Refrigeration Appliances in the United Arab Emirates

2020 IMPACT

The lockdown period and slowdown in real estate activity leads to a decline in growth

Measures taken by the local authorities in March 2020, required consumers to stay at home during Q1 and Q2, while also closing specialist retailers for two months. This negatively impacted volume sales of refrigeration appliances during this time.

Ongoing financial insecurity leads to a decline in sales of big-ticket items

As the lockdown restrictions was loosened, shops and foodservice outlets across the country began to open. However, uncertainty surrounding the economic impact of COVID-19 continued, and many consumers remained wary of future waves of the virus, and their job security.

Samsung launches bespoke refrigerators and three new smaller models

During 2020, Samsung launched a bespoke refrigerator which could be customised by consumers. Consumers could choose which materials and colours they preferred, putting a personal stamp on the style of their kitchen.

RECOVERY AND OPPORTUNITIES

The rise of non-family expatriates drives growth across the forecast period

Volume growth is set to recover over the early forecast period, peaking in 2022 with 6% retail volume growth.

Inverter refrigerators drive growth, helping consumers to save energy costs

A threefold increase in domestic electric bills boosted the demand for inverter refrigerators over the review period, and this is set to continue across the forecast period, as consumers hope to reduce energy consumption and utility costs. This is particularly the case following the outbreak of COVID-19 and the increased price-insecurity in the country.

Fridge freezers offering a 341-510 litre capacity, remain popular over the forecast period

Due to dropping disposable incomes or price-insecurity following the outbreak of COVID-19, grocery runs in an average UAE household will tend to focus on bulk purchasing for better deals. Discounts and deals in stores entice consumers, and they will often buy a high quantity of lower-cost items, to obtain the best price per volume.