Kitchen Products Set to Sizzle on the Back of Cocooning, Renovation Activity and Connected Appliances
Growth for kitchen products expected to rise faster than other areas of the home
Consumers perceive kitchens as the heart of the home, spending between one to two hours per day in the kitchen. The second most popular communal room in the home, consumers are likely to not only cook, but also eat and entertain guests in their kitchens. It is therefore unsurprising that retail value sales of kitchen products, including kitchen sinks, kitchenware, cookware, kitchen and dining textiles and kitchen furniture, are expected to outpace historic growth, as well as other home areas such as living, dining, bathroom and the bedroom between 2017 and 2021.
Kitchen players savour cocooning and gourmet home cooking trends
The global financial crisis in 2008 triggered austerity measures across the globe and as a result consumers reverted to home cooking as a means of reducing living costs. In addition, a resurgence in cocooning has resulted in consumers wanting to entertain at home, as opposed to going out for a meal, a trend further inspired by the Danish concept of “hygge” (cosiness). Gourmet home cooking trends are also on the rise, driven by celebrity chefs and the proliferation of TV cooking shows, such as The Great British Bakeoff, My Kitchen Rules and MasterChef, driving demand for premium cookware.
Consumer foodservice operators are recognising the impact of smartphone possession and the shift towards m-commerce and preferences for online ordering, and as a result are partnering with food delivery companies such as Deliveroo and UberEats. As a result, food delivery companies are helping to drive demand for at-home dining, as consumers embrace the convenience offered by ordering food online.
Forecast kitchen furniture sales likely to heat up with potential renovation activity
Rising urbanisation, as well as growing female labour force participation continues to result in a decline in average household size (falling from an average 4.0 persons per household in 2000 to 3.6 persons in 2016). Household size has begun to shrink as families become smaller and more urban, necessitating apartment living. Consequently, households are looking for kitchen products that are functional and space-saving, as well as compact storage solutions, such as modular kitchens, wall storage and kitchen trolleys.
Rising house prices have triggered housing affordability issues in Australasia, North America and Western Europe, with Millennials being the hardest hit and being dubbed “Generation Rent”. While this has the potential to negatively impact new house builds, older housing stock in Western Europe and North America is likely to drive renovation activity and therefore the sale of kitchen cabinets, kitchen sinks, as well as kitchen and dining textiles in the near future.
Connected kitchens still brewing
Life is becoming ever more connected and smart home products are expected to gradually become mainstream over the forecast period. The kitchen (especially when compared with other areas of the home) represents a major battleground for smart home new product development over the next five years.
Several consumer appliance manufacturers, such as Bosch, LG and Samsung have already developed connected appliances, and the uptake of such appliances is currently the strongest in developed markets where smartphone possession and internet access is high. Adoption will continue to be slower in developing markets, such as the Philippines, India and Indonesia (where internet access is not as widespread and smartphone possession is low).
Bosch’s Mykie (My Kitchen Elf), a smart speaker similar to Amazon Echo or Google Home, represents the next step in converting the kitchen into an IOT hub. While not yet available for sale, the Mykie, is a robot kitchen assistant that responds to voice commands. Sitting atop a kitchen counter, the Mykie can make recipe suggestions, check the fridge for ingredients and communicate with other connected appliances in the home (ie Bosch Home Connect appliances).