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Summary of our market study
The global market for small appliances has seen robust growth, with an expected compound annual growth rate of 8.45% between 2020 and 2024, which would value the market at $159 billion by the end of this forecast period. The German small appliances sector has been particularly dynamic, recording a significant 5% annual increase in 2020, and marking an exceptional 16% market growth in 2020, supported by increased demand due to the Covid-19 pandemic. This increase is attributed to consumers spending more time at home and investing in improving their living spaces. Market growth is also fuelled by a move towards high-end products and a growing interest in connected appliances that offer the convenience of remote management and energy savings. While Germany remains an important market, it notably imports a majority of its products, with imports from the country exceeding exports for the first time in 2019, resulting in a drop in the coverage rate from 110% to 98%. Despite a brief dip due to the pandemic, German appliance exports proved resilient, with a 5% increase in exports.
Trends in the German small electrical appliance market
The German small electrical appliance market has enjoyed robust growth in line with global trends, posting a dynamic increase of around 5% a year from 2008 through to 2020. The year 2020 in particular saw a sharp rise in demand, attributed to increased attention to home comfort in the context of the Covid-19 pandemic. The market showed a remarkable upward trend, with a value reaching approximately between 3.5 and 3.7 billion euros. This escalation in demand concerned various product segments, including air purifiers, battery-powered vacuum cleaners, automatic coffee machines, kitchen appliances and wellness and beauty appliances. The German market has not only proved resilient at home, it is also strongly export-oriented, with almost half its sales generated by foreign markets, a figure that has remained constant over the years.
In recent years, however, some changes have been observed, with imports slightly outstripping exports, with the coverage rate falling below 100% in 2019, indicating a growing dependence on imports, particularly from countries with lower labor costs, such as China and Hungary. Consumer interest in smart, connected devices is a notable influence shaping the market. While only 15% of consumers had connected household appliances, this niche is set to grow rapidly, thanks to remote management functionalities and the ability to connect to the Internet.this niche is set to grow rapidly, thanks to the remote management and energy-saving features that meet the preferences of modern lifestyles. In terms of consumer sentiment, there is slight dissatisfaction with the lifespan of appliances, highlighting an opportunity for manufacturers to improve customer satisfaction by addressing the longevity of their products. In addition, the trend towards improved quality and convenience has propelled the high-end price segment, with strong interest in smart and connected devices - a trend that is set to accelerate in the future.
Among preferred brands, German manufacturers such as Bosch and Siemens continue to dominate the domestic brand landscape, but multinationals such as Samsung maintain a considerable market presence, particularly among younger consumers. As the market evolves, it remains attentive to European regulations that define standards for labeling, energy consumption and appliance reliability.nergy consumption and appliance reliability, ensuring that products meet quality criteria and environmental considerations. Given the constant rate of domestic equipment and the accelerated growth stimulated by the pandemic, the German small electrical appliance market is poised to grow at a rapid pace.lectronics market is on a trajectory that prioritizes technological progress, connectivity and sustainable consumption practices.
Key market players dominating the German small electrical appliance landscape
The German small electrical appliance market is home to a wide variety of players, whose strategic positioning ranges from global giants to niche specialists. This diverse landscape features companies that have made significant inroads both technologically and in terms of market penetration in their respective product categories.
- Samsung is a leading player, not only in Germany, but worldwide, known for introducing cutting-edge technologies into its full range of electronic devices, including a variety of small household appliances. The company's commitment to innovation has kept it at the forefront of many segments, often winning over technology-savvy consumers.
- Siemens is a symbol of German engineering, with a reputation for reliability and quality. As a traditional player, the company has set high standards for design and functionality, often associated with durable and efficient household appliances, which fit well with the German market's preference for robustness.
- Bosch is another key figure, whose products are anchored in the German domestic environment due to their practicality and long-lasting performance. Bosch's portfolio includes a wide range of small electrical appliances for floor and laundry care, food preparation and cooking, and breakfast, which are staples in almost every German household.
- P&G (Procter & Gamble), perhaps best known for its consumer goods, has also established its presence in the small electrical appliancenager sector, in particular through hygiene, beauty and wellness products for the personal care segment.
- BSH is a "pure player" that occupies a considerable place in the market, with a well-developed range meeting the various needs of households. Its commitment to sustainable quality and functionality has earned it a solid consumer base.
- Groupe SEB is renowned for its versatile range which touches on various sub-segments of the small electrical appliance market. The company's various brands offer everything from laundry care to kitchen gadgets, making it a strong competitor in the market.
- Miele, for its part, is a blend of luxury and performance. Known for their top-of-the-range products, its appliances are often a guarantee of taste and practicality in modern kitchens and laundries.
- Philips stands out for its comprehensive range of small appliances designed to improve everyday life. With a reliable and innovative range that includes products for floor cleaning and personal care, Philips has established itself on the German market as a one-stop shop for many household needs. In addition to these giants, companies such as Vorwerk, Grundig, Panasonic, LG Electronics, etc.
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Summary and extracts
1 Market overview
1.1 Definition: the small electrical appliance market
Household appliances refers to all electrical appliances intended for household and domestic use. The household appliance market is divided into two sub-segments: large appliances (washing machines, dishwashers, refrigerators, etc.) and small appliances.
The latter refers to small household appliances. In this study, we will therefore focus on the following sub-segments :
- Floor care appliances: Vacuum cleaners and steam cleaners.
- Laundry care appliances: ironing.
- Apparatus for preparing and cooking food: food processors and deep fryers.
- Breakfast appliances: kettle, coffee machine, toaster and juice appliances.
- Hygiene, beauty and wellness appliances: shaving, hair removal and styling appliances.
The demand for small household appliances is strong worldwide, which should result in a market growth of 8.45% per year until 2024. Similarly, in Germany the market is dynamic as it has experienced a significant increase of 5% per year between 2008 and 2020. 2020 has been particularly good following an increase in demand for home comfort due to the Covid-19 pandemic.
The market should continue to develop around the demand for connected appliances enabling users to manage their devices remotely and reduce energy consumption.
The main players in the German market are Samsung , Siemens , Bosch and P&G.
1.2 A growing global market
Turnover of the small domestic appliance market World, ****-****, in billions of dollars Source: ****
Sales in the small appliance market are expected to grow at a compounded annual growth rate of *.**% between **** and ****, reaching a value of $*** billion by the end of this period.
There are several factors that explain 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 the increase in volume of the demand, growing urbanization, gradual adoption of the Internet of Things, and the successive changes in consumer desires and lifestyles, are expected to drive up market value.
The main domestic market is the United States, ahead of the Chinese market. 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, the cooking segment dominates.
1.3 Germany, a sizeable market that imports the majority of its products
The German Federal Statistical Office (***) registers activities related to the small household appliances market under the code "**.**: Herstellung von elektrischen Haushaltsgeräten".
Turnover of companies registered under the code **.**: Manufacture of electrical household appliances Germany, ****-****, in billions of euros and as a % of the total Source: ****
The turnover of the household appliances sector in Germany is between * and * billion euros each year. It is interesting to note that this sector generates almost half of its turnover from exports (***).
Focusing solely on small household appliances, the graph below complements the one above, as it shows the turnover of just small electrical household appliances, but in a broader sense, without focusing solely on manufacturing. It therefore includes all stages of the value chain, which gives a relatively large market.
Turnover of the small household appliances market Germany, ****-*****, in billions of euros Source: ****
The German market for small household appliances has been growing steadily in recent years, increasing by *% a year since ****. In **** the increase of the market for small household appliances is particularly important (***). The market is now worth €*.* billion.
This strong increase is due to a high demand for air purifiers, battery-powered vacuum cleaners, automatic coffee machines, kitchen appliances and ...
1.4 Foreign trade in small electrical household appliances
The German foreign trade figures for small household appliances can be obtained by adding the following UN Comtrade codes:
**** - Vacuum Cleaners **** - Electromechanical self-contained electric motor-operated appliances, other than vacuum cleaners of heading **.**. **** - Shavers, hair clippers and hair removal appliances, with self-contained electric motor
Exports, imports and coverage rate in the small household appliances market Germany, ****-****, in billions of euros and in % Source: ****
While Germany used to have a surplus in international trade in small household appliances, in **** imports overtook the exports. The national coverage rate (***) has gone from ***% to **% in two years. This drop is explained by an increase in exports that was lower than the increase of imports within the same time frame. The latter increased by **% between **** and ****, which is very significant.
Destination of exports of small household appliances Germany, ****, in % Source: ****
Germany's exports of small electrical household appliances are fairly evenly distributed, with its five main partners accounting for only **% of the total value. Its main customer is France (***). German household appliances are therefore sold mainly to its European neighbours.
Origin of imports of small household appliances Germany, ****, in % Source: ****
German imports of small household appliances are highly dependent on China, which accounts ...
1.5 Market growth following the Covid-19 pandemic
The increase in turnover of the German small electrical appliance industry in **** is mainly due to the economic environment related to the Covid-** pandemic. German consumers spent more time at home in ****, which encouraged them to invest in the equipment of their homes and thus in the small electrical household appliances. The focus on home cooking, health and wellness has led to a sharp increase in demand for appliances related to these segments.
However, German small electrical household appliance manufacturers do not only produce for the domestic market but are also active on the international market. While this part of their activity was affected by the Covid-** pandemic with a *% drop in the first half of ****, they have since recovered well with a significant recovery during the year. From January to November, exports of household appliances reached ten billion euros (***). [***]
The small kitchen appliance segment, for example, saw a significant **.*% increase in sales in the first half of ****. [***]
2 Demand Analysis
2.1 Households rather well equipped with household appliances
Equipment rate of household appliances Germany, ****-****, in % Source: ****
The household appliance ownership rate in Germany remained relatively stable between **** and ****. However, not everything remained stable, as while some products are slightly less used than before, such as microwave ovens (***).
Satisfaction with the lifespan of the appliance Germany, ****, in % Source: ****
Only **% of consumers say they are dissatisfied with the lifespan of their household appliances (***). This figure is rather low, but is not negligible especially when adding the share of users who were moderately satisfied.
With the growing desire of consumers to limit their ecological footprint, it would seem that brands have plenty of margin to improve customer satisfaction.
2.2 Favourite brands of the Germans
Most popular appliance brands Germany, ****, in % Source: ****
According to the **** German Brand Award, Bosch was the preferred household appliance brand in Germany (***).
Of the ten brands preferred by consumers, six are German.
2.3 The small connected appliance: the future of the market?
Connected houses are developing rapidly in Germany and with them the connected small household appliances. Products of this type enable consumers to control their appliances remotely and save energy.
Distribution of the type of household appliances used by consumers Germany, ****, in % Source: ****
At the moment, only **% of consumers have connected household appliances. However, this rate of connected household appliances is expected to increase rapidly in the coming years. Deutsche Telekom reveals in particular that between **** and **** the number of its "connected homes" customers increased by **% to ***,*** consumers.
3 Market structure
3.1 A concentration of appliance manufacturing
Number of companies registered under code the **.**: Manufacture of electrical household appliances Germany, **** - ****, number of companies Source: ****
The number of companies active in the manufacture of electrical household appliances is declining in Germany. It fell by **% between **** and ****, with the vanishing of ** establishments. This drop can be explained by the combined effect of the increase in imports, with the relocation of lower value-added production to China or Hungary, and merger and acquisition operations. These operations enable market players to exploit synergies in order to be more competitive and innovative in this globally dynamic market.
Number of jobs recorded under the code **.**: Manufacture of electrical household appliances Germany, **** - ****, in thousands Source: ****
In parallel with the decline in the number of establishments manufacturing electrical household appliances, the number of jobs also decreased. However, the decline was smaller, only *% in fourteen years. There has even been a slight increase since the trough in ****. The slower decline in jobs compared to the decline in the number of establishments means that the average number of employees per establishment increased over the ****-**** period. This reinforces the idea that there have been merger and acquisition operations in the sector.
The table below lists significant financial ...
3.2 A national production that survives due to the major players
BSH has a factory for the production of small household appliances in Bavaria, while Miele owns * production plants around Germany (***) out of a total of ** plants worldwide.
In the face of competition, Germany can be proud of its reputation for quality, despite the pressures of export competitiveness and import price trends referred to previously.
3.3 A distribution around 3 traditional networks, disrupted by the advent of e-commerce
The distribution of small household appliances in Germany is traditionally carried out through three main networks:
Specialist department stores: Media Markt, Saturn... Food superstores: Aldi, Lidl, etc. Convenience stores [***]
Today, however, e-commerce competes with these traditional distribution networks with a few key players, the main ones of which are illustrated in the graph below.
The most popular online stores in the household appliances sector, by net sales of online commerce Germany, ****, in millions of US dollars Source: ****
4 Analysis of the offer
4.1 Small household appliances in Germany: general approach
As detailed in the introduction, the market is divided into five sub-segments:
Floor care appliances, Linen care appliances, Food preparation and cooking appliances, Breakfast appliances, Hygiene, beauty and health appliances.
For all segments combined, the graph below illustrates the price evolution since **** (***).
Consumer Price Index for Small Household Appliances Germany, ****-****, price index base *** en **** Source: ****
Prices remained fairly stable over the period ****-****, with a peak in **** (***). However, since ****, the trend has been towards a slight decrease in prices year after year. This decline can be explained by the growing competition on the small household appliances market, as weell as by the gradual relocation of part of the production from Germany to countries with lower labour costs.
The spread of the latest technological innovations, in particular the Internet of Things, is likely to have a more inflationary effect in the coming years.
4.2 Prices of the different components of small household appliances in Germany
In this section, all prices have been determined using the German online dealer's website otto.de.
The small household appliances for the cleaning of floors: a pillar for the German market
The following small household appliance products are used for floor cleaning:
Vacuum cleaners, Vapor cleaners.
The floor cleaning products is one of the pillars of the German small household appliance market. In particular, it is driven by certain sub-segments: according to GfK, the market for handheld vacuum cleaners increased by €** million in ****, with sales of €*** million in the first half of ****. Germany has also become the world's leading market in the new segment of wet/dry vacuum cleaners (***).
Price range of identical vacuum cleaners (***):
The small household appliances for laundry cleaning
The laundry cleaning appliances include the following products:
Irons, Steam iron.
Lowest prices of irons of several brands:
Food preparation and cooking appliances: Germany's largest market for small household appliances.
This sub-segment is the largest of the small household appliance market in Germany.
The food preparation and cooking appliances include the following products:
Stand mixers/ food processors, Deep fryers, Pressure cookers.
Lowest prices of stand mixers/ food processors of several brands:
Lowest prices for deep fryers of several ...
5 Regulation
5.1 A market that depends on European regulations
The sale and manufacture of household appliances are standardized by European directives - which are listed on the DGCCRF website.
For example, the production of vacuum cleaners must respect the prerogatives of the directive ****/**/EU of the European Commission.
These European standards set standards for labelling, technical characteristics, energy consumption classification, how to measure noise or energy efficiency, the reliability of appliances, and the responsibilities of suppliers and distributors for displaying labels.
Small appliances, like all household appliances, must have an ENERGY STAR label - a standard format which is shown below.
6 Positioning of the players
6.1 Segmentation
- Beko Grundig
- Bauknecht (Whirpool Corporation)
- Bosch
- Miele Deutschland
- Siemens Deutschland
- LG Electronics Deutschland
- Philips Deutschland
- BSH Hausgeräte GmbH (Tochterfirma von Bosch und Siemens)
- Electrolux Hausgeräte GmbH
- Dyson GmbH
- Vorwerk SE & Co. KG
- DE'LONGHI DEUTSCHLAND GmbH
- Severin Elektrogeräte
- SEB Groupe
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