The Residential Water Treatment Market: China

23 Sep 2011 • by Natalie Aster

The Chinese residential water treatment market is expected to experience a double-digit annual growth rate (CAGR) of 26.3 percent from 2009 to 2016. This market generated revenues of $1,135.6 million in 2009, and it is expected to generate revenues of $5,814.7 million in 2016.

The increasing consumer interest in residential water treatment equipment and the subsequent growth in this market has attracted new manufacturers. Product variety is becoming greater.

One of the most noticeable changes in this market in recent years is the entrance of large consumer appliance companies which private label products for mass merchandising. Price sensitive end-users are primarily being targeted. Keeping up with technological changes, consumer preferences, and changing water problems are some of the challenges manufacturers of water treatment equipment will face in the next decades.

Industrialization and urbanization in China are attracting international players from the U.S., Japan and Europe.

The report “The Residential Water Treatment Market: China” by Verify Markets LLC provides complete market intelligence on the Chinese residential water treatment market. It identifies growth strategies adopted by market players, and also major competitive developments such as R&D initiatives, distribution strategies, etc. The sections include areas like market drivers, restraints, revenue forecasts, market share split by revenue and pricing trends.

Report Details:

The Residential Water Treatment Market: China

Published: July 2010
Price: US$ 1,000.00

Report Sample Abstract

Market Drivers Ranked in Order of Impact (China), 2010-2016

Increase in urban disposable income bolstering sales:

Due to the rapid pace of urbanization in China, the annual disposable income per capita for urban households is climbing. According to the news story released by China’s National Bureau of Statistics on April 27, 2009, data indicates that in the first quarter of this year the average level of disposable income for urban Chinese was 4834 RMB ($708.3), an increase of 10.2% compared to the same period of the previous year. When adjustments are made for inflation, this is equivalent to a real increase in disposable income of 11.2%. In the past, water purification at home was mostly an uppermiddle to upper class activity. As employment levels have improved and disposable income has increased, more people find themselves able to afford some type of home system.

Enormous opportunity as distribution channels expand:

The earliest days of China trade, professional distribution options were scarce. Foreign firms had little choice but to use state distribution networks, which were organized along rigid, vertical command- and control lines. First-tier distributors were located in Beijing, Shanghai, and Tianjin municipalities, and Guangzhou, Guangdong Province; the second tier consisted of distributors in provincial capitals and medium-sized cities; and the third tier of distributors operated in smaller cities and towns. Distributors essentially provided basic logistics services (transportation and warehousing) but no marketing support or sales reporting. Nonetheless, the reality of the marketplace has been the greatest driver of change in distribution. One of the best examples of the change that has occurred in the distribution of water treatment systems and other goods in China over the past few years is the development of the hypermarket/big-box retail format since 1996, as exemplified by Wal-Mart Stores, Inc. of the United States, Metro AG of Germany, Carrefour SA of France, and China's own Shanghai Hualian Supermarket Co. and Lianhua Supermarket Co. Ltd. By virtue of their buying power, these local and foreign retailers have forced alteration of traditional distribution practices.

Point-of-use CT Water Treatment Market: Company Market Share by Revenues (China), 2009

Midea Group was the market leader in 2009, with market share of 23.5 percent in China. Midea’s product line uses activated carbon as the key technology. Midea is continuously developing new products and expanding its product line. Midea CT products are distributed in large sized home furnishing hypermarkets (such as B&Q), electronic appliance hypermarkets (such as Gome and Suning), hypermarkets (such as Carrefour and Wal-Mart) and even the traditional department stores. Midea has several growth strategies such as providing product trials at a discounted rate.

Ningbo Qinyuan Group Co., Ltd had a market share of 21.5 percent in 2009. The company's product line mainly uses the activated carbon technology. The company’s products are sold in large sized home furnishing hypermarkets such as B&Q, electric appliance hypermarkets such as Gome and Suning, hypermarkets such as Carrefour and Wal-Mart.

Shenzhen Angel Drinking Water Equipment Co., Ltd had a market share of 15.2 percent in 2009. Angel’s water purification products are equipped with one of the following technologies: activated carbon absorption, ion exchange resin, and KDF purification technology. Angel’s unique distribution networks consist of both direct sales and retail sales. Retail stores include home centers (B&Q), appliance stores (Gome and Suning), or even hypermarkets (Carrefour and Wal-Mart). The working pattern of sales representatives is similar to that of the direct selling person’s: they visit clients to promote sales in a person-to-person basis.

More information can be found in the report “Analysis on Select Global Residential Water Treatment Markets - Global Overview, Latin American Overview, and Brazil” by Verify Markets LLC.

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