The domestic appliances market has seen a significant uptick in the first half of 2024, with an impressive 18% growth in value, according to a report from GfK, now an NIQ Company, a prominent global market and consumer intelligence firm. This growth marks a substantial increase compared to the previous year, with a threefold rise over 2023.
Small domestic appliances have particularly stood out, recording a remarkable 29% increase in value. This surge reflects a growing consumer interest in home convenience products and the desire for innovative and feature-rich items. Customers are increasingly seeking premium products that offer enhanced performance, driving the value growth in the appliance segment.
Key categories such as air conditioners and refrigerators have been instrumental in driving the growth of major domestic appliances. Air conditioners reported a robust 30% increase in value, while refrigerators saw a 7% growth. The demand for essential household items has been a significant factor contributing to the overall growth of the market.
Washing machines with capacities of 9kg or above have witnessed an impressive growth rate of 30%, as consumers seek improved performance and innovative features. Similarly, the air conditioner segment has seen a surge in demand for energy-efficient and high-performance models, with a 59% increase in the split inverter and 5-star segments.
Cooling appliances, such as refrigerators, have also experienced growth, with an 11% increase in the side-by-side, French door, and 3/4 door segments. The report highlights that despite these gains, there are significant opportunities for industry expansion due to the relatively low penetration of these products in the market.
In contrast, the smartphone and mobile phones segment saw a 6% reduction in volume, offset by a substantial 10% increase in overall value. The smartphone segment, in particular, registered a 12% increase in value, indicating a shift towards higher-value products in this category.
India has emerged as the fastest-growing market for consumer tech and durables, with a strong Purchasing Managers’ Index (PMI) reading and declining inflation rates. The report predicts that by 2030, the middle class in India will outspend the upper class, driven primarily by growth in Asia. Half of the world’s population is expected to belong to the middle class, underscoring the potential for continued growth in the region.
Overall, the domestic appliances market has shown promising growth in the first half of 2024, driven by consumer preferences for convenience, performance, and innovation. With increasing demand for premium products and the rise of emerging markets like India, the industry is poised for further expansion in the coming years.
Consumer Preferences Driving Market Growth
The shift towards feature-rich and premium products in the domestic appliances market has been a significant driver of growth. Consumers are increasingly seeking products that offer enhanced performance, innovative features, and convenience. This trend is evident in the strong demand for washing machines with larger capacities and energy-efficient air conditioners. The focus on quality and value has propelled the market forward, with customers willing to invest in products that meet their evolving needs.
Opportunities for Industry Expansion
Despite the recent growth in the domestic appliances market, there are still ample opportunities for industry expansion. The relatively low penetration of products such as washing machines, air conditioners, and refrigerators presents a promising outlook for manufacturers and retailers. As consumer preferences continue to evolve and demand for premium products rises, there is potential for further market growth and diversification. By tapping into emerging markets and offering innovative solutions, industry players can capitalize on these opportunities and drive future success.