Microwaves in Australia

2021 DEVELOPMENTS

Multifunctionality remains key to supporting replacement rates

Following a surge in demand for microwaves in 2020 due to increasing demand for convenience as Australians attempted to balance remote working and learning with childcare and household chores, retail volume growth for the category is expected to notably slow during 2021, with the category struggling with high penetration rates and therefore increasing maturity.

New technology offered by latest launches in attempt to boost value sales

Another marginal decline in the average unit price of microwaves ensures that value growth is weaker than volume in 2021. This is partly being driven by strong private label competition within the category, as offered by the likes of Woolworths.

Panasonic retains convincing leadership of microwaves in Australia

Panasonic is set to strengthen its leadership of microwaves in Australia in 2021, capitalising on its Canstar Blue 2020 Award which it received for its microwaves, as its products received high ratings, although in line with slowing demand it is expected, like its closest competitors Samsung and LG, to record less impressive growth rates. Nevertheless, Panasonic benefits from a strong distribution channel through most of Australia’s physical and online retailers, while developing microwaves that meet the evolving needs of consumers by enhancing their versatility, convenience, healthy cooking and design.

PROSPECTS AND OPPORTUNITIES

Built-in segment to continue growing

Microwaves are part of many local consumers’ lives as evident by the category’s high penetration rate in Australia, and with the home cooking trend which has increased in importance since the pandemic, it is likely to remain a staple in many households due to its convenience and increasing functionality.

Compact designs maximising internal capacity likely to feature over the forecast period

More compact models of microwaves offering larger capacity were also emerging more strongly towards the end of the review period and are likely to continue to penetrate the category over the forecast period. This trend is particularly noticeable within the built-in segment as benchtop space is a minimum in apartment living and small kitchen spaces, encouraging manufacturers to launch more compact models by placing the fan on top while maximising internal capacity.

Design and darker finishes to increase in popularity

In line with increasing urbanisation and demand for contemporary open plan living, consumers will continue to seek modern designs and sophistication when it comes to both their benchtop and built-in appliances. Minimalistic styles continue to flood the category, while Australians are looking for a seamless kitchen design and for all their appliances to be coherent in terms of brands and finishes.