The pandemic related boom that boosted the technical consumer goods (TCG) market – consumer electronics and home appliances – over the last two years is over with the market now in deceleration worldwide, according to data presented by gfu at IFA’s main press conference.
“The TCG market experienced growth of 17% between 2019 and 2021 due to people spending more time at home but this growth phase is now over and the sales volume achieved in 2021 won’t be reached for 2022,” gfu managing director, Dr Sara Warneke said.
“In 2020, the TCG market recorded growth of 3.9% and in 2021, it further accelerated with growth of 12.6% exceeding US$1.4 trillion with all regions recording positive growth – some in the double digits.
“Now the deceleration process has begun, and economists have lowered their market projections significantly. Consumer confidence is in decline across the world and consumer sentiment is worse than in 2021 with pessimistic attitudes relating to economic development indicating that consumers will save more and spend less.
“There are four key factors driving the shift in confidence and sentiment – the Russian invasion in Ukraine, inflation, supply chain challenges and Covid – which combined create an atmosphere of uncertainty which highly impacts demand.”
Despite the decline in sales and negative influences, Dr Warneke said there remains opportunity for positive market development.
“There is increasing uptake of energy efficiency appliances that help save money by reducing the total cost of ownership, increased interest in smart home technology that can save energy, and the 2022 World Cup in Qatar – an event that traditionally boosts related technology categories.”