Refrigeration Appliances in Germany

2020 IMPACT

Stockpiling behaviour by consumers provides modest boost to demand

Refrigeration appliances volume sales in Germany declined in the three years prior to 2020, mainly due to maturity. The COVID-19 pandemic had a mixed impact on the category’s performance, but the net result was that the rate of volume decline slowed slightly as compared to 2019.

Fridge freezers shows the most resilient performance in volume terms

While freezers was the primary beneficiary of Germans acquiring new refrigeration appliances to facilitate stockpiling during the first half of 2020, fridge freezers was the category that posted the lowest rate of volume decline for the entire year. Medium-sized and large fridge freezers are perceived as more practical than owning a separate fridge and freezer by the increasing number of Germans who live in smaller households.

German companies benefit from local production while Asian names push on pricing

German companies BSH – which offers the Bosch and Siemens brands – and Liebherr continued to lead refrigeration appliances in 2020. Electrolux – which is Swedish but retains a strong foothold in Germany due to its ownership of former German brand AEG – finished third.

RECOVERY AND OPPORTUNITIES

Lockdown purchases likely to temper demand in the short term

Replacement purchases brought forward to facilitate food stockpiling accounted for a substantial proportion of refrigeration appliances volume sales in 2020. Together with the likelihood that financial difficulties arising from the pandemic will continue to deter many households from making replacement purchases in the short term, this is expected to cause the rate of volume decline for the entire category to deepen in 2021.

Smart refrigeration appliances retain strong growth potential

There is still a long way to go for connected refrigeration appliances in Germany. In 2020, connected models only accounted for roughly one in every 20 fridge freezers sold in the country.

Trend towards fresh food should aid recovery and stimulate innovation

In addition to reinforcing the home cooking trend, the COVID-19 pandemic has encouraged many Germans to adopt healthier eating habits. In particular, heightened consciousness of how diet and nutrition affect immune strength, weight management and other aspects of health has made people more inclined to increase their consumption of fresh food, especially fresh fruits and vegetables.