As we move into Q2 2025, the kitchen appliance industry is facing a period of noteworthy disruption, driven by influences such as the housing market, new and upcoming tariffs, and evolving consumer demand and preferences. 

During our recent webinar, “Cooking Up Insights in Kitchen: Top Industry Highlights,” my colleague Val Alde-Hayman and I took a look at these areas and more, exploring the top trends shaping both large and small kitchen appliances in 2025.

You can read through some of the key takeaways from the webinar in this article, but make sure to check out the webinar below to hear the full details. 

1. The Housing Market’s Ripple Effect on Large Appliances

One external force significantly impacting large appliance sales is the housing market. Mortgage rates remain high, causing home sales to cool down — and with fewer people buying or moving, large appliance purchases have also slowed. 

Here’s how this breaks down: 

• High mortgage rates are causing a decrease in home purchases
• Fewer home purchases equates to fewer large appliance purchases
• Consumers are buying out of necessity instead, with replacements accounting for over 70% of major appliance purchases

Key Insight: Large appliance demand closely follows homeownership trends, which are slowing.

2. Renters & Small Appliance Growth 

As home purchases slow, rental households rise, especially among younger consumers. And with rental households increasing nearly 3x faster than homeowner households in 2024, demand for small, portable kitchen tools is rising. Here’s what we are seeing as a result: 

• Smaller kitchens mean less room to store or display appliances
• This increases the appeal of small appliances, which take up less space 
• However, when small appliances get put away, they’re forgotten and used less
• Brands are responding with space-saving and multifunctional designs

Example: Ninja’s DoubleStack air fryer and Cuisinart’s SpaceSaver oven align with counterspace-conscious shoppers.

3. Innovation in Features & Format in the Kitchen Market

Brands are responding to space and price sensitivity with innovative designs and multifunctional features. We’re seeing:

• Vertical air fryers like Ninja’s DoubleStack
• Flip-up appliances like Cuisinart’s SpaceSaver air fryer and the Ninja Flip
• Hybrid appliances that combine air fry, toast, and bake in one unit such as the air fry ovens from Frigidaire and GE which bridge major and small appliance capabilities

Multifunctionality isn’t a new capability but it is growing in popularity, rising as a consumer expectation. Whether it’s a coffee maker that handles both single-serve and multi-cup or an ice cream maker that also whips up frozen drinks, shoppers want more value and less appliances.

Key takeaway: Innovation that solves a consumer problem are a primary focus for brands.

4. Appliance Pricing & Promotions: What’s Changed Since the Pandemic?

In 2021, high demand and low inventory allowed brands to pull back on discounts. But in 2022 and beyond, promotions ramped up again, especially for large appliances, as price-sensitive shoppers returned.

• Major appliances saw sharp price hikes post-pandemic; now major appliance prices are softening due to promo pressure
• Small appliances stayed more stable but trend downward in average price
• Value-focused sub-brands (e.g. So Yummy by Bella) are gaining traction

Key Insight: Small appliance brands see wins when focused on affordability and function, especially in single-serve items.

5. Appliance Tariffs: What to Expect in 2025

Tariffs are understandably causing disruption across many industries, and the kitchen market is no exception. While the full picture is still developing, early indicators show that new tariffs will moderately increase appliance costs, especially for major appliances.

• Tariffs are expected to modestly raise prices, especially in large appliances
• Small appliance prices expected to rise gradually, unlike large appliances
• Price increases may be temporary, and consumers are likely to remain price-sensitive

Forecast: Expect higher shelf prices but aggressive promos to maintain consumer interest.

To see how this plays out for large versus small appliances, check out the full webinar recording! And for more forecast and tariff impact, I highly recommend you check out our new CPI and Market Forecast products launched this year by our Chief Economist, Ralph McLaughlin. 

6. 2025 Outlook: What’s Ahead for the Kitchen Market

Major Appliances 

1. Large appliances might see the biggest shift in consumer purchasing as rising everyday costs and potentially tariff-related impacts shrink the market for new purchases
2. Higher resource costs could push home prices up, reducing new home purchases and demand for large appliances
3. Tariff effects on low-margin items may intensify competition, driving deeper discounts to capture limited spending
4. Trend of replacement-based purchases expected to continue

Small Appliances

1. Small appliance prices may rise slightly due to parts and labor sourced from countries impacted by tariffs
2. Despite price increases, demand may remain stable or improve as consumers are less sensitive to lower-priced appliances
3. With more time spent at home consumers may upgrade small appliances such as coffee makers to avoid spending money out
4. Smaller brands may see slight price increases, while leading brands are likely to diversify supply chains to adapt quickly

Watch the Full Webinar for More Kitchen Market Insights

Want a deeper dive into these insights? Get a more in-depth look into these trends and hear the extended Q&A in the webinar recording — including a guest appearance from our Chief Economist, Ralph McLaughlin, who provides more insights into tariff related questions from our live attendees!

Watch now → What’s Cooking in Kitchen Webinar Recording

Thanks for reading, and if you attended the live webinar, thanks for joining us! The team here at OpenBrand, myself included, are here to help you navigate the kitchen market with clarity and confidence. 

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