Cookware - US

Those aged 18-35 are the most likely to be actively acquiring cookware for the first time, thus seeking the greatest range of products and building brand allegiance. (Only 35% of those aged 18-24 have acquired no cooking products in the past two years and 41% of those aged 25-34, vs. 51% of all.) With the economic downturn, about six in 10 respondents aged 18-35 are cooking at home more, making this a further key opportunity to home in on younger buyers.

While for most age groups, women are buying more products and cooking more, among those under 35, men aged 18-35 are acquiring cookware on a par with women of the same age, suggesting that outreach can cut across genders, or alternatively home in on younger men and younger women. One way to reach out to these younger men would be with “bachelor sets,” promoted for young single men. These could be touted as perfect gifts for friends, sons, brothers and recent college grads. In addition to basic cookware, bakeware and cutlery, sets can include some kitchen or grill tools, and a “cooking 101” with recipes featuring basics such as burgers, spaghetti, mac n’ cheese, easy casseroles, egg dishes and even some tongue-in-cheek special recipes (“impress your date” dishes or “great Super Bowl hors d’oeuvres.”)

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising creative

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Downturn follows strong growth from 2004-06

Recession leads consumers to cut back… and also to cook more

Key segment trends

Aluminum

Stainless steel

Kitchen cutlery

POI/copper/cast iron

Bakeware

Retail trends

Mass merchandisers

Alternative retailers

Department stores

“Other” channels

Central drivers

Home sales, renovations and kitchen remodeling—much tempered with the downturn

Shows, green living and concerns with PFOA shape consumer interest/drive innovation

Ethnic cooking, Hispanics, marriages and Echo Boomers to shape future sales

Fragmented supply structure

Brand qualities vary along price point, impact of celebrity-chef lines

Marketing relies heavily on retailer participation

Green, licensing and sets for kids, gifts and specific meals drive innovation

Consumer research findings

Acquisition and source of cookware, bakeware and cutlery

The cookware customer

The bakeware customer

The cutlery customer

Widespread changes to eating seen with downturn

Customers using range of appliances and cooking methods more

Non-whites acquire more cookware and cook at home more

Moms and dads buy more, eat at home more, bake and grill more

INSPIRE INSIGHTS

TREND: FOOD2

Overview

Food2 and Gen Y

Implications

TREND: FASTER, HOTTER

Overview

Fast Food

Implications

MARKET SIZE AND FORECAST

Key points

Recession has dampened sales in 2007-09

Increase cooking at home offers countervailing force to downturn

Market should stabilize, with Echo Boomers and Hispanics key to growth through 2014

Figure 1: Total U.S. retail sales of cookware, bakeware and kitchen cutlery, at current prices, 2004-14

Figure 2: Total U.S. retail sales of cookware, bakeware and kitchen cutlery, at inflation-adjusted prices, 2004-14

COMPETITIVE CONTEXT

Key points

Consumer confidence falls in 2008 and remains weak in 2009

Figure 3: University of Michigan’s index of consumer sentiment (ICS), 2001-08

Figure 4: University of Michigan’s index of consumer sentiment (ICS), January-July 2009

Return to strong confidence and spending may take years

Vast majority of consumers report economizing in the home to save money

Figure 5: Changes or plans to change spending to save money, by gender, presence of children, and race/Hispanic origin, March 2009

Consumers hold off on replacements and upgrades

Figure 6: Changes in products for the home purchases and plans, March 2009

Restaurants report slumping sales

Figure 7: Restaurant Performance Index, current situation, and expectations, May 2007-May 2009

Six in 10 consumers report eating at home more

Figure 8: Changes in eating out or cooking habits in past year, July 2009

Assembling dishes and cooking from scratch most popular with those cooking more at home

SEGMENT PERFORMANCE

Key points

Bakeware and cast iron/POI/copper strong performers 2006-2008

Figure 9: Sales of cookware and kitchen cutlery, segmented by type, 2006 and 2008

SEGMENT PERFORMANCE—ALUMINUM COOKWARE

Key points

After exceptional 2005 growth, modest sales and a decline in 2008

Segment shaped by innovations in PFOA-free non-stick surfaces

Retail sales of aluminum cookware

Figure 10: Retail sales of aluminum cookware, at current prices, 2004-14

SEGMENT PERFORMANCE—STAINLESS STEEL COOKWARE

Key points

Retail sales of aluminum cookware

Figure 11: Retail sales of stainless steel cookware, at current prices, 2004-14

SEGMENT PERFORMANCE—KITCHEN CUTLERY

Key points

Retail sales of kitchen cutlery

Figure 12: Retail sales of kitchen cutlery, at current prices, 2004-14

SEGMENT PERFORMANCE—CAST IRON, POI AND COPPER COOKWARE

Key points

Retail sales of cast iron, POI and copper cookware

Figure 13: Retail sales of cast iron, POI, and copper cookware, at current prices, 2004-14

SEGMENT PERFORMANCE—BAKEWARE

Key points

Retail sales of bakeware

Figure 14: Retail sales of bakeware, at current prices, 2004-14

RETAIL DISTRIBUTION

Key points

Mass merchandisers expand dominant role

Figure 15: Retail sales of cookware and kitchen cutlery, by channel, 2007-09

Consumer research confirms Walmart’s dominant role

Figure 16: Type of retailer from which cookware, bakeware or cutlery purchased, July 2009

RETAIL CHANNELS—MASS MERCHANDISERS

Key points

Mass merchandiser sales of cookware

Figure 17: U.S. mass merchandiser sales of cookware and kitchen cutlery, 2004-09

RETAIL CHANNELS—ALTERNATIVE (SPECIALTY, GOURMET) RETAILERS

Key points

Alternative channel sales of cookware

Figure 18: U.S. alternative channel sales of cookware, 2004-09

RETAIL CHANNELS—DEPARTMENT STORES

Key points

Department store sales of cookware

Figure 19: U.S. department store channel sales of cookware, 2004-09

RETAIL CHANNELS—OTHER CHANNELS

Key points

Other channel sales of cookware

Figure 20: U.S. “other channel” sales of cookware, 2004-09

MARKET DRIVERS

Key points

Collapse of housing market dampens demand for new cookware

Figure 21: Sales of new and existing homes, 2003-08

Small upswing in housing sales seen mid-2009

Figure 22: Sales of new and existing homes, January-July 2009

Overall reductions in remodeling/redecorating also drive down demand for cookware

Figure 23: Changes in home redecorating and remodelling plans, March 2009

Cooking shows showcase new products and have led to proliferation of celebrity chef brands

Watching cooking shows may not translate into active cooking and many consumers show limited brand awareness

Widespread concern with environment in general and exposure to chemicals in particular

Key consumer attitudes related to the environment and chemical exposure

Figure 24: Belief that shopping habits make a difference in the world, and other attitudes, October 2008

PFOA widely perceived as a significant threat to health and safety

Quest for non-PFOA products spurs product innovation

Interest in ethnic cooking and young, dynamic, growing Hispanic population

Figure 25: Retail sales of “ethnic” cooking products, at current prices, 2004-09

Figure 26: Dollar share of ethnic cooking products and appliances market by cooking style, 2008

Cookware suppliers reach out to Hispanic market

Population growth will make Hispanics important to growth through 2014 and beyond

Figure 27: Hispanic share of the population, by age, 2004-14

Hispanics also have larger families, further driving cookware needs

Figure 28: Household size, by race and Hispanic origin of householder, 2009

Wedding is key moment for acquisition of cookware

LEADING COMPANIES

Key points

Consumer research shows diversity of market and widespread lack of brand awareness

Figure 29: Cookware manufacturers bought from in past two years, by segment, 2009

BRAND QUALITIES

Key points

Celebrity chef-branded lines benefit from high visibility, consumer identity with celebrity chefs

High-end manufacturers

Chantal associated with “German engineering” and healthy enamel products

Zwilling J.A. Henckels’ Demeyere celebrates 100 years in high-end stainless steel cookware

Emile Henry associated with French cuisine and Provençal design

Fissler offers 160 years in market and high-end, German-made steel products

Le Creuset of America associated with French cuisine and bold colors

French SEB Group touts the high-end American made All-Clad Brand

Major U.S. manufacturers

World Kitchen, LLC

Gibson makes “value” the centerpiece of branding, benefits from Sunbeam and Oster brand recognition

Lifetime Brands touts lines ranging from European gourmet to affordable basics

M.E. Heuck offers contrasting brand images for Hamilton Beach and Proctor Silex

Meyer offers variety of brands to carve out major share of mainstream market

Regal Ware brands focus on identity as American made products

Newell Rubbermaid’s Calphalon offers quality, reliability and value

Other and smaller suppliers

Americraft touts heirloom-quality products that also are innovative and healthy

IMUSA promotes itself as “authentic” Hispanic cookware company

Lodge Manufacturing promotes All-American image

Mastrad offers unique, colorful products with modern materials

Robinson Home Products benefits from brand association with renowned Culinary Institute

Nordic Ware

Swiss Diamond

Tramontina

TTU

Wilton

INNOVATION AND INNOVATORS

Key points

Eco-friendly innovations and greening brand identity

New products for outdoor cooking and grilling

Innovative themed sets and gift sets

Down-sized products and single-serving cookware

Focus Kitchen/Chicago Metallic with innovative baking and roasting products

Gibson and M.E. Heuck with licensing agreements from established houseware and small appliance brands

Cooking sets for kids and fun, licensed baking sets with an appeal to moms

Innovation concepts

Cookware labeling

Cookware-to-tableware-to-lunchbox?

ADVERTISING AND PROMOTION

Key points

Overall advertising and marketing outreach

TV ad showcases new product offerings and refines brand identity

Figure 30: CorningWare TV ad, 2009

Infomercial allows for extensive product demonstrations

Figure 31: StoneDine TV ad, 2009

COOKWARE, BAKEWARE, CUTLERY: ACQUISITION AND SOURCE

Key points

Purchase and receipt of cookware, bakeware or cutlery

Figure 32: Purchase or receipt of cookware, bakeware or cutlery in last two years, by gender, July 2009

Younger consumers actively acquiring more cookware, bakeware, cutlery

Figure 33: Purchase or receipt of cookware, bakeware or cutlery in last two years, by age, July 2009

Those “living with partner” show highest acquisition levels

Figure 34: Purchase or receipt of cookware, bakeware or cutlery in last two years, by marital status, July 2009

Acquisition tends to increase with household size

Figure 35: Purchase or receipt of cookware, bakeware or cutlery in last two years, by number of people in household, July 2009

Source of cookware, bakeware and cutlery—by type of retailer

Figure 36: Type of retailer from which cookware, bakeware or cutlery purchased, July 2009

THE COOKWARE CONSUMER

Key points

Cookware acquisition—type of cookware

Figure 37: Cookware purchase, type of product acquired, by occasion of purchase, July 2009

Choice of retailer for cookware

Younger buyers favor Walmart and turn to greatest range of retailers

Figure 38: Type of retailer from which cookware was purchased, by age, July 2009

Lower-income consumers favor Walmart; upper-income, department and specialty stores

Figure 39: Type of retailer from which cookware was purchased, by household income, July 2009

THE BAKEWARE CONSUMER

Key points

Bakeware acquisition—type of bakeware

Figure 40: Bakeware purchase, type of product acquired, by occasion of purchase, July 2009

Choice of retailer for bakeware

Consumers under 45 use range of retailers for bakeware

Figure 41: Type of retailer from which bakeware was purchased, by age, July 2009

Supermarkets popular for bakeware with consumers at all income levels

Figure 42: Type of retailer from which bakeware was purchased, by household income, July 2009

THE CUTLERY CONSUMER

Key points

Cutlery acquisition—type of cutlery

Figure 43: Cutlery purchase, type of product acquired, by occasion of purchase, July 2009

Choice of retailer for cutlery

Income strong determinant of where consumers seek cutlery

Figure 44: Type of retailer from which cutlery was purchased, by household income, July 2009

IMPACT OF THE RECESSION ON EATING OUT AND COOKING HABITS

Key points

Incidence and reason for eating at home more

Cooking from scratch vs. heat/eat or take out

Those eating in using a range of cooking methods

More than half of respondents report eating in more often

Figure 45: Changes in eating out or cooking habits in past year, by gender, July 2009

18-54-year-olds show substantial cut-backs in eating out

Figure 46: Changes in eating out or cooking habits in past year, by age, July 2009

Changes in cooking patterns

Figure 47: Changes in cooking patterns for those eating in/at home more, by gender, July 2009

Younger consumers more likely to seek quick, easy at-home cooking solutions

Figure 48: Changes in cooking patterns for those eating in/at home more, by age, July 2009

Upper-income households cooking from scratch more—and having more heat-up and take out meals

Figure 49: Changes in cooking patterns for those eating in/at home more, by household income, July 2009

Changes in appliance use

Figure 50: Changes in appliance use for those eating in/at home more, by gender, July 2009

18-35-year-olds show strong increase in grilling, baking and frying

Figure 51: Changes in appliance use for those eating in/at home more, by age, July 2009

Upper-income households grilling and broiling at above-average levels

Figure 52: Changes in appliance use for those eating in/at home more, by household income, July 2009

IMPACT OF RACE/HISPANIC ORIGIN

Key points

Acquisition of cookware, bakeware or cutlery higher for non-white ethnic groups

Figure 53: Purchase or receipt of cookware, bakeware or cutlery in last two years, by race/Hispanic origin, July 2009

Non-white ethnic groups more likely than whites to change cooking habits

Figure 54: Changes in eating out or cooking habits in past year, by race/Hispanic origin, July 2009

Hispanics and “other” race most likely to cook more from scratch

Figure 55: Changes in cooking patterns for those eating in/at home more, by race/Hispanic origin, July 2009

Changes in appliance use

Figure 56: Changes in appliance use for those eating in/at home more, by race/Hispanic origin, July 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Source of cookware, bakeware and cutlery

For cookware, men turn to a greater variety of retailers than women

Figure 57: Type of retailer from which cookware was purchased, by gender, July 2009

For bakeware, men more likely than women to turn to supermarkets and dollar stores

Figure 58: Type of retailer from which bakeware was purchased, by gender, July 2009

Gender differences in retail choice extend to cutlery

Figure 59: Type of retailer from which cutlery was purchased, by gender, July 2009

Those under 45 use wider range of retailers for cutlery purchase

Figure 60: Type of retailer from which cutlery was purchased, by age, July 2009

Brand purchases

18-34-year-olds purchase greatest range of cookware/bakeware brands

Figure 61: Brand of cookware/bakeware purchased in last 12 months, by age, July 2009

18-44-year-olds purchase widest range of cutlery brands

Figure 62: Brand of cutlery purchased in last 12 months, July 2009

Three or more member households doing more grilling and frying

Figure 63: Changes in appliance use for those eating in/at home more, by number of people in household, July 2009

APPENDIX: TRADE ASSOCIATIONS