Microwaves in Australia

2020 IMPACT

Consumers spend more time cooking at home

Since the COVID-19 lockdown was implemented in March, consumers have been spending more time at home, with workplaces asking consumers to work from home, to minimise the spread of the virus. Consumers are seeking multitasking and versatile appliances to assist them in their meal prepping.

Smart products attract little interest during 2020

 Despite the release of models that incorporate smart technology from brands like LG, consumers are still reluctant to purchase smart technology microwaves and the category continues to lag behind the rest of the kitchen appliances. The majority of consumers are not knowledgeable when it comes to purchasing premium-priced microwaves, also impacted by the rise of private label models.

Panasonic maintains its lead, and LG remains competitive due to new technology in its latest models

Panasonic continued to lead microwaves in retail volume terms in 2020, continuing to register year-on-year growth. This is no surprise as the brand has a strong distribution channel through most of Australia’s physical and online retailers.

Panasonic to launch the NN-SD79L microwave

The NN-SD79L is the latest launch from Panasonic’s microwave range and has a sleek design which comes in different finishes to suit various kitchen styles. It has a large capacity with powerful output for faster cooking, defrosting and reheating.

RECOVERY AND OPPORTUNITIES

Positive growth for 2021, however, demand will reduce across the forecast period

Microwaves is expected to record positive growth despite the outbreak of COVID-19 in 2020. As such, these positive results will continue into 2021, when the landscape will record 1% growth.

Unit prices decline due to the rise of private label and price discounting

The average unit price of microwaves will continue to decline year-on-year due to strong price competition from private label and ongoing price discounting by retailers. Consumers are looking for appliances which are less expensive due to the uncertain financial situation after the COVID-19 outbreak.

Competition drives innovation in the built-in sector across the forecast period

Despite the slowdown in growth for built-in microwaves, due to the decline in the construction channel, manufacturers have been focusing on adding innovative features into their latest models. Strong competition remains present in the microwave category as the environment becomes challenging due to the rise of new apartments with built-in microwave ovens.