Microwaves in Argentina

2021 DEVELOPMENTS

Microwaves remains one of the most affected categories through import restrictions

Microwaves was already a challenged category with the cessation of automatic licenses for their import in 2020, but this has been further exacerbated by the COVID-19 pandemic in 2020 and 2021. It is a category with a large component of imported products, and, for many manufacturers, it is not so profitable to set up production lines at local factories.

The category is affected by being associated with unhealthy cooking

Whilst microwaves revolutionised kitchen appliances in Argentina in the 1990s and the category has a high penetration in the country, there is a growing concern about the potentially harmful effects of cooking or heating food in these devices. Namely, the electromagnetic waves used by microwaves are believed to be carcinogenic, thus an increasing number of people are avoiding their use.

Mini electric ovens continue to replace microwaves

Microwaves also face ongoing competition from mini electric ovens. These appliances are similar in size to microwaves, meaning that they can occupy a similar space in kitchens.

PROSPECTS AND OPPORTUNITIES

Players set to offers more functions on microwaves to attract new users

To appeal to new consumers, the major microwaves brands are anticipated to offer an increasing number of features and functions in their products. For example, a tri-function, grill, and convection options have recently been introduced.

Unhealthy image of microwaves will continue to pose a challenge to growth

Microwaves is set to be one of the major appliance categories to record notable negative CAGR over the forecast period. This is due to the ongoing constraints witnessed over the review period, with the health concerns of preparing food in microwaves accelerated by the onset of COVID-19 and a stronger consumer switch to healthy nutrition and traditional home-cooking.

BGH expected to regularly launch new products to maintain brand leadership

Given the slower pace of life due to the COVID-19 pandemic, it has become more important for people to find time to relax, reflect, and meditate on the things which are most important in life. This means that the now old-fashioned values of living a busy life, working long hours, and not finding time for oneself, will no longer hold the same appeal.