Microwaves in China

PROSPECTS

Microwaves sees volumes fall

Microwaves saw volumes fall in 2019 as it suffered from maturity and the negative impact of the health and wellness trend, which encouraged consumers to opt for cooking methods such as steaming rather than use microwaves. While built-in microwaves saw strong growth earlier in the review period, the category registered decline in 2019 as it suffered from competition from multi-functional built-in ovens enabling baking, steaming and microwaving.

Potential in multi-functionality

While the contraction of single-function freestanding microwaves is driving down overall microwaves volumes, there is a growing demand for multi-functional freestanding microwaves. This suggests that there may be potential in the development of multi-functional products that provide busy consumers with a range of convenient cooking options.

Limited but growing interest in connected appliances

While the proportion of connected appliances in microwaves remains low, the category is seeing increasing consumer interest in connected/smart products. Key features of connected microwaves in China include voice/remote control, food temperature sensing and menu recommendation.

COMPETITIVE LANDSCAPE

Midea extends lead

Midea Group Co Ltd further extended its lead in microwaves in 2019 as it increased its volume share, while the share of second-placed Guangdong Galanz Group Co Ltd fell slightly. The two companies were jointly responsible for more than 80% of total category volume at the end of the review period.

Foreign brands lag behind

Panasonic and Whirlpool were the only two multinational brands among the top five in microwaves in 2019, and each recorded a decline in sales for the year and only small value shares. These international brands are not only uncompetitive in terms of pricing, but are also far behind in new product development compared with leading domestic players.

Little incentive for smaller foreign players

The high level of consolidation in microwaves in China presents a significant obstacle to smaller international manufacturers that might look to build a presence in the category. Moreover, the unpromising outlook for microwaves provides little incentive for new entrants.

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