Production in the EU household appliances sector to fall by 2% y/y in 2024 – EUROFER

Production in the household appliances sector of the European Union will decrease by 2% in 2024 compared to 2023. In 2025, a moderate recovery is expected – by 0.8% y/y. This forecast was published by the EUROFER steel producers’ association in its Economic and steel market outlook 2024-2025, Q4.

The second quarter of 2024 was not an easy one for the household appliances sector in the EU: production remained at the level of the previous quarter, which was previously marked by a significant decline of 6.3%. The negative trend, which has been going on since mid-2021, indicates the gradual end of the post-pandemic surge in demand and the beginning of a period of recession. At the same time, the downward trend is expected to end only in the first quarter of 2025.

The sector’s recovery is significantly affected by the slowdown in production processes in the EU due to the difficult economic situation and low consumer purchasing power. However, some factors still encourage the sector to develop further. In particular, the remote work format, which has remained widespread after the pandemic, has preserved the need for home appliances, albeit at a lower level than before. Also promising are smart appliances technologies, which are gradually influencing the sector by enabling the integration of such products with home networks. According to estimates, this impact will become noticeable in 2025, when the demand for smart appliances may increase.

As GMK Center reported earlier, EUROFER downgraded its expectations for apparent steel consumption in the EU in 2024 to -1.8% y/y. The previous forecast assumed a 1.4% y/y increase. Expectations for growth in apparent steel consumption in the EU in 2025 have also been downgraded from +4.1% to +3.8%.