Microwaves in Taiwan

2020 IMPACT

COVID-19 drives acceleration in retail volume sales of microwaves, as consumers eat more at home

Retail volume sales of microwaves expanded at their fastest rate of growth in six years during 2020. The fact that consumers were spending more time at home and eating more meals there due to COVID-19 was the main driver of this growth.

Shrinking household size boosts demand for smaller cooking appliances like microwaves

Average household size is declining in Taiwan, with the country’s very low fertility rate playing a significant role in this. Single-person households in particular tend to favour small appliances like microwaves over large cooking appliances.

Leader Panasonic Taiwan Co Ltd offers products ranging from economy to multifunctional models

Panasonic Taiwan Co Ltd remained the clear leader in microwaves during 2020, with more than twice the retail volume share of its closest rival – local players Sampo Corp. Panasonic Taiwan Co Ltd offers a wide range of models at various price points.

RECOVERY AND OPPORTUNITIES

Return to normality will have a negative effect on demand for microwaves, as consumers will eat out more

Retail volume sales of microwaves will be little better than flat during 2021. With life set to return to something approaching normality in the wake of COVID-19, consumers are likely to spend less time at home and eat out more.

Growth of e-commerce will drive consumers even more towards freestanding microwaves

Freestanding microwaves will continue to outperform their built-in counterparts during the forecast period. The growing importance of e-commerce as a distribution channel for microwaves will play a role in this.

Cheap Chinese brands set to grow in importance

Incumbents will face a growing challenge from Chinese manufacturers during the forecast period. Many local consumers perceive microwaves to be fairly homogeneous, with relatively little differentiation between brands.