Microwave Ovens - UK - April 2005

Contents

Introduction and Abbreviations

Definition

Consumer research

Lifestage and Special Groups

ACORN

Advertising data

Abbreviations

Executive Summary

Profits slide in microwave sector

Market polarisation?

Own-label brands rise as prices fall

Main media expenditure remains negligible

Supermarkets bullish in microwave sales

Is the market saturated?

Future prospects

Market Drivers

Rise of the one-person household

• Figure 1: UK households and one-person households, 2000-09

Women in the workplace

• Figure 2: UK workforce in employment, by gender, 2000-09

Growth of ready meals

• Figure 3: UK indexed retail sales of ready meals, by type, by value, 2000-04

Food scrutiny could threaten market

Fragmented mealtimes

• Figure 4: Agreement with the statement are rarely sit down to a meal together at home・ 1997-2004

Cash-rich consumers continue to spend

• Figure 5: PDI and consumer expenditure, at constant 2000 prices, 2000-09

Demographics ・consumer research

• Figure 6: Trends and projections in UK population, by age group, 2000-09

Boosting ownership among over-65s

Market Size and Trends

• Figure 7: Retail sales of microwave ovens, 2000-05

Lost value

Solo sales dominate

• Figure 8: Retail sales of microwave ovens, by type, by volume and value, 2000-04

NPD for the combination sector

Market Segmentation

Solo/compact microwave ovens

Focus on solo

• Figure 9: UK retail sales of solo/compact microwave ovens, 2000-04

Commodity trends

Grill microwave ovens

• Figure 10: UK retail sales of grill microwave ovens, 2000-04

Glossing over the grills

Combination microwave ovens

• Figure 11: UK retail sales of combination microwave ovens, 2000-04

Promising premiums

The Supply Structure

Brand shares

• Figure 12: Brand shares in the UK microwave ovens market, by volume, 2002 and 2004

Companies and brands

Alba plc

Daewoo Electronics Sales UK

LG Electronics

Panasonic UK Ltd

Samsung UK Ltd

Sanyo UK Sales Ltd

Sharp Electronics UK Ltd

Other companies

Advertising and Promotion

Panasonic dominates

• Figure 13: Main monitored media advertising expenditure on microwave ovens at rate card cost, 1999-2004

Distribution

Electrical multiples still dominate

• Figure 14: UK retail distribution of microwave ovens, by type of outlet, by volume, 2002 and 2004
• Figure 15: UK retail distribution of microwave ovens, by type of outlet, by value, 2004

Electrical versus grocery

Grocery multiples pushing on prices

Internet and mail order shopping

The Consumer

• Figure 16: Trends in GB household ownership of microwave ovens, 1998-2004

The age divide

• Figure 17: Trends in GB household ownership of microwave ovens, by age group, 2004

A family affair

• Figure 18: Trends in GB household ownership of microwave ovens, by household size, 2004

Not a cost concern

No cooking ・the ultimate convenience

Attitudes towards cooking and eating

• Figure 19: Agreement with the statement are rarely sit down to a meal together at home・ 1997-2004
• Figure 20: Agreement with the statement they dont have time to spend preparing and cooking food・ 1997-2004

Changing perceptions of cooking

Exclusive consumer research

• Figure 21: Attitudes towards cooking, 2000-05

16% claim to be regular microwave users

Sticking with tradition

Declining ability

Speed is of the essence

Regular microwave users older and less affluent

Older respondents the most traditional

Upmarket families most keen to experiment

Time too precious for some to cook from scratch

Working families most reliant on convenience foods

Hob users and weekend cooks

Usage patterns

• Figure 22: Microwave usage, February 2005

Core use

Minor usage

The Consumer ・Detailed Demographics

• Figure 23: Household ownership of microwave ovens, by gender, age, socio-economic group, presence of children, marital status, working status and household size, 2004
• Figure 24: Household ownership of microwave ovens, by region, lifestage, Mintels Special Groups and home ownership, 2004
• Figure 25: Agreement with the statements are rarely sit down to a meal together at home and they dont have time to spend preparing and cooking food・ by gender, age, socio-economic group, presence of children, marital status and working status,
• Figure 26: Agreement with the statements are rarely sit down to a meal together at home・and they dont have time to spend preparing and cooking food・ by household size, region, lifestage and Mintels Special Groups, 2004
• Figure 27: Attitudes towards cooking, by gender, age, socio-economic group, region, ACORN categories, marital status, working status, tenure and household size, February 2005
• Figure 28: Attitudes towards cooking, by presence of children, lifestage, Mintels Special Groups, media usage, commercial TV viewing and supermarkets used, February 2005
• Figure 29: Attitudes towards cooking, by gender, age, socio-economic group, region, ACORN categories, marital status, working status, tenure and household size, February 2005
• Figure 30: Attitudes towards cooking, by presence of children, lifestage, Mintels Special Groups, media usage, commercial TV viewing and supermarkets used, February 2005

The Future

Prices now at rock bottom?

Replacement market key to success

Market polarisation likely to remain

Ready meal growth should sustain market

Back to basics

Health scares

Recycling issues

Supermarkets and non-specialist retailers dominate bottom end

Demographic factors

Forecast

Market value to decline

• Figure 45: Forecast of the market for the microwave ovens, by value, 2005-10

Promotional push to drive volumes

• Figure 46: Forecast of the market for the microwave ovens, by volume, 2005-10

Factors used in the forecast