Microwaves in the United Kingdom

PROSPECTS

No room for further growth

Microwaves recorded a contraction in volume terms in 2018 continuing the poor performance seen during the previous year. The penetration rate of microwaves in the UK is the highest in Western Europe leading to saturation and little room for further growth in volume sales.

Technological innovation has less of an impact on microwaves

While technological innovation has been one of the major drivers for all major appliances, this has not been the case for microwaves. This is because the category is failing to capture consumers’ attention as much as it did in the past, leading to a decline in volume sales.

The health and wellness trend favours fresh food

The health and wellness trend is significantly shaping major appliances. Consumers are moving towards healthier lifestyles and are looking for appliances that can enable this given their growing preference for food that is fresher instead of ready meals.

COMPETITIVE LANDSCAPE

Panasonic remains category leader in 2018

Panasonic maintained its leading position in microwaves in 2018, a position it has held since 2016 when it took over Sharp Electronics. Its leadership was also bolstered by the acquisition of Sanyo in 2010 which enabled Panasonic to significantly increase its volume share in microwaves.

The category is consolidating

Microwaves in the UK continued to be characterised by foreign-owned multinationals in 2018 with only a minor presence of domestic players. This is not expected to change as the category is unlikely to have strong growth potential over the forecast period.

Industry players set to focus on connectivity

Recently, LG reduced its range of microwaves as demand slowed further, while LG was only available in two models of microwaves in the UK, which caused the company’s share to contract further. The fall is expected to continue over the forecast period, while companies with a focus on connectivity are likely to improve their category share as smart microwaves will assume greater importance, in line with the trend towards smart homes, particularly kitchens.

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