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Description

Description

“The market has grown strongly in the last two years, with expenditure rising with the return of real wage growth, price deflation and robust consumer confidence. Within the market, there are avenues for growth in space-saving innovations, connected tech and the UK’s mounting interest in health and wellbeing. However, the year ahead will be a testing period for retail, one marked by caution in line with the general election and the UK’s formal exit from the EU.”
Marco Amasanti, Retail Analyst

This report looks at the following areas:

  • The opportunity for small domestic appliances in the burgeoning smart home market
  • Increasingly cramped homes underpin the need for space-saving appliances
  • How will consumer confidence fare in the year ahead?

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Consumer spending on small domestic appliances rises by 7.5%...
              • Figure 1: Consumer spending on small domestic appliances, 2014-24
            • Interest in health and wellbeing drives small kitchen and air treatment appliance sales
              • Figure 2: Estimated consumer spend on small domestic appliances, by segment, 2019
            • Price deflation and wage growth buoy consumer confidence
              • Online-only players consolidate, while multichannel integration grows crucial
                • Companies and brands
                  • Space-saving solutions lead the way in innovation
                    • Advertising spend fell by 8.9% in 2018
                      • Consumers are happy to pay more for Bosch and Dyson appliances
                        • Morphy Richards should build on its strengths to revamp its brand
                          • The consumer
                            • Appliance ownership is near-universal
                              • Over two thirds of consumers made a purchase in the past year
                                • Figure 3: Small domestic appliances purchased in the past 12 months, August 2019
                              • Price remains paramount in deciding purchases
                                • Figure 4: Important factors when deciding what to buy, August 2019
                              • The majority of purchases are made online, but stores remain essential
                                • Figure 5: How consumers bought their small domestic appliance, August 2019
                              • Amazon takes the crown as top retailer
                                • Figure 6: Where they shop, August 2019
                              • The prioritisation of price and product range drive consumers online
                                • Figure 7: Reasons for selecting retailer, August 2019
                              • The lack of space limits newer uptake
                                • Figure 8: Use and purchase of small domestic appliances, August 2019
                              • Health-consciousness and tech advancements drive opportunities for future growth
                                • Figure 9: Attitudes towards small domestic appliances, August 2019
                              • What we think
                              • Issues and Insights

                                • The opportunity for small domestic appliances in the burgeoning smart home market
                                  • The facts
                                    • The implications
                                      • Increasingly cramped homes underpin the need for space-saving appliances
                                        • The facts
                                          • The implications
                                            • How will consumer confidence fare in the year ahead?
                                              • The facts
                                                • The implications
                                                • The Market – What You Need to Know

                                                  • Consumer spending rises by 7.5%...
                                                    • …but this is forecast to contract with uncertainty ahead
                                                      • Innovation and mounting interest in health drive sector sales
                                                        • Price deflation and wage growth boost new uptake
                                                          • Consumer confidence rises despite uncertainty
                                                            • Online-only players consolidate, while multichannel proves crucial
                                                            • Market Size and Forecast

                                                              • Price deflation and wage growth buoy new purchases amid uncertainty…
                                                                • …but uncertainty could intensify with the general election and new Brexit date
                                                                  • Figure 10: Consumer spending on small domestic appliances, 2014-24
                                                                  • Figure 11: Consumer spending on small domestic appliances, 2014-24
                                                                • Forecast methodology
                                                                • Market Segmentation

                                                                  • Vacuum cleaner innovation drives sales
                                                                    • Health-conscious consumers champion air fryers and air purifiers
                                                                      • Coffee connoisseurs compensate for the contraction in capsules
                                                                        • Figure 12: Estimated consumer spend on small domestic appliances, by segment, 2019
                                                                        • Figure 13: Estimated consumer spend on small domestic appliances, by segment, 2019
                                                                    • Market Drivers

                                                                      • The return of real wage growth
                                                                        • Figure 14: Great Britain average weekly earnings annual growth rate, total pay (real), May 2014-May 2019
                                                                      • Inflation in the market has fallen since the turn of the year
                                                                        • Figure 15: Monthly CPIH, % growth on previous year, August 2018-August 2019
                                                                      • Consumer confidence remains resilient despite uncertainty
                                                                        • Figure 16: Consumer confidence in the state of their finances and their finances compared to the previous year, January 2017-October 2019
                                                                      • Consumers continue to take on credit
                                                                        • Figure 17: Monthly consumer credit gross lending (excluding student loans), August 2017-August 2019
                                                                      • Housing transactions remain high despite recent cooldown
                                                                        • Figure 18: Number of residential housing transactions over £40,000, 2009-18
                                                                      • The UK’s growing weight problem opens an opportunity for health aids in the kitchen
                                                                        • Figure 19: Consumers’ perceptions of the healthiness of their habits, August 2018
                                                                        • Figure 20: Trends in BMI, England, 1995-2017
                                                                      • Connoisseurs drive demand for coffee appliances
                                                                        • Figure 21: Types of coffee drunk, June 2019
                                                                      • Promotions and sales
                                                                        • Figure 22: Electrical items purchased during Black Friday 2017, by age, December 2017
                                                                      • Small domestic appliances remain a popular gift option
                                                                      • Channels of Distribution

                                                                        • Online-only consolidates as the purchasing journey migrates online
                                                                          • Argos and Currys lead the way in multichannel retail
                                                                            • Department stores struggle amid high street uncertainty
                                                                              • Figure 23: Estimated channels of distribution, 2019
                                                                          • Companies and Brands – What You Need to Know

                                                                            • Space-saving solutions lead the way in innovation
                                                                              • Advertising spend fell by 8.9% in 2018
                                                                                • Consumers are happy to pay more for Bosch and Dyson appliances
                                                                                  • Morphy Richards should build on its strengths to revamp its brand
                                                                                  • Launch Activity and Innovation

                                                                                    • Never run out of coffee again
                                                                                      • Figure 24: illy Y5 Espresso and Coffee Machine with integrated Amazon Dash Replenishment System, October 2019
                                                                                    • LG targets Artificial Intelligence with the ThinQ home appliance brand
                                                                                      • Heatworks launches a space-saving countertop dishwasher…
                                                                                        • Figure 25: Heatworks Tetra, October 2019
                                                                                      • …and a battery-powered, temperature-controlling kettle
                                                                                        • Figure 26: Heatworks Duo Carafe, October 2019
                                                                                      • Nespresso launches its smallest ever coffee machine
                                                                                        • Smart kettle integrates biometrics to make the perfect brew
                                                                                          • The ‘future of blending’
                                                                                            • Panasonic eyes up wellbeing in the kitchen
                                                                                            • Advertising and Marketing Activity

                                                                                              • 8.9% drop in advertising spend in 2018
                                                                                                • Figure 27: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, 2015-2018
                                                                                              • Advertising spend peaks in Q4
                                                                                                • Figure 28: Total above-the-line, online display and direct mail advertising expenditure on small domestic appliances, Q1-Q4 2018
                                                                                              • Vacuum cleaner brands step up advertising amid growing competition
                                                                                                • Figure 29: Top 10 spenders on above-the-line, online display and direct mail advertising on small domestic appliances, 2015-2018
                                                                                              • TV dominates total spend
                                                                                                • Figure 30: Recorded above-the-line, online display and direct mail total advertising expenditure on small domestic appliances, by media type, 2015-2018
                                                                                              • Leaders favour TV, but adopt varied advertising strategies
                                                                                                • Figure 31: Recorded above-the-line, online display and direct mail total advertising expenditure on small domestic appliances, by advertiser and media type, 2018
                                                                                              • Campaign highlights
                                                                                                • Gtech sings up with Channel 4 for Gogglebox sponsorship
                                                                                                  • A work of art for worktops: Russell Hobbs launches new digital campaign
                                                                                                    • ‘Cordless’ Dyson banned by the Advertising Standards Authority
                                                                                                      • Nielsen Ad Intel coverage
                                                                                                      • Brand Research

                                                                                                          • Brand map
                                                                                                              • Figure 32: Attitudes towards and usage of selected brands, October 2019
                                                                                                            • Key brand metrics
                                                                                                              • Figure 33: Key metrics for selected brands, October 2019
                                                                                                            • Brand attitudes: Dyson at the forefront of innovation
                                                                                                              • Figure 34: Attitudes, by brand, October 2019
                                                                                                            • Brand personality: Kenwood and Russell Hobbs champion accessibility
                                                                                                              • Figure 35: Brand personality – Macro image, October 2019
                                                                                                            • Morphy Richards could do with strengthening its brand image
                                                                                                              • Figure 36: Brand personality – Micro image, October 2019
                                                                                                            • Brand analysis
                                                                                                              • Consumers are happy to pay more for Bosch’s consistently high quality
                                                                                                                • Figure 37: User profile of Bosch, October 2019
                                                                                                              • Kenwood’s accessible and affordable brand lends itself to younger shoppers
                                                                                                                • Figure 38: User profile of Kenwood, October 2019
                                                                                                              • Russell Hobbs appeals to old and young shoppers alike
                                                                                                                • Figure 39: User profile of Russell Hobbs, October 2019
                                                                                                              • Dyson championed by older, rural homeowners
                                                                                                                • Figure 40: User profile of Dyson, October 2019
                                                                                                              • Morphy Richards lacks a point of difference, and struggles among younger consumers
                                                                                                                • Figure 41: User profile of Morphy Richards, October 2019
                                                                                                            • The Consumer – What You Need to Know

                                                                                                              • Appliance ownership is near-universal
                                                                                                                • Over two thirds of consumers made a purchase in the past year
                                                                                                                  • Price remains paramount in deciding purchases
                                                                                                                    • The majority of purchases are made online, but stores remain essential
                                                                                                                      • Amazon takes the crown as top retailer
                                                                                                                        • The prioritisation of price and product range drive consumers online
                                                                                                                          • The lack of space limits newer uptake
                                                                                                                            • Health and tech advancements drive opportunities for future growth
                                                                                                                            • Ownership of Small Domestic Appliances

                                                                                                                              • Kettles and toasters dominate worktops
                                                                                                                                • Figure 42: Ownership of small domestic appliances, August 2019
                                                                                                                              • Younger consumers look to less traditional appliances
                                                                                                                                • Figure 43: Ownership of small domestic appliances, by age, August 2019
                                                                                                                              • Ownership peaks among settled dwellers
                                                                                                                                • Figure 44: Ownership of small domestic appliances, by duration in dwelling, August 2019
                                                                                                                              • Ownership is widespread
                                                                                                                                • Figure 45: Repertoire analysis of small domestic appliances ownership, August 2019
                                                                                                                            • Purchases of Small Domestic Appliances

                                                                                                                              • Two thirds of consumers purchased an appliance in the past year
                                                                                                                                • Figure 46: Small domestic appliances purchased in the past 12 months, August 2019
                                                                                                                              • Younger consumers spearhead demand
                                                                                                                                • Figure 47: Small domestic appliances purchased in the past 12 months, by age, August 2019
                                                                                                                              • However, vacuum cleaners top spending
                                                                                                                                • Figure 48: Small domestic appliances that consumers spent the most on in the past 12 months, August 2019
                                                                                                                            • Important Factors When Deciding What to Buy

                                                                                                                              • Price remains king…
                                                                                                                                • …but the importance of functionality is evolving
                                                                                                                                  • The need for style and brand grows among more affluent consumers
                                                                                                                                    • Figure 49: Important factors when deciding what to buy, August 2019
                                                                                                                                  • Essential appliances spearhead the need for price
                                                                                                                                      • Figure 50: Important factors when deciding what to buy, by purchases in the last 12 months, August 2019
                                                                                                                                  • How Consumers Bought their Small Domestic Appliance

                                                                                                                                    • Online channels consolidate in purchasing journey
                                                                                                                                      • The development of multichannel…
                                                                                                                                        • …as stores remain essential for many
                                                                                                                                            • Figure 51: How consumers bought their small domestic appliance, August 2019
                                                                                                                                          • Consumers increasingly confident of buying big-ticket products online
                                                                                                                                              • Figure 52: How consumers bought their small domestic appliance, by purchases, August 2019
                                                                                                                                          • Where They Shop

                                                                                                                                            • Amazon takes the top spot
                                                                                                                                              • Argos holds strong despite takeover upheaval
                                                                                                                                                • Currys dominates the specialists
                                                                                                                                                  • Supermarkets still account for a third of consumers
                                                                                                                                                    • Figure 53: Where they shop, August 2019
                                                                                                                                                  • Many consumers still seek the assurance of stores in larger purchases
                                                                                                                                                    • Supermarkets remain the domain of cheaper purchases
                                                                                                                                                      • Figure 54: Purchases in the last 12 months, by retailers purchased from, August 2019
                                                                                                                                                    • The majority of in-store shoppers stuck to one store
                                                                                                                                                      • Figure 55: Repertoire analysis of where they shop in-store, August 2019
                                                                                                                                                    • Online shoppers were more likely to visit multiple retailers
                                                                                                                                                      • Figure 56: Repertoire analysis of where they shop online, August 2019
                                                                                                                                                  • Reasons for Selecting Retailer

                                                                                                                                                    • The prioritisation of price and product range favour online retailers…
                                                                                                                                                      • …but retailers with stores benefit from trust and local presence
                                                                                                                                                        • Figure 57: Reasons for selecting retailer, August 2019
                                                                                                                                                    • Use and Purchase of Small Domestic Appliances

                                                                                                                                                      • Daily appliance use is near-universal, but some products sit forgotten
                                                                                                                                                        • The lack of space is a growing concern
                                                                                                                                                          • Product reviews take centre stage as browsing migrates online
                                                                                                                                                            • Figure 58: Use and purchase of small domestic appliances, August 2019
                                                                                                                                                          • New movers head to the sales
                                                                                                                                                            • Figure 59: Use and purchase of small domestic appliances, by duration in home, August 2019
                                                                                                                                                        • Attitudes towards Small Domestic Appliances

                                                                                                                                                          • Consumers low on space spearhead the need for storage solutions
                                                                                                                                                            • Time-pressed consumers look to self-cleaning features
                                                                                                                                                              • Burgeoning interest in health and wellbeing is a major avenue for growth
                                                                                                                                                                • Over a third of younger consumers would be interested in rental
                                                                                                                                                                  • Figure 60: Attitudes towards small domestic appliances, August 2019
                                                                                                                                                                • The perceived need for in-store visits limited by location
                                                                                                                                                                  • Figure 61: Agreement with the statement 'It is necessary to visit a store when buying small domestic appliance purchases', by area, August 2019
                                                                                                                                                                • Older consumers remain sceptical of connected tech
                                                                                                                                                                  • Figure 62: Agreement with the statement 'Small domestic appliances with connected smart technologies are appealing', by age, August 2019
                                                                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                  • Abbreviations
                                                                                                                                                                    • Consumer research methodology
                                                                                                                                                                    • Appendix – Market Size and Forecast

                                                                                                                                                                      • Forecast methodology

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