Lower-tier cities in China – the next big opportunity for water purification brands?
Why is it important for water purification brands to look beyond consumers in major Chinese cities?
Water purification systems are gaining popularity in China’s lower-tier cities.
Water purification systems are gaining popularity in China’s lower-tier cities. WPSs are now considered a health investment, as they reduce the amount of chlorine, soil residue, and organic and inorganic substances. Furthermore, the growing environmental awareness has pushed many people to develop new habits and replace single-use plastic with more sustainable options such as WPSs.
Along with reducing plastic waste, people want to reduce energy, as a buildup from unfiltered water can slow down an appliance and cause it to use more energy, and increase pollution from energy generation.
In 2021, there were 754 newly launched projects related to water purification in the real estate and home decoration industry, which is a year-on-year increase of 17.4%. In 2021, the top 10 manufacturers of water purifiers in the home decoration market launched 265,000 water purification systems, an increase of 18.5% year-on-year. Vanke is the leading brand with a scale of 69,000 WPSs, a year-on-year increase of 97.7%. Top 11-30 brands launched 114,000 WPS units, accounting for 18.6%, top 31-50 brands launched 55,000 units, a 19.6% year-on-year increase, accounting for 8.9%; top 51-100 brands launched 73,000 WPS units, a year-on-year increase of 13.6%, accounting for 11.9%. Other manufacturers that are not in the top 100 have launched more than 106,000 WPS units, which is a year-on-year increase of 49.2%, and a drastic increase since 2016 and 2017.
In 2021, the total market share of the top 5 manufacturers of water purification systems in the real estate and home decoration industry was 63.1%, which is the same as last year. 3M, Midea, Angel, Yikou, AO Smith, and other brands are in the forefront; 3M is still the leader, with a market share of 19.7%; Midea “won” the second place, with a brand share of 13.7%, an increase of 3.2 % compared with last year; Angel has achieved excellent results in recent years, with a market share of 11.7%, ranking third. Angel has been in a state of continuous growth since 2016; Anxinjia and Hydetech have entered the top 10 rankings. Among the major regions, the leading brand in East China and North China is 3M, Angel is the leading brand in Central China, and the top 1 brand in Northeast China is Yikou. Foreign brands account for 60.2%, but with the rise of domestic brands, the gap between domestic and foreign brands has narrowed from 28.2% last year to 20.4% this year!
Compared with the penetration rate of water purifiers in western countries and developed Asian countries, the penetration rate of water purifiers in Chinese households is still pretty low, especially in lower-tier cities, which leaves a lot of room for market expansion!
Join us for the 15th edition of Aquatech China on June 8-10, 2022 at the National Exhibition & Convention Center in Shanghai, and discover the opportunities in the Chinese water purification market! If you are a visitor, dive into the latest water purification technologies and home comfort solutions! The show will gather distributors and agents in the fields of water purification, home appliances, HVAC, building materials, real estate, and hospitality.
The three-day event is complemented by conferences delivered by prominent policy-makers and international industry experts. The conferences cover emerging water purification trends and challenges in China and worldwide, and offer a great opportunity to explore innovative solutions from the Asian region and beyond. Join us and introduce your brand, projects, and innovations to our audience. We look forward to seeing you there!
References: China Research Network