Major Household Appliances - US - March 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
Economic and other assumptions
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways 
Market overview 
Figure 1: Total US sales and fan chart forecast of major household appliances, at current prices, 2015-25
Impact of COVID-19 on major household appliances 
Figure 2: Short-, medium- and long-term impact of COVID-19 on major household appliances, March 2021
Opportunities and Challenges  
Long purchase cycles become more prominent 
Maintain engagement by focusing on post-pandemic lifestyle needs
Figure 3: Appliance usage frequency, December 2020
Get in the circle of trust by being creative and streamlining shopping process 
THE MARKET – KEY TAKEAWAYS 
Down economy will hinder expected growth
Housing and home renovation trends bode well for future market
New ways of interacting with appliances, shopping 
MARKET SIZE AND FORECAST 
Pandemic lift short-lived 
Figure 4: Total US sales and fan chart forecast of major household appliances, at current prices, 2015-25
Figure 5: Total US sales and forecast of major household appliances, at current prices, 2015-25
Learnings from the Great Recession
Figure 6: Consumer spending on household appliances, monthly, 2006-10
MARKET FACTORS
Kinks in the supply chain 
Home ownership steadily climbs into 2021
Figure 7: Homeownership rate for the United States, percent, quarterly, not seasonally adjusted, 2007-20
Shrinking number of households with children will impact future of category 
Figure 8: US households, by presence of related children, 2008-18
Brand spotlight: LG Electronics
Figure 9: LG Electronics US, November 2020
MARKET OPPORTUNITIES 
Advance guided cooking trend to offset fatigue, create connection 
Figure 10: GE Smart Range Hood, May 2020
Address wellness-orientated concerns 
Figure 11: Mintel global trend driver, Wellbeing
Go in on AI 
Create digital shopping experiences 
Figure 12: Apple AR shopping tools
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Retailers evolve to meet digital shopping surge 
Smart and small: the future appliance market  
Design becomes a stronger factor as homes mirror identity 
COMPETITIVE STRATEGIES
Retailers and brands adapt to new shopping expectations
The online shopping experience
Shopping safely in-store
Refine rather than reinvent the smart appliance wheel
Figure 13: Select smart appliance behaviors and attitudes, by generation, parental status, December 2020
Major appliances make moves to minimize small appliance threat  
Figure 14: Shift in small cooking appliance usage instead of oven/range, January 2020–December 2020
Brands embrace custom aesthetic trend 
Figure 15: Mintel Global Trend Driver, Identity
Figure 16: Samsung US BESPOKE line, January 2021
Empower and focus on the people rather than the product
Figure 17: Mintel Global Trend Driver, Rights
Figure 18: KitchenAid campaign, November 2020
THE CONSUMER – KEY TAKEAWAYS  
Lift in purchase intent driven by younger demographics
Pandemic created new appliance usage occasions 
Purchase drivers beyond replacement gaining in popularity 
Meet consumers where they are: online 
Show them the details 
Redefined value in home expands to appliances  
APPLIANCE OWNERSHIP AND INTENT TO PURCHASE  
Slight uptick in purchase intent 
Figure 19: Appliance ownership, December 2020
Figure 20: Intent to purchase appliance, January 2020 and December 2020
Millennials, parents are central to future sales growth 
Figure 21: Intent to purchase appliance, by generation, parental status, December 2020
APPLIANCE USAGE FREQUENCY
Elevated time at home creates more usage occasions
Figure 22: Appliance usage frequency, December 2020
Focus on family, simplifying life to maintain momentum for parents
Figure 23: Appliance usage frequency – More often, by parental status, December 2020
Highlight cost savings to reach the budget conscious 
Figure 24: Select appliance usage frequency – More often, by current financial situation, December 2020
APPLIANCE PURCHASE DRIVERS 
Updates becoming more prominent purchase driver
Figure 25: Appliance purchase drivers, January 2020 and December 2020
Millennials looking to upgrade appliances
Figure 26: Select appliance purchase drivers, by generation, December 2020
Dads take lead role in purchases
Figure 27: Select appliance purchase drivers, by parental status (presence of children under 18) by gender, December 2020
APPLIANCE PURCHASE CHANNEL AND LOCATION 
Rethink the purpose of the store 
Figure 28: Purchase channel for major household appliance, November 2017, December 2018 and December 2020
Home improvement retailers far outpace other retailers 
Figure 29: Major household appliance purchase location, December 2020
Home improvement retailers losing young shoppers to mass, online
Figure 30: Mintel Global Trend Driver, Experiences
Figure 31: Select major household appliance purchase location, by generation, December 2020
Convenience influences where urban dwellers, renters shop for appliances 
Figure 32: Major household appliance purchase location – Online only retailer, by living location, December 2020
APPLIANCE SHOPPING ATTITUDES AND BEHAVIORS
Current attitudes toward online shopping support trend longevity  
Figure 33: Appliance shopping attitudes and behaviors, December 2020
Social strategies can fuel commerce among key shoppers
Figure 34: Select appliance shopping attitudes and behaviors, by generation, parental status, December 2020
Choose your platforms wisely
Figure 35: Select appliance shopping attitudes and behaviors, by select social media sites visited weekly, December 2020
APPLIANCE BEHAVIORS AND ATTITUDES 
The simple life: features that streamline tasks garner strong interest 
Figure 36: Appliance behaviors and attitudes, December 2020
Help support Millennials’, parents’ evolving lifestyle needs 
Figure 37: Select appliance behaviors and attitudes, by generation, parental status, December 2020
Brand spotlight: Whirlpool Chore Club 
Figure 38: Whirlpool Instagram, April 2020–January 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 39: Total US retail sales and forecast of major household appliances, at inflation-adjusted prices, 2015-25
Figure 40: Total US retail sales of major household appliances, by segment, at current prices, 2015-25
Figure 41: Total US retail sales of major household appliances, by segment, at current prices, 2018 and 2020
Figure 42: Average household spending on major household appliances, 2015-20