CHICAGO--(BUSINESS WIRE)--NielsenIQ (NYSE: NIQ) today released its Home Appliances Outlook 2026: What consumers want report, which reveals the macro forces that will shape the Home Appliances industry in 2026 and the product innovation most likely to drive growth.
NIQ projects a 2% year-over-year sales growth between 2024 and 2025 for global Consumer Tech and Durable Goods (T&D), with household appliances playing a significant part in that growth. Global sales of T&D products overall grew 4.6% in the first half of 2025 compared with the same period in 2024, with consumers spending more per item in all sectors except Major Domestic Appliances (MDA). Consumers remain cautious in their spending but are willing to pay for appliances that offer smart convenience, multifunctionality, energy efficiency, or health and hygiene benefits.
New market realities are reshaping the home appliances landscape in multiple interconnected ways. China’s international push has become a notable driving force in the industry; in the first half of this year, Chinese brands grew their global market share by 40.1% for sales of Small Domestic Appliances (SDA), fueled by continuous product innovation, while their market share for MDA sales climbed 23.5% supported by competitive pricing strategies. Meanwhile, China’s household appliance trade-in policy continues to stimulate sales momentum across the board. At the end of 2024, a NIQ survey covering 24,000 consumers in China showed that 71% of respondents had utilized government subsidies to upgrade their home appliances, reflecting the policy’s strong influence on consumer behavior. On the trade front, US tariffs of 50% on “steel equivalents” in major domestic appliances imported into the US took effect in late June 2025, a measure that is likely to dampen US demand for overseas brands and force those brands to seek expansion opportunities in other regional markets to offset lost revenue.
Demographic trends also play a pivotal role in shaping market preferences, with Gen X emerging as a core consumer group to watch. As the highest-spending consumer generation for the next five years, Gen X prioritizes durability, quality, and energy savings in their purchasing decisions, with 79% of this group focused on conserving energy at home. Acting as “caretaker consumers” who balance the needs of multi-generational households, Gen Xers have become a high-priority target audience for home appliance manufacturers and retailers. Replacement cycles further influence market dynamics, with SDA boasting an average replacement cycle of five to six years. The commoditization of recent innovations in small appliances has lowered overall price points, prompting consumers to replace their existing devices with smarter, more premium alternatives that offer enhanced functionality. For MDA, industry experts anticipate a replacement surge to occur in 2028, driven by a combination of aging products and advancing technological upgrades.
“The convergence of value-driven consumer behavior, global trade shifts, and digital transformation is creating new opportunities—and risks—for appliance manufacturers and retailers. Strategic agility will be essential to capture growth in this evolving landscape,” said Julian Baldwin, President, Global Tech & Durables, NIQ.
Beyond these core trends, sustainability has emerged as a non-negotiable factor for modern consumers, who increasingly seek products that align with their environmental values. Home appliance brands are responding by integrating eco-friendly materials into product design, optimizing energy consumption rates to meet stringent global standards, and launching take-back programs to facilitate the recycling of old appliances. Smart technology integration also continues to be a key differentiator, with small appliances now featuring seamless connectivity to smart home ecosystems, voice control functionality, and app-based monitoring and customization options. These smart features not only enhance user convenience but also enable manufacturers to collect valuable data on consumer usage patterns, which can be leveraged to refine product development and marketing strategies.
In the SDA segment, niche products are gaining traction as consumers look to elevate their daily living experiences. Specialty coffee makers with precision brewing settings, compact air fryers that double as dehydrators, and portable ultrasonic cleaners for personal items are among the fast-growing categories, catering to consumers’ desire for specialized, space-saving solutions. The rise of remote work and hybrid lifestyles has also boosted demand for small appliances that support home-based wellness and productivity, such as mini humidifiers for home offices, personal blenders for quick healthy meals, and compact garment steamers for maintaining a professional appearance during virtual meetings.
As the industry moves toward 2026, manufacturers and retailers face the dual challenge of meeting evolving consumer expectations while navigating a complex global trade environment. Those that can balance innovation, sustainability, and affordability will be best positioned to capitalize on the emerging growth opportunities in the dynamic home appliances market.
