the Fortune 500 list continuously since its inception in 1955. In that year, GM was the biggest company in the world. 70 or so years later, Wal-Mart, a discount store, is the biggest, while GM filed for bankruptcy in 2009. A generation ago, a “Kodak moment” referred to a picture-worthy moment. Today, it is widely used to describe companies that failed to adapt to market disruptions. Clearly, companies need to innovate their products and business models to survive.
For almost 18 months, consumers were focused on basic food preparation and cooking appliances. In 2021, the focus shifted to eating better, home health and hygiene, and personal feel-good products. These habit-forming trends are expected to endure as consumers focus on themselves.
Consumer appliances in Southeast Asia has tremendous growth potential. As Southeast Asia's economy grows rapidly, urbanisation and higher disposable incomes will help stimulate sales in appliances. With manufacturers actively driving initiatives while providing “affordable premium” products, the future is bright for the industry.
Consumers had an interesting two years to prioritise the appliances in their homes. People continue to cook more at home, with many exploring new recipes from their social media feed. Growth has shifted from major appliances to small appliances predominantly in the food preparation and hygiene areas. Longer term, we expect the focus to shift to sustainability, interoperability, collaboration, migration to electric stoves, and increased D2C sales.
Over the last few years, sales of hair care appliances have remained relatively stable in the US. Trends that have been impacting sales growth are consumers’ interest in minimising heat damage, simplifying their routine, and embracing their natural hair texture. Consumers are investing in higher-quality hair care products that enhance the health of their hair, and changing their hair care routines to reduce the usage of heated appliances.
2021 was a year that closely mirrored 2020 demand patterns. Demand was high at the beginning of the year due to spillover demand from the last two quarters of 2020. However, demand gradually tapered down towards the end of 2021 as price increases due to raw material and supply chain constraints weighed down both supply and consumer demand.
Every quarter, Euromonitor International updates industry forecasts based on a combination of our proprietary macro model and category reviews by our global team of expert analysts. The Forecast Dashboard allows users to compare the new baseline forecast against previous quarters as well as other possible economic scenarios, helping to understand the way forecasts evolve through an annual cycle.