Summary

The German market has become the most important in Europe and the third in the world, after the United States and China. With 83.16 million inhabitants at the end of 2020, according to the estimate by the Government Statistics Institute Destatis, Germany is the most populous nation among the 27 (after Brexit) of the European Union. The German population represents about one-fifth of the EU overall.

After entering a recession in Q1 2020 as the Coronavirus (COVID-19) pandemic hit, German Q2 2020 real GDP slumped by 11.7% compared to the same quarter in 2019, although the national bank, Bundesbank, expressed optimism of household spending to drive a strong economic recovery in Q3 2020.

Due to consumers spending more time at home, demand for some major and small appliances has enjoyed a temporary jump. The main reason for the jump was that the public had thought that they would be spending a lot more time indoors and this led to a surge in demand for home appliances including washing machines.

According to the evaluations by the trade association ZVEI, in 2017 they sold in Germany white goods for a global value of 10.5 billion Euros, in prices at the origin, i.e. established by the producer or by the importer, however including the Value Added Tax (equivalent to the Italian IVA). In final prices to the public, this corresponds to about 14.5 billion Euros. With that value, the German market becomes the most important in Europe and the third in the world, after United States and China.

The average monthly gross income of households in Germany amounted to 4,846 euros in 2018, according to results of the Sample Survey of Income and Expenditure (latest data available). Germans have an average per capita purchasing power of €23,766 in 2020. Germany is a mass consumer society. Before making a purchase, beyond the price, German consumers like to learn as much as possible about other similar products, features, provenance etc. According to some studies, German consumers are among the most demanding in the world. Some consumers are willing to pay more for a better quality product.

Key Market Trends

Smart Washing Machines are Driving the Market

There were 80 million households registered in Germany in 2015, with almost a 90% possession rate for automatic washing machines. Laundry appliances’ purchasing drivers are multiple and although the price will remain one of the most powerful, consumers have, it appears, begun to look beyond price, and laundry settings have become a strong tool leveraged during the selling process.

In a fast-paced environment where apparel trends, consumer lifestyles, and sociodemographic dynamics are changing rapidly, connectivity will support manufacturers’ goal of remaining relevant to consumers throughout the whole replacement cycle of the laundry appliance.

Generating revenue, resource cost-saving, and productivity gain are some tangible benefits connected washing machines could offer. Beyond tracking which cycles consumers are using the most, washing machine manufacturers could financially reward consumers willing to communicate their laundry habits and laundry detergent consumption data through the washing machine smartphone app.

Commercial Washing Machine Market

The growing hospitality industry will offer immense growth opportunities, the long replacement cycle will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments. Europe was the largest commercial washing machine market in 2019, and the region will offer several growth opportunities.

34% of the market’s growth will originate from Europe. The UK and Germany are the key markets for commercial washing machines in Europe. Front-loading commercial washing machines are highly efficient and save electricity and water, compared to top-load machines. Such advantages help commercial operators save on their operational costs. These factors will drive the commercial washing machine market share growth by the front-loading segment significantly.

The growth of the hospitality industry will be one of the major factors that will drive commercial washing machine market growth. There is a high demand for commercial washing machines from the hospitality industry and it is increasingly used in hotels, resorts, and other establishments. With numerous popular hotel chains focusing on increasing their presence by setting up new hotels at multiple locations, the adoption of commercial washing machines will increase in the future.

Competitive Landscape

Germany washing machine market is highly competitive, with the presence of major international players. The market studied presents opportunities for growth during the forecast period, which is expected to further drive the market competition. With multiple players holding significant shares, the market studied is competitive.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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