(Nov 18, 2025, Forbes)
The small home appliances industry is experiencing a renaissance, not just as a category of convenience gadgets but as a driver of lifestyle transformation, with 2025 H1 global sales hitting a record $178 billion, according to the International Housewares Association (IHA). What sets this growth apart from previous cycles is its reliance on purpose-driven innovation rather than incremental upgrades—consumers are no longer buying small appliances just to check a box on their kitchen wishlist, but to solve specific pain points, from reducing food waste to streamlining busy morning routines. This shift is evident in the soaring popularity of specialized devices: countertop food dehydrators saw a 62% sales surge year-over-year, while smart rice cookers with built-in nutrient tracking jumped 48%, as households prioritize meals that are both convenient and tailored to dietary needs.
A major force behind this trend is the post-pandemic reimagination of home spaces. As remote work and hybrid schedules become permanent fixtures, kitchens have evolved from mere cooking zones to multi-functional hubs—spaces for meal prep, home office breaks, and even casual entertaining. Small appliance manufacturers have capitalized on this by designing products that fit seamlessly into these new use cases: compact air fryers that double as toaster ovens, portable blenders that charge via USB-C for use at home or on the go, and mini espresso machines that replicate café-quality brews without taking up counter space. This focus on space efficiency has resonated particularly in urban markets, where 73% of apartment dwellers cite “compact design” as their top priority when purchasing small appliances, per a 2025 IHA consumer survey.
Sustainability is no longer a buzzword in the industry—it is a core design principle, with manufacturers overhauling everything from materials to packaging to meet consumer demand for eco-friendly options. Leading brands are ditching single-use plastic components in favor of recycled stainless steel and bamboo, while others are introducing take-back programs that allow customers to return old appliances for refurbishment or recycling. The impact is tangible: appliances made from recycled materials now account for 29% of small appliance sales, up from 14% in 2023, and 61% of consumers say they are willing to pay a 10–15% premium for products with verified sustainability credentials. Energy efficiency has also taken center stage: the latest generation of small appliances consumes 30% less power than models from five years ago, thanks to advanced motor technology and smart sensors that automatically adjust energy usage based on load size.
The rise of direct-to-consumer (D2C) brands has disrupted the traditional retail model, challenging legacy players with agile product development and data-driven marketing strategies. Unlike big-box retailers that rely on mass-market appeal, D2C small appliance brands leverage customer feedback to iterate products quickly—for example, a startup specializing in smart steamers updated its app three times in 2025 H1 based on user reviews, adding features like customizable steaming cycles for different vegetables. This customer-centric approach has helped D2C brands capture 22% of the global small appliance market, up from 12% in 2022, with millennials and Gen Z accounting for 78% of their customer base. Social media has played a pivotal role in this growth, with TikTok and Instagram influencers turning niche gadgets like electric pasta makers and cold brew coffee systems into viral sensations, driving impulse purchases and building brand loyalty through authentic, hands-on demonstrations.
Yet, the industry faces significant headwinds as it navigates a landscape of economic uncertainty and supply chain volatility. Inflationary pressures have led to a 8–10% increase in raw material costs, forcing some manufacturers to raise prices or cut back on premium features in entry-level models. Supply chain disruptions, particularly for semiconductor chips used in smart appliances, have caused production delays, with 34% of brands reporting stock shortages in 2025 H1. Additionally, the fragmented regulatory environment across global markets creates compliance challenges: a smart blender that meets EU safety standards may require extensive modifications to be sold in the US or Asia, adding time and cost to product launches.
Despite these challenges, the IHA projects that the small appliances market will grow at a CAGR of 7.2% through 2030, fueled by emerging markets in Southeast Asia and Africa, where rising middle-class incomes and urbanization are driving demand for modern household gadgets. As manufacturers continue to balance innovation, sustainability, and affordability, small appliances are set to become even more integral to the way we live—turning everyday tasks into opportunities for convenience, creativity, and conscious consumption.
