According to data collected by Export Planning, world trade in the home sector has maintained the good results of previous years and is expected to reach a new record high. Despite the slowdown in recent years, growth prospects remain attractive, especially for companies that position themselves at the high end of the market and invest structurally in internationalization.
According to data from the 5th edition of the CasaDoxa Observatory, which photographs the changes taking place in society and in the homes of Italians, the home environment continues to play a central role. Habits have changed since the pandemic and much more time is spent at home than some time ago. Many people want an extra room (36 percent) where they can work undisturbed, or find space to work out and keep fit. Leisure time such as watching movies and series (+42%) is also definitely more home-based.
We find confirmation of this trend in the Amazon environment: “Home and Kitchen” is one of the most popular categories.
This category includes almost any item or appliance commonly used in the home or kitchen, as well as any other product that promotes home care, decor, and comfort. In other words, any item that can work in the home or kitchen falls into this category. According to JungleScout, more than 35 percent of the brands in this category sell home and kitchen appliances.
Not surprisingly, the Home and Kitchen category is the most popular among sellers.
Everyone uses some type of home or kitchen product in their everyday life, which means they are always in demand, and the requirements to enter Amazon do not require high levels of complexity:
- Low barriers to entry: selling in this category is easier than in others because there are no entry restrictions for new sellers
- It is relatively easy to come up with ideas and products of interest to buyers (everyone has some kind of kitchen or household product in their home)
- Most products do not have to be supported by complicated requirements: safety certifications, expiration dates, technical compatibility…
According to a report of Amazon sellers compiled by Jungle Scout, 92 percent Home and Kitchen category created their own private label products, thanks in part to the ease of finding products to market even when not a manufacturer (e.g., through Alibaba).
Globally (source AMZAdviser.com) the home appliance market in the US is projected to grow by 6.5% by 2030, in Canada by 3.62% between now and 2028, and in Mexico by as much as 12% by 2027.
In Europe, the growth assumption for the segment related to Kitchen furniture/accessories , with +3.65% between 2023 and 2027, is particularly evident, but the segment related to home appliances is also experiencing substantial growth particularly in Spain and France with a forecast of +3.02% and +2.92%, respectively, between 2023 and 2028.
Focusing on Italy and analyzing user search volumes in the past year, the Home & Kitchen macro-category ranked first in the total ranking of categories on Amazon.co.uk, with over 280.5 million searches.
These figures highlight a clear business opportunity, but they force reflection: while the Home & Kitchen category is the most popular category on Amazon (and this shows that home and kitchen items are highly sought after), it also means that there is a high level of competitive competition in this area.
In this reflection we are helped by an in-depth analysis of consumer searches in the platform: more than 40 percent of searches are composed of branded search terms, but it is interesting to note that not only the best-known brands are searched, which on the contrary are joined by lesser-known brands, proving that these companies have been able to build their brand awareness in the platform thanks to the optimization of their product pages and a full funnel adv activity.
One accelerator of performance on the platform is undoubtedly Prime Days, where the results of the previous edition saw products from the Home and Kitchen category in the top spots: air fryers, food processors, slow cookers, other appliances and gadgets.