Analysis of the development status of the global small home appliance market in 2021: China is the world’s largest producer and consumer of small home appliances (Figure)
With the development of small household appliances industry, the production capacity of home appliances in China is increasing, and China has gradually become an important production base of small household appliances in the world. In addition to meeting the demand of Chinese residents for small home appliances, Chinese small home appliance enterprises also export a lot for other countries, and China has gradually grown into a big producer of small home appliances.
The global small home appliance industry as a whole maintains a stable development trend
In recent years, the global small household appliances industry as a whole has maintained a stable development trend. The global market size of the small appliance industry (in terms of retail sales, excluding water purification) increased from $177.89 billion in 2016 to $207.99 billion in 2019, representing a CAGR of 3.5%. In 2020, due to the impact of the COVID-19 pandemic, the scale of the global small home appliance market decreased. Considering the moderate recovery of the global economy and the development of emerging markets, the global small appliance industry is expected to maintain a growth rate of around 5% to 6% in the future, reaching $209.72 billion in 2021.
China is the world’s largest producer and consumer of small household appliances
Since 1990’s, our country already has huge household appliance production capacity. At present, as a world manufacturing factory, China has formed advanced small home appliance manufacturing capacity, complete small home appliance industrial chain cluster and efficient small home appliance industry supply chain. After years of accumulation, China’s home appliance industry has formed leading industrial chain clusters such as Pearl River Delta cluster, Yangtze River Delta Cluster and Bohai Rim Cluster, with a large number of products exported to foreign countries. According to the China Household Appliances Association, in 2019, China’s export of home appliances accounted for 40%, ranking first in the world. The second is Germany with 7.1%; Thailand’s figure is 6%.
With the increase of Chinese residents’ per capita disposable income and extensive consumption upgrading, the Chinese market has been increasing the consumption demand for small household appliances, and has become the world’s largest consumer of small household appliances. Data show that the retail volume of small home appliances in China in 2020 is 719.27 million units, 39.34% higher than the second largest consumer of small home appliances in the United States, showing significant market demand advantages.
To sum up, China currently has the world’s largest capacity of small household appliances. With the industrial chain cluster effect and the shift of global industrial chain, it is an inevitable choice for enterprises to go overseas with their own brands of small household appliances. Relying on supply chain advantages, product innovation ability, cost-effective products, strong online business ability and Philips global brand attributes, Chinese small household appliance brands have gradually expanded overseas markets, with outstanding global expansion ability.