U.S. Small Kitchen Appliance Market has Fallen 6 Percent
Nov 1, 2005
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Research and Markets has announced the addition of Small Kitchen Appliances in the U.S. to their offering.

The U.S. $2.7 billion small kitchen appliance market fell in value by 6 percent in constant dollars between 2000 and 2005, despite strong growth in the housing market, increases in homeownership and increased consumer expenditure on kitchen remodeling during this period. One of the reasons for lackluster growth was the deflationary nature of the market with consumers purchasing by price rather than innovation and features.

Coffeemakers, mixers, toasters, and blenders represent 58 percent of total small kitchen appliances sales in 2005, and can be considered kitchen staples. Growth will occur if manufacturers and suppliers convince consumers to upgrade these commonly owned products for new innovations and features, as is happening with single-serve coffeemaker systems.

The retail market is primarily controlled by mass merchandisers such as Wal-Mart and Target, whose efforts to push down prices, alongside rising material costs, will make sales difficult for suppliers, even if the market as a whole shows growth. As such, suppliers will need to seek out alternative distribution channels while simultaneously aiming to grow the market with new product.

Based on these factors, we expect the market to head in two directions--consolidation among current suppliers, and vertical integration, with retailers turning toward sourcing store-brand products, and suppliers seeking means of reaching the consumer directly, via online and phone sales, Direct TV sales, and through opening retail shops of their own.
The small kitchen appliance market covers U.S. retail sales of electrical appliances for food preparation and tabletop cooking. Excluded from this report are sales of appliances in a non-domestic setting such as hotels, restaurants etc. for food service use.

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