Market Trends of South Africa Kitchen Appliances Industry
This section covers the major market trends shaping the South Africa Kitchen Appliances Product Market according to our research experts:
Low Appliance Penetration Rate in South Africa Signifies a Large Untapped Market
Compared to other developed countries, the penetration rate of household appliances in South Africa is relatively low. Hence, South Africa has great potential in the household appliance market. The penetration rate of basics household appliances in South Africa in urban areas is higher compared to the other small cities. While this indicates that households in these areas will be a major growth market for this industry. it is anticipated that demand for replacing appliances will also be a driver of growth in urban areas of South Africa so, the focus for the urban area will be on replacing current appliances, while in lower-tier cities it will be first-time purchases.
Online Sales of Kitchen Appliances are Gaining Momentum with the Pandemic
The offline retail distribution channel was the dominant channel for kitchen appliance distribution. Due to the pandemic physical distribution channel were shut off at the same time the online sales of small kitchen appliances such as electric kettles, toasters, blenders increased. Sales of appliances addressing the new challenges generated by the enforced need to 'eat at home', 'clean at home' raises the online sales of appliances such as refrigerators, microwave ovens, and dishwashers. With the lockdown as people stockpiled (frozen) food, the immediate need for more storage capacity boosted online sales of freezers. Increased internet penetration rate also resulted in higher online sales of appliances. There were 38.19 million internet users in South Africa in January 2021. The number of internet users in South Africa increased by 1.7 million (+4.5%) between 2020 and 2021
