Microwaves in Russia

2020 IMPACT

Positive growth as home seclusion increases the demand for quick meal solutions

Microwaves is set to record positive growth in 2020, despite the outbreak of COVID-19. This will lead to volume growth of 1% in 2020, led by freestanding microwaves.

Cheaper models see higher sales as price-conscious behaviour shapes purchasing decisions

Despite positive volume growth predicted for 2020, the majority of consumers are reaching for lower priced appliances, with the outbreak of COVID-19 increasing price-sensitivity, particularly for those out of work. Therefore, more expensive models with sophisticated features saw a dip in sales, in favour of more affordable options.

Share of others increases as major players lose share and sales during 2020

In line with demand for affordable basic models of microwaves during 2020, international players, second-ranked LG Electronics and third-ranked Samsung Electronics, are set to lose retail volume share in addition to suffering double-digit declines in volume sales. Although traditionally, brands such as LG and Samsung are associated with good quality and offer a wide range of products, supported by strong distribution and marketing budgets, their higher prices are putting them at a disadvantage during a price-sensitive time.

RECOVERY AND OPPORTUNITIES

Positive growth across the forecast period, boosted by heightened sales from 2023

Microwaves is expected to record positive growth despite the outbreak of COVID-19 in 2020. As such, these positive results will continue into 2021, with volume growth seeing more substantial results from 2023-2025.

More affordable offerings that feature key functions will boost sales over the forecast period

With the economic recession impacting consumers purchasing decisions in Russia, many are expected to focus on cheaper, more affordable options across the forecast period. This is especially the case for the early forecast period, where uncertainty surrounding COVID-19 and job security will be at its highest.

Freestanding offerings drive growth while built-in microwaves struggle

Although positive growth is predicted for 2020 and 2021, freestanding microwaves will solely drive this result, while also leading sales. Built-in microwaves is set to remain niche in Russia, and this will impact volume growth across the forecast period, with the product recording a CAGR of 3%.