The luxury appliance market saw incredible growth in 2021 as homeowners upgraded their living spaces with new refrigerators, cooktops and ranges, laundry and other high-end appliances.
More disposable income and changing tastes drove luxury appliance growth.
Consumers stuck at home working throughout the initial onset of the pandemic used their appliances more each day and had time to dream up how to upgrade their living spaces. This led to a remarkable 6% rise in market growth for core appliance sales in the U.S. during that period.
The rapid increase in demand led to many disappointed consumers as they were informed of long shipping delays for cheaper, low-end appliances, but it was great news for retailers who introduced them to luxury appliance brands such as Miele, Thermador, GE Monogram, Dacor and Viking.
In the luxury appliance category, not only did consumers find the appliances they needed in stock, they could upgrade their homes and lifestyle like never before.
According to a forecast report released by Reportlinker.com, consumer spending on household appliances in the U.S. increased at a 2.83% CAGR over the last 5 years, with e-commerce appliance purchases increasing by 15% after the onset of the pandemic.
Luxury appliance sales are expected to continue to grow, especially as companies such as Samsung, Haier and Phillips expand their affordable luxury offerings.
The FAM has rounded up three hot trends expected to continue for the luxury appliance market in 2022 and beyond.
- Smart & Connected Luxury Appliances
The number of smart homes in North America has grown by 18.7% year over year, and, according to Berg Insights, approximately 53% of all North American households will be smart homes by 2024. A smart home is one that’s equipped with lighting, appliances, and electronic devices that can be controlled remotely by phone or computer. More than 78 million smart homes have millions of devices— including appliances—connected to smartphone apps through Wi-Fi, Bluetooth, or both!
First seen as a gimmick with no real application, consumers now expect their luxury appliances to be smart and connected. This means appliances that don’t offer conveniences and functionality, such as timer alerts, touch or voice controls, energy consumption tracking, or the ability to connect remotely to preheat an oven or start a dishwasher, will be snubbed by savvy consumers who expect and demand these features.
More and more luxury appliances will offer expanded connectivity and functionality in 2022, and expectations are high to bring consumers even more interaction and customization in the near future.
- Healthy Living & Sustainability
The pandemic magnified the need for healthy lifestyle changes, and that movement is the next big luxury appliance trend in 2022. Confined to their homes, consumers have cooked more, washed more clothes, and, in general, used their old appliances more than ever over the past few years.
These enlightened and involved consumers have realized how much power, water, and time it takes to run their machines, and now they are looking for responsible and health-conscious luxury appliance manufacturers that align with their health and sustainability values to create appliances that reduce their carbon footprint while running efficiently on less energy.
In 2022 we’ll see more energy-efficient refrigerators that keep healthy foods fresh longer, washers and dryers that use less water and power, and dishwashers that clean more dishes per load leading the charge to healthy living standards. Additionally, touch-free and voice-activated appliances will play a larger part in homes going forward—helping consumers stay healthier by not having to touch handles, knobs, and other commonly handled appliance parts.
- Multifunction Luxury Appliances
This trend is especially relevant with kitchen appliances, and we’ve seen the first luxury appliances enter the market over the past few years with ovens that cook with steam, warm food, air fry, and microwave.
It’s anticipated that luxury appliances will include more features as the technology develops, but the demand from consumers for luxury appliances to do more and take up less space is growing louder. Beyond the kitchen, expect to see the laundry room evolve with multifunction capabilities as well. We’re already seeing more washer/dryer combos, as well as more luxury washing machines progressing beyond steaming and continuous tumble functions.
These top three luxury appliance trends are key to meeting your luxury customer’s expectations and needs.
Whether you are looking to expand your current offering of luxury appliances or just dipping your toe into the luxury appliance waters, it’s clear that luxury appliances will shape the industry by creating demand for connected features, sustainability and multifunctionality.