Refrigeration Appliances in Saudi Arabia

2020 IMPACT

Pandemic drives plunge in demand for refrigeration appliances, as prices soar and frightened consumers rein in their discretionary spending

Retail volume sales of refrigeration appliances plunged by almost one fifth during 2020. Many consumers purchase new home refrigeration appliances when they move home, but COVID-19 led to a significant reduction in this.

Samsung Corp launches bespoke and modular refrigerators

Samsung Corp has launched bespoke refrigeration appliances in an effort to appeal to consumers seeking to customise their kitchens. Available in a range of materials and colours, they allow consumers to put their personal stamp on their kitchen.

Competitive pricing helps Al Jabr Trading Co stay on top

Al Jabr Trading Co, which distributes the Chinese brand Haier in Saudi Arabia, remains the leader in refrigeration appliances in terms of retail volume share, just ahead of LG Electronics Saudi Arabia Ltd. Haier refrigeration appliances tend to be very competitively priced – a particularly important factor during 2020, when economic uncertainty made many consumers more price sensitive than ever.

RECOVERY AND OPPORTUNITIES

Recovery in demand will be weak, as consumers are likely to remain cautious

Retail volume sales of refrigeration appliances are forecast to return to growth during 2021 and continue to expand over the course of the forecast period, as the threat posed by COVID-19 fades. However, this growth is forecast to be very weak.

Higher electricity bills will push consumers towards more energy-efficient models

As a result of a significant increase in the price of electricity in Saudi Arabia, energy-efficient refrigeration appliances will continue to grow in popularity over the course of the forecast period. This is likely to boost the popularity of inverter technology: Inverter refrigeration appliances use a compressor that can run at different speeds to produce a more stable temperature, while using less electricity.

E-commerce will continue to grow in importance, as consumers become more comfortable shopping online

The pandemic saw a shift to e-commerce in refrigeration appliances due to store closures and a heightened fear of contagion. With local consumers becoming more comfortable shopping online, this trend is likely to deepen during the forecast period.