What happened
At the 2026 Kitchen Appliance Industry and Market Development Forum, Zhu Jun, vice chairman of the China Household Electrical Appliances Association, stated that the national push for 'good housing' construction opens new space for the kitchen appliance industry. He emphasized that good kitchens and appliances are key components of 'good housing', and consumers urgently need kitchen space optimization and improved living experiences, whether in new homes or renovated old ones.
The industry faces pressure: according to AVC data, retail volume and revenue in the kitchen and bathroom appliance market fell 9.8% and 10.7% year-on-year in the first half of the year, due to the real estate market's deep adjustment and shrinking new home sales.
In response, companies like Casarte, Vatti, and Fotile are innovating with AI-enabled products and system solutions. Retailers like JD.com are creating immersive kitchen experience scenarios, and the '2026 China Good Kitchen Good Appliances Six Trends' report highlights a shift from product combination to system solution competition.
Why it matters
The 'good housing' policy, including the 15th Five-Year Plan and urban renewal plans, boosts industry confidence. Sun Daming, deputy chief engineer at Zhongjianyan Technology, noted that over 90% of existing housing projects have gaps in sound insulation, floor height, and elderly suitability, with potential demand for residential improvements reaching about 700 million square meters annually. This represents a decade-long opportunity for those who excel in 'good housing'.
The kitchen is a critical window for observing 'good housing' implementation, as it connects new construction and stock renewal. The industry is moving from being mere product suppliers to co-creators of living spaces, which could lead to a new growth phase driven by technology and stock renovation.
Key facts
The 'good housing' policy is a national initiative, with the 15th Five-Year Plan calling for safe, comfortable, green, and smart housing.
In the first half of the year, kitchen and bathroom appliance retail volume fell 9.8% and revenue fell 10.7% year-on-year.
Over 90% of existing housing projects have hard gaps in sound insulation, floor height, and elderly suitability.
JD.com's 618 campaign saw cumulative transaction value exceed 4 billion yuan for cross-brand kitchen sets.
Casarte launched the 'Commander' series with features like fully embedded range hoods and AI-equipped ovens.
What to watch next
Watch how kitchen appliance companies deepen integration with real estate, decoration, and design to turn demand into 'good kitchen' highlights.
Monitor the evolution of AI in kitchens, from single-point to full-chain management, as outlined by Fotile's 'AI fully managed smart kitchen' plan.
Observe whether the industry can shift from being product providers to system solution providers, potentially breaking free from real estate cycle impacts.