Large Cooking Appliances in South Korea

2020 IMPACT

Increase in home cooking boosts demand for built-in hobs

With consumers spending more time at home and preparing more meals there as a result of COVID-19, there will be a significant acceleration in volume sales growth for built-in hobs. However, volume sales of ovens will decline sharply.

Product development is particularly vigorous for induction hobs

Most new product development in large cooking appliances during 2020 related to induction, which was the fastest-growing format during the forecast period. Manufacturers are also developing hybrid built-in hobs – with one gas ring with two induction rings, for example.

Samsung Corp gains retail volume share as it widens its product offer

Many of the leading players in large cooking appliances lost retail volume share during the latter part of the review period. Rinnai Korea Co Ltd, which now ranks fifth, saw the steepest decline in retail volume share.

Samsung Electronics Co Ltd offers consumers design harmony in the kitchen

Samsung Electronics Co Ltd’s all-induction hob is white, giving it an idiosyncratic but sophisticated appearance. It offers a power management function that enables more fine-grained control of the heat it produces.

RECOVERY AND OPPORTUNITIES

With demand maturing, growth in volume sales will slow

Growth in both retail volume and retail current value sales of large cooking appliances will steadily decelerate over the course of the forecast period. The slowdown will be particularly acute in 2021, as the conditions that proved so conducive to growth during 2020 – the onset of the pandemic and its impact on daily life – are very unlikely to be repeated.

Internet retail will continue to grow in importance

The pandemic has provided a significant boost to the retail volume share of e-commerce in large cooking appliances, largely at the expense of non-grocery retailers – mainly electronics and appliance specialist retailers and home and garden specialist retailers. With Korean consumers becoming increasingly comfortable shopping online and e-commerce players offering very competitive prices, this trend is likely to deepen during the forecast period.

Heightened air pollution concerns will help drive growth in retail current value sales of cooker hoods

Consumers are increasingly concerned with air quality in their homes, particularly the health risks posed by fine particulate matter. As a result, urban consumers are increasingly unlikely to open their windows while cooking.