SMALL COOKING APPLIANCES IN ARGENTINA - ANALYSIS

Country Report | Dec 2022

KEY DATA FINDINGS Market Sizes

Retail volume sales rise by 17% in 2022 to 3.1 million Sales of Small Cooking Appliances
Electric steamers is the best performing category in 2022, with retail volume sales Retail Volume - '000 units - 2008-2027
growing by 50% to 50,000
New San SA is the leading player in 2022, with a retail volume share of 16%
3,144 Forecast
5,000
Retail volume sales are set to rise at a CAGR of 2% over the forecast period to 3.5
million
4,000

2022 DEVELOPMENTS
3,000
Emergence of new cooking habits supports growth in sales of small
cooking appliances
2,000
2022 saw positive sales growth in most categories of small cooking appliances for the
second consecutive year. Small cooking appliances was one of the categories of
consumer appliances that was most positively impacted by the emergence of new 1,000
lifestyle habits at the peak of the COVID-19 pandemic and these new lifestyle habits
remained influential during 2022 even as the threat of contagion receded substantially
and life returned to pre-pandemic normality for the majority of local consumers. For 0
instance, many white-collar professionals, office workers and service industry 2008 2022 2027
personnel continued working remotely for at least part of the time during 2022 despite
the strict approach that was taken to social distancing and home seclusion during 2022
to the COVID-19 pandemic no longer applying. And although most Argentineans are Sales Performance of Small Cooking Appliances
increasingly focused on outdoor activity, overall most people are spending more time % Y-O-Y Retail Volume Growth 2008-2027
at home than they were prior to the pandemic. This reason, there are still numerous
potentially very lucrative opportunities for consumers to cook and eat at home, which
continues to support buoyant demand for small cooking appliances. Moreover, there is
16.5% Forecast
now enhanced interest among the Argentinian population for cooking healthier and 30%
more elaborate dishes, and this has supported rising demand for a wide range of small
cooking appliances. 20%

Categories associated with healthier eating habits post the highest sales
10%
growth
One major factor that has supported sales of small cooking appliances in recent years is 0%
the shift towards healthy eating, a trend that was already in evidence before the onset
of the COVID-19 pandemic, but which has accelerated as the harsh realities of the
pandemic brought the importance of maintaining a healthy diet and taking regular -10%
exercise to support overall health and wellness into sharp focus. With consumers
increasingly interested in improving their diets as part of leading a healthy lifestyle, -20%
there is huge potential for sales growth in various categories of small cooking
appliances that facilitate the preparation of healthy meals. Indeed, the categories of
small cooking appliances that posted the strongest growth rates during 2021 and 2022 -30%
2008 2022 2027
were electric steamers and light fryers. Both of these categories are associated with
healthy cooking methods and their ability to help consumers to improve their diets is
one of the most important attributes of these appliances. In the case of light fryers, the
appliances’ main claim to being healthy is that they use very little oil to fry food. In the
case of steamers meanwhile, this method of cooking does not add unnecessary calories
as there is no oil at all used during the cooking process, while food that has been
steamed retains far more nutrients than food prepared using other cooking methods
such as boiling.

Philips and Atma stand out as the strong leaders in a very competitive
category
While there is no single dominant brand in control of sales of small cooking appliances,
Philips and Atma remain the leading names. There are numerous brands present in
small cooking appliances and this means considerable diversity in terms of different
types of appliances offering a wide range of functions and features at a wide range of
prices, with the leading brands generally able to attribute their strong position overall
in small cooking appliances to their presence in numerous different categories. This is
certainly the case for Newsan’s brand Atma, which is present in seven of the 14
categories of small cooking appliances. Of these, Atma is the leading name in
breadmakers, electric grills, electric steamers, light fryers and standard coffee
machines. It is also the second leading name of kettles. Philips leads in kettles, which is

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by far the biggest category of small cooking appliances in volume terms. Philips has also
strong presence in light fryers and standard coffee machines, with coffee machines also
Sales of Small Cooking Appliances by Category
Retail Volume - '000 units - 2022 Growth Performance
a very important category of small cooking appliances. The leadership in coffee
machines is split between Atma, Oster and Philips, the brands that account for the
Breadmakers
highest proportion of sales in the dominant category of standard coffee machines, and 45.7
Nespresso and Nescafé Dolce Gusto, which are the leaders in the niche category of pod
Coffee Machines
coffee machines. 415.2
Coffee Mills
PROSPECTS AND OPPORTUNITIES 18.9
Fryers
Light fryers slated for strong growth as consumers demand healthier 62.2

appliances Electric Grills

53.1
Light fryers is one category of small cooking appliances with a particularly promising Electric Steamers
outlook for the forecast period, with a double-digit CAGR expected in volume sales. 50.0
The popularity of these appliances began to increase significantly during the review Freestanding Hobs
period as consumers began to replace their deep fat fryers with light fryers due to the 60.6
much healthier profile that light fryers have. Indeed, the dynamic performance is Kettles
expected to be seen in light fryers over the forecast period is due mainly to the image 1,651.1
that these products have for healthy cooking as they require the use of little to no oil Rice Cookers
while still offering cooking results that are comparable to deep fat fryers, which makes 4.1
him a much more appealing option at a time when many consumers are attempting to Slow Cookers
reduce the amount of oil and fat in their diets. -
Other Small Cooking Appliances
Another factor to consider here is that the average unit price of edible oils has 782.8
increased significantly in recent years, a trend which has discouraged some consumers -20% 0% 55%
from using traditional frying methods when cooking, especially using deep fat fryers,
which tend to use a lot of oil. In response to rising demand, the leading brands of light SMALL COOKING APPLIANCES 3,143.8 CURRENT % CAGR % CAGR
YEAR % 2017-2022 2022-2027
fryers are investing in innovation, new product development and marketing campaigns. GROWTH
Generally speaking, category players are no longer interested in developing their deep
fat fryers, with Moulinex and Yelmo left as the only players of note in deep fat fryers.
In contrast, numerous brands are now active in light fryers, including Philips, Atma,
Liliana, Yelmo, Oster, Midea and Peabody, among others. Moreover, new brands are Competitive Landscape
expected to launch in the category during the forecast period and this is likely to result
in greater differentiation between different brands. Consumers are likely to have a Company Shares of Small Cooking Appliances
much wider choice in terms of features, functions and the size of the appliance, for % Share (NBO) - Retail Volume - 2022
instance. The leading Brand Philips, the brand that initially introduced light fryers into
Argentina, is prepared for this new scenario and the high levels of competition that it is New San SA 15.6%
likely to bring. The Philips Airfryer XL was launched in June 2022, offering six different Philips Argentina SA 14.3%
cooking programmes via an advanced touchscreen and 6.2 litres capacity, enough to
prepare enough food for five people. SEB Argentina SA, Groupe 8.8%
First Rate SA 7.2%
Brands need to target aspirational consumers to stand a chance of Liliana SRL 7.1%
boosting sales
Goldmund SA 4.1%
The unfavourable economic environment in Argentina and, in particular, very high Oster de Argentina SA 3.2%
inflation means that demand for small cooking appliances will inevitably be under
considerable pressure during the forecast period. Within this context, it will be Nestlé Argentina SA 1.9%
essential for the category’s leading brands to target more affluent consumers more Applica Americas Inc 1.8%
explicitly as this represents their best opportunity to maintain and increase sales. This
Electrolux Argentina SA 0.6%
will also require brands to focus not only on improving the features and functions of
their products, but also the aesthetic design of their appliances. Undoubtedly, Comprandoengrupo.net SA 0.4%
functionality and convenience are the main attributes that consumers demand from Brogas SCA 0.4%
their small cooking appliances generally. However, there is a significant group of
consumers, dominated by middle-income young adults, that find it very appealing to Midea Argentina 0.2%
have very stylish and attractive small cooking appliances, especially as some of these Conometal SA 0.2%
appliances are essentially status symbols. This means that small cooking appliances
with a modern and stylish design and which can be displayed in the kitchen with the Fag Sistems SA 0.1%
aim of impressing guests have the chance to record stronger sales growth during the Distribuidora Piramide S... 0.1%
forecast period. The most aspirational category of small cooking appliances in
Whirlpool Argentina SA 0.1%
Argentina over the last decade or so has been pod coffee machines, with the trend
towards these appliances driven mainly by the success of the Nespresso brand. Small Casa Jarse SAIC 0.0%
cooking appliances with inox and chrome finishes are also near the top of the wish lists Other Private Label 6.6%
of many affluent consumers. This applies even more to people living in homes with
open plan kitchens. It should be noted however this trend is unlikely to be particularly Others 27.1%
prominent outside of the city of Buenos Aires, although there is some potential for it to
develop strong in smaller towns and cities throughout the country.

Demand for the gourmet experience at home to drive demand for

coffee machines
One of the most interesting outcomes of the COVID-19 pandemic is that many
Argentinian people have become motivated to recreate the on-trade gourmet coffee
experience at home. As people are starting to spend more time at home and the
number of at-home social gatherings has increased, coffee enthusiasts and those with
more than a passing interest in gourmet coffee have become more eager to create the
premium on-trade coffee experience every time that they brew a cup of espresso. As a
result, the forecast period is expected to see demand for less sophisticated types of
standard coffee machines wane and this is important because more basic appliances
account for the bulk of sales of coffee machines. On the other hand, more sophisticated

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types of standard coffee machines, pod coffee machines and coffee mills are all Brand Shares of Small Cooking Appliances
expected to see rising demand as these appliances become increasingly appealing to % Share (LBN) - Retail Volume - 2022
consumers who are willing to recreate the types of espresso-based beverages that
would normally be prepared by a professional barista in a café or specialist coffee and Atma 15.6%
tea shop. Philips 14.3%
For their part, the companies that offer fresh coffee in Argentina are very much on Liliana 7.1%
board with this trend and many of them have expressed their willingness to support
Moulinex 6.8%
this growing trend towards the preparation of more expensive and more sophisticated
types of coffee. With this in mind, some of them have launched their own lines of Peabody 4.1%
coffee pods that are compatible with the pod coffee machines of the two leading Ultracomb 3.8%
brands in this area, Nespresso and Dolce Gusto. During the review period, the pod
coffee machines offered under these brands were only compatible only with the Yelmo 3.5%
coffee pods marketed under the same brand and these products tended to be quite Oster 3.2%
expensive. However, choice has been widened considerably, and the brands that offer
Nescafé Dolce Gusto 2.0%
coffee pods now include Café Martinez, Cabrales, La Virginia, L’Or, Segafredo, Lavazza,
Starbucks, Jacobs and Morenita. Now that consumers have a wider range of options in Nespresso 1.9%
terms of brands of coffee pods, including more economical options, the falling average Black+Decker 1.7%
unit price of coffee pods has the potential to boost demand for pod coffee machines as
well. Electrolux 0.6%
Kushiro 0.4%
However, it should be noted that sales of coffee machines could be negatively affected
by the import barriers and currency controls that have been imposed by the Brogas 0.4%
government of Argentina with the aim of preventing capital flight. In particular, it was Midea 0.2%
previously possible to import coffee machines with automatic authorisation, whereas
now there are considerable bureaucratic and regulatory hurdles to be overcome. Conometal 0.2%
Moreover, since July 2022, these issues have also affected the importers of coffee Kanji 0.1%
beans as quotas have been placed on the foreign currency allocation granted to coffee
George Foreman 0.1%
importers such as Café Martinez and Cabrales.
Other Private Label 6.6%
Others 27.3%

5-Year Trend
Increasing share Decreasing share No change

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