The global market for technical consumer goods (TCG) exceeded the one trillion mark for the first time in 2018, with sales of €1.01 trillion, according to a new report from GfK. This is a four percent increase on the previous year.
Product segments include: small domestic appliances (+7 percent), consumer electronics/photo (+6 percent), and information technology/office equipment (+1 percent) all contributed to this growth in sales. Global sales from major domestic appliances, on the other hand, fell slightly by one percent.
For 2019, GfK is expecting a two percent increase in technical consumer goods sales on the global market to around €1.03 trillion. These are GfK’s current results on the occasion of the CES 2019 in Las Vegas.
Markus Kick, GfK expert on technical consumer goods, commented: “The areas of small domestic appliances and consumer electronics proved to be the biggest drivers of sales. We are seeing a trend toward premium products in almost all segments. Consumers are also placing ever more value on connectivity and convenience. Based on this trend, GfK is also expecting solid sales growth in 2019 with an increase of two percent.”
Major domestic appliances (MDA) continued to be the second-largest segment among technical consumer goods in 2018 with sales of around €177 billion, despite a slight decrease in sales of one percent. Overall, around 17 percent of all TCG sales last year was attributed to major domestic appliances, such as refrigerators, ovens, washers or dishwashers.
Currently trending are multi-function devices and connectivity – the possibility to network devices with one another or control them using a different device.
Consumer electronics/photo: Trend for premium smart devices
Global sales in the consumer electronics and photo segment rose in 2018 by nearly six percent to €153 billion. This segment alone accounts for around 15 percent of all TCG sales.
There is also a trend for premium products in consumer electronics. High-end TV sets with screen sizes of at least 50-inch produced significant growth in sales. In the premium segment, OLED TV sets continue to increase in popularity. Headphones and portable Bluetooth speakers proved to be significant drivers of growth on the audio market.
In 2019, GfK expects to see slightly less growth in sales of around four percent on the global consumer electronics and photo market.
Significant growth in small domestic appliances
Small domestic appliances (SDA) achieved global sales of around €86 billion in 2018. This is a significant increase of seven percent. Growth in Europe was recorded at seven percent. Consumers are continuing to focus on the issue of “convenience”; battery-powered handheld vacuum cleaners are particularly popular right now.
GfK also sees upward trends for the global small domestic appliances market in 2019, and predicts sales growth of eight percent.
Note: Sales are calculated at a fixed euro exchange rate of 0.829 to the US dollar (as of January 2018).