Consumer Appliances in Middle East and Africa

September 2024

After the decline seen when the pandemic hit the region in 2020, unit volume sales of consumer appliances have been seeing positive growth since then in Middle East and Africa. However, growth slowed at a regional level in 2023, with some countries, such as Egypt or Nigeria, experiencing difficult economic conditions. Nevertheless, positive growth is expected throughout the forecast period, with South Africa and Egypt helping drive the regional performance.

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Key findings

BNPL an attractive option

The rise of buy now pay later (BNPL) offerings helps more budget-conscious Saudi consumers to invest in big-ticket purchases. BNPL is an acceptable payment method in the Kingdom, as the lack of interest charged means it is Sharia-compliant. This is leading to trends for consumers to replace their old appliances with smarter, modern and more compact options, which suit both their needs and their home style requirements.

Vision 2030 driving localisation of production in Saudi Arabia

Localisation of production is a key theme at the moment in both Egypt and Saudi Arabia. In Egypt, players are choosing this option in the face of the weakening of the local currency and inflation squeezing local consumers' purchasing power. In Saudi Arabia, this is one of the many key aspects to the Kingdom's ambitious Vision 2030 programme.

Omnichannel strategies developing, but offline retail still king in South Africa

South Africa retailers are increasingly adopting omnichannel strategies. This includes offering products exclusively online, where the stock handling costs are low, at more competitive prices than in their physical stores. However, many local consumers still prefer to inspect big-ticket goods in physical stores first, supporting the continued dominance of retail offline.

Improved performance expected in Nigeria

Local currency depreciation, surging fuel prices and the government's demonetisation policy collectively pushed inflation to unprecedented levels in Nigeria, hitting consumer appliance sales in 2023. However, Nigeria is expected to see a strong performance in 2023-2028, boosted by the expanding urban population and an improved business environment. Small businesses, particularly in hotels and foodservice, are also anticipated to drive demand through retail.

 

Scope
Key findings
Middle East and Africa expected to record the strongest sales growth in 2023-2028
Small appliances account for four fifths of Middle East and Africa's unit volume sales
Consumer appliances continue to see positive growth in 2023
Egypt records the strongest consumer appliances growth over 2018-2023
Microwaves the most dynamic category over 2018-2023
Small appliances add the bulk of actual new sales in the region over 2018-2023
BNPL proving a popular purchasing method
Appliances and electronics specialists the leading distribution channel
E-commerce gaining share but still a relatively small sales channel
Local brands making unit volume share gains in Egypt
Fresh Electric makes gains in Egypt over the review period
Players investing in production operations in Egypt for the local and export markets
Toshiba slips down the brand rankings
Healthy annual growth rates expected throughout 2023-2028
Increased levels of hybrid/remote working boost demand for home appliances
As in Egypt, more localisation of consumer appliances production is expected in Saudi Arabia
Egypt: Market Context
Egypt: Competitive and Retail Landscape
Israel: Market Context
Israel: Competitive and Retail Landscape
Nigeria: Market Context
Nigeria: Competitive and Retail Landscape
Saudi Arabia: Market Context
Saudi Arabia: Competitive and Retail Landscape
South Africa: Market Context
South Africa: Competitive and Retail Landscape
United Arab Emirates: Market Context
United Arab Emirates: Competitive and Retail Landscape

Consumer Appliances

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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