Sales of consumer appliances recorded healthy growth in Latin America in 2023, after the slowdown seen a year earlier in the face of the difficult economic backdrop in Brazil, the region's biggest market. Although the political and economic situation in a number of countries remains uncertain, demand for small appliances in particular remains strong. The coming years are expected to see further solid growth in the Latin American consumer appliances market.
This report comes in PPT.
Premiumisation is a means for attracting more demanding Brazilian consumers through practicality, technology and product quality. Product personalisation is also emerging as a trend related to premiumisation, exemplified by innovations such as the Samsung Bespoke fridge freezer. In small appliances, product design and functionality remain pivotal factors.
Following substantial industry developments with announcements of new facilities and expansions by companies such as Hisense, Whirlpool, Bosch or Danfoss, the nearshoring phenomenon was expected to persist in Mexico in 2023. The opening of 25 new industrial parks will further support these investments, given the consumer appliance industry occupies a substantial portion of the existing space.
Major appliances registered a decline in unit volume sales in Colombia in 2023, impacted by multiple factors. These included reduced purchasing power among local consumers, the removal of VAT-free days, contraction in the construction sector and devaluation of the peso.
Access to the official foreign exchange market was highly restricted in Argentina in 2023, which meant that acquiring US dollars was therefore not a feasible means of avoiding the devaluation of one's pesos in the face of high inflation. Many therefore chose an alternative approach, investing in durable goods as a hedge against inflation, with consumer appliances being a popular choice, with inflation thereby acting as a growth driver for consumer appliances sales.
Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.
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