The German kitchen industry suffered last year from consumer reluctance to purchase, but now sees the bottom reached. "Given the declining inflation and the recovery of the consumer climate, we hope for a revival of activity in the course of this year," said Volker Irle, director of the Arbeitsgemeinschaft Die Moderne Küche e. V. (AMK), at the AMK press conference in Cologne.
Last year, the German kitchen industry, which includes manufacturers of kitchen furniture, household appliances, sinks, and kitchen accessories alongside retail, felt the effects of the challenging market environment. According to official statistics, the turnover of the German kitchen furniture industry was approximately 6 billion euros, 3.3 percent less than the previous year. According to GfK, kitchen retail saw a decrease in sales volume of 18.9 percent. Revenue declined by 19.2 percent. In the built-in appliance market, sales volumes decreased by 9.5 percent and sales revenue by 9.4 percent.
The two AMK spokespersons, Markus Sander and Michael Mehnert, AMK director Volker Irle, and Markus Wagenhäuser from GfK reported on the situation of the German kitchen industry (from left to right). Photo: AMK.
Against this backdrop, average spending on a new kitchen stabilised at a high level after years of growth: according to GfK data, consumers spent an average of 11,325 euros on a new kitchen in specialty stores last year, 54 euros or 0.5 percent less than the previous year. "During the pandemic, many households expedited the purchase of a kitchen because the major annual vacation was cancelled - hence there was also an above-average budget available, for usually high-income buyers," says Markus Wagenhäuser, head of major appliances at GfK, in response to the development. In addition, consumer surveys by GfK showed that during the Corona years, older but still functional household appliances were replaced by new, more powerful appliances with a noticeably high frequency.
After the strongest growth in the premium kitchen segment in recent years, it lost more than average in 2023. For example, sales of kitchens priced at €20,000 or more decreased by 26 percent. For kitchens up to €5,000, there was a turnover decrease of 18.2 percent, for kitchens priced between €5,000 and €10,000, the decrease was 18.8 percent. The smallest loss was recorded in the segment of kitchens costing between €10,000 and €20,000 (minus 15.6 percent).
In contrast to the declining market trend, particularly energy-efficient household appliances saw significant growth in 2023. For example, the share of refrigerators in energy efficiency classes A, B, and C in turnover increased from 16 percent to 25 percent. The highest energy efficiency classes were also popular for dishwashers. The share of A, B, and C classes increased from 34 percent to 43 percent.
There was also a trend towards built-in ovens with a black front (sales: an increase of 23 percent) and design-oriented multi-door refrigerators (an increase of 13 percent). Also, ovens with a large cooking chamber of over 75 liters became increasingly popular. In addition, smart household appliances are becoming increasingly important. They now account for a quarter of household appliance sales. The main drivers are smart dishwashers, which are characterised, among other things, by automatic selection of the correct program, depending on the type and quantity of dishes.
Markus Sander, CEO of AMK, called the start of the current fiscal year still cautious. According to evaluations by the Association of the German Kitchen Furniture Industry based on official statistics, the kitchen furniture industry recorded a turnover decrease of almost 10 percent in January and February 2024. According to surveys by GfK, the losses in sales volume (minus 3.4 percent) and turnover (minus 8.3 percent) in kitchen specialty stores in January 2024 were at least more moderate than in the previous year. The same applies to built-in appliances, where GfK recorded a 2.7 percent lower sales volume and a turnover decrease of 4.6 percent for January and February 2024.
Since there is still a lack of urgently needed impulses to revive new home construction, it will also be the industry's task to increase the tendency towards renovation, said AMK spokesperson Michael Mehnert. "Over the course of the year, we should also feel the effects of rising income expectations on the demand for kitchens," Sander added. (AMK)
More information:
Arbeitsgemeinschaft Die Moderne Küche e.V. (AMK)
www.amk.de