Electric Kettle Market Will significantly Grow At CAGR of 4.7 % By Forecast Period (2022-2027)
An electric kettle is a device used for boiling water as it is safe, easy to use, and doesn’t make noise while operating, which is why it is extensively used in the residential and commercial sectors. Rising spending power, favorable financing schemes, rapid urbanization, growing middle class, and changing lifestyles drive the market growth. Additionally, the growing demand for consumer durables in rural and semi-urban markets of developing economies is adding fuel to the market growth. However, high energy consumption, lack of efficient labeling guidelines, and slow technological progression might hamper the market growth. Some of the well-known brands of electric kettles include Philips HD 4649, Kenwood SJM 281, Bajaj Majesty KTX10, Usha Electric Kettle 3217, Hevells Titania, Prestige PKPWC 1.7, Morphy Richards, Rapido, Baltra Solid, Optima CK 2400, and Orient Actus KT 1801S.
The stainless steel segment dominates the electric kettles market as they are durable, does not release any bad taste in water, and good for health. However, these kettles are relatively expensive compared to the plastic and the glass segment, they provide good value for money, owing to which these kettles are witnessing a significant surge in demand. Additionally, the prominent players are actively working to improve the design of the kettles and are adopting various technologies, such as double-walled designs, to gain a competitive edge.
The plastic segment holds the highest market share for its low price and lightweight. These kettles are available in sleek and stylish designs, further catching the customer's eye. Polypropylene or polycarbonate are used for the manufacturing of these kettles, and bisphenol A (BPA) is found in polycarbonate, which is an industrial chemical that can cause serious health issues. Rising awareness regarding the BPA is decelerating the sales of plastic kettles, further hampering the market growth. In line with this, the manufacturers are continuously working to develop BPA free plastic kettles to increase their customer base.
Today, electric kettles are available in different sizes on account of their rising demand, ranging from 0.5L to 2.5L and above. The above 1.5L segment leads the market and is projected to dominate during the forecast period on account of shifting preference towards hot beverages, especially in the developing countries such as China and India, coupled with rapid technological developments.
By the end-user, the residential segment holds the largest market share on account of continuously rising population, rapid urbanization, especially in developing economies, improving lifestyle, and increasing disposable income. Governments in the U.S. and India are taking several initiatives to drive the growth of consumer durables in the residential sector. For instance, in 2015, the government of India reduced the central excise duty from 12% to 10% in an effort to support the demand of consumer durables.
The commercial segment comprises corporate offices, factories, warehouses, and shopping malls, among others. The commercial segment offers lucrative growth opportunities to the players in the electric kettle industry to expand their business as the industry is moving towards rapid industrialization and urbanization. Apart from this, an increasing number of workplaces and workforce are subsequently surging the demand for electric kettles, further driving the segment growth.
Asia-Pacific is projected to be the fastest-growing region in the electric kettles market on account of the economic development, rapid industrialization, and increasing consumer spending on kitchen appliances. In rural areas, the availability of electricity and fast internet is subsequently increasing online sales, further driving the market growth. For instance, as per the Indian Brand Equity Foundation (IBEF), the Indian e-commerce market is expected to reach USD 200 billion by 2026 from USD 38.5 billion as of 2017. Furthermore, shifting the population from rural areas to urban areas provides an impetus to the market growth.
The regional government is actively working to develop favorable policies to increase investments in the consumer durables sector. For instance, the government of India permitted 100% foreign direct investment (FDI) in the electronics hardware-manufacturing sector under the automatic route, further increasing the investment by the international players in Asia-Pacific’s consumer durables market. For instance, as per the Department for Promotion of Industry and Internal Trade (DPIIT), during April 2000–June 2019, the FDI inflow in the electronics sector was valued at USD 2.45 billion.
North America held the largest share in the electric kettle market in 2019 and is anticipated to dominate the market during the forecast period on account of changing consumer preferences. Rising adoption of energy-saving technologies is surging the demand for electric kettles as they consume less energy compared to conventional cooking appliances. The region is also backed by the rising consumption of hot beverages such as coffee and tea, which drives the demand for efficient heating appliances, such as electric kettles. As per the International Coffee Organization, in 2019, around 19.2% of the world’s coffee consumption came from North America.
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Central and South America and the Caribbean
The Middle East