Refrigeration Appliances in Nigeria

PROSPECTS

The rising urban population, the increase of women in the workforce and wide product availability drives growth in refrigeration appliances

In 2019, the increased growth in households in urban areas drove demand for refrigeration appliances in Nigeria, particularly freestanding freezers as these can preserve food and beverages despite inadequate power supply in the country. The number of options and players available in the landscape at competitive prices, further boosted growth, as consumers have a comprehensive choice of appliances to purchase.

Freestanding fridge freezers drives volume growth, whereas built-in refrigeration applications remained negligible

Fridge freezer combinations and freestanding freezers drove growth in 2019. This growth was driven by consumers preference for a dual-purpose appliances, that can be used both to refrigerate and freeze food, as well as the fact that freezers keep food frozen and cold during power outages – making these convenient and relevant problem-solving products.

The rise of energy-efficient refrigeration appliances is set to drive growth over the forecast period

The high cost of electricity, coupled with interruptions in power supply, have driven significant players to implement energy-efficient innovations to meet the needs of local consumers. Greater availability of energy-efficient appliances is anticipated to improve sales as consumers can save on electricity costs.

COMPETITIVE LANDSCAPE

Haier Thermacool leads in 2019, benefiting from wide distribution and offering energy-efficient innovation

PZ Cussons Nigeria Plc with its offering of Haier Thermacool, continued to lead refrigeration appliances in 2019, leading retail volume share. Haier Thermacool has established itself as a household name in Nigeria and has sustained its reputation for quality and consistency in its product offering, increasing consumer loyalty and trust.

Fareast Mercantile Co Ltd retains its second-place position as Scanfrost increases its volume growth

Fareast Mercantile Co Ltd retained its second-place position in 2019, as its offering Scanfrost experienced growth in volume shares. Much of this growth was driven by an increase in promotional activities and its strong product awareness, with high levels of recognition among the population.

Samsung and LG face tough competition as locally manufactured refrigeration appliances dominate

In 2019, LG and Samsung faced stiff competition from smaller players that were introducing quality appliances at lower price points, most notably Hisense, Midea and Royal. During 2019, refrigeration appliances continued to be dominated by manufacturers that assemble their appliances on local manufacturing lines.

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