Small Kitchen Appliances - US

From 2003-08, the small kitchen appliance (SKA) market posted only modest sales growth. This report examines the existing highly consolidated supply structure and the retail landscape. It examines new features and innovations related to function, style and technology, and analyzes branding and advertising strategies online and in TV campaigns. Analysis and insights also include:

• The potential sales of "green" products and energy saving SKAs
• Marketing strategies to maximize sales in the current recessionary environment
• Which product lines have the greatest growth potential, in the short and long term
• Outreach to non-traditional households such as single men, gay couples and single moms
• The importance of POP advertising, and which consumer groups show the highest interest in online advertising, infomercials, supplier websites and chef recommended products
• What brand strategies are being used and how these might be developed further
• What product innovations are being used to differentiate products and attract consumers

Scope and Themes

What you need to know

Definition

Food preparation

Beverage preparation

Food cooking

Data sources

Sales and shipment data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Busted housing market slowing growth

Consumers cutting back on food and drink away-from-home

Coffee house sales drop as consumers cut back on expenses

Consumers save money by cooking at home

Cooking appliances carry nearly half of shipments

Slow cookers gaining steam

Wal-Mart carries more than half of sales

Homeownership and time spent cooking drives sales

Age, lifestage, and income impact ownership

Consolidation in supply structure

Brands defined by time-savings, nostalgia, design, gourmet cooking, and healthy living

Grills, ovens, processors, rice, bread, and juice top of mind

POP is the most important arena for communication

Product selection

Gifting, cleaning, and space issues

Delivering faster, larger toaster ovens

Opportunities in espresso

Market Size and Forecast

Key points

Drop in housing market and recession drive down sales in 2007 and 2008

Competition from imports has limited sales growth for review period

Figure 14: Total U.S. sales and forecast of small kitchen appliances at current prices, 2003-13

Figure 15: Total U.S. sales and forecast of small kitchen appliances at inflation adjusted prices, 2003-13

Shipment data show increase in coffeemaker sales 2007-08

Figure 16: Total U.S. shipments and forecast of small kitchen appliances, in units, 2003-08

Competitive Context

Key points

Coffee houses see sales drop as consumers cut back on expenses

Figure 17: Attitudes towards coffee houses, August 2008

Consumers seek to eat out less and save money by cooking at home

Figure 18: attitudes towards finance, August 2008

Segment Performance

Key points

Strongest growth in 2007 in coffee products

Figure 19: U.S. shipments and forecast of small kitchen appliances, by segment, 2003-13

Figure 20: U.S. shipments of small kitchen appliances, by segment and product, 2006 and 2007

Ownership shows overall stability 2001-08

Figure 21: Trends in ownership of small kitchen appliances, September 2001-November 2007

Segment Performance—Food Preparation Devices

Key points

Shipments

Figure 22: Shipments of food preparation appliances, 2003-08

Food preparation sub-segments

Figure 23: U.S. shipments of small food preparation kitchen appliances, by product, 2006 and 2007

Segment Performance—Cooking Devices

Key points

Shipments

Figure 24: Shipments of small cooking appliances, 2003-08

Cooking devices sub-segmentation

Toasters/waffle/sandwich makers: Toasters remain dominant product

Grills/cookers/fryers: Fryers and slow cookers drive growth

Bread cookers drop, while rice cookers increase

Figure 25: U.S. shipments of small kitchen cooking appliances, by product, 2006 and 2007

Segment Performance—Beverage Devices

Key points

Shipments

Figure 26: U.S. units and forecast of beverage-making appliance shipments, 2003-08

Beverage sub-segments

Drip dominates, espresso makers gaining steam

Extractors growing fast

Figure 27: U.S. unit shipments of beverage SKAs, by product, 2006 and 2007

Retail Channels

Key points

Distribution of coffeemakers, toasters, blenders, and food processors

Figure 28: U.S. retail distibution share of $ sales of selected SKAs, by channel, 2007

Focus on specialty retailers

Market Drivers: Time spent cooking

Key points

Women and larger households spend more time cooking

Figure 29: Hours spent per week preparing food, August 2008

Market Drivers: Macroeconomics

Key points

Recession a mixed bag for SKAs

Homeownership drives SKA ownership

Figure 30: Ownership of small kitchen appliances, by ownership of residence, February 2007-March 2008

Buying homes and making improvements spur SKA purchasing

Figure 31: SKAs purchased in past 12 months, by purchase of home and home improvements, February 2007-March 2008

Home sales tumbled in 2007 and continue to fall in 2008

Figure 32: Sales of new and existing homes, 2002-07

Figure 33: Seasonally adjusted annual rates for the sales of new and existing homes, Jan-August 2008

Home renovations fell in 2007

Figure 34: Expenditures for residential maintenance & repair and improvements, 2002-07

Market Drivers: Age and Household Characteristics

Key points

Under 35s acquiring more new SKAs

Figure 35: Purchasing of small kitchen appliances, by age, February 2007-March 2008

Ownership increases with age as households accumulate SKAs

Figure 36: Small kitchen appliance ownership, by age, February 2007-March 2008

25-54s centerpiece of the market

Figure 37: Households and share of small kitchen appliance purchases, by age, 2008-13

SKA ownership jumps in households of 2+ members

Figure 38: Small kitchen appliance ownership, by househld size, February 2007-March 2008

Married couples should be target for SKA sales

Figure 39: Small kitchen appliance ownership, by marital status, February 2007-March 2008

Driver: Household Income

Key points

Income drives ownership of SKAs

Figure 40: Small kitchen appliance ownership, by household income, february 2007-March 2008

$100K+ buy more high-end SKAs and gift SKAs

Figure 41: Spend and gift purchasing, by household income, August 2008

Stylish, high-quality SKAs attract high-end buyers

Figure 42: SKA attitudes—appearance, value and retro design, by household income, August 2008

Leading Companies

Key points

Overall consolidation of market, driven by competition from imports

Figure 43: Sales of leading small kitchen appliance companies, 2006 and 2007

Brand Qualities

Key points

Jarden

Crock-Pot

Mr. Coffee

Rival

Sunbeam

Oster

VillaWare

NAACO (Hamilton Beach)

Hamilton Beach

Proctor Silex

National Presto

Salton

Farberware

George Foreman

Beyond

Breadman

Juiceman

Melitta

Russell Hobbs

Toastmaster

Black & Decker

Brands from other manufacturers

Cuisinart (Conair)

Braun (Procter & Gamble)

KitchenAid (Whirlpool)

Bosch

Innovation and Innovators

Multi-function machines

Figure 44: Back to basics Egg N’Muffin machine

Cordless technology

Figure 45: Bosch’s MIXXO

Versatile products, flexible sets

Figure 46: Bosch’s Tassimo Silver, Crock-Pot’s versawear, Sunbeam’s kitchen assistant

“Smart” products

Figure 47: The Beyond breadmaker

Products that improve functions

Advertising and Promotion

Traditional media including TV, print and newspaper advertising

Supplier websites

Infomercials and in-store demonstrations

Celebrity endorsements, spokesmen and chef-developed lines

TV ads

Cuisinart: The Griddler

Figure 48: Cuisinart the griddler ad

Cuisinart: Grind & Brew Coffee Maker

Figure 49: Cuisinart Grind & Brew Thermal Coffee Maker ad

Sunbeam RocketGrill

Figure 50: Sunbeam RocketGrill ad

Krups Heineken Bartender

Figure 51: Krups Heineken Bartender ad

Hamilton Beach: Slow cooker

Figure 52: Hamilton Beach slow cooker ad

Keurig: Single-Cup Brewing System

Figure 53: Keurig Single-cup Brewing System ad

Ownership, Purchase and Usage in Mintel Sample

Key points

The Primary Shopper

Figure 54: Main person in charge of SKA purchase, by gender, age, household income, presence of children, and size of household, September 2008

Ownership, purchase and usage

Figure 55: Ownership, use, purchasing and interest in purchasing of SKAs, August 2008

Motivations to Purchase

Key points

Replacement #1 reason for buying, POP messaging should be prioritized

Figure 56: Reasons for purchase of SKAs, by gender, August 2008

Larger households seek more features and products on sale

Figure 57: Reasons for SKA purchase, by size of household, August 2008

The Purchase Process

Key points

In-store advertising central to marketing of SKAs

Figure 58: Research before purchasing SKA, by age, August 2008

Upper income respondents do more research

Figure 59: Source of information before purchasing SKA, by household income, August 2008

Product choice—the role of brand recognition, price, appearance

Figure 60: Brand, style and price considerations for SKAs, by age, August 2008

High-end, high style for upper income buyers

Figure 61: brand, style and price considerations of SKAs, by household income, August 2008

Style matters more for women, but men may pay more

Figure 62: SKA attitudes—appearance, brand, value and retro design, by gender, August 2008

Gift-giving, cleaning and having room for SKAs

Figure 63: SKA attitudes—gifts, cleaning and space, by gender, August 2008

Toasters, Microwaves, and Multifunction Products

Key points

Under-35s most likely to prefer toaster ovens and want faster models

Figure 64: Attitudes towards toaster ovens, by age, August 2008

High-income respondents interested in faster toasting

Figure 65: Attitudes towards toaster ovens, by household income, August 2008

Combination products need qualities beyond dual functionality

Figure 66: Attitudes towards combination appliances, August 2008

Capitalizing on Cutbacks in Coffee House Purchasing

Key points

Consumers cutting back on coffeehouse drinks

Figure 67: Attitudes towards coffee, by age, August 2008

Opportunities in espresso

Figure 68: Attitudes towards coffee-making appliances, by household income, August 2008

Race and Ethnicity

Key points

Whites and Asians show highest overall SKA ownership

Figure 69: SKA ownership, by ethnicity/Hispanic origin, February 2007-March 2008

Minorities less likely to be replacing a broken appliance

Figure 70: Reasons for SKA purchase, by ethnicity/Hispanic origin, November 2006

Little difference in research activities

Figure 71: Research before purchasing SKA, by ethnicity/Hispanic origin, August 2008

Figure 72: Amount spent, buying used and being main person to buy SKA, by ethnicity/Hispanic origin, August 2008

Importance of style greater for Hispanics and Blacks

Figure 73: Brand recognition, style and price considerations, by ethnicity/Hispanic origin, August 2008

Attitudes of English-language online Hispanics support promoting diet-friendly SKAs

Figure 74: Attitudes towards cooking and diet, by ethnicity/Hispanic origin, August 2008

Hispanics show most positive attitudes towards toaster ovens

Figure 75: Attitudes towards toaster ovens, by ethnicity/Hispanic origin, August 2008

Hispanics a target for espresso/cappuccino makers

Figure 76: Attitudes towards coffee, by ethnicity/Hispanic origin, August 2008

Appendix: Other Useful Consumer Tables

Ownership by household income

Figure 97: SKA ownership, by househld income, February 2007-March 2008

Toasters don’t replace desire for larger ovens

Figure 98: Attitudes towards toaster ovens, by gender, August 2008

Only marginal shift in purchasing from 2001-08

Figure 99: Trends in purchasing of SKAs, September 2000-March 2008

Ownership and use by age, income, ethnicity

Figure 100: Both owns and uses SKAs, by age, August 2008

Figure 101: Both owns and uses SKAs, August 2008

Figure 102: Both owns and uses SKAs, August 2008

Reasons for purchasing SKAs by age and income

Figure 103: Reasons for small kitchen appliance purchase, by age, August 2008

Figure 104: Reasons for SKA purchase, by household income, August 2008

Attitudes towards SKAs—gifts, cleaning and space—by age

Appendix: Trade Associations