Canadian and Mexican home product retailing analysts from research and analytics company Circana said housewares companies targeting those markets need to respond to unique post-pandemic consumer trends and household needs compared to the U.S. market.
Circana’s Pam Wood, executive director and home industry analyst for Canada, and Renee Badiola, director and home industry analyst for Mexico, examined housewares home and housewares retailing opportunities north and south of the border at the recent Inspired Home Show as part of the show’s Inspiration Theater education program.
Macroeconomic trends that have resulted in distinctive market developments and consumer needs and preferences in Canada and Mexico, the Circana analysts said. Each market continues to be impacted by inflation, positive but slowing GDP, rising debt and growing housing costs. Canada, for example, is affected by five-year mortgage renewals, significantly boosting what homeowners there are now paying monthly.
Some differences are telling, however. Only 22% of Mexicans purchase small kitchen appliances per year, versus 82% of consumers in the United States. As such, the potential growth opportunity upside is substantial.
“For Mexico, there is a lot of opportunity,” said Badiola (pictured above right). “We have many factors playing in our favor. Mexico can become the next opportunity for companies to grow.”
Indeed, while growth in small appliances, housewares and major appliances have slipped in Canada and the U.S. over the past year, they have grown in Mexico, up 14% in small appliances and 5% in Housewares.
Wood said not all is doom-and-gloom in Canada, however.
“There are growth opportunities,” said Wood (pictured above left). “There are growth opportunities with the right product and innovative products that meet consumer needs.”
Wood and Badiola outlined a series of segments where trends suggest opportunity. For example, in Canada, portable beverages, traditional food storage, certain cooking gadget segments, and tool sets have positive possibilities, with consumption patterns, especially food on the go, prompting change. In Mexico, cookware pans, cookware sets and pressure cookers look positive as consumers continue to invest in at-home food prep.
Coffee consumption is creating opportunities in both countries for related kitchen appliance segments, although differences exist, the Circana analysts said. Both countries should see more demand for espresso makers, although traditional coffee blending is another potential gainer in Mexico.
Appliances that provide single-serve blending also look positive. In Canada, ice cream/yogurt makers, rice cookers and kitchen systems could see growth, while the same is true for countertop microwaves and compact refrigerators in Mexico.
In Canada, personal care opportunities are likely to push hot air stylers, flat irons/straighteners, clothing irons, men’s electric shavers and facial trimmers. Meanwhile, in Mexico, irons and garment steamers have growth potential as consumers invest in their appearance, refresh clothing and travel. Travel-sized products are likely to get a boost, as well.
Listen to the audio from the presentation:
