IndexBox has just published a new report: ‘EU – Domestic Appliances – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.
The second half of 2020 saw an unprecedented increase in demand for household appliances, as during the lockdown people started to use domestic equipment more intensively. While enjoying buoyant growth, producers are to adjust to higher standards in terms of energy efficiency and reducing waste.
Key Trends and Insights
In April 2020, Eurostat data indicates the EU manufacture of electric domestic appliances fell by 55.3% against the same period of 2019. In the second half of 2020, however, the production accelerated, enabling the total 2020’s result to remain near $40B (IndexBox’s estimate in wholesale price). During the lockdown, people started to use domestic equipment more intensively, focusing on the improvement and hygiene of their environment.
Since 2020, e-commerce emerged among key domestic appliance sales channels. Against Covid restrictions and heightened demand, it even led to delays in deliveries in some cases, until sellers adapted to new delivery conditions.
Following the European Green Deal, the energy efficiency of domestic appliances is seeing continuous improvement. Over the last two years, there have been notable advances in terms of fridge, TV and domestic fan appliances. Energy-efficient LED lamps and solar panels are increasingly being used in domestic appliance manufacture. As of March 2021, the EU introduced new energy efficiency labelling standards. The new labelling scale is now much stricter than its previous counterpart and has been designed so that very few appliances can be awarded the ‘A’ efficiency standard mark. That increases the scope for more energy-efficient products to be included under this standard in the future.
Manufacturers are now obliged under the EU standards to provide a 10-year warranty for equipment. This is to benefit users with increasing equipment reliability and reduced waste. On the other hand, it may lead to rising prices for appliances in the future, as manufacturers will incorporate the cost of maintaining the stock of appliance spare parts for 10 years into the selling price.
Germany, the UK and Italy to Remain the Main Consuming Countries
The countries with the highest volumes of domestic appliances consumption in 2019 were the UK (226M units), Germany (207M units) and Italy (185M units), together comprising 43% of total consumption. France, Spain, the Netherlands, Poland, Romania, Belgium, the Czech Republic, Sweden and Hungary lagged somewhat behind, together comprising a further 45% (IndexBox estimates).
From 2012 to 2019, the biggest increases were in the Czech Republic, while domestic appliance consumption for the other leaders experienced more modest paces of growth.
In value terms, Germany ($8B), the UK ($6.1B) and France ($6B) were the countries with the highest levels of market value in 2019, with a combined 44% share of the total market. Italy, Spain, Poland, the Netherlands, Belgium, Sweden, Romania, the Czech Republic and Hungary lagged somewhat behind, together accounting for a further 41%.
The countries with the highest levels of domestic appliances per capita consumption in 2019 were the Netherlands (4.81 units per person), the Czech Republic (4.34 units per person) and Belgium (4.34 units per person).
In 2019, Germany (313M units), distantly followed by the UK (189M units), France (168M units), the Netherlands (132M units), Italy (105M units) and Spain (74M units) were the largest importers of domestic appliances, together achieving 69% of total imports. Poland (62M units), Belgium (54M units), Hungary (41M units), Sweden (37M units), Romania (35M units), the Czech Republic (32M units) and Austria (30M units) held a minor share of total imports.
From 2012 to 2019, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Romania, while imports for the other leaders experienced more modest paces of growth.
In value terms, Germany ($9.8B), France ($6.5B) and the UK ($5.6B) constituted the countries with the highest levels of imports in 2019, with a combined 44% share of total imports. These countries were followed by Italy, the Netherlands, Spain, Poland, Belgium, Sweden, Austria, the Czech Republic, Hungary and Romania, which together accounted for a further 43% (IndexBox estimates).
Source: IndexBox AI Platform