Summary

The market for home appliances in South Korea is, in large part driven by kitchen appliances. The domestic, as well as export of Korean kitchen appliances, have shown a huge surge in demand in recent years. Exports of kitchen appliances in the year 2020 have reached USD 2.7 billion, the highest in the past 5 years. At the end of May 2021, the exports of kitchen appliances have increased by 75.4% compared to that of the previous year.

The United States and Canada are the largest importers of South Korean Kitchen appliances. The United States alone contributes to 69% of the total export of Kitchen appliances from South Korea. This increase in exports of home appliances is regarded as a surprising performance considering that exports are not easy to increase due to the increase of production lines in overseas factories by major players. It is analyzed that the main factor behind this increase in exports of kitchen appliances is the relatively increased interest in the kitchen to solve the essential food problem as the time spent at home increases due to the coronavirus. High disposable income, high brand awareness, and significant adoption of smart appliances are some of the major factors augmenting the domestic market growth in the country.

Key Market Trends

The Increasing Number of Households and Disposable Income is Driving Domestic Demand of Korean Kitchen Appliance

The number of households in South Korea is on a constant rise. There were 20.89 million households in South Korea in 2019. The greater number of households directly translates to the increase in kitchen appliance demand in the country. Along with the number of households, the National disposable income of South Korea is also increasing. National Disposable income was 1.55 quadrillion South Korean Won for the year 2019. Similarly, average household consumption is also raising constantly in South Korea. It was 27.32 Million South Korean won as household expenditure in 2020.

Small Kitchen Appliances are Leading the Market in South Korea

Kitchenware and Kitchen appliances companies are paying attention to the small home appliance market as a new food source. This is due to the increase in the number of households with one or two people and the increase in demand for small appliances due to the coronavirus Pandemic. small home appliances are now seen as a new growth engine, and leading players steadily release new products that can make use of specialties in the kitchen area. Small Kitchen appliances such as vacuum rice bowls and steam air fryers, Multicooker, Mixer, toasters are the most popular small kitchen appliances.

Competitive Landscape

South Korea is quite developed in the electronic and appliance segment. Various national and international players have their presence in the South Korean Appliance Industry. The Major players in the market include LG Electronics, Samsung, Whirlpool, Cuckoo Electronics, Winia Electronics, Panasonic, Hitachi, Phillips, Haier, Hitachi, and Shinil Electronics.

Additional Benefits:

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

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