Brandwatch Bulletin #04: Will the Cookware Boom Last?

Is trouble brewing for high-end kitchenware retailers?

18 September 2020

Happy Friday. Today we’re exploring the world of fancy cookware and how lockdowns impacted demand for high-end kitchen equipment.

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The background

In recent years, the cookware industry has started to see changes in buyer behavior.

Premium cookware has always been a popular gift. Every December, Google searches around the most popular brands and items see a predictable peak. And items like Le Creuset dutch ovens and KitchenAid mixers have long been convenient happy-new-home presents and staple items on wedding wishlists.

But the middle class Millennials who’d be prime recipients of these gifts are getting married later in their lives, and home ownership is off the cards for many. As Amanda Mull writes in The Atlantic, young people who are growing out of their cheap kitchenware are now having to stock their own adult kitchens, and cookware brands are seeing more and more people buying for themselves.

These items aren’t just about function. Popularity is heavily influenced by their appearance in popular cooking shows and Instagram dinner party pics.

Mull writes: “Colorful cast-iron cookware by brands like Le Creuset and the retro, brightly hued stand mixers by KitchenAid aren’t just culinary workhorses; they’ve become small markers of stability and sophistication, coveted by young people for whom traditional indicators of both often remain out of reach.”

This was the story up til the beginning of 2020, but a lot has changed since then.

The impact of lockdown

How has Covid-19 (and the accompanying lockdowns) affected demand and perceptions around these “trophies of domesticity”?

As mentioned above, Google searches around popular brands and items see a seasonal spike every December. In 2020, the pattern seems to have been disrupted with unseasonal interest around May.

Search interest in dutch ovens actually reached its highest point since 2012 in May 2020, while Le Creuset saw the same levels of interest in April and May as it did in the 2019 holiday period.

The trend towards home cooking and baking, as well as online shopping, in lockdown has been well documented. It presented a big opportunity for high-end cookware retailers to capitalize on consumers’ newfound interest in cooking up a storm.

For Le Creuset, lockdown also sparked plenty of social media engagement. Thousands of consumers posted about home cooking endeavours while tagging the brand.

Trouble ahead?

The lockdown cookware boom might be cause for celebration for some, but there is also plenty to be cautious about.

As many return to work, collective time for home cooking is going to decrease. Meanwhile, the economic hit will likely prompt people to think twice before spending big on flashy cooking equipment.

Our own survey data shows that on average across the seven countries we studied, 44% of consumers plan to spend less this holiday season than they did last year. Expensive cookware could be off the table.

The same survey showed that 36% of consumers think the items they buy being branded is less important now than it was before the pandemic.

This spells trouble on two counts for high-end cookware brands.

Firstly, many will be spending less on gifts this year (a key source of revenue for high-end cookware brands).

Secondly, brand loyalty is wavering. 2020 has already seen multiple launches of affordable cookware ranges from well known budget brands, which could tempt consumers away from the higher ticket versions.

For luxury cookware manufacturers to keep the orders coming in, they must show consumers why their products are better than the cheaper alternatives. They also need to keep a close eye on brand loyalty and recognition. When homemade creations are posted on Insta, are brand names proudly framed status symbols or is it the color scheme that’s more important?

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