Microwaves in Australia

PROSPECTS

The decline in microwave sales is expected to continue in Australia

As they had done a year earlier, sales of microwaves continued to decline in both volume and value terms in 2019, with these declines expected to continue over the forecast period. Microwaves has reached saturation, with freestanding models in what is expected to be a continued decline.

Lack of innovation hurts microwaves’ prospects

Despite current trends towards multi-functionality or steam cooking, for example, consumers see microwaves as not particularly innovative, which means they are less motivated to replace their old microwaves. In addition, the more premium models that have a greater number of cooking functionalities typically retail at higher unit prices.

Private label pushing down unit prices and value sales

Private label microwaves continue to stimulate price competition in the category, which is contributing to falling average unit prices and declining value sales. The private label share, which grew for the third year in a row in microwaves in 2019, is the highest in major appliances by far, accounting for almost a fifth of volume sales.

COMPETITIVE LANDSCAPE

Panasonic continues to increase its leading share in microwaves in 2019

Panasonic Australia remained the clear leader in microwaves in 2019, even managing to once again increase its share of volume sales in the country. New product launches have contributed to Panasonic cementing its leadership in what is a struggling category overall.

Private label microwave sales expected to continue growing

In the short term consumers are still looking for low prices in this category as they often perceive microwaves to have a reheating purpose only. This will further shift sales towards low-priced products such as private label.

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