Kitchens & Kitchen Products: Key Drivers & Future Growth Opportunities

Strategy Briefing

About This Report

Dec 2017

Major drivers for kitchen products include cocooning, rising incomes, housing affordability, the sharing economy and connected consumers. Opportunities for retailers and manufacturers abound as a result of urbanisation and apartment living, the growth of single-person households, demand from gourmet home cooks and burgeoning interest in smart kitchens. Consequently, sales of kitchen products are expected to exhibit faster growth over the forecast period.

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Kitchens & Kitchen Products: Key Drivers & Future Growth Opportunities

Kitchens represent the heart of the home

Kitchens represent the heart of the home, with consumers likely to spend between one to two hours per day in the kitchen. Kitchens are the second most popular communal room in the home and consumers are likely to not only cook, but also eat and entertain guests in their kitchens.

Kitchen products expected to outpace other areas of the home

Retail value sales of kitchen products, including kitchen sinks, kitchenware, cookware, kitchen and dining textiles and kitchen furniture, are expected to outpace historic growth, as well as other home areas such as living, dining, bathroom and bedroom over the forecast period.

Major drivers for kitchen products

Cocooning, rising incomes, housing affordability, the sharing economy and connected consumers all represent major drivers for kitchen products over the forecast period, resulting in premiumisation, renovation activity, Do-It-For-Me behaviour and demand for smart kitchen products.

Retailer strategies targeted at promoting kitchen products

Retailers and manufacturers have employed a range of strategies to promote their kitchen products, including 3D kitchen planners, sustainable kitchen cabinetry, portable kitchens, augmented reality, online sales, as well as smart kitchen products (eg connected appliances).

Urbanisation, the “gourmet home cook” and single-person households represent opportunities

Rising urbanisation rates, apartment living, the growing proportion of single-person households and connected consumers represent opportunities for retailers and manufacturers to supply space-saving kitchen furniture, stylish and premium homewares products, as well as smart kitchen appliances and devices.

Introduction

Scope
Key findings

Kitchens and Kitchen Products

Consumers view kitchens as the heart of the home
Kitchen products growth expected to outpace other areas of the home
Upward trend for kitchen products anticipated over the forecast period
Consumers likely to cook, eat and entertain guests in the kitchen…
…but entertaining guests tends to take place 1-2 times per month
Asia Pacific anticipated to be the standout region for kitchen products

Key Drivers

Global Key Drivers for Kitchens and Kitchen Products
Resurgence in home cooking supports cocooning behaviour
Food delivery mobile apps (eg Deliveroo) influence at-home dining
Rising incomes and urbanisation in Asia Pacific
Growth in new house builds to boost demand for kitchens in Asia
Premiumisation in cookware as a result of rising incomes
Asia Pacific consumers upgrade to built-in appliances
Housing affordability a major challenge for Millennials in Australasia
Older housing stock expected to drive renovation activity
Cost a key determinant for kitchen renovation activity
The sharing economy enables Do-It-For-Me behaviour among Millennials
Consumers across all markets are becoming ever more connected
Consumers turning to online retailers for large kitchen products
Connected kitchen appliances continue to grow in popularity globally
Proliferation of smart home user interfaces offered via three avenues

Retailer and Manufacturer Strategies

DIY/Home improvement retailers promote kitchens in Australia
Freedom Kitchens muscles in on the DIY consumer segment
Ikea tackles Generation Rent with new product development in kitchens
E- tailers embrace the sharing economy through furniture rental in India
Bosch unveils the Mykie (My Kitchen Elf) robot assistant
The Home Depot encourages “click-and-collect” with its US consumers

GROWTH OPPORTUNITIES

Major growth opportunities in kitchens for retailers and manufacturers
Urbanisation results in apartment living and smaller kitchens
Single-person households and personalisation preferences
Tapping into demand from gourmet home cooks
The kitchen as an IoT hub

Report Definitions

Definitions