China's Demand for Appliances: 138 Million in 2010
Oct 10, 2006		  Print this page
Demand for major household appliances in China is projected to increase 4.5 percent annually through 2010, to reach 138 million units. According to a new study from The Freedonia Group, Inc., Household Appliances in China, China's growth in appliance demand will outpace growth in most other parts of the world.

Low penetration rates for most major appliances, especially compared to the penetration rates in developed countries, are key to the growth in demand China. Growth will also come form the household formation rates in China and the large number of appliances put into use over the last 10 years, many of which will require replacement. Also impacting the growth will be rising personal income levels and growing urbanization. Freedonia said value growth will significantly outpace volume growth due to price increases.

Freedonia reports that, by 2010, China will overtake the U.S. as the world’s largest major household appliances market. China is already the world’s largest producer and exporter of these products.

China's appliances exports will slow compared to the fast pace seen in the 1995-2005 period, in part due to increasing competition in offshore markets from other low-cost producing nations as well as from new offshore facilities by some Chinese appliance OEMs. Still, shipments of appliances from Chinese manufacturers are expected to top 300 million in 2010, with nearly 55 percent exported.

Household Appliances Demand In China
(million units)
Item
% Annual Growth
2000
2005
2010
Household Appliances
Demand
76.2
110.9
138.2
Cooking
Appliances
46.3
65.4
84.9
Refrigerators
& Freezers
12.9
21.3
25.4
Clothes Washers
& Dryers
14.3
19.5
21.9
Dish Sterilizers
& Dishwashers
2.7
4.7
6.0

Source: The Freedonia Group, Inc.

Back to Breaking News