Analyst Insight by Lorenza Della-Santa - Senior Consumer Appliances Analyst
Italy is still generally considered synonymous with proper espresso coffee, cappuccino and macchiato. After all, this is where these drinks were invented. Yet, the country ranks just sixth in Western Europe for sales of coffee machines. More interestingly, consumers in Spain and Portugal, and even in Greece, are showing a much higher propensity to buy expensive pod coffee machines than in Italy, and this is despite Italians drinking more fresh coffee than their Southern European counterparts on average.
Fresh Coffee Consumption vs Coffee Machine Sales: 2013
Source: Euromonitor International
Note: Bubble size shows the total value size of coffee machines in 2013. Range displayed 8 - 1,251 US$ million
Continue reading "Untapped Potential in the Coffee Machine Business: Italy" »
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As a result of strong economic growth in the region over recent years, a growing number of households in Latin America can now afford to buy such kitchen appliances as cookers, washing machines, refrigerators and microwave ovens. However, ownership levels of some appliances remain fairly low.
Continue reading "The 21st Century Kitchen" »
Haier, the world’s largest major appliance manufacturer, is the latest company expressing interest in entering a joint partnership with Indesit. This deal, if it progresses, would benefit both companies as Haier has stated their willingness to pay whatever Indesit shares are worth and Haier would be gaining a foothold in the European market.
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Continue reading "Haier Partnering with Indesit Would Benefit Both Companies" »
Analyst Insight by Cristina Baus - Contributing Analyst
Indesit Co SpA has been struggling to overcome the sharp decline in demand in Western Europe. It has made several attempts to revive profitability, including trying to move its product offering up to a more premium level and breaking into the premium small appliances category. However, growth remains elusive and the company is now looking for a merger opportunity to find growth. Big names such as Electrolux, Whirlpool and Arçelik are possible candidates but the question is, for which company will Indesit be the best fit? In a series of articles, starting with Electrolux, Euromonitor International seeks to find the best match.
Continue reading "Indesit Looking to Merge - Who Will it Fit the Best?" »
Analyst Insight by Jamie Ko - Head of Consumer Appliances
Consumers are becoming increasingly selective about what they eat and drink given the ease of access to an abundance of information about living well and staying healthy. As mentioned in another opinion piece on healthy eating, demand for consumer appliances, particularly food preparation appliances, is reflective of this consumer lifestyle trend. For instance, fresh juices such as detox juices have been portrayed as being diet remedies and important in preventing disease, with consumers looking to prepare such juices at home. Indeed, Euromonitor International’s consumer appliance statistics reveal that juice extractors will post the strongest growth over the forecast period of all food preparation appliances despite carrying a higher unit price than blenders, which can also extract juices, albeit with a bit more pulp.
Continue reading "Fresh, Fit and Trendy: Global Growth in Juice Extractors " »
Analyst Insight by Dana LaMendola - Beverages Industry Analyst
Between 2007 and 2012, total consumer expenditure in Spain decreased by 4% in real terms. While such a decline in consumer demand adversely affected Spain’s retail soft drinks market, which decreased by 12% in value over the period, the country’s retail hot drinks market recorded substantial growth, increasing by nearly 26% in value over the same five years. The primary driver of this success is the ongoing transfer of coffee consumption away from foodservice outlets like cafés and bars and into the home, as consumers seek to economise. Fresh ground coffee pods are responsible for the bulk of growth in the retail coffee market, increasing by US$ 426 million from 2007 to 2012. Despite their premium positioning, (in 2013 the average unit price of pods in Spain was over five time that of standard fresh ground coffee) coffee pods appeal to Spanish consumers because they provide a home-café experience which, in contrast to on-trade consumption, is still perceived as an affordable luxury.
Continue reading "Coffee Pod Sales Boosted by Spain's Flagging Economy" »