World Cooking Appliances

World Cooking Appliances

World demand to rise 4.8% annually through 2017
Global demand for cooking appliancesis forecast to increase at a 4.8 percentannual rate through 2017 to 249 millionunits, improving over gains that wererecorded during the 2007-2012 period.Growth will be boosted by an improvementin the key US market, with demandstemming in large part by a recovery inthe country’s large housing industry. Inaddition, rising standards of living inmany developing areas will contribute tooverall sales. Advances in the number offoodservice establishments worldwide,which itself is a byproduct of rising livingstandards, will provide further impetusfor growth.

China & India to experience robust growth
The US was the world’s largest consumerof cooking appliances in 2012, a resultof high saturation rates and a sizablehousing stock. While most appliancepurchases in the US are for replacementpurposes, the swift rebound in newhousing units will generate substantialdemand through the forecast period.Developing areas will offer the bestprospects for growth through 2017, sincethe penetration rate for cooking appliancesis generally smaller, which resultsin a larger pool of first time purchasers.In addition, these countries typically havea booming housing industry, furthercontributing to overall demand gains.Developing countries such as China andIndia will record particularly robustgrowth through 2017. Low penetrationrates in these nations, particularly in ruralareas, have historically limited demandopportunities. However, improvingstandards of living will cause cookingappliance demand to increase at a rapidrate going forward.

Shift toward separate cooktops to boost unit demand
In general, demand for cooking applianceswill be stimulated by the globalshift towards separate cooktop and ovenunits. While most developed countrieshave been transitioning towards separatecooking appliances for quite some time,consumers in a number of developingnations are beginning to opt for separatecooktops and ovens over ranges. Cooktopsand ovens offer a more seamlessdesign into a kitchens cabinetry, providinga greater degree of aesthetic appeal.However, the purchase of separatecooktops and ovens requires some levelof affluence, for initial market penetrationof cooking appliances is comprisedlargely of ranges. These appliances aresignificantly less expensive than cooktopsand ovens, and provide the essential functionsof preparing meals.

Commercial market to outpace residential
The residential market accounts for thevast majority of demand, since thenumber of households far surpasses thenumber of foodservice establishmentsworldwide. However, demand forcooking appliances in the much smallercommercial segment will grow at a fasterrate than residential demand. The lifestyleof many consumers is increasingly fastpaced,which results in less time availablefor meal preparation at home. As a result,a larger percentage of meals are eatenaway from home, benefiting growth infood-service establishents. Additionally,as a larger share of the world’s populationmigrates towards urban centers, thenumber of foodservice establishmentswill also rise, as restaurants tend to beconcentrated in areas with a high populationdensity. Both of these factors willplay a vital role in the future growth ofcommercial cooking appliances.