Green Demand: The Real Forces Powering the Appliance Market
Green Demand: The Real Forces Powering the Appliance Market
In Partnership with NIQ
Sustainability and energy efficiency – two terms that have become staples in the global Major Domestic Appliances (MDA) conversation. But while they’re often cited as key drivers of cosumer behavior, the reality is more nuanced. Myths abound, and the true impact of these factors on purchasing decisions deserves a closer look.
Sustainability: A Value in Flux
Sustainability isn’t just a trend – it’s a personal value, sitting alongside ideals like honesty and freedom. Since 2015, it’s climbed nearly 10 positions in consumer value rankings (out of 57), peaking just before the pandemic. But when global crises hit – COVID, inflation, geopolitical tensions – economic survival took precedence, and sustainability slipped down the priority list.
Still, the long-term trajectory remains upward. Particularly notable is the rise of the “Green In Deeds” – consumers who walk the sustainability talk – versus the “Glamour Greens,” who see sustainability as a status symbol.
Energy Efficiency:
More Than Just a Checkbox
In the MDA world, one aspect of sustainability is energy efficiency and it is not a nice-to-have – it’s the top purchase criterion globally. Half of all consumers rank it as one of their most important considerations, far outpacing sectors like consumer electronics (22 %) and small domestic appliances (9 %).
Why? Because appliances like washing machines and refrigerators are built to last years, some of them run around the clock. Consumers want appliances that perform reliably and efficiently over time. Energy efficiency delivers not only peace of mind but also financial savings and alignment with government sustainability goals – a rare win-win that manufacturers, retailers, and policymakers are all driving.
When it comes to buying e.g. a refrigerator, energy efficiency is the top priority across all generations. Interestingly, while older generations continue to lead in placing the highest importance on this factor, younger consumers – particularly Gen Z and Millennials – are catching up. Compared to last year, their focus on energy efficiency has grown. Meanwhile, older cohorts remain steady in their already-strong commitment to efficient choices.
Energy Labels:
The Quiet Market Revolution
In Europe, the latest generation of labels launched in 2021, and the impact has been swift. A-label products jumped from 19 % market share in 2023 to 31 % in Jan–Jun 2025.
But the story varies by category. Washing machines are leading the charge, with A-labels now accounting for 78 % of sales as prices have become accessible. Refrigerators, on the other hand, are still catching up – expensive A-labeled fridges hold less than 4 % of the market, though growth is strong (+22 % year-on-year).
Globally, labels are gaining traction too. In India, 5-star refrigerators now make up 11 % of the market. In China, top-tier energy class appliances surged from 65 % to 87 %, thanks in part to government subsidies.
Labels as Leverage:
A transformative power
Energy labels aren’t just guiding consumer choices – they’re reshaping industry landscapes. Challenger brands have seized the opportunity, using high-efficiency ratings as a credibility boost. For many consumers, an energy label isn’t just a spec – it’s a signal of quality and innovation.
»Strong demand for best-in class labeled products coupled with rigorous legislation has had a transformative effect on the markets, not only selling more energy efficient appliances, but also changing the brand landscapes in favor of most innovative offerings at the most attractive price level«
Discover at IFA 2025
Talks, Panels & Workshops:
- Serving the Consumer, Preserving the Planet – Electrolux Group
5 Sept, 14:15, Innovation Stage - From ‘Future Dreams’ to ‘The New Normal’: How AI and Smart Home Appliances Are Changing Our Homes – Miele
5 Sept, 15:00, Innovation Stage - Rethinking Electronics / Circular Design for Impact – Cradle to Cradle NGO
6 Sept, 14:30, Dream Stage - Scene Setter: The Future of Sustainability – WGSN
9 Sept, 10:45, Dream Stage - Big Ideas, Big Impact: Winning Strategies for Consumer Tech in 2027 – WGSN
9 Sept, 14:30, Creator Stage - Big Ideas, Big Impact: Winning Strategies for Consumer Tech in 2027 – WGSN
9 Sept, 13:15, Creator Stage - Workshop: How to Measure Your Impac – Impact Hub Berlin
8 Sept, 8:00, IFA Lab at Hub27 - AI, Built – Tuya
8 Sept, 14:30, Dream Stage - Scene Setter:The Future of Sustainability – WGSN
9 Sept, 10:45, Dream Stage
© 2025 Nielsen Consumer LLC. All rights reserved.
Sources:
NIQ GfK Consumer Life, Global, 2025
NIQ gfknewron consumer: all MDA categories, Year 2024
NIQ Market Intelligence: Sales Tracking, Europe, India, China, Jan-Jun 2025 vs Jan-Jun 2024
[Thanks to the combined analytical muscle of NIQ powered by GfK, leveraging syndicated surveys and point-of-sale data, we’re able to cut through the noise and get to the heart of what’s really shaping the market.]