A Smart Home Guide survey found that more than 50% of respondents made their home appliances purchases online and leading e-commerce platforms have seen up to a 200% increase in kitchen and home appliances demand.
The global e-commerce market value for home appliances in 2021 was valued at 107.4 billion USD with a predicted compound annual growth rate (CAGR) of nearly 5% over the next 5 years, according to the Grand View Research market analysis report. This includes the white goods segment (washing machines, refrigerators, ovens, etc.) as well as small electric home appliances.
Amazon specifically saw incredible numbers, with a record $591 million revenue for Small Home Appliances in November 2021- a 25% YoY growth – more than any other kitchen & dining sector.
There are a variety of reasons that contribute to the projected growth of this industry. Since the Covid-19 pandemic hit, the amount of time spent at home has increased significantly, driving consumers to shop with the intention of improving their space. Shoppers are doing more cooking, cleaning and working at home, so the inclination to invest in smart technology that simplifies these daily tasks has increased significantly.
Additionally, product innovation that takes factors such as energy conservation and design aesthetics into account is expected to only continue to drive demand for these products in the coming years. Key market players are also adapting to this increase in demand and Amazon is responding by adding 1,000 warehouses in and around cities and suburbs to reduce supply shortages.