Stoves, Ranges and Ovens - US

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2009 - 116 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising videos

Abbreviations and terms

EXECUTIVE SUMMARY

Sales have fallen during 2004-09, with steep losses in 2007-09

Seeds of recovery should pop up by 2011

Depressed housing market shapes 2009

Shipment data from 2007-09 show declines in all segments

Major segment trends also weak in 2004-09

Four major retailers dominate sales of kitchen appliances

Recession compels consumers to economize and hold off on “replacements”

Silver lining to recession: increased at-home cooking and interest in energy-efficient appliances

Hispanics key to future growth in appliance market

Mainstream market dominated by Whirlpool, GE, and Electrolux

Most foreign and high-end suppliers focus on specific market segments

Well-established brands appeal to customers at different lifestages and income levels

Major innovations include hybrid technology, energy efficiency, and induction cooktops

Advertising embraces national campaigns with print, TV and internet ads

Consumer research

Ownership and recent purchasing

Recent purchasing

Reasons for purchase

Ovens and ranges

How and where consumers researched last purchase

Brands and features of microwaves

Race and Hispanic origin

MARKET SIZE AND FORECAST

Forecasting and reforecasting results

Figure 1: History of Mintel market forecasts of manufacturer sales of stoves, ranges, and ovens, at current prices, 2007-09

Key points

Figure 2: Total U.S. manufacturer sales of stoves, ranges, and ovens, at current prices, 2004-12

Figure 3: Total U.S. manufacturer sales of stoves, ranges, and ovens, at inflation-adjusted prices, 2004-12

Figure 4: Total U.S. manufacturer shipments of major cooking appliances, 2004-09

COMPETITIVE CONTEXT

Key points

Home ownership and housing market central drivers for the appliance market

Home ownership drives cooking appliance ownership

Figure 5: Ownership of stoves and ranges, by home ownership, February 2008-March 2009

Buying homes, moving and remodeling propel appliance purchase

Figure 6: Purchase of stoves and ranges, by home purchase, February 2008-March 2009

Collapse of the housing market drives down demand for appliances

Figure 7: Sales of new and existing homes, 2003-08

Small upswing in housing sales seen mid-2009

Figure 8: Sales of new and existing homes, January-August 2009

Relationship between changes in housing starts and appliance shipments

Figure 9: Quarterly year-on-year growth rates of housing starts and electric and gas range shipments, 2004-09

Reductions in remodeling and redecorating have also driven down appliance sales

Figure 10: Changes in home redecorating and remodeling plans, March 2009

OVERALL SEGMENT PERFORMANCE

Key points

Three major segments, with electric dominating ovens/ranges and microwaves most widely owned

Figure 11: Ownership of stoves and ranges, February 2008-March 2009

Shipment data show declines in all segments, with steepest drop in electric cooking appliances

Figure 12: Shipments of cooking appliances, by segment, 2007-09

SEGMENT PERFORMANCE—ELECTRIC RANGES AND STOVES

Key points

Figure 13: Total U.S. manufacturer shipments of electric ranges, 2004-09

Figure 14: Shipments of electric ranges, by type, 2007 and 2008

Figure 15: U.S. sales of electric ranges and stoves, 2004-09

SEGMENT PERFORMANCE—GAS RANGES AND OVENS

Key points

Figure 16: Total U.S. manufacturer shipments of gas ranges, 2004-09

Figure 17: Shipments of gas ranges, by type, 2007 and 2008

Figure 18: U.S. sales of gas ranges, 2004-09

SEGMENT PERFORMANCE—MICROWAVES

Key points

Figure 19: Total U.S. manufacturer shipments of microwave ovens, 2004-09

Figure 20: U.S. sales of microwave ovens, 2004-09

RETAIL CHANNELS

Key points

Sears dominant retailer, followed by Lowe’s and Home Depot

Figure 21: Retailer market share of major appliances, 2008

Profiles of major retailers

Sears sees market share increase with Blue Appliance Crew campaign

Lowe’s uses aggressive promotions to boost appliance sales

Home Depot hard hit by housing market collapse; holds off on major promotions

Best Buy maintains market share

Walmart offers wide microwave selection, especially economical models

MARKET DRIVERS

Key points

Recession has driven down consumer confidence and its recovery may be slow

Figure 22: University of Michigan’s Index of Consumer Sentiment (ICS), 2001-08

Figure 23: University of Michigan’s Index of Consumer Sentiment (ICS), January-July 2009

Consumers report economizing by limiting “replacements” and discretionary purchases

Figure 24: Changes or plans to change spending to save money, March 2009

Positive aspect of the downturn: increased at-home cooking

Figure 25: Changes in eating out or cooking habits in past year, July 2009

Degree of complexity of meals and appliances being used more

Figure 26: Changes in cooking patterns and appliance use for those eating in/at home more, July 2009

“Green living”—especially energy conservation—impacts appliance market

Concern with the environment is increasing

Figure 27: Degree of concern about the environment and belief shopping habits make a difference, October 2008

“Slow food” movement propelling some to spend more time in kitchen and cook more

Energy efficiency key “green” feature for appliances

Figure 28: Favorite features in current range or oven, July 2009

Figure 29: Features that will definitely look for in next range or oven, July 2009

Figure 30: Features that will definitely look for in next microwave ovens, July 2009

Energy efficiency may become key feature shaping demand for gas stove/ranges, convection ovens, induction ranges and microwaves

Figure 31: Energy used and cost of cooking a casserole for different appliance types, 2009

Population growth will make Hispanics important through 2014 and beyond

Figure 32: Purchased new cooking appliance in past five years, by Hispanic origin, July 2009

Figure 33: Hispanic share of the population, by age, 2004-14

LEADING COMPANIES AND BRAND SHARE

Key points

Supply structure shaped by target consumer group, with brands at distinct price points

Figure 34: Overall market share of appliance market on basis of price point, 2009

Three major companies dominate mainstream market: Whirlpool, GE, Electrolux

Figure 35: Annual revenues in major appliances/housewares of three major appliance makers, 2007 and 2008

Whirlpool Corporation

General Electric

Electrolux

Foreign suppliers with a significant presence in mass and premium market

LG Electronics (Korea)

Haier (China)

BSH (Bosch und Siemens—Germany)

Sharp Electronics (Japan)

Panasonic Corporation (Japan)

High-end suppliers, niche brands and smaller foreign importers

BRAND QUALITIES

Key points

Whirlpool (Whirlpool, Maytag, Amana, Jenn-Air, KitchenAid, Roper, Magic Chef and Estate)

Whirlpool emphasizes innovation, design and style

Maytag highlights dependability and durability

Amana given new positioning as “affordable luxury”

Jenn-Air touted for unique styling and design

KitchenAid draws on 90-year heritage and reputation for restaurant-quality small appliances

Affordability and reliability showcased in lower-priced Estate, Magic Chef and Roper brands

Sears (Kenmore) promotes innovation for widely recognized, trusted brand

General Electric (GE) benefits from association with energy and innovation

Electrolux (Electrolux, Frigidaire)

Updated Frigidaire brand focuses on time saving, ease of use

Electrolux positioned as premium European brand for high-powered moms

Electrolux ICON touted as offering sophistication, elegance and unique European crafting

INNOVATION AND INNOVATORS

Key points

Technology hybrids offer convenient, multifunctional, energy-saving features

Whirlpool offers “Energy Save” mode, eco-friendly surfaces and “Eco Kitchen” range

Energy-saving features and practices being developed

Innovations in induction cooktops and cooking ranges

Viking is first to bring commercial-grade induction range to the U.S.

Electrolux’s induction hybrids to allow consumers induction cooktops with gas and electric ovens

Bosch und Siemens (BSH) develops AutoChef technology for greater precision in induction ranges

Electrolux and LG offer stylish looks and unique designs in induction cooktops

Kenmore and GE bring freestanding induction cooking ranges to mainstream market

Steam-cleaning options introduced by Whirlpool and GE

GE’s Space-Saving Double Wall oven

Innovations in displays and control panels

ADVERTISING AND PROMOTION

Overview

Electrolux

Electrolux uses Kelly Ripa to target multitasking women and help them be “more amazing”

Figure 36: Electrolux appliances, 2009

Frigidaire seeks allegiance of busy moms with innovative web campaign

GE

GE invites consumers to participate in humorous “Confessions from the Kitchen” campaign

Figure 37: GE print campaign for GE Profile appliances, 2009

GE’s innovative website includes videos, kitchen designs and recipes

GE Monogram spots showcases cooking appliances as part of gourmet eating and sophisticated entertaining

Figure 38: GE Monogram, 2008

Smaller, high-end suppliers highlight professional-grade features, “dream” kitchens and gourmet cooking

Thermador pairs with local specialty retailers to showcase products in designer kitchen settings

Figure 39: Thermador kitchen appliances, 2008

Viking showcases high-end appliances within “dream” kitchen remodeling

Figure 40: Viking professional series, 2008

Wolf suggests it can help the consumer prepare sophisticated meals with confidence

Figure 41: Wolf appliances, 2008

OWNERSHIP

Key points

Ownership of stoves and ranges

Figure 42: Ownership of stoves and ranges, 2000-09

Income drives ownership, especially of gas stoves/ranges and convection ovens

Figure 43: Ownership of stoves and ranges, by household income, February 2008-March 2009

YEARS SINCE LAST PURCHASE

Key points

Microwaves most likely to have been purchased recently

Figure 44: Years since last purchase, July 2009

Since 2007 more consumers report appliances “came with home” or “purchased used”

Figure 45: Years since last purchase, August 2007

18-34s most likely to have purchased appliances in past five years

Figure 46: Purchased new cooking appliance in past five years, by age, July 2009

Upper-income households more likely to have recently purchased appliances

Figure 47: Purchased new cooking appliance in past five years, by household income, July 2009

REASON FOR PURCHASE

Key points

Replacement drives most purchases, with moving and remodeling key secondary drivers

Figure 48: Reasons for new purchase, July 2009

Moving motivates younger buyers, remodeling motivates older ones

Figure 49: Major reasons for new purchase, by age, July 2009

Remodeling drives upper-income HHs to buy new appliances

Figure 50: Major reasons for new purchase, by household income, July 2009

OVEN AND OVEN COOKTOP CHARACTERISTICS

Key points

Income major factor shaping type of oven and characteristics

Figure 51: Characteristics of oven, range or cooktop, by household income, July 2009

Younger consumers seek added features, but Baby Boomers spend more

Figure 52: Purchased new cooking appliance in past five years, by age, July 2009

FEATURES OWNED AND DESIRED IN OVENS AND RANGES

Key points

Self-cleaning and energy efficiency top features in existing ovens and ranges

Figure 53: Favorite features in current range or oven, July 2009

High energy efficiency most sought-out feature in next range/oven purchase

Figure 54: Features that will definitely look for in next range or oven, July 2009

Older buyers prioritize “self-cleaning,” younger buyers want high-tech features

Figure 55: Features that like most in existing range or oven or will definitely look for in next purchase, by age, July 2009

Income drives interest in special features

Figure 56: Features that like most in existing range or oven or will definitely look for in next purchase, by household income, July 2009

RESEARCH METHODS

Key points

Visiting stores and retailer websites are top methods of research

Figure 57: Research methods leading to purchase, by age, July 2009

Upper-income buyers undertake more research, especially online

Figure 58: Research methods leading to purchase, by household income, July 2009

MICROWAVE OVENS: BRANDS AND ATTITUDES

Key points

GE is top microwave brand

Figure 59: Brand of microwave oven owned, July 2009

Income shapes attitudes related to microwave use and purchasing

Figure 60: Attitudes towards and usage of microwave, by household income, July 2009

Performance in heating food is most valued feature in microwaves

Figure 61: Favorite features in current microwave ovens, July 2009

Consumers appear eager to have a variety of added features in next microwave purchase

Figure 62: Features that will definitely look for in next microwave ovens, by age, July 2009

RACE AND HISPANIC ORIGIN

Asians and Hispanics show high ownership of gas stoves/ranges and convection ovens

Figure 63: Ownership of stoves and ranges, by race/Hispanic origin, February 2008-March 2009

Recent purchasing higher for non-white ethnic groups

Figure 64: Purchased new cooking appliance in past five years, by race/Hispanic origin, July 2009

Asians show distinct ownership patterns with ovens

Figure 65: Characteristics of oven, range or cooktop, by race/Hispanic origin, July 2009

Hispanics and Asians show strong interest in a variety of special features and new technologies

Figure 66: Features that like most in existing range or oven or will definitely look for in next purchase, by race/Hispanic origin, July 2009

Blacks undertake less research, Hispanics and Asians more

Figure 67: Research methods leading to purchase, by race/Hispanic origin, July 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

2007 data on reasons for recent purchase

Figure 68: Reasons for new purchase, August 2007

One-person households show higher use of microwaves

Figure 69: Attitudes towards and usage of microwave, by household size, July 2009

Lower-income HHs more likely to seek cheapest, most basic microwaves

Figure 70: Features that will definitely look for in next microwave ovens, by household income, July 2009

Variations on motives for recent purchases on the basis of ethnicity

Figure 71: Major reasons for new purchase, by race/Hispanic origin, July 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

Function and form

Cooking appliance suppliers and retailers can cultivate their own image as “green” companies and include more “green” features in new products, especially energy efficiency.

Suppliers and retailers should lobby for Energy Star certification for home cooking appliances. (They currently exist for commercial ovens and many other home appliances.) They may also be able to work with state and local agencies to generate tax incentives, rebates and other promotion for energy-efficient cooking appliances (as is currently in place for Energy Star washers/dryers and dishwashers).

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