South America Built-In Kitchen Appliances Market Outlook, 2028

In the current growing global marketplace, the demand for built-in kitchen appliances is increasing in South America. With an emerging middle class possessing rising purchasing power, home appliances are expected to experience growth both in basic products and in the more technologically advanced product categories. The current demand for basic kitchen appliances like washing machines and fridges, as well as the projected future demand for premium, smart, and high-value-added products, will be driven by one segment of the population: a rapidly urbanizing population of young people. The increasing number of nuclear families, changing food habits, and the growing number of working women and single professionals are expected to drive the growth of the market over the forecast period. Stringent energy efficiency regulations applicable in different parts of the world, easy availability of household kitchen appliances on e-commerce websites, growing preference for home automation, and continued launches of smart cooking products are expected to contribute to the growth of built-in kitchen appliances.

According to the research report, "South America Built-in Kitchen Appliances Market Outlook, 2028," published by Bonafide Research, the market is anticipated to grow at 6.22% CAGR during the forecast period. The construction sector is witnessing substantial demand for enhanced and connected homes equipped with technologically advanced appliances and devices. Developing countries such as Brazil have made interesting strides in smart home developments, which imply an increase in the adoption of built-in kitchen appliances. The South American market has witnessed substantial growth in the number of smart homes, and the country is expected to experience similar trends in the coming years. The rapid shift in the mindsets of the Brazilian population is heavily impacting the growth of smart homes with integrated appliances such as built-in ovens, built-in hobs, built-in hoods, built-in refrigerators, built-in dishwashers, and others. Among these segments, built-in refrigerators are projected to lead the market during the forecast period. However, built-in hobs are expected to grow at a higher CAGR by the end of the forecast period.

According to the report, the South American market is segmented into three major countries, including Brazil, Argentina, and Colombia. Brazil and Argentina are the two most important markets in the South American built-in kitchen appliance market. They offer both modern appliances as well as more traditional ones, which can be helpful in catering to different lifestyles and budgets across various regions with varying levels of disposable income available to them at any point in time, thus making it an attractive region when expanding into such market segments within South America. Owing to the change in the mindset of the population, mostly among the people in developed countries and a few in developing countries, the built-in kitchen appliances market is expected to have a positive outlook in the future. Also, the hospitality industry in various geographies is procuring robotic or built-in technologies and connected technologies to enhance customer satisfaction. Various hotel management teams are showcasing interest in transforming their kitchens into smart built-in kitchens with the procurement of these kitchen appliances. Based on application segmentation, the commercial segment is expected to command more than 60% of the market in 2022.

The South American business area is investing in innovation and brand building to achieve a sharper product offering and a stronger market position. In addition, ongoing investments in modularization, automation, and digitalization accelerate time-to-market, reduce complexity, and drive cost efficiencies. Local manufacturing is a competitive advantage as several of the main markets, such as Brazil and Argentina, are protected by customs tariffs. A growing middle class provides good opportunities for long-term growth. Sales are driven through well-established brands including Electrolux and Continental in Brazil, Electrolux and Gafa in Argentina, and Frigidaire in the northern part of the region. However, in Brazil, the penetration of microwaves is currently less than half of all households in the country, presenting a lower rate in comparison with other South American countries, such as Chile. There is plenty of room for expansion, particularly in the country's Northeast and North, where consumption of such appliances is strongly linked to economic stimulus and government financial aid. Furthermore, e-commerce and digital advertising contribute to the growth and are expected to be potent growth proliferators in the market in the coming time zone.

Further, the growing number of working women who seek automatic and connected appliances with less manual involvement saves time, and this is resulting in the purchase of premium, technically advanced built-in appliances that are further expected to bolster the growth of the market in the South America region in the forthcoming years.

Covid-19 Impacts:
The outbreak of the COVID-19 pandemic took its toll on market growth in early 2020 as a result of the temporary shutdowns of production plants, the shortage of labor, and disrupted logistics operations. The challenges can be attributed to the stringent restrictions, including lockdowns, imposed by various governments worldwide to arrest the spread of the disease. As a result, market players had to confront dwindling sales initially. Nevertheless, as the governments relaxed some of the restrictions, online sales of American-built household appliances particularly gained traction. Apart from e-commerce portals, brick-and-mortar stores also resumed operations, and the sales of these appliances increased as a majority of the people continued to work from home and spend most of their time in their households.

Major Companies present in the market:
BSH Hausgeräte, Electrolux, Whirlpool, ROBAM, Elica, Vatti, Panasonic, Gorenje, Macro, GD Midea Holding, Samsung Electronics Co. Ltd, LG Electronics Inc., Hitachi Appliances Inc., Koninklijke Philips N.V., Haier, Hafele appliances, Sub-Zero Group, Inc., Miele & Cie. KG

Considered in this report
• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• South America built-in kitchen appliances market with its value and forecast along with its segments
• Country-wise built-in kitchen appliances market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Brazil
• Argentina
• Colombia

By Product Type:
• Built-In Ovens
• Built-In Hobs
• Built-In Hoods
• Built-In Refrigerators
• Built-In Dishwashers
• Others (Trash cans cabinets, coffee maker, etc.)

By Application Type:
• Commercial
• Residential

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. 

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the built-in kitchen appliances industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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