Microwaves in Canada

PROSPECTS

Freeing up worksurface space allows built-in to gain ground on freestanding

Microwaves maintained slow but stable retail volume growth in 2019. Due to very high household penetration, replacement accounts for the majority of sales, leaving little opportunity for strong growth rates.

Frozen processed food affects the use of and demand for microwaves

The consumption of frozen processed food has slowed down in Canada, as consumers become increasingly concerned about the potential health effects associated with these products. In addition to the healthier eating trend, higher consumer disposable incomes diverted demand away from frozen processed food, to the detriment of microwaves.

Aesthetics are important, whilst smart products currently attract little interest

Aesthetics are increasingly important in microwaves. This was one reason for the higher retail volume growth of built-in microwaves in 2019.

COMPETITIVE LANDSCAPE

Mabe extends its lead thanks to its reasonable prices and the closure of Sears

Mabe Canada continued to lead microwaves in retail volume terms in 2019, and also saw a strong increase in its share, as it registered the fastest growth in this year. This is not surprising, as Mabe offers reasonably-priced products, and microwaves are often considered a budget appliance – not one in which consumers are willing to invest significant amounts.

GE from Mabe plays a strategic role in Haier’s expansion plans

The acquisition of Mabe Canada and its GE brand by Haier Group in the review period was part of the latter company’s strategy to strengthen its capability and position in Canada and North America. Haier is looking to reposition the manufacturer and brand and extend its reach in the region.

Despite little current interest, players bet on smart microwaves

Although sales of smart microwaves were low in 2019, sales are predicted to grow steadily in the forecast period, due to higher living standards and an increased interest in connected appliances amongst millennials. High smartphone penetration and usage will also favour the adoption of smart microwaves, as they can be controlled remotely by these devices.

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