New variants of coronavirus (COVID-19), resulting lockdown measures and economic uncertainties hampered a full recovery for small appliances in 2021. New habits formed and heightened hygiene awareness have differed across regions, but continue to be a main growth driver, supported by consumers’ desire to live a simpler and healthier life in the long term.
Demand for home health and hygiene persists, but perceptions have progressively evolved. In the long term, consumers are pursing holistic solutions that go beyond responding to the virus itself and are tending towards a wider wellness-centred vision for future homes. For manufacturers, category expansion, new product development and communication strategies should be formulated with a wellness orientation.
External uncertainties caused by the pandemic have led consumers to refocus on themselves and their inner side. Small appliances that elevate experiences at home and have a “feel good” factor will be in demand as they are perceived as a stress-relieving and spirit-lifting means to care for consumers’ physical and emotional wellbeing. Emerging personal care appliances, espresso coffee machines, etc, are expected to continue to benefit.
Homes are expected to become increasingly congested, and the trend is towards smaller living spaces in the longer term, thus consumers are likely to spend more on the few appliances they have, with manufacturers continuing to make advances in technological capabilities. Versatility will be a key differentiator to compete for consumers’ time and space, increase convenience and make consumers’ lives simpler.
Though artificial intelligence is not present in all small appliances categories, and might not be applicable to all in the future either, it has proven to be a revolutionary technology to reduce human intervention by helping with decision making. Where connectivity and smartness is treasured as part of the smart home and personalised experience offering (eg robotic vacuum cleaners), AI is expected to be a key differentiator to drive product performance and premiumisation.
Ecosystem partnerships have been heavily investigated by major appliances manufacturers, and are becoming pivotal for small appliances manufacturers, as the future home will be connected and smart. Such partnerships can help manufacturers seek new streams of revenue and business opportunities through bundle sales, subscriptions with consumable brands or private label, and the shared and circular economy.
Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.
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