2023
9
UK Major Domestic Appliances Market Report 2023
2023-05-04T04:07:45+01:00
OX1156415
2195
163056
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Report
en_GB
"Already impacted by a natural rebalancing of in-home demands post-pandemic, the cost-of-living crisis and housing market slowdown as a by-product have taken a toll on the major domestic appliances sector.

UK Major Domestic Appliances Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve in the major domestic appliances market and future-proof your business with Mintel’s UK Major Domestic Appliances Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry, alongside data-driven recommendations. Get a 360° view of the major domestic appliances market including market size, share and forecasted growth to help you align your business strategy with your audiences’ needs. Below, we’ve handpicked key insights from the full report.

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Topics Analysed in this Report

  • The impact of the cost of living crisis on the major domestic appliances market.
  • How this disruption impacts demand and consumers’ behaviours.
  • Consumer attitudes towards leading brands in the major domestic appliances market.
  • Opportunities and threats for the major domestic appliances market in the coming years.

Major Domestic Appliances Market Outlook

Characterised by high prices and energy-intensive nature, the major domestic appliance market is struggling, as consumers either delay or scale back on new purchases by turning to cheaper and more efficient options to mitigate energy bills and the rising cost of living. The slowdown of the housing market as a by-product of the economic downturn only serves to worsen the situation, as new movers are among the most likely to purchase major domestic appliances.

  • Major domestic appliances market size: The sector was unable to maintain its level of sales in the wake of a pandemic-driven increase, with market value in 2022 estimated to drop by 6.1% to £3.9 billion.

Major Domestic Appliances Market Trends and Innovation Opportunities

Trading down

While the major domestic appliances market is partially insulated by the fact that most purchases are necessity-driven, stretched budgets mean many consumers will research and trade down to more affordable options, or turn to repairing services in a bid to extend product lifespan. The introduction of Right to Repair legislations is likely to make repairing at home more accessible, especially given the newfound confidence in DIY as a legacy of the pandemic. Reducing the need to make new purchases, the growth of the repairing trend could hamper the path to recovery of the major domestic appliances market.

  • Major domestic appliances market challenge: 50% of UK consumers said they would be more confident in repairing a product themselves than they were before the outbreak.

Rise in energy efficiency

Soaring energy costs over the past year have renewed consumers’ focus on sustainability and energy efficiency which is now becoming a key area of growth for retailers. Tapping into this momentum, brands and retailers alike are making the path to purchase energy-efficient electrical appliances increasingly accessible, by displaying information on how energy-efficient appliances are when compared with traditional models, and how much money consumers could save in the long run.

  • Major domestic appliances market opportunity: 48% of UK consumers are willing to pay more for energy-efficient appliances.

To learn how to connect with your audience, purchase our full UK Major Domestic Appliances Market Report 2023.  Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Leading Brands in the Major Domestic Appliances Market

Beki, Samsung, Hotpoint, Bosch, Indesit, Whirlpool, Zanussi, AEG, Neff, Miele, Siemens.

Expert Insights from a Retail Analyst

This report, written by Sam Nguyen, a leading analyst, delivers in-depth commentary and analysis to highlight current trends in the major domestic appliances market and add expert context to the numbers.

Already impacted by a natural rebalancing of in-home demands post-pandemic, the cost of living crisis and housing market slowdown as a by-product have taken a toll on the major domestic appliances sector. However, disruption also opens up new areas of demand, with energy efficiency the standout performer. In fact, half of consumers are interested in and willing to pay more for appliances with this feature. The newfound confidence in home cooking will potentially fuel new purchases of kitchen appliances, opening up opportunities in the refrigeration, cooker and dishwasher markets.”

Sam Nguyen
Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for major domestic appliances
      • Figure 1: Category outlook, 2023-28
    • The market
    • Market size and forecast
      • Figure 2: Market size for major domestic appliances, 2017-27
    • Housing market slows down
      • Figure 3: Number of property residential transactions with a value of over £40,000 completed in the UK, January 2019-February 2023
    • Refrigeration takes the lion’s share
      • Figure 4: Estimated market segmentation for major domestic appliances, 2022
    • Store-based specialists consolidate position
      • Figure 5: Channels to market, 2017-22
    • Companies and brands
    • Energy efficiency leads product innovations
    • A sharp focus on profitability
    • Samsung – a brand at the top of its game
      • Figure 6: Key metrics for selected brands, 2023
    • The consumer
    • Purchasing activity drops across categories
      • Figure 7: Purchases in the past three years, 2022 and 2023
    • Beko leads the pack
      • Figure 8: What brands they purchased, 2021-23
    • Over two thirds bought major domestic appliances online
      • Figure 9: Channels of purchase, 2021-23
    • Price takes centre stage
      • Figure 10: Major domestic appliance purchase drivers, 2023
    • Almost half are willing to pay more for energy-efficient appliances
      • Figure 11: Interest in innovations, 2023
  3. Issues and Insights

    • The cost-of-living crisis puts a brake on market growth
    • Breaking out from distress buying
    • Ease of repairing is key
  4. Market Size and Performance

    • The market drops to £3.9 billion
      • Figure 12: Market size for major domestic appliances, 2017-22
      • Figure 13: Market size at current and constant prices for major domestic appliances, 2017-22
    • Purchasing activity drops to its lowest level
    • Housing market slows down
    • A newfound appreciation for energy efficiency
  5. Market Forecast

    • Market value is set to contract in 2023
      • Figure 14: Category outlook, 2023-28
    • Uncertainty lies ahead
    • Disruption also opens up new windows to the market
      • Figure 15: Market forecast for major domestic appliances, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Segmentation

    • Refrigeration takes the lion’s share
    • Separate laundry appliances preferred
    • Cooking appliances see a drop in demand
    • Dishwashers continue momentum
    • Built-in appliances are especially popular with younger and wealthier adults
      • Figure 16: Estimated market segmentation for major domestic appliances, 2022
  7. Channels to Market

    • Store-based specialists consolidate position
    • Pureplay retailers continue to challenge the market
    • DIY retailers remain upbeat
    • Department stores continue to struggle
      • Figure 17: Channels to market, 2017-22
  8. Market Drivers

    • Inflation will continue to eat into consumer spending power over the course of 2023
      • Figure 18: Annual rate of inflation, CPI and major appliances and small electrical goods, May 2022-February 2023
    • Despite government support, energy prices are still a major concern
    • Further interest rates increases will hit mortgage holders
    • Housing transactions start to slow down
      • Figure 19: Number of property residential transactions with a value of over £40,000 completed in the UK, January 2019-February 2023
    • A shift to private renting
      • Figure 20: English housing tenure, 2017/18-2021/22
    • Live births increase for the first time since 2015
      • Figure 21: Number of live births in England and Wales, 1960-2021
    • Consumer spending power will be curbed
    • Low unemployment is helping underpin
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 22: Household financial wellbeing index, 2016-23
    • …and most people are feeling the effects of price rises
  9. Competitive Strategies

    • Energy efficiency leads product innovations
    • Samsung Bespoke AITM Washer and Dryer
      • Figure 23: Samsung Bespoke AI Washer and Dryer, 2022
    • Rangemaster Classic 90 FX
    • Beko’s new integrated dishwasher with SaveWater technology
    • Smart home presents a golden opportunity
    • Added assurance for big-ticket purchases
    • A sharp focus on profitability
  10. Launch Activity and Innovation

    • Sustainability is high up the agenda
    • LG ThinQ UP upgradable appliances
      • Figure 24: LG ThinQ UP appliances, 2022
    • World-first fridge with 70% recycled plastic inner liners
      • Figure 25: World’s first fridge with 70% recycled plastic inner liner, 2023
    • Samsung x Patagonia to combat microplastics
    • Whirlpool World
    • Bringing convenience to the next level
    • Miele’s HydroClean self-cleaning oven function
      • Figure 26: HydroClean self-cleaning function on DGC HC Pro combi steam ovens, 2022
    • Haier’s I-Pro Series 5 Tumble Dryer
    • The first washing machine with Alexa built in
    • Kitchen is a core area of smart home technology
    • Samsung’s Bespoke AITM Oven
      • Figure 27: Samsung’s Bespoke AITM Oven, 2023
    • Siemens iQ700 ovens
      • Figure 28: Siemens iQ700 ovens, 2022
    • Haier debuts Series 6
    • Transforming chores into enjoyable activities
    • LG’s MoodUP
      • Figure 29: LG’s MoodUP, 2022
    • Samsung’s Bespoke 4-Door FlexTM with Family HubTM+
      • Figure 30: Samsung’s Bespoke 4-Door Flex™ with Family Hub™+, 2023
    • Health is a priority
    • Samsung ovens with various steam features
    • Beko Healthy Kitchen
    • Accentuating experiential elements in online shopping
    • Bespoke Home Meta
    • Sharp Virtual Showroom
  11. Advertising and Marketing Activity

    • Above-the-line advertising spend is highest in five years
      • Figure 31: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, 2018-22
    • Electric cookers overtake washing machines to take lion’s share of spend
      • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by product category, 2018-22
    • DSG Retail leads the pack
      • Figure 33: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by leading advertiser, 2018-22
    • A surge in TV adspend
      • Figure 34: Total above-the-line, online display and direct mail advertising expenditure on major domestic appliances, by media type, 2022
    • Advertising and marketing campaign highlights
    • Haier’s “Connected to the Extraordinary”
    • Beko launches biggest ever multichannel campaign
    • Miele’s “Quality Ahead of Its Time”
    • Nielsen Ad Intel coverage
  12. Brand Research

    • What you need to know
    • Brand map
      • Figure 35: Attitudes towards and usage of selected brands, 2023
    • Key brand metrics
      • Figure 36: Key metrics for selected brands, 2023
    • Brand attitudes: Samsung and Bosch high quality, Beko offers good value
      • Figure 37: Attitudes, by brand, 2023
    • Brand personality: Siemens exclusive, Hotpoint accessible
      • Figure 38: Brand personality – macro image, 2023
    • Samsung reliable and stylish, Indesit affordable yet basic
      • Figure 39: Brand personality – micro image, 2023
    • Brand analysis
    • Samsung: a brand at the top of its game
    • Bosch: high quality, innovative, expensive but worth paying more for
    • Hotpoint: accessible, reliable but not innovative
    • Beko: affordable but basic
    • Indesit: affordable but underwhelming experience
    • Siemens: exclusive but not reliable
    • Whirlpool: lowest trust and impersonal
  13. What They Buy

    • Purchasing activity level drops in 2023
      • Figure 40: Major domestic appliances purchased in the past three years, 2019-23
    • Laundry appliances continue to take the lead
    • A third buy a fridge or freezer
    • Cooker purchasing level drops
    • Dishwasher purchases are particularly influenced by household income
      • Figure 41: Purchases in the past three years, 2022 and 2023
    • Younger and more affluent consumers are the most active shoppers
      • Figure 42: Purchases in the past three years, by age and annual household income, 2023
    • Just under a third buy more than one appliance
      • Figure 43: Repertoire of purchases in the past three years, 2023
  14. Brands Purchased

    • Beko leads the pack
      • Figure 44: What brands they purchased, 2021-23
    • Bosch is most used by households with no children
      • Figure 45: What brands they purchased, by age and annual household income, 2023
    • Samsung most popular laundry brand
      • Figure 46: What brands they purchased, laundry appliances, 2023
    • Beko’s fridges/freezers are the most popular
      • Figure 47: What brands they purchased, fridges/freezers, 2023
    • Hotpoint leads the way in cookers
      • Figure 48: What brands they purchased, cookers, 2023
    • Bosch and Samsung are neck-and-neck for dishwashers
      • Figure 49: What brands they purchased, dishwashers, 2023
  15. Channels of Purchase

    • Over two thirds buy major domestic appliances online
    • In-store demand sees a boost
      • Figure 50: Channels of purchase, 2020-23
    • Flat dwellers are the most active in-store buyers
      • Figure 51: Channels of purchase, by description of current home, 2023
    • Computers continue to dominate
      • Figure 52: Channels of purchase, 2021-23
    • Cookers are the category most bought in-store
      • Figure 53: Channel of purchase, by appliance purchased, 2023
  16. Key Purchase Drivers

    • Price takes centre stage
    • Fast delivery is key
      • Figure 54: Major domestic appliance purchase drivers, 2023
    • A keen interest in extending product lifecycle
      • Figure 55: Major domestic appliance purchase drivers, by type of appliance purchased, 2023
    • Flexible payment options are an important competitive advantage
      • Figure 56: TURF Analysis – Major Domestic Appliances, 2023
      • Figure 57: Table – TURF Analysis – Major Domestic Appliances, 2023
    • Priorities differ across different demographics…
      • Figure 58: Major domestic appliance purchase drivers, by age and annual household income, 2023
    • …as well as across purchase channels
      • Figure 59: Major domestic appliance purchase drivers, by purchase channel, 2023
  17. Consumer Interest in Innovations

    • Almost half are willing to pay more for energy-efficient appliances
    • High levels of interest in appliances with low noise levels
      • Figure 60: Interest in innovations, 2023
    • Almost nine in 10 are interested in appliances designed to be easily repaired
    • Consumers are more willing to pay more for energy-efficient laundry appliances
      • Figure 61: Willingness to pay more for laundry appliance innovations, 2023
    • Above-average interest in fridges/freezers that add ease to daily lives
      • Figure 62: Willingness to pay more for fridge/freezer innovations, 2023
    • Dishwasher buyers are the most receptive to new innovations
      • Figure 63: Willingness to pay more for dishwasher innovations, 2023
    • Smart cookers are in demand
      • Figure 64: Willingness to pay more for cooker innovations, 2023
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  19. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 65: Market size, best- and worst-case scenario forecasts, 2022-27
    • Market drivers and assumptions
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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*databooks not available with UK B2B Industry reports.

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