Small Appliances in Asia Pacific

Key Findings

Immediate rebound into positive growth in 2021

The COVID-19 pandemic took the momentum out of the small appliances market in Asia Pacific when it hit the region in 2020, but this proved to be a one-off occurrence, with an immediate return to positive growth in 2021. While electric toothbrush units, particularly in China, have continued to record very dynamic growth, the pandemic, and the greater hygiene consciousness it generated, boosted sales of wet and dry vacuum cleaners, which had been flatlining in 2019.

Health and cleanliness remain important

Healthy living played a pivotal role within consumer appliances throughout 2021, with consumers’ lingering hygiene concerns and health-consciousness likely to be here to stay. Targeting consumers’ rising hygiene and health awareness, new product launches have aimed at healthy eating and quality of air in consumers’ lives, eg, air conditioners with built-in self-cleaning and ventilation features.

E-commerce share gains accelerate in the pandemic

E-commerce now accounts for more than half of retail volume sales in China, but has also seen major share gains in the overall region, reaching 41% in 2021. The pandemic saw online sales overtake the share held by the former leading distribution channel, electronics and appliance specialist retailers (39%), with the latter being hit by the closure of non-essential store-based retail outlets during COVID-19 lockdowns, as well as a general fear among consumers about going out in public when the pandemic was at its height.

Positive growth expected over the forecast period

The 2020 drop in sales has, to date, proved to be a one-off, with small appliances immediately returning to positive growth rates from 2021. However, with the dominant market of China back in lockdown in 2022, it is possible that current forecasts for this year may need to be downgraded. Nevertheless, the most recent forecasts are calling for positive annual growth rates throughout 2021-2026.