Covering Quarter 2, 2016
More “Me” Time Equals More Entertaining Opportunities
By Joe Derochowski, The NPD Group, Inc.
More than half of
housewares dollar
expenditures came from
consumers who said they
enjoy hosting parties at
their home.
T
he thriving segments of today’s population, millennials and baby boomers, are
mostly in pre-and post-kid lifestages, so
they have more “me” time. The majority of
these groups are also in the workforce, so
they are more likely to have some disposable
income. This combination leads to more time
for fun, more time spent with friends and
family and more entertaining in the home.
Home entertaining is big business, encompassing everything from home décor and furnishings to food and everything associated
with food preparation and serving. Add the
two largest consumer groups into the mix,
and you have a winning combination.
About Housewares MarketWatch
Housewares MarketWatch reports
both point-of-sale (POS) and consumer
data from NPD databases. The quarterly
data covers various product categories
within the divisions of Small Appliances
and Non-electric Housewares.
The information contained on the
following pages is offered as a snapshot
of a category’s performance, both from
the retailer (POS) and consumer
perspectives. The POS data covers the
retail channels of mass/national chains,
department stores, specialty stores and
drug stores (personal care and home
environment only). Each issue of
Housewares MarketWatch will feature
several categories from the Small
Appliances and Housewares divisions.
Complete data on a category can be
purchased by visiting NPD’s website at
www.npd.com.See the
Data and Methodology
section on page 9 for an
explanation of how the
data is compiled.
Home entertaining is also in-fashion.
More than half of housewares dollar expenditures came from consumers who said they
enjoy hosting parties at their home, and this
statement is even more prevalent among millennials. The millennial generation is taking a
different approach to entertainment than
Gen X and boomers did when they were in
their 20s and 30s – it is less about going out.
Focus on Entertaining At Home
Entertaining at home is a natural fit with
the millennial interest in cooking and comfort, and it allows them to create their own
fun without spending as much money as
they would if they went out to a bar or
restaurant. In the case of boomers, as they
look to resize and refresh their living space
after becoming empty-nesters, they are welcoming friends and family into their homes
with a fresh energy.
In general, we have entered a time
when consumers are increasingly focused
on experiences, directing their attention
and spending toward things that give
them more than just another item on
their counter or in their cabinets. This
development in consumer spending is
competing with home products for a
share of consumer wallets, but it also
presents opportunity.
Kitchen gadgets used for entertaining
are one example of a category segment
that is thriving. In the first half of 2016,
U.S. sales of entertaining gadgets grew 10
percent, resulting in a dollar sales increase
of nearly $7 million compared to the first
half of 2015, according to NPD’s retail
tracking service. Entertaining gadgets are
the fastest growing of all kitchen gadget
segments. When more than $70 million is
spent in just six months on products like
corkscrews, ice buckets and barware tools,
it is clear consumer are willing to spend on
products related to entertaining.
continued on page 8
TABLETOP:
Dinnerware, Beverageware, Flatware
Market Size
Demographic Analysis
Quarter Two • 2016
6 months ending • June 2016
Dollar Volume in Thousands
Unit Volume Share
TOTAL TABLETOP
BEVERAGEWARE • AGE
Percentage purchased by head of household age
19%
$544,400
19%
20%
18%
17%
8%
Source: Consumer
Tracking Service
18 – 24
years
25 – 34
years
Data may not total 100% exactly due to rounding
35 – 44
years
45 – 54
years
55 – 64
years
65 years +
Source: Consumer Tracking Service
INSIGHTS:
PRICE SEGMENTATION: During Q2’16, unit sales of casual flatware priced below
$10 grew by 19 percent compared to 2015.
Source: Retail Tracking Service
PURCHASE BEHAVIOR: Nearly half of beverageware sold in Q2’16 were
unplanned purchases, up by 7 points versus Q2’15.
Source: Consumer Tracking Service
PROMOTION INFLUENCE: Nearly half of dinnerware purchased in Q2’16 was
on promotion, one-third higher compared to last year.
Source: Consumer Tracking Service
CHANNEL PERFORMANCE: During Q2’16, one-third of flatware sales were from
Mass Merchants, down by 3 points compared to Q2’15.
Source: Consumer Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers
said appearance, good value and price were the top motivators in Q2’16.
Source: Consumer Tracking Service
ONLINE SALES: Over one-third of dinnerware sales were from online purchases
in Q2’16, up 3 points compared to last year.
Source: Consumer Tracking Service
Source: The NPD Group
2
COOKING/KITCHEN:
Cookware, Bakeware, Cutlery
Market Size
Demographic Analysis
Quarter Two • 2016
6 months ending • June 2016
Dollar Volume in Thousands
Unit Volume Share
TOTAL COOKING/KITCHEN
BAKEWARE • INCOME
Percentage purchased by head of household income
$732,389
22%
21%
10%
11%
9%
11%
10%
6%
Source: Consumer
Tracking Service
Under
$15,000
$15,000$29,999
$30,000$44,999
$45,000$59,999
Data may not total 100% exactly due to rounding
$60,000$74,999
$75,000$99,999
$100,000 - $150,000+
$149,999
Source: Consumer Tracking Service
INSIGHTS:
CHANNEL PERFORMANCE: In Q2’16, 28 percent of cutlery dollar sales were
from mid-tier Value Specialty Stores.
Source: Consumer Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers
said price, good value and easy to clean were most important to them in Q2’16.
Source: Consumer Tracking Service
ONLINE SALES: Online sales accounted for one-fifth of total cutlery sales in Q2’16.
Source: Consumer Tracking Service
FEATURES: In Q2’16, dollar sales of cast iron cookware increased 16 percent
compared to Q2’15.
Source: Retail Tracking Service
GIFTING: 17 percent of cookware was purchased as a gift in Q2’16, up 3 points
compared to the prior year.
Source: Consumer Tracking Service
IMPULSE: 40 percent of bakeware purchased in Q2’16 was unplanned.
Source: Consumer Tracking Service
3
Source: The NPD Group
Small Appliances: KITCHEN ELECTRICS
Demographic Analysis
6 months ending • June 2016
Dollar Volume in Thousands
Unit Volume Share
TOTAL KITCHEN
ELECTRICS
Market Size
Quarter Two • 2016
BLENDERS • AGE
Percentage purchased by age of panel member
26%
FOOD PREP/
BEVERAGE
COOKING &
SPECIALTY ELECTRICS
$1,256,766
18%
17%
15%
14%
11%
$740,722
$516,044
Source: Consumer
Tracking Service
16 – 24
years
25 – 34
years
35 – 44
years
Data may not total 100% exactly due to rounding
45 – 54
years
55 – 64
years
65 years +
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: Programmable slow cooker dollar sales grew by 26 percent
in Q2’16 versus Q2’15, accounting for nearly half of total sales.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting a blender,
consumers said price, features and brand were the top motivators in Q2’16.
Source: Consumer Tracking Service
ONLINE SALES: Nearly 40 percent of dollars spent on mixers in Q2’16
were through online purchases.
Source: Consumer Tracking Service
PROMOTION INFLUENCE: During Q2’16, 45 percent of the toaster ovens
purchased were on sale, down by 5 points compared to last year.
Source: Consumer Tracking Service
IMPULSE: During Q2’16, three-fourths of juice extractors sold were planned
purchases, up by 8 points versus one year ago.
Source: Consumer Tracking Service
Source: The NPD Group
4
Small Appliances: PERSONAL CARE
Demographic Analysis
6 months ending • June 2016
Dollar Volume in Thousands
Unit Volume Share
HAIR CARE/
GROOMING
ORAL CARE, HOME
HEALTH, & OTHER
PERSONAL CARE
TOTAL
MARKET
Market Size
Quarter Two • 2016
CURLING IRONS/STYLERS • INCOME
Percentage purchased by head of household income
$1,496,655
17%
16%
13%
13%
11%
11%
11%
9%
$904,695
$591,960
Source: Consumer
Tracking Service
Under
$15,000
$15,000$29,999
$30,000$44,999
$45,000$59,999
Data may not total 100% exactly due to rounding
$60,000$74,999
$75,000$99,999
$100,000 - $150,000+
$149,999
Source: Consumer Tracking Service
INSIGHTS:
GIFTING: 16 percent of massaging appliances purchased in Q2’16 were
a gift to someone else, down by 6 points compared to last year.
Source: Consumer Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting a hair dryer,
consumers said price, brand and good value were the top motivators in Q2’16.
Source: Consumer Tracking Service
PURCHASE BEHAVIOR: Nearly half of curling iron/styling appliances
sold in Q2’16 were first time purchases, an increase compared to last year.
Source: Consumer Tracking Service
FEATURES: In Q2’16, sales of rechargeable electric toothbrushes grew by
9 percent versus the prior year, representing 55 percent of total sales.
Source: Retail Tracking Service
IMPULSE: More than one-fourth of oral care appliances sold in Q2’16 were
unplanned purchases, however this was a decline of 3 points from last year.
Source: Consumer Tracking Service
ONLINE SALES: During Q2’16, around one-third of dollars spent on massaging
appliances were from online purchases, almost doubling its share from last year.
Source: Consumer Tracking Service
5
Source: The NPD Group
Small Appliances: FLOOR CARE
Market Size
Demographic Analysis
Quarter Two • 2016
6 months ending • June 2016
Dollar Volume in Thousands
Unit Volume Share
HAND/STICK VACUUMS • AGE
TOTAL MARKET
Percentage purchased by age of panel member
23%
22%
$1,046,244
16%
15%
12%
11%
Source: Consumer
Tracking Service
16 – 24
years
25 – 34
years
35 – 44
years
Data may not total 100% exactly due to rounding
45 – 54
years
55 – 64
years
65 years +
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: Dollar sales of cordless hand/stick vacuums in Q2’16 grew
25 percent compared to Q2’15, now representing over two-thirds of total sales.
Source: Retail Tracking Service
PURCHASE MOTIVATORS: When it comes to a selecting a stick vacuum,
consumers said brand, features and easy to use were the top motivators in Q2’16.
Source: Consumer Tracking Service
ONLINE SALES: One-third of deep carpet cleaners sold in Q2’16 were
purchased online, up by 5 points compared to one year ago.
Source: Consumer Tracking Service
PROMOTION INFLUENCE: Six out of every 10 robotic vacuums purchased
during Q2’16 were on sale.
Source: Consumer Tracking Service
IMPULSE: During Q2’16, one-fourth of upright vacuum sales were
unplanned purchases, up by 6 points compared to 2015.
Source: Consumer Tracking Service
Source: The NPD Group
6
Home: KITCHEN & DINING TEXTILES
Market Size
Demographic Analysis
Quarter Two • 2016
6 months ending • June 2016
Dollar Volume in Thousands
Unit Volume Share
TOTAL MARKET
TABLE LINENS • INCOME
Percentage purchased by head of household income
$276,033
22%
17%
14%
14%
12%
12%
10%
Source: Consumer
Tracking Service
Under
$15,000
$15,000 –
29,999
$30,000 –
44,999
Data may not total 100% exactly due to rounding
$45,000 –
59,999
$60,000 –
74,999
$75,000 –
99,999
$100,000 +
Source: Consumer Tracking Service
INSIGHTS:
FEATURES: During Q2’16, nearly one-fifth of dollars spent on tablecloths
were on white products, 70 percent more than last year.
Source: Consumer Tracking Service
PURCHASE MOTIVATORS: When it comes to selecting a tablecloth, consumers
said appearance, price and on promotion were most important to them in Q2’16.
Source: Consumer Tracking Service
ONLINE SALES: In Q2’16, 18 percent of kitchen linens sales were from online purchases,
up by 8 points compared to last year.
Source: Consumer Tracking Service
DEMOGRAPHICS: One-fifth of kitchen linens dollar sales in Q2’16 came
from products purchased by males, up by 8 points compared to last year.
Source: Consumer Tracking Service
SPECIAL OCCASION: 40 percent of table linens purchased in Q2’16 were on sale,
down by 5 points compared to Q2’15.
Source: Consumer Tracking Service
7
Source: The NPD Group
More “Me” Time Equals More Entertaining Opportunities
continued from page 1
Specialty Items,
Barware Do Well
Sales of snow cone makers/ice shavers
grew 15 percent, resulting in $6 million in
sales between January and June 2016. This
is an example of a highly specialized product, but consumers view it as something
that can add a unique element of fun to
their home and gatherings. Ice buckets generated $6 million in sales in the first half of
2016, which was a 34 percent increase compared to the prior year. A simple, functional
item that can add a touch of elegance to a
home social event can be quite attractive to
consumers.
Another category that garnered $6 million in sales in the first six months of this
year was coasters. The detail, style and personalization that can be gained by coasters
are what helped drive their 24 percent
Source: The NPD Group
increase in dollar sales, compared to the first
half of 2015. Barware is another category
growing in excess of 6 percent, further
demonstrating the consumer’s willingness to
spend on these special investments.
Products that offer consumers the fun
elements of entertaining, ways to personalize the experience they are looking to create
or tools to simplify the way they do so—
while also being relatively affordable—will
benefit most from this trend. Regardless of
the reason behind entertaining or the
nature of the gathering, people want to
make sure they enjoy themselves. This emotional aspect of entertaining is infectious,
and will drive consumers to purchase products that they think will help them create
the special atmosphere they aspire to.
For more information, contact Janine
Marshall at 516-625-2356.
8
DATA AND METHODOLOGY
NPD has a standard data model that is used
for all categories that incorporates both consumer and point-of-sale (POS) databases.
These two data sources are highly complementary and are used to support one another.
Point-of-Sale (POS) databases are assembled
from retailers' records of actual sales by
product as collected at the cash register.
Consumer databases are developed using
online purchase surveys completed by a largescale rotating sample of consumers. These
data produce estimates of sales by product for
the total marketplace. More
importantly, the consumer surveys capture
information about each purchase, such as
buyer demographics,
the product's intended
use and other purchase
motivators.
from the NPD online consumer panel to participate in the appliance study. Each month,
over 30,000 U.S. households are selected for
the housewares and home textiles studies.
POS METHODOLOGY
NPD collects point-of-sale retailer data
from selected retailers. These data are the
actual sales for the chain on an SKU-by-SKU
basis. The data are combined with data from
other retailers to produce reports on certain
categories by channel, where a sufficient
number of retailers are cooperating and
where sufficient market demand exists for
the database.
CONSUMER
METHODOLOGY
The NPD online
consumer panel is
comprised of prerecruited individuals
who have agreed to
participate in NPD
online surveys and
have completed a comprehensive demographic questionnaire. The
use of an established
online panel assures
good cooperation levels and predictable
demographic balance
among panelists.
ABOUT THE
NPD GROUP, INC.
The NPD Group is the leading
provider of reliable and comprehensive
consumer and retail information for a
wide range of industries. Today, more
than 1,800 manufacturers, retailers and
service companies rely on NPD to help
them drive critical business decisions at
the global, national and local market
levels. NPD helps our clients to identify
new business opportunities and guides
product development, marketing, sales,
merchandising and other functions.
Information is available for the following industry sectors: automotive, beauty,
commercial technology, consumer technology, entertainment, fashion, food
and beverage, foodservice, home,
office supplies, software, sports, toys
and wireless. For more information,
contact us or visit www.npd.com
Deborah A. Teschke, Senior Editor
Joe Derochowski, Contributing Editor
Janine Marshall-Bolton, Contributing Editor
Tom Goodman/Kim Hall, Design
Published by IHA
For more information, contact
Debbie Teschke at 847-692-0110; or
[email protected]
Consumer panelists
are asked about their
recent purchases in a
survey administered via
the Internet. The
responding sample is
demographically
weighted and projected through a series of
steps to represent the
U.S. population. Each
month, over 200,000
individuals are selected
6400 SHAFER COURT, STE. 650
ROSEMONT, IL 60018 USA
TEL: 847-292-4200 FAX: 847-292-4211
www.housewares.org
9
Source: The NPD Group