Global trends

Global trends

The increasing pace of change in the global market for household appliances stems from a number of trends such as increased consumer power, digitalization, sustainability, consolidation and a growing middle class. These changes are placing demands on investments and economies of scale, but also open up major opportunities.

For simplification purposes, the global market for household appliances can be split into two parts. In the mature markets (Western Europe, North America, Japan and Australia/New Zealand), population growth is low and sales are dominated by replacement products. However, growth markets (Africa, the Middle East, Eastern Europe, Latin America, Southeast Asia and China) are characterized by rapidly rising living standards and a large number of new households being able to invest in appliances and other household products.

During 2016, demand for appliances increased in mature markets such as North America, Europe and Australia as well as in growth markets in Southeast Asia and China. Although demand continued to decrease in Latin America a general increase in global demand for appliances was noted.

Growth markets have increased their global share of demand. In 2016, the demand in growth markets represented about 70% of the total market volume compared with 50% in the year of 2000. Growth markets accounted for about 30% of Electrolux sales for the year, and the objective is to increase this share.

Trends

The increasing pace of change in the global market stems from a number of trends that influence volumes and the types of products that are in demand.

  • Consumer power is growing as increasingly well-informed customers easily can access information about prices, offers and product characteristics. This means that Electrolux, as well as other brands, need to offer transparent information about how the products and offers are differentiated to meet customer needs.
  • Digitalization plays an important role in increasing consumer power. Mobile solutions and access to the Internet place demands on Electrolux and increase opportunities to interact with consumers in new ways. Digitalization also provides substantial opportunities to develop increasingly advanced products, such as connected products, as well as making the Group’s operations more efficient.
  • Sustainability is becoming more important for customers and consumers as well as authorities, who demand that manufacturers develop and offer sustainable products. This trend has been apparent for a number of years but development is now accelerating at varying paces in the different regions.
  • A global middle class is expanding as a result of strong economic growth in emerging economies. This trend has been visible for many years and will continue.
  • Consolidation in the sector is, to a large extent, driven by the above trends as they result in challenges that require major investments and economies of scale. Manufacturers and retailers of household appliances are becoming fewer, larger and more international.
Topics and categories
Read more about Electrolux Markets

Western Europe is the Group’s largest market for consumer durables and professional products.

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North America is a market with high penetration in most product categories. The average living space of households is above that of other regions, which means space is available for both many and large...

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Electrolux is focusing on launching products adapted to the differing conditions of households in the region.

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The acquisition of the Egyptian Olympic Group in 2011 has given Electrolux a leading position in the appliance markets of North Africa and the Middle East.

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Brazil represents around 50% of the total Latin American market for appliances. Other major markets include Mexico and Argentina. Latin America is a highly urbanized region for an emerging market.

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In this region, Electrolux sales focus on appliances and vacuum cleaners in the premium segment under the Electrolux brand.

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