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Summary of our market study
The global market for large electrical appliances is growing steadily, with an expected compound annual growth rate of 6.5% between 2023 and 2033, aiming to reach a market value of $1300 billion. Despite a slowdown in 2020 due to the COVID-19 pandemic, with sales falling to 3.60 billion euros in France, the market showed signs of recovery, with a slight increase in sales to 4.33 billion euros in 2022. The French market has seen a decline in the number of companies and employees in the manufacturing sector, with Whirlpool and China's Haier relocating part of their production abroad.
In addition, e-commerce has gained momentum, further impacting physical appliance outlets. The industry is investing heavily in energy-efficient and connected appliances, adhering to new regulations such as the AGEC law and European directives that emphasize sustainability and reparability. Despite these regulatory pressures and changing consumer demands, industry players foresee increased interest in greener, more technologically advanced products in the sector.
Market trends and analysis in France
The French market for major household appliances, while generally robust, has seen varied performances across segments. In recent years, the market has been driven by substantial growth, particularly in 2021, when it jumped by 10.8%, reaching a valuation of around 6 billion euros. However, it is clear that the trajectories of the different segments of the large electrical appliance sector have diverged. The refrigeration segment proved resilient and recorded growth, with sales up a modest 2% on the previous year.
By contrast, the cooking and washing appliance market segments both recorded a slight decline in sales. As for e-commerce, its rise has had a palpable impact on the traditional retail landscape, as evidenced by the decline in the number of companies and employees in the home appliance manufacturing sector in France. This industry has contracted considerably, with a significant reduction in the number of companies and the workforce over a period of around twelve years. Notably, despite this contraction, a certain stability in activity levels has been maintained since 2015, although challenges persist, with cases of production relocation to other countries such as Poland and Turkey.
Consumer demand for large electrical appliances (LEA) is closely linked to household purchasing power, which has been on a downward trend in recent times. As the French population has lost purchasing power, the propensity to invest in major appliances has logically declined.
Rising interest rates on consumer credit have further dampened the appetite for such major household investments. Price considerations remain important, as energy-efficient appliance categories are generally more expensive than their less efficient equivalents. Despite the variations, average prices for large appliances appear to have stabilized somewhat over the past two years, before the onset of general inflation.
Growing consumer interest in connected appliances is a major trend affecting both supply and demand in the household appliance market. Innovations such as Samsung's Twin Convection™ technology and Daan Tech's Bob mini dishwasher illustrate the market's push towards practical, multifunctional and intelligent products. What's more, the smart home market is developing rapidly, with an increasing number of households adopting connected home automation equipment.
In France, the penetration rate of smart home equipment is expected to continue its upward trajectory. In addition to technological advances, attention to the repairability and durability of products has intensified. French regulations now include measures to promote the repair and circular economy of household appliances, encompassing aspects such as repair.
Major players shaping the future of the home appliances market
The home appliances market is undergoing substantial transformation, influenced by technological advances and shifting consumer priorities towards sustainability and connected living. Among the illustrious names that continue to lead and innovate in this landscape, several stand out for their commitment to green practices, energy efficiency and smart home integration.
- Whirlpool Corporation: A veteran of the appliance industry, Whirlpool has built a solid reputation for reliability and innovation. With a diverse portfolio of appliances that meet a myriad of household needs, Whirlpool remains a trusted brand for consumers. The company is not content to rest on its laurels; it is actively committed to greener technologies and improved energy efficiency.
- Hisense: Known for its electronics and home appliances, Hisense has carved out a place for itself on the market. The brand is recognized for the quality and affordability of its products. Hisense has shown a willingness to embrace new technologies and maintain a competitive edge, particularly in the connected devices segment.
- Beko: Beko is an emerging household appliance powerhouse that is turning heads thanks to its price-competitive yet quality-focused approach. The company is strongly committed to sustainability, making substantial investments to ensure that its products meet consumers' growing ecological awareness.
- Miele: Miele has long been synonymous with excellence and sustainability in household appliances. The brand is synonymous with top-of-the-range products that offer longevity and superior performance. Miele's approach to the appliance market is characterized by meticulous engineering and a focus on the user experience.
- BSH Hausgeräte: As the manufacturer of several well-known appliance brands, BSH Hausgeräte is an industry behemoth. The company is known for its capacity for innovation, particularly in the field of smart, connected appliances that cater to modern lifestyles.
- Electrolux Laundry Systems: By focusing on the laundry segment, Electrolux has provided consumers with efficient and innovative laundry solutions. The company's emphasis on user-friendly design and environmental sustainability makes it a formidable name in laundry appliances.
- Groupe SEB: Groupe SEB is a French conglomerate with a myriad of small appliance brands. The group has established itself as a major player in the sector, renowned for its diverse product offerings covering various categories, always with a focus on innovation.
- Dyson: A company that began by revolutionizing vacuum cleaner technology, Dyson has since extended its reach to various categories of household appliances, and is known for its cutting-edge products.
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Summary and extracts
1 Market overview
1.1 Definition and scope of the study
Household appliances include all appliances designed to meet domestic needs and powered by electricity. Large appliances, on the other hand, are those of significant size.
Three segments have been established to classify the various products on the market:
- refrigeration, which includes refrigerators, freezers and wine cellars ;
- cooking, which includes electric ovens, hobs, extractor hoods, microwaves and stoves;
- washing, which includes washing machines, dishwashers and tumble dryers.
The global market is doing rather well, with some forecasts suggesting an average annual growth rate of 4% between 2021 and 2025.
At national level, sales in the sector have stagnated in 2022, despite a slight contraction in the cooking and washing segments, offset by an increase in the refrigeration segment (+2.6% compared to 2021).
Innovation is the key to regaining sustainable growth momentum in the large electrical appliances market.
1.2 The global market for large electrical appliances is growing
Global market size for major household appliances World, ****-****, in billions of dollars Source: ****
Sales in the household appliances market are expected to grow at a compound annual growth rate of *.*% between **** and ****, reaching a value of $**** billion by the end of this period.
There are several factors behind this strong market growth. The main factors are the increase in the world's population, the rise in GDP per capita, the increase in Internet access, the rise in the number of smartphone users and the growing size of the working population.
In addition to this rise in volume demand, increasing urbanization, the gradual adoption of the Internet of Things, and successive changes in consumer desires and lifestyles are expected to drive a rise in market value.
The main domestic market is the USA, ahead of China. However, the dominant segments are not the same in these two countries. In the United States, the dominant segment is personal care, while in China, cooking dominates.
1.3 The French market: solid fundamentals
Size of the French large electrical appliances market France, ****-****, in billions of euros Source: ****
The large electrical appliance market has grown significantly over the past three years. After rising by **.*% in ****, market size has reached €*.* billion in ****.
Breakdown of sales by major electrical appliance sector in value terms France, ****, in Source: ****
The only GEM segment to see an increase in sales in **** is the refrigeration segment (***).
2 Demand analysis
2.1 The main determinants of demand for GEM
Change in purchasing power versus previous year France, **** - ****, in Source: ****
Purchasing power is one of the primary determinants of demand for GEM. However, French households have suffered a loss of purchasing power in ****. Indeed, a large proportion of purchases of major household appliances are made using a share of the household's disposable income. So, if disposable income falls, so does the propensity to buy major appliances.
But this type of purchase can also be made using consumer credit. So it's worth looking at the price of such a loan.
Consumer credit interest rate trends France, ****-****, in Source: ****
Interest rates have been rising steadily since ****, which may discourage demand for GEM. Finally, device prices are also a key determinant of demand in the sector. The table below lists these prices by energy class.
2.2 France's favorite household appliance brands
The graph below is based on OpinionWay's survey of French consumers' favorite brands in February ****. These are the responses to the question "Do you like this or that brand of major household appliance? For each brand, the percentage corresponds to the proportion of respondents who answered "yes".
Whirlpool is France's favorite brand of major household appliance, with **.*% of respondents saying they liked the brand. LG was founded in Korea in ****, and enjoys the trust of customers thanks to its long history.
Beko is the least appreciated household appliance brand, with **.*% of those surveyed saying they liked it. Beko is a Turkish brand that offers home appliances at lower prices than other competing brands.
France's favorite brands of major household appliances France, March ****, in Source: ****
The graph below compares the approval ratings of several household appliance brands by age category. Brand appreciation rates for respondents aged ** to ** are lower than those for older respondents. The proportion of respondents who say they like the different brands of household appliances increases with age. Preferred major household appliance brands of the French by age category France, March ****, in % Source: ****
2.3 GEM demand by category
Source: ****
The table above details for each major appliance category the size of the installed base in **** (***), the number of appliances sold in ****, and the penetration rate for each type of appliance.
2.4 The growing success of connected household appliances
As the graph below shows, with over half of all households already equipped with connected home automation equipment, the American smart home market is by far the most developed. Penetration rates are comparatively much lower in Europe, although northern countries tend to be more advanced in this respect than southern ones. The proportion of households equipped varies, for example, from **% in Spain to over **% in the UK, and is estimated at **% in France As the écart with **** figures, the democratization of the connected home continues apace, and it is estimated that over **% of French households will be equipped with this kind of device by ****.
Penetration rate of smart housing equipment Selected countries, Digital News Report
Following this trend, we're also seeing the development of connected small appliances. Technological advances and the Internet of Things (***) have enabled household appliances to evolve towards greater intelligence and interconnectivity. For example, connected coffee machines are now able to synchronize with smartphones, allowing you to brew your favorite coffee remotely, or even adjust the strength and temperature of coffee from your bed. Intelligent robot vacuum cleaners are another compelling example. They can be controlled via a mobile app, enabling users to schedule cleaning sessions remotely or ...
3 Market structure
3.1 Concentration of production and the rise of e-commerce
Number of companies and employees manufacturing household appliances France, ****-****, in units Source: ****
The number of companies operating in household appliance manufacturing has been on a downward trend for several years, with the number of companies declining by **.*% between **** and ****, while the number of employees fell by **.*% over the same period. Since ****, the fall in activity seems to have been halted, and both variables have shown a degree of stability. Nevertheless, pressure on employment and production remains, and some operators continue to relocate parts of their production. Examples include Whirpool, which has transferred its Amiens plant to Poland, and China's Haier, which intends to relocate its production to Turkey in ****. [***]
Number of employees and companies in household appliance retail stores France, ****-****, in units Source: ****
Household appliance retail outlet closures have also registered strong growth sincethe number of employees fell by almost a quarter between **** and ****, while the number of companies fell by an even more significant -**.*% over the same period. Since ****, the downward trend has been less pronounced, but is continuing nonetheless.
E-commerce sales France, ****-****, Billions of euros Source: ****
among the factors behind this decline, the strong growth in online sales has reduced the need for physical retailers ...
3.2 Household appliance manufacturers
The household appliances market has fluctuated in terms of sales in billions of euros in recent years. In ****, sales were *.** billion euros, a figure that remained stable in ****. However, in ****, there was a significant drop to *.** billion euros, due to the effects of the COVID-** pandemic. In ****, a slight upturn was observed, with sales of *.** billion euros. Finally, in ****, sales rose slightly to *.** billion euros, showing a gradual market recovery.
Market size for household appliances France, ****-****, in billions of euros Source: ****
Geographical breakdown of appliance manufacturers
Source: ****
Production is concentrated in the Pays de la Loire, Grand Est, Centre-val de Loire and Auvergne-Rhône-Alpes regions of France. Major companies include Brandt, BSH and Eurocave.
3.3 The distribution network for household appliances
Source: ****
The household appliance distribution network
Home appliance distribution is traditionally organized around three main networks:
Specialized superstores: Fnac, Darty, Boulanger, etc. Food superstores: Carrefour, Lidl, etc. Local stores: Gitem, Pro&Cie, Pulsat, etc Kitchens
Today, however, e-commerce is competing with these traditional distribution networks, with a number of leading players, the main ones of which are illustrated in the chart below.
Market share of distribution channels France, % of total sales by value, **** GfK
Below is a graph illustrating the dynamics driving the distribution network:
Changes in the structure of household appliance distribution by value France, **** - ****, in Source: ****
We can see that GSS is gaining in importance in the distribution circuit, to the detriment of GSA.
3.4 Industry news
The large electrical appliance market in France is going through a difficult period, with significant declines in sales volumes, reaching around -**.*% in volume and -*.*% in value between June **** and June ****. This trend can be explained by several factors, including the aftermath of the health crisis, unfavorable weather conditions, and a possible shift in sales to repair.
Consumer preferences point to a growing demand for greener, higher-quality appliances, with **% of retailers forecasting an acceleration towards more environmentally-friendly and energy-efficient products by ****.
Companies in the sector are investing in initiatives focused on energy efficiency and sustainability, with significant amounts such as Beko's €*** million investment over three years. Historic manufacturers, including Whirlpool, Hisense and Beko, are committing to more sustainable and energy-efficient production practices.
Despite the current challenges, some players remain optimistic about the future of the major appliances market, highlighting the opportunities linked to the growing demand for energy-saving and connected appliances. This market study also highlights the growing importance of sustainability and energy efficiency in the appliance industry. [***]
4 Offer analysis
4.1. Falling average prices
Consumer price indices for wholesale household appliances France, ****-****, base *** = **** Source: ****
Average prices for major household appliances have shown a downward trend in recent years. From **** to ****, the monthly price index measured in October fell steadily, although a certain floor seems to have been reached over the ****-**** period. However, the general inflation that began in **** has not spared the sector, with prices for large appliances also rising.
average prices by energy class for * appliance categories (***) France, ****, in € Source: ****
Average prices also diverge according to appliance type as well as energy class, we note that the least efficient energy categories (***) are significantly less expensive than the higher energy categories.
4.2 Supply trends: the emergence of connected devices
Comfort is a top priority for all brands of household appliances, including those in the connected segment.users' expectations of household appliances have been unchanging for years: they are designed to simplify daily life. The key to innovation lies in the ability to develop personalized products that can be adapted to different needs. Products are becoming increasingly intelligent and multifunctional, while remaining simple to use.
The Twin Convection™ technology developed by Samsung on its range of ovens, for example, enables several dishes to be cooked simultaneously at different temperatures and cooking times. Depending on requirements, it uses only the upper or lower oven cavity to cook small dishes. To cook a very large dish, the appliance removes the cavity divider to take advantage of a capacity of up to **L, one of the largest on the market. It's a *-in-* oven for greater modularity and agility in everyday use.
Start-up Daan Tech, which successfully introduced the Bob mini dishwasher in ****, plans to diversify its offering by launching the Joe mini oven. This new freestanding appliance combines microwave, oven, grill, steam and air fryer functions, eliminating the need for several separate appliances. Marketed at an affordable price of under €***, the Joe mini ...
4.3 Repair and product sustainability gain in importance
As of January *, ****, a product reparability logo has been introduced. Refrigerators, freezers, wine cellars, as well as washing machines and dishwashers must be labeled with this index, which rates appliances from * to ** according to several criteria: price, ease of dismantling and availability of spare parts. Product sustainability has gained in importance in recent years as a second-half economy emerges. [***]
What's more, a new energy label for refrigeration and washing appliances has been introduced, rating all products more severely in order to eliminate products that consume too much energy on the one hand, but also to encourage manufacturers to take this aspect into account right from the design stage. [***] Although * million repairs are carried out in France every year, only **% of French people have recourse to them when it comes to household appliances.
5 Regulations
5.1 Sector regulations
The sale and manufacture of household appliances are governed by European directives - listed on the DGCCRF website.
for example, the production of vacuum cleaners must comply with the prerogatives of European Commission directive ****/**/EU.
These European norms set standards for labelling, technical characteristics, energy consumption classification, noise or energy efficiency measurement methods, appliance reliability and safety.efficiency, appliance reliability, and the responsibilities of suppliers and distributors with regard to label display.
Small electrical appliances, like all household appliances, are required to carry an ENERG label, a standard format for which is shown opposite.
AGEC law
A circular economy law, passed on February **, ****, was introduced with the aim of promoting repair and providing up-to-date information to French consumers. This legislation has generated a significant commitment by professionals to the circular economy, focusing on the creation of sustainable, repairable products. This movement reflects a move towards a more thorough structuring of consumer information.
Here are the measures implemented by this law, in chronological order:
*. Repairability and Durability Index:
A new law provides for the introduction of a reparability index for five pilot products, with a view to moving towards a sustainability index by ****.
*. Spare parts information:
Manufacturers are now required ...
6 Positioning the players
6.1 Player segmentation
- Miele
- BSH Group
- Electrolux Laundry Systems
- Dyson
- Whirlpool
- Boulanger
- Beko France (Arcelik Groupe)
- Murfy
- Electro Dépôt (Groupe Mulliez)
- Fnac Darty
- Bosch Thermotechnology
- Samsung Electronics France
- Haier
- Electrolux
- Sideme
- Gorenje
- Hisense
- Smeg
- Daan Tech - Bob
- Schneider Consumer Group
- EverEver
- Beko Arcelik Groupe
- Eurocave
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