Covering Quarter 3, 2014 Back to Scratch, With a Twist By Debra Mednick, The NPD Group, Inc.
new approach to old ways – this is appliance categories something winning with consumers experienced growth in Atoday. The movement back to cooking the 12 months ending at home, eating healthy foods and knowing September 2014. The all the ingredients in your food has today’s categories that hit high time-crunched consumer feverishly looking double-digit growth for solutions that allow them to do all this, during this time period but in a more convenient way than that of point directly toward generations before. the trend of simplifying According to The NPD Group’s con - the process of healthy sumer tracking service, most small kitchen home food preparation. Food steamers/rice cookers and waffle irons/sandwich makers This category has been propelled by the are at the top of the list, both with more popularity of blender/mixer/chopper sys - About Housewares MarketWatch than 50 percent growth in dollar sales com - tems over the past couple of years and now Housewares MarketWatch reports pared to the 12 months ending September accounts for 11 percent of overall small both point-of-sale (POS) and consumer 2013. The focus here is on a healthier way kitchen appliance sales. The convenience data from NPD databases. The quarterly to prepare food, through steaming, working and flexibility these multi-purpose systems data covers various product categories around dietary restrictions like gluten and offer is very appealing to consumers who within the divisions of Small Appliances making traditional foods like waffles or want a healthy smoothie on the go or a and Non-electric Housewares. comforting toasted sandwiches from scratch quick way to chop ingredients for dinner. The information contained on the with the family, using your own ingredients. following pages is offered as a snapshot Thinking Beyond Typical Uses of a category’s performance, both from Small Market Share, Big Dollar The recent growth seen in the electric the retailer (POS) and consumer Sales perspectives. The POS data covers the kettle category can be attributed to a num - retail channels of mass/national chains, These categories each only represent 3 ber of factors, and the increased popularity department stores, specialty stores and percent of all small kitchen appliance sales of tea among U.S. consumers is just one. drug stores (personal care and home during the 12 months ending September Although this category is still very small, at environment only). Each issue of 2014, but their impact on industry growth just $69 million in sales during the 12 Housewares MarketWatch will feature is significant – they brought in a third of months ending September 2014, 23 percent several categories from the Small the additional dollars gained by the small growth is worthy of attention. Appliances and Housewares divisions. kitchen appliance industry this year. Electric Consumers are discovering the versatility Complete data on a category can be grills and griddles fall into a similar category of electric kettles, going beyond hot bever - purchased by visiting NPD’s website at of simplified healthy meal preparation, and ages, as a low hassle and safer way to boil www.npd.com .See the Data and it is a category coming back after a year of water for any number of cooking applica - Methodology section on page 9 for an double-digit declines, to 19 percent dollar explanation of how the data is compiled. sales growth. tions from oatmeal to pasta and soups. The increased popularity of tea as well as French Sales of food processors grew 23 percent, press and pour-over coffee prep has addi - to $685 million, during the 12 months of tionally helped spur demand. October 2013 through September 2014. continued on page 8 TABLETOP: Dinnerware, Beverageware, Flatware
Market Size Demographic Analysis Quarter Three • 2014 6 months ending • September 2014 Dollar Volume in Thousands Unit Volume Share
DINNERWARE • HOUSEHOLD INCOME TOTAL TABLETOP Percentage purchased by head of household income
18% 18% 18% $ 439,418 16%
10% 9%
6% 6%
Under $15,000- $30,000- $45,000- $60,000- $75,000- $100,000 - $150,000+ $15,000 $29,999 $44,999 $59,999 $74,999 $99,999 $149,999 Source: Consumer Tracking Service Source: Consumer Tracking Service
Insights:
FEATURES: Stemware sales remained flat vs Q3’13 while barware dollars declined by double digits. Source: Retail Tracking Service
GIFTING: Dollar sales of beverageware purchased as a gift increased 30 percent compared to Q3’13. Source: Consumer Tracking Service
ONLINE SALES: Online purchases accounted for 20 percent of all flatware dollar sales in Q3’14. Source: Consumer Tracking Service
PRICE SEGMENTATION: Unit sales of dinnerware priced $200 or more increased 17 percent in Q3’14 compared to last year. Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting specific dinnerware, consumers said appearance, color and price were the top motivators in Q3’14. Source: Consumer Tracking Service
Source: The NPD Group 2 COOKING/KITCHEN: Cookware, Bakeware, Cutlery
Market Size Demographic Analysis Quarter Three • 2014 6 months ending • September 2014 Dollar Volume in Thousands Unit Volume Share
CUTLERY • AGE TOTAL COOKING/KITCHEN Percentage purchased by head of household age 24% $688,273
18% 18% 15% 15%
10%
18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + years years years years years Source: Consumer Tracking Service Source: Consumer Tracking Service
Insights:
FEATURES: Compared to Q3’13, dollar sales of cookware without non-stick coating increased 8 percent. Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting specific bakeware, consumers said price, good value and easy to clean were the top motivators in Q3’14. Source: Consumer Tracking Service
ONLINE SALES: Online sales of cookware remained flat in Q3’14 versus last year, at 17 percent of total dollar sales. Source: Consumer Tracking Service
PRICE SEGMENTATION: Unit sales of bakeware priced between $75 and $100 more than tripled compared to Q3’13. Source: Retail Tracking Service
IMPULSE: Dollars spent on unplanned cutlery purchases increased by more than 40 percent in Q3’14 versus last year. Source: Consumer Tracking Service
3 Source: The NPD Group Small Appliances: KITCHEN ELECTRICS
Market Size Price Segmentation Analysis Quarter Three • 2014 6 months ending • September 2014 Dollar Volume in Thousands Unit Volume Share N E H
C TOASTERS • PRICE S T I C I K
Percentage purchased by price R L T A C T E L O E T $50-$99.99 4% $1,241,924 / P S E E C R G I P A R
R T D E C $25-$49.99 O E V L E O E F B & 22%
Y G T L N I A I K C O $742,716 E O P C S
$499,208 Under $25 74%
Source: Consumer Tracking Service Source: Retail Tracking Service
Insights:
FEATURES: More than one-third of toaster ovens sold in Q3’14 were convection. Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting a specific electric kettle, consumers said price, brand I currently own and brand I trust were the top motivators in Q3’14. Source: Consumer Tracking Service
ONLINE SALES: More than one-third of all breadmakers sold in Q3’14 were purchased online. Source: Consumer Tracking Service
DEMOGRAPHICS: 24 percent of all single-serve brewing systems sold in Q3’14 were were purchased by consumers age 65 or older. Source: Consumer Tracking Service
IMPULSE: 60 percent of all juice extractors sold in Q3’14 were planned purchases. Source: Consumer Tracking Service
Source: The NPD Group 4 Small Appliances: PERSONAL CARE
Market Size Demographic Analysis Quarter Three • 2014 6 months ending • September 2014 Dollar Volume in Thousands Unit Volume Share
T E K
R HAIRSETTERS • AGE A M
Percentage purchased by panel member age L & A
T H O T
L T E
A 32% R E A H
C
E L M A $1,319,617 O N H O
S , E R E R 23% P A
C
R L E 20% / G A E H R T N R I O O A M C
O R I O A R G H $746,077 10% 9% $573,540 6%
18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + years years years years years Source: Consumer Tracking Service Source: Consumer Tracking Service
Insights:
FEATURES: 20 percent of all lighted mirrors sold in Q3’14 had 10x magnification or more. Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting a specific curling iron/styling appliance, consumers said price, brand I trust and good value were the top motivators in Q3’14. Source: Consumer Tracking Service
ONLINE SALES: Online dollar sales of oral care appliances increased 28 percent in Q3’14 compared to last year. Source: Consumer Tracking Service
PRICE SEGMENTATION: Only 2 percent of hairdryers sold in Q3’14 were priced $50 or more. Source: Retail Tracking Service
IMPULSE: Approximately 20 percent of showerhead purchases in Q3’14 were unplanned. Source: Consumer Tracking Service
5 Source: The NPD Group Small Appliances: FLOOR CARE
Market Size Price Segmentation Analysis Quarter Three • 2014 6 months ending • September 2014 Dollar Volume in Thousands Unit Volume Share
HAND VACUUMS • PRICE TOTAL MARKET Percentage purchased by price
$1,062,025 $100+ 9%
UNDER $25 $50 - $99.99 28% 20%
$25 - $49.99 43%
Source: Consumer Tracking Service Source: Retail Tracking Service
Insights:
FEATURES: Almost 90 percent of upright vacuums sold in Q3’14 were not self-propelled. Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to a selecting a deep carpet cleaner, consumers said price, features and brand I trust were the top motivators in Q3’14. Source: Consumer Tracking Service
ONLINE SALES: 41 percent of robotic vacuums sold in Q3’14 were purchased online. Source: Consumer Tracking Service
DEMOGRAPHICS: 25 percent of all canister vacuums sold in Q3’14 were purchased by households with incomes between $100,000 and $150,000. Source: Consumer Tracking Service
GIFTING: 5 percent of stick vacuums sold in Q3’14 were purchased as a gift for someone else. Source: Consumer Tracking Service
Source: The NPD Group 6 Home: KITCHEN & DINING TEXTILES
Market Size Demographic Analysis Quarter Three • 2014 6 months ending • September 2014 Dollar Volume in Thousands Unit Volume Share
TABLE LINENS • AGE TOTAL MARKET Percentage purchased by head of household age
28% $272,637
20%
15% 14% 14%
9%
18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 years + years years years years years Source: Consumer Tracking Service Source: Consumer Tracking Service
Insights:
FEATURES: 20 percent of dollars spent on kitchen linens in Q3’14 were on dark or solid color products. Source: Consumer Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting specific kitchen linens, consumers said price, liking how the product looks and material/texture were the top motivators in Q3’14. Source: Consumer Tracking Service
ONLINE SALES: 7 percent of kitchen linen dollar sales in Q3’14 came from online purchases. Source: Consumer Tracking Service
DEMOGRAPHICS: 20 percent of kitchen linen dollar sales in Q3’14 came from products purchased by men. Source: Consumer Tracking Service
SPECIAL OCCASION: Weddings were the top occasion for which kitchen linens were purchased in Q3’14, but the majority of products were purchased for no special occasion. Source: Consumer Tracking Service
7 Source: The NPD Group Back to Scratch, With a Twist continued from page 1 Finally, another category worth paying While they are thinking attention to is breadmakers which experienced beyond the prepared foods a sales increase of 16 percent during this time readily available, consumers period. Despite its small slice of the market - are also taking a serious place, at just 1 percent of overall industry approach to getting creative sales, it may seem surprising that a product and looking beyond the stan - with a seemingly specific function could make dard uses of their small appli - a comeback among demand for infinite multi- ances to make their needs and functionality (not withstanding a relatively desires fit their lifestyles. large footprint). Certainly, the appeal of fresh Manufacturers that understand homemade bread, virtually at the push of a this movement toward healthy button, with any number of special ingredients and creative cooking, emphasiz - added or dietary restrictions removed, is one ing those same aspects in their that will have the mouths of many watering. products, have the opportunity to Beyond customization and control, breadmak - capitalize on the sales momentum real - ers offer infinite possibilities, as evident by the ized by products that remained quiet among result of a simple web search – “cook every - bigger innovators in recent years . thing in your breadmaker.” For more information, contact Janine 2 Marshall at 516-625-2356.
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Source: The NPD Group 8 DATA AND METHODOLOGY study. Each month, over 30,000 U.S. house - holds are selected for the housewares and NPD has a standard data model that is used for all categories that incorporates both con - home textiles studies. sumer and point-of-sale (POS) databases. These two data sources are highly comple - POS METHODOLOGY ABOUT THE mentary and are used to support one another. NPD collects point-of-sale retailer data NPD GROUP, INC. Point-of-Sale (POS) databases are assembled from selected retailers. These data are the The NPD Group is the leading from retailers' records of actual sales by actual sales for the chain on an SKU-by-SKU provider of reliable and comprehensive product as collected at the cash register. basis. The data are combined with data from consumer and retail information for a Consumer databases are developed using other retailers to produce reports on certain wide range of industries. Today, more online purchase surveys completed by a large- categories by channel, where a sufficient than 1,800 manufacturers, retailers and scale rotating sample of consumers. These number of retailers are cooperating and service companies rely on NPD to help data produce estimates of sales by product for where sufficient market demand exists for them drive critical business decisions at the total marketplace. More the database. the global, national and local market importantly, the consumer sur - levels. NPD helps our clients to identify veys capture information about new business opportunities and guides each purchase, such as buyer product development, marketing, sales, demographics, the product's merchandising and other functions. intended use and other purchase Information is available for the follow - motivators. ing industry sectors: automotive, beauty, commercial technology, consumer tech - CONSUMER nology, entertainment, fashion, food METHODOLOGY and beverage, foodservice, home, The NPD online consumer office supplies, software, sports, toys panel is comprised of pre-recruit - and wireless. For more information, ed individuals who have agreed to contact us or visit participate in NPD online surveys http://www.npd.com/. and have completed a compre - hensive demographic question - naire. The use of an established online panel assures good cooperation levels and predictable demo - graphic balance among Deborah A. Teschke, Senior Editor panelists. Debra Mednick, Contributing Editor Janine Marshall-Bolton, Contributing Editor Consumer panelists Tom Goodman, Design are asked about their Published by IHA recent purchases in a survey administered via For more information, contact the Internet. The Debbie Teschke at 847-692-0110; or responding sample is [email protected] demographically weight - ed and projected through a series of steps to represent the U.S. population. Each month, over 200,000 individuals are selected from the NPD online consumer panel to par - 6400 S HAFER COURT , S TE . 650 ticipate in the appliance ROSEMONT , IL 60018 USA TEL : 847-292-4200 F AX : 847-292-4211 www.housewares.org
9 Source: The NPD Group