- The large kitchen appliance segment is likely to grow at a Compound Annual Growth Rate (CAGR) of 15 percent in the coming five years.
- The cooking appliance and food preparation market would see a growth of 9 percent and 8 percent respectively.
With the immense growth of innovation in technology the market of electric kitchen appliances are also growing in India for the past four years and is speculated to be increased by two folds in the coming three to four years. This is due to the augmenting consumer adoption trends, increase of per capita income and increasing population across several regions of the states.
Around 70 percent of the Indian population still lives in rural regions, who have started adopting branded products keeping in mind durability and enhanced quality. It is regarded by experts as one of the imperative factors behind the increased sales of electric kitchen appliances in the country. Due to changing lifestyles and the trend of shifting towards sophistication of kitchens, the segment of large kitchen appliances now holds a share of 48 percent in the overall market.
In the past seven to eight months, the demand for hand blender, microwaves, and juicer mixer grinders have massively increased in India. An anonymous spokesperson of a leading B2C platform noted that small and large kitchen appliances have seen a spike in demand with an increased focus on smart app-controlled or automated products. Between March and October 2020, the platform witnessed an increased demand of four folds that includes water purifiers, toasters, kettles, and vacuum cleaners. The adoption has been mostly observed in non-metro cities such as Vadodara, Nagpur, Patna, Chandigarh, and Lucknow.
During the lockdown, when India’s economy was crippled coupled with slow industrial growth, the demand for home electronic appliances increased among consumers, which acted as a source of blessing among electronic manufacturers. In this light, Panasonic, the Japanese global firm, mentioned that they observed a huge spike in demand among first-time buyers in India. Suguru Takamatsu, divisional head at Panasonic India, has stated exclusively to Quartz, that the sales operations have started improving in the rural and semi-urban markets. Back in June and July 2020, Panasonic saw a growth of 13 percent and 19 percent from tier-2 cities. The demand was mostly spearheaded by semi-automatic washing machines, microwave ovens, and direct cool refrigerators.
Global market research firm TechSciResearch noted that towards the end of 2023, the market of electric kitchen appliances in India would grow at a CAGR of 10 percent. In 2018, the market of this segment was valued at Rs. 21,500 Crore out of which 45-50 percent was contributed by large kitchen appliances, opined India-based management consulting firm RedSeer. The large kitchen appliance segment is likely to grow at a CAGR of 15 percent in the coming five years, whereas the cooking appliance and food preparation market would see a growth of 9 percent and 8 percent respectively. Currently, in the kitchen appliance segment, water purifiers contribute a share of 50 to 55 percent and mixer grinders offer 60 to 65 percent share.
The market share is mostly generated by online e-commerce portals. According to market experts, in the coming years, the sales of electric kitchen items are speculated to augment in the online platforms due to a surge of competition among retail outlets and also due to the increasing amount of time spent by people on the internet. Apart from this, equated monthly installment (EMI) options, discounts and cashback offered by Amazon and Flipkart are further making people buy these items more online.
Now, speaking of the overall competitive landscape of this segment’s market, it is mostly fragmented because a vast range of companies leads in different categories. For instance, LG continues to spearhead the microwave oven market in the country, whereas Samsung and Bajaj are leading other categories like water heater, coffee maker, induction oven, and many more. To gain more traction, these companies ensured that their low-cost products are available in non-metro and semi-urban cities as well, which will ultimately boost their growth to four folds by 2025.