gourmet kitchens in US homes

  • In the US, how many households (or what percentage of households) have high-end gourmet kitchens? How many are created each year (new and remodeled)? What is the trend over the last 10 years? In my mind, "gourmet kitchens" are those which contain high-end cooking appliances, so one way to get at this number would be to look at how companies like Viking, Gaggenau, Miele, and their brethren figure out market opportunity. One way to infer this number would be to look at the number of high-end ovens and range tops sold over time and make some reasonable guesses as to how that translates into market penetration (keeping in mind that most kitchens have two ovens, etc.)


  • Thank you, Claudietta, you wre very thorough. I didn't get exactly what I was looking for, but I got a lot of stuff I can use and am very satisifed with the time and effort you put into it. So: 4 stars for the answer, 5 stars for the effort. Thanks.


  • Sources for this information can be found on the following sites. Surely someone will be able to put together some meaningful numbers that answer your question using the numerous stats offered in these trade publications. Kitchen & Bath Design News http://www.kitchen-bath-design.com/ Kitchen & Bath Business http://www.kitchen-bath.com/ Qualified Remodeler http://www.qualifiedremodeler.com/default.asp Good luck! -- mother-ga


  • Dear CookGuy, Thank you for your patience in receiving this clarification. The status is that 1) after searching in more databases, I did not find the number of ‘gourmet kitchens’ nor of ‘premium ovens’ sold by Miele etc., as you recommended; 2) after attempting to infer what it is that you are looking for, finding relevant information, and running Choices II (by Simmons), I have determined very good numbers for you; 3) if after you are unhappy with my response, you are welcome to submit for a request. Unfortunately for me, I may interpreted an article incorrectly, which led me to believe that I had a good answer for you. Summary of relevant information (from attached articles): 1) “High-end” appliance sector = 15% of appliance sector (early 1990s) 2) “True high-end” = 1-2% of appliance sector (early 1990) 3) “True high-end” = 5% of appliance sector (1999) 4) “True high-end”= $1b (retail) 5) Cooking appliances sector = $2.42b (1998) (retail) 6) Cooking appliances sector = $2.54b (1999) 7) 35% of kitchen remodeling jobs included peninsulas 8) Demographics of “high-end” sector” a. 92% of purchasers are urban/suburban b. 45-69 years old c. white-collar executives d. annual incomes >$150,000 e. 63% have college education Simmons (in millions of households; there are an estimated of 99m households in the US) – I thought that keeping these numbers separated into the three types of cooking devices would give you more information e.g. if you think that owning a convection oven is an indicator for gourmet kitchens Answer: The end analysis of the data below is that <8.1m households (or 8.2%) in the US have the demographics of high-end appliances identified by GE. [the most relevant demographics were chosen] Electric Gas Convection Gas&Conv Elec&Gas&Conv Race: White 40 25 11 4.3 0.70 Professional 5.0 2.9 1.5 0.59 0.12 College 12 6.8 3.3 1.3 0.28 Age 45-64 14 8.8 4.0 1.6 0.29 Income 4.2 2.4 1.5 0.60 0.16 (>$100,000/hh) All hh 44 29 13 5.1 - - did not run this Note: Apparently 13% of households did not answer affirmatively that they had these three types of cooking appliances. Perhaps a) they have a microwave oven or wood-burning oven/stove instead) or 2) did not answer the question. I hope this helps you out. claudietta ps: I am highly confident that the specific informatin that you are looking for is not readily available. Sourced articles: November 22, 1999 HEADLINE: Demand Grows for High-End Appliances HIGHLIGHT: The premium segment of the appliance market now may be 5% or more, about $1 bil at retail BODY: It was estimated that in the early 1990s, high-end appliances accounted for 15% of the business at most, which includes the true high end at 1-2%. The premium segment now may be 5% or more, about $1 bil at retail. Merrell Grant of GE Appliances says that it has probably doubled in the last 3-4 years. Part of the growth in high-end products is due to baby boomers' earnings peaking. HFN Report--Everybody's cooking. Demand for high-end major appliances is cooking, sizzling, outpacing the industry's bull market. Manufacturers, distributors and even retailers literally are cooking, offering gourmet classes for consumers. Shoppers have big bucks, desire nice appliances in their homes, and seek out dealers willing to explain the product benefits and offer support services. Folks on the business side have recognized these opportunities. More companies are crowding the field. That's raising the competitive temperature and lowering some margins, but in this economy, there's ample business to go round. Early this decade, estimates were the upscale segment was at most 15 percent of the business, including the true high end at i to 2 percent. Now, the word is the premium segment could be 5 percent or more--around $1 billion at retail. "In the last three or four years it's probably doubled," said Merrell Grant, GE Appliances' brand manager for Monogram. "Consumers in the high end have moved into the ultrahigh end. They are looking for ways to personalize: allow me to make a statement about my tastes and preferences and the way I like to cook." photos omitted Dave Becker, Viking's vice president of product management, noted the commercial-style segment grew from zero little more than a decade ago, when Fred Carl founded Viking. Numerous "imitators" have since enlarged the business. The company is expanding its series of culinary institutes, which among other things gives consumers an opportunity to learn about the equipment in a non-selling environment. High-end growth is fueled in part by baby boomers reaching peak earnings. Paul Leuthe, Sub-Zero's manager of marketing services, noted they feel they worked hard and want to enjoy the rewards. Boomers are tending to stay home more, especially in their kitchens, and "they're looking for nicer things in their homes." For the older ones, "their kids are finally out of college," said Becker. "That's the biggest pay raise you are ever going to get." "It's the largest generational transfer of wealth in the history of the world," reported Phil Uihlein, president of U-Line Corp. "People are spending unbelievable money." Big-box retailers are not geared for high-end business, but survivors among independents all are in that segment to some degree. There remains differentiation too among manufacturers: the Dacors and Sub-Zeros and Thermadors that have been long-time specialists, and also the full-line giants that positioned the Monograms and KitchenAids to compete there. Kent Baker, Maytag's vice president of strategic marketing, said his company's strategy was to extend both ends. But premium goods still have a value equation. "There has to be something that makes a connection to the consumer," he stated. Dick Detrick, Marvel's general manager, pointed to a "growing need for innovation in the high-end market. The consumer is looking for something different, something better, not just bells and whistles that don't really carry much meaning." "While stainless steel is still a very hot commodity in the kitchen, we still find a need for our products to blend in," he added. Among distributors, Joel Zillioux, chief operating officer of Carl Schaedel and Co., noted that as giant manufacturers moved in, specialty firms moved higher. "The challenge is to support retail profitability in the face" of greater competition and coming challenges such as e-commerce, he noted. That's where distributor services and enhancements such as Schaedel's monthly cooking classes help. Tim Boyd, vice president of Delia Inc., said the nature of the business is a tough sale: explanations, three or four consumer visits. Retailers are looking for proper displays and other help. Leuthe saw the high-end boom persisting for a minimum of six to eight years. The Sub-Zero specialist pointed to Home Depot's Expo and Sears' Great Indoors. "They are not planning to put up 200 stores because they are speculating," he said. ------------------ The One-Stop Meal Time In 1995, some 66% of kitchen remodeling jobs were for areas over 150 sq ft and 35% of kitchen jobs included peninsulas HFN, page S5 January 20, 1997 Kitchen Fast Facts 66% of kitchen remodeling jobs in 1995 were for areas over 150 square feet 35% of the kitchen jobs included peninsulas 33% of the kitchen jobs included more than one sink 81% of the kitchen designs included pull-out shelving Source: National Kitchen & Bath Association ------------- HFN May 1, 1995 HIGHLIGHT: GE Appliances to cut number of dealers of high-end Monogram line to build volume high-end market growing, Monogram has clout BODY: GE Appliances said it plans to cut the number of dealers of its high-end Monogram line to build volume. According to Stuart Keeping, Monogram brand manager, GE plans to evaluate its customers abilities to support the brand and will discontinue business with those who won't agree to mutually determined goals. GE cited two reasons for interest in the topmost niche: the growth of that segment in general and Monogram's clout. Keeping said Monogram demographics show purchasers are 92% urban and suburban, 45-69 years old, are white-collar executives and have incomes generally exceeding $150,000 63% have college educations. There are three basic styles of high-end appliances: traditional, typified by American products contemporary, predominantly of European design and the growing professional-commercial look. Keeping said to be successful in the high-end appliance market, GE believes it must offer products for all three basic styles. Full text gives opinions/responses to the distribution pl.. -------------- Conspicuous Consumerism In the '90S Leans Toward An Electronic Dream House Survey reveals 14.5% of consumers plan to buy a 25 inch or larger color TV in 1998 Research Alert, page 1+ January 17, 1997 [What follows is the full text of the article.] The increase in ownership of a wide spectrum of electronic products and services in recent years has been astounding. As a result, today's American home is designed for both convenience and leisure, according to Conference Board research. The survey points to an increasing ability and willingness on the part of consumers to spend -- particularly on household items that enhance and create more leisure time. The electronic appliance of choice in the '90s is the microwave, which can be found in more than 85% of all homes, up from almost 75% in 1990. VCRs, the second most-popular item, are owned by 84% of all U.S. households. In fact, the trend is now toward ownership of more than one VCR (close to 40% have a second unit in their home). Home computers, cordless phones, answering machines and CD players are now much more commonplace than they were in 1990, and the trend in TV ownership has shifted to large-screen sets. Slightly less than one third of all respondents express an intent to make a purchase of a household item in the coming year. The most likely purchase will be the personal computer, with over one quarter of all consumers who plan to make a purchase expressing a desire to buy one this year. The second most-popular item is the large-screen TV; almost 15% of respondents plan to purchase one in the next 12 months. One the other end of the intent-to-buy spectrum, the least likely addition to the home is more pay cable TV channels. Under 4% of respondents plan to expand their viewing choices by adding more premium channels. [Consumer Spending/Attitudes, Home/Home Shopping] SOURCE "Special Consumer Survey Report," Nov. 1996, The Conference Board, 845 Third Ave., New York, NY 10022-6679; phone: 212-759-0900. For a copy: Customer Service Dept.; phone: 212-339-0345. Price: $195 for non-members, $95 for Conference Board members. WHICH ITEMS DO YOU INTEND TO PURCHASE IN THE NEXT YEAR? HHs planning to make a purchase 30.3% Color TV (25" or larger) 14.5% Color TV (less than 25") 9.2% VCR 10.2% Second VCR 12.8% TV satellite dish 9.0% Cable TV (basic) 5.1% Cable TV (pay) 3.8% Video camcorder 11.1% CD player 10.8% Home Computer 25.7% Fax machine 5.7% Personal copier 4.2% Cordless telephone 13.6% Answering machine 7.2% Car phone 12.3% Home security system 4.5% Washing machine 5.3% Microwave oven 6.5% Dishwasher 6.4% Air conditioner 6.1% Indoor exercise equipment 11.8% Source: The Conference Board WHICH ITEMS DOES YOUR HOUSEHOLD CURRENTLY OWN? 1996 1990 Color TV (25" or larger) 60.6% 40.8% Color TV (less than 25") 74.2% 76.9% VCR 84.1% 67.7% Second VCR 39.1% 17.4% TV satellite dish 7.1% 3.0% Cable TV (basic) 60.8% 50.1% Cable TV (pay) 23.0% 25.8% Video camcorder 26.8% 10.2% CD player 51.9% 15.0% Home computer 40.0% 21.7% Fax machine 9.1% 0.9% Personal copier 5.3% 2.7% Cordless telephone 65.1% 32.8% Answering machine 70.0% 37.5% Car phone 26.6% 3.1% Home security system 11.6% 7.7% Washing machine 79.2% 72.1% Microwave oven 85.2% 74.4% Dishwasher 54.6% 46.5% Air conditioner 62.6% 52.9% Indoor exercise equipment 40.3% 29.7% Source: The Conference Board ------------------- High and Low End, White Goods Thrive Major appliances sold in unprecedented numbers in 1999; refrigerator sales reach $5.319 bil for the year HFN, page 60 March 13, 2000 By Gerry Beatty Dollars were hard-pressed to keep up with units in 1999 as major appliances sold in unprecedented numbers. Prosperous consumers were eager to buy, often trading up from units that were 10 or 15 years old and less feature-laden. Premium goods continued to expand as a percentage of the whole. But it's an old lament within the industry that pricing has not kept pace with innovation. Much of that can be attributed to consolidation and competition, which is as much a fact of economic life and death in this business as any. Manufacturers report quarterly results by saying the upscale segment is going great guns, but the value brands are more like blazing guns producing margin carnage. On the retail side, big-box merchants are adding to their volume, independents as a group are holding their own, and regional chains are significant among the casualties. More than ever, the question in 2000 is whether some of the retail giants finally will take on major appliances and whether they can be successful in a business that requires some sales help on the floor and installation in the home. cooking appliances Retail Sales 1999: $2.544B 1998: $2.420B Change: 5.2% Electric continued to outsell gas by nearly three to two in ranges last year. Speed-cooking ovens and two-oven ranges commended much of the attention, but consumers still voted with their dollars for such features as easily cleaned glass surfaces. These totals cover ranges, wall ovens and cooktops, but not microwave ovens, another billion-dollar category. laundry appliances Retail Sales 1999: $4.719B 1998: $4.290B Change: 10.0% These are the utilitarian workhorses that traffic heavily in agitators, limited cycles and electro-mechanical controls. Large-load capacity remains a powerful selling incentive. Tumble-action, while gaining market share, is still only a small fraction of the business. refrigerators Retail Sales 1999: $5.319B 1998: $5.190B Change: 2.5% Units and dollars produced the biggest numbers in history, but the rate of growth slowed somewhat in '99. Dollar totals might have been higher but for a familiar story: The priority for some suppliers in this and other categories was to hold market share, even if it meant slashing prices. Upscale features also helped build volume. room air conditioners Retail Sales 1999: $1.658B 1998: $1.300B Change: 27.5% That blistering summer of '99 caused more than 6 million units to be shipped for the first time, and everyone shared in the selling frenzy. Some shared more than others: It's been evident for some years now that various mass channels have plucked the business in popular smaller sizes. channels of distribution electric & gas cooking appliances 1999 1998 National Chains 31% 32% Mass Merchants & Clubs 3% 5% Home Improvement Centers 9% 7% Other 2% -- Appliance/Electronics Stores 55% 56% laundry appliances 1999 1998 Chains 37% 36% Mass Merchants & Clubs 3% 4% Home Improvement Centers 8% 5% Appliance/Electronics Stores 52% 55% refrigerators 1999 1998 National Chains 31% 33% Mass Merchants & Clubs 3% 5% Home Improvement Centers 8% 7% Other 1% -- Appliance/Electronics Stores 56% 55% room air conditioners 1999 1998 Chains 31% 37% Mass Merchants & Clubs 18% 16% Home Improvement Centers 15% 13% Appliance/Electronics Stores 36% 34% Note: Table converted from pie charts. Sourced Software and datasource: Choices II (by Simmons Study of Media &Markets)- please read this on what this data means http://wesley.stanford.edu/library/databases/dbguides/ChoicesII.pdf. This is basically how it is determined that say 99% of all households in the US have TVs.


  • Gook Guy, I have found the following information. [Indicates the source] Part A -- In the US, how many households (or what percentage of households) have high-end gourmet kitchens? [1] In the early 1990, the premium segment of household kitchen appliances was 15%; (Super-premium was 1-2%) In 1999 this segment increased to 20% [2] This gives you an indication to the market share by various venues as of 1998. 1998 U.S. housewares sales by channel[*] Housewares Market channel share Discount Stores/Supercenters 30.9% Department Stores 10.6 Specialty Stores 9.9 Hardware Stores/Home Centers 9.3 Supermarkets 6.7 Warehouse Clubs 4.9 Drugstores 4.8 Gourmet/Gift/Novelty & Souvenir Stores 4.3 Variety/One-Price Stores 3.9 Catalog Showrooms 3.1 Direct to End-User 2.9 Home Furnishing/Appliance Stores 2.5 Third-Party Mail Order Catalogs 2.1 Other 4.1 [*] Does not include wholesale and Internet channels Part B -- How many are created each year (new and remodeled)? [3] The growth is favorable, correlated to contributing to new housing contruction, remodeling, second-homes acquisitions, growth of American population, and baby boomer having money to to all of this. This is summary of report outlook for next 5 years. Could not find numbers. What is the trend over the last 10 years? [4] "As a result, there's a trend to consumers breaking the replacement cycle and buying step-up appliances with appealing features. Volume kept breaking records with 10-percent increases in recent years, but the high end grew much faster. ... If anything, the middle is getting squeezed by business at the high and low ends. Manufacturers, having observed consumers at home, say they've developed product features people don't even realize they need until they see them in stores. High-speed ovens, better use of refrigerator space, tumble-action washers, sensor dryers, energy efficiency, water filtration, more operating cycles and wine refrigeration comprise a sample list of popular upscale features." Sources: [1] Demand Grows for High-End Appliances; The premium segment of the appliance market now may be 5% or more, about $1 bil at retail HFN, page 37+, November 22, 1999 [3] U.S. Industry & Trade Outlook, Household consumer durables, Economic and Trade Trends, 2000 [2] Consumers continue to focus on the home US housewares market size as consumer spending in dollars for 1998, Discount Store News, page 50+, October 25, 1999 [4] Sell Them What They Need (and Want), Appliance market size and share HFN, page 44+, June 17, 2002 ----------- Cook Guy, I hope this is what you were looking for. There is a lot of information on this segment, and would like to clarify anything with you. I can also research another database for information within the next week to clarify this information. So far I've spent a sufficient amount of time and effort, but can double check anything if you still need it. claudietta


  • Re: >>> [1] In the early 1990, the premium segment of household kitchen appliances was 15%; (Super-premium was 1-2%) In 1999 this segment increased to 20% <<< Your excerpt above tells me that 20% of all appliance sold in 1999 were "premium", but it does not tell me the TOTAL installed base of premium (and super-premium) equipped kitchens. In other words, I need to know how many premium-and-above kitchens are out there (cumulatively), not just the yearly run rate. If I had ten years of volume data, I could make an inference. Also, what are the total unit volumes that these percentages are calculated from? And are they percentages based on volume or percentages based on dollar sales. Finally, what percentage of appliance sales in 1999 were super-premium vs. just premium as shown for 1990?


  • Electric Gas Convection Gas&Conv Elec&Gas&Conv Race: White 40 25 11 4.3 0.70 Professional 5.0 2.9 1.5 0.59 0.12 College 12 6.8 3.3 1.3 0.28 Age 45-64 14 8.8 4.0 1.6 0.29 Income 4.2 2.4 1.5 0.60 0.16 (>$100,000/hh) All hh 44 29 13 5.1 -


  • Interpretation of the Simmons data (below) 1) There are 40m households with white individuals in the US that have electric stoves/ovens 2) There are 2.9m households in the US with individuals with professional type of occupation that own gas stoves/ovens 3) There are 3.3m households in the US with individuals with college degrees that have convection stoves/ovens 4) There are 1.6m households in the US with individuals ages 45-64 that own both a gas and convection stoves/ovens 5) There are 0.16m households in the US with household incomes >$100,000 that have all three, electric, gas, and convection stoves/ovens. (note: the highest family income able to be chosen was >$100k) 6) There are 86m (44+29+13) households in the US that own electric or gas or convection stove/oven). Answer: To determine the subset of all the demographics below, choose the lowest numbers (running vertically) and sum across type of appliance. For electric, 4.2m. For gas, 2.4m, for Convection 1.5m. The sum of these = 8.1m, which is the largest set of potential households with these demographics. Electric Gas Convection Gas&Conv Elec&Gas&Conv Race: White 40 25 11 4.3 0.70 Professional 5.0 2.9 1.5 0.59 0.12 College 12 6.8 3.3 1.3 0.28 Age 45-64 14 8.8 4.0 1.6 0.29 Income 4.2 2.4 1.5 0.60 0.16 (>$100,000/hh) All hh 44 29 13 5.1 - Again, reference: http://wesley.stanford.edu/library/databases/dbguides/ChoicesII.pdf, to understand the meaning of the output data above, and how it was determined. claudietta







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