Sale of food preparation appliances hold ground amid pandemic. Amid the onset of covid-19 pandemic and its impact; sales of food preparation appliances have suffered relatively little impact in 2020. COVID-19 has led to increased cooking at home and fueled need for time-saving small kitchen appliances.
While retail volume sales of food preparation appliances declined by 7% in 2020 to 16.4 million units, food processors was the only category to have witnessed a positive growth in 2020 with a 3% increase in retail volume sales as per latest data from Euromonitor.
Volume sales of food preparation appliances in India are expected to recover rapidly in 2021 to reach the level seen in 2019. Local manufacturers, in particular, have fared well in sales of food preparation appliances, owing to the lower price points of their products.
Bajaj Electricals Ltd. remains the leading player in 2020 with a 16% retail volume share in the segment. Given resilient demand momentum across product categories, more so in kitchen appliances, market share gains aided by increased distribution reach in smaller towns/ rural India and mass market positioning, persistent expansion of Consumer Product (CP) margins sustained improvement of balance sheet aided by robust cash flows generation, the management expects operational profitability by Q2FY22.
The government has aimed to control the quality of products sold by introducing new BIS quality norms, which may favour larger players with greater resources. Despite lockdowns and restrictions, store based retail was the preferred format for many consumer which stood at 91.3%.
Given the continuing impact of the COVID-19, sales of food preparation appliances are expected to grow at a 7% volume CAGR to reach 23.4 million units in 2025.
**Source for data: Euromonitor
As people continue to be stationed at home, there will be a need for kitchen appliances like mixer grinders, choppers, food processors and also household items like iron. So there is an opportunity to grow the business for large player’s likes us especially since small unorganized players are finding it tough to sustain
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