Los Angeles, CA (PRWEB) June 06, 2013
Products in the Global Household Cooking and Appliance Manufacturing industry include major appliances like refrigerators and dishwashers as well as small electric appliances like food mixers and irons. As such, demand for the industry is consumer driven and determined by disposable income, consumer spending, growth in emerging economies and the global population's rate of household formation. Weak consumer spending in many developed countries since late 2008 has hurt industry demand. During this time, very competitive industry conditions caused decreases in manufacturers' selling prices. “However, limiting industry declines, the industry has benefited from increased demand for energy-efficient appliances during a time of mounting energy prices,” says IBISWorld industry analyst Lauren Setar. As weak consumer confidence in developed countries adversely affected industry growth, greater demand for home appliances in emerging countries like China, India and Brazil helped offset this decline in demand.
Due to improving consumer spending and growth in emerging markets, moderate industry growth has returned since 2010. However, this growth has been slow due to continued weakness in the global economy and downward pressure on selling prices. Luckily, industry revenue is expected to increase 3.2% in 2013 due to higher consumer spending. As a result of all these trends, revenue is expected to fall at an annualized rate of 0.1% in the five years through 2013 to reach $225.2 billion. Over the next five years, the industry is expected to grow due to a strengthening global economy, including greater consumer spending, growth in emerging economies and a larger population requiring household appliances. Additionally, the industry will benefit from increased demand for energy-efficient and environmentally friendly household appliances.
Furthermore, brand owners are expected to continue outsourcing manufacturing operations in the next five years. By outsourcing production, large contract manufacturers can be more efficient and achieve a lower per-unit cost of production. By outsourcing manufacturing operations, brand owners can focus more on research and development, sales and marketing. Nevertheless, some operators will keep manufacturing operations in-house to protect intellectual property. According to Setar, the four largest players in the Global Household Cooking and Appliance Manufacturing industry are expected to account for less than 30.0% of industry revenue in 2013. As a result, the industry has a low level of concentration; however, concentration varies by market segment and by region, and can be relatively high in specific markets. For example, the top four major appliance manufacturers in the United States are estimated to account for more than 90.0% of major appliance production in the United States. Likewise, a handful of Japanese major appliance manufacturers account for a large share of the Japanese major appliance market. The same trend is apparent in Western Europe as well. A single company in Turkey has about half of the major household appliance market in that country. For more information, visit IBISWorld’s Global Household Cooking & Appliance Manufacturing industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture both major and small electric appliances for household use. Products manufactured by the industry include laundry equipment, refrigerators, freezers, dishwashers, irons, food mixers, humidifiers and shavers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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