GfK: demand for Consumer Tech and Durables goods decelerates

Image by Dede from Pixabay

For the first half of 2023, the global market value for Consumer Tech and Durables declined by -6.3% to 390 billion US dollars compared to the same period last year. Looking ahead to the full year results, GfK forecasts value change of -3.4% overall, due to ongoing market saturation and slowing demand. However, the market value is still above pre-pandemic levels in 2019. Globally, demand for T&D goods has continued to decelerate as markets adjust to the macro environment of cost-of-living crises, manufacturers’ overstocked inventories and saturated consumer demand from previous years of peak sales. As a result, all T&D subsegments experienced lower revenue in the first half of 2023 compared to the same period last year. In particular, Small Domestic Appliances registered -1% and Major Domestic Appliances -5%. However, the products that grew year-over-year, despite the challenges, were those that offer attributes of energy efficiency and sustainability, heightened convenience and flexibility, or affordable premiumization. Smart and sustainable appliances that are energy efficient not only offer lower lifetime costs to the consumer, but also have high quality and are convenient in the eyes of the consumer. Especially in Europe, where energy prices are soaring, energy efficiency is one of the most important criteria for consumers when purchasing large appliances. The value of A-, B- and C-labelled combi-refrigerators, for example, increased by 77 percent in the first half of 2023 and freestanding dishwashers with these same labels grew by 37 percent. Additionally, air fryers, which offer both healthier eating and use less energy while cooking, grew plus 54 percent. Similarly, convenience products that make consumers’ lives easier, such as robot vacuum cleaners with docking stations (plus 23 percent), also continued their positive momentum.