Latest Trends in the Global Second Hand Appliances Market
The market of second hand appliances is riding on the back of the low cost of previously owned products which is further driven by the customers’ preference towards getting cost benefits such as no sales tax, less expensiveness than the new appliances as the used products are generally 50% cheaper and sometimes, even more than that. This allows the customers to get great deals at low cost and save their money in the whole process of buying the second hand appliances. These are the key reasons that have been driving the growth of the second hand goods market over the years. Additionally, the environmental concerns, emphasis on reusability, cost benefit and more product life span among others are believed to supplement the growth of the second hand appliances market with a CAGR of 6.3% over the forecast period i.e. 2018-2025. Further, the second hand appliances market is expected to reach USD 10,687.6 Million by the end of 2025 from USD 6,600.1 Million in 2017.
Factors such as growing need of appliances, rising presence of offline and online second hand shops coupled with rise in the income of lower and middle class segment are predicted to foster the demand for the second hand appliances in upcoming years.
Growth Highlights based upon Regional Platform during 2017 – 2025
The global second hand appliances market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa, out of which, Asia Pacific dominated the overall market of second hand appliances with highest market share of around 35% in 2017 and is believed to expand with its dominant growth by the end of the 2025 by expanding at a the highest CAGR of 7.1% over the forecast period. After Asia-Pacific, the Europe second hand appliances market held the second highest market share in 2017 and is anticipated to achieve absolute $ opportunity of USD 1,115.4 Million between 2018-2025. Additionally, Europe Second Hand Appliances is expected to grow at a CAGR of 6.5% over the forecast period i.e. 2018-2025.
In North America, U.S. is expected to witness the highest compound annual growth rate over the forecast period owing to the high popularity of the freestanding dishwashers in the region. Moreover, freestanding dishwashers are witnessing substantial growth which is further intensifying the growth of the second hand appliances market in North America region.
Market Segmentation Synopsis
Global second hand appliances market is segmented by product type into Freestanding Dishwashers, Built-in Dishwashers, Freestanding Fridge Freezers, Built-in Fridge Freezers, Freestanding Freezers, Built-in Freezers, Freestanding Fridges, Built-in Fridges, Built-in Hobs, Cooker Hoods, Freestanding Automatic Washing Machines, Built-in Automatic Washing Machines, Freestanding Microwaves, Built-in Microwaves, Cookers, Ovens, Others. Among these appliances, the built-in microwaves segment is anticipated to be the most attractive market in overall second hand appliances market over the forecast period i.e. 2018-2025. Further, the freestanding fridge freezers and freestanding automatic washing machines segment dominated the market by holding the largest market shares of 13.53% and 10.52% respectively in overall second hand appliances market. Moreover, the market of freestanding fridge freezers is expected to achieve Y-o-Y growth rate of 7.3% in 2025 as compared to the previous year.
By Distribution Channel
The global second hand appliances market is segmented by distribution channels into online stores and offline stores. The offline stores segment dominated the overall second hand appliances market by holding more than 80% of the total market share in 2017. The offline store segment is further estimated to dominate the market by crossing more than USD 8.5 Billion by the end of 2025. Moreover, the offline stores segment is expected to achieve Y-o-Y growth rate of 6.8% in 2025 as compared to previous year. Further, most of the market players of second hand appliances market are inclining towards online distribution channels to sell their products through online platforms. This strategy is allowing the companies to capture majority of the consumers and to expand their business in untapped markets. Factors such as these are estimated to benefit the expansion of the online store segment with highest CAGR of 9.5% over the period 2018-2025.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
Market Drivers & Challenges
Consumers in developed countries are getting more aware towards potential of the second hand goods market and are looking forward to maximize their return on investment (ROI) by selling their used items at some reasonable price. Further, there is a presence of large number of stores that deal in second hand items such as home appliances, consumer goods, accessories and other used items. Such factors are expected to bolster the growth of the global second hand goods market in the near future.
Additionally, rising online stores, increasing lower and middle class income along with growing demand for second hand appliances amongst youth in the developing countries is expected to increase the demand for second hand appliances which in turn is projected to positively impact the growth of the second hand appliances market around the globe.
The market of second hand appliances greatly depend on the affordability level of the consumers. And if used appliance retailers fail to offer second hand appliances at a reasonable level, the overall growth of the second hand appliances market can be hampered.
The retailers of the second hand appliances market are working towards the expansion of their product portfolio along with working towards both of the distribution channels i.e. online and offline channels in order to capture majority of the consumers and to expand their business in untapped markets. Most of the market players of second hand appliances market are inclining towards online distribution channels to sell their products through the online platforms. As the trend of second hand goods hitting the market, it is expected that more and more ecommerce platforms will offer such used goods alongside brand new products.
The demand for used appliances is rising continuously with time. Consumers are more ready than ever to bring used appliances to their home at extreme low cost as compared to new alternatives. However, with the growth in the market for second hand appliances and other used goods, more and more used good retailers may enter into the previously owned goods market.
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