Vietnam’s water purifier market stood at $263.77 million in 2021 and is expected to grow at a compound annual growth rate of 9.88 per cent in 2023-2027 to reach $448.21 million by 2027.
The market is driven by factors such as growing health consciousness among consumers and a shortage of clean drinking water. Meanwhile, the availability of advanced and affordable water purifiers in the market and the emergence of online sales channels are expected to create lucrative growth opportunities for investors, according to a report by Research and Markets.
A homegrown startup Koro is actively exploring opportunities in the field. Koro has the vision to change the positioning of the water purification industry towards healthcare by delivering healthy products and solutions rather than selling water purifiers as household products. The startup provides filtration solutions for tap water to make filtered water that meets the standards of bottled drinking water at home.
In addition, Koro also delivers healthy magnetic water by revitalising the water source in each household. Specifically, after being treated with a magnetic field, water can store magnetic energy for 24-48 hours. A study titled "Biological Effects of Magnetic Water on Human and Animals" published by Biomedical Sciences reveals that magnetic water has been found effective in alleviating colds, coughs, all types of fever and more Such water has a high concentration of free electrons as well as the potential to neutralise free radicals, therefore having a positive impact on health.
In addition, Koro also delivers healthy magnetic water by revitalising the water source in each household. Specifically, after being treated with a magnetic field, water can store magnetic energy for 24-48 hours. A study titled Biological Effects of Magnetic Water on Humans and Animals published by Biomedical Sciences reveals that magnetic water has been found effective in alleviating colds, coughs, all types of fever, and more.Such water has a high concentration of free electrons as well as the potential to neutralise free radicals, thereby having a positive impact on human health.
"Due to shortage of clean water supply, demand for water purifying equipment is expanding and supporting the expansion of Vietnam's water purifier industry in the next five years," stated Nguyen Duc Quy, co-founder of Koro.
“By promoting a healthy product line, Koro is attempting to deeper penetrate the market. We believe that people's health can be improved by consuming clean, healthy water. As a result, we anticipate that our solution will give Vietnamese people more access to magnetic water, strengthening their immune systems and overall health.”
To scale up its operation, Koro has come up with a strategy to provide magnetic water products to the majority of people in urban areas, usually low-income families.
The startup sells magnetic water to households for VND2,000 ($0.085) per litre or leases a magnetic water generator for VND360,000 ($15.34) per month. With this strategy, Koro aims for an initial public offering (IPO) after it provides magnetic water to around 7.3 per cent of the urban population in Vietnam within the next eight years, bringing in expected revenue of more than $92.5 million in the IPO year.
Meanwhile, Mutosi Group, a manufacturer and distributor of water purifiers and electrical appliances following Japanese standards, also secured a $10 million investment from Mekong Capital. The company has used the funds to advance its research and development in manufacturing technology, increase the quality of customer experience, and expand its distribution scale.
Mutosi Group was established in 2018 by Vietnamese founders, who have extensive operating experience in the water purifier industry. After three years of operation, from mid-2019 with 300 points of sale, Mutosi has scaled up to more than 3000 points of sale nationwide.
Coway, Korea's leading water and air purifier brand, is accelerating overseas business in Vietnam. Last month, Coway launched a series of water and air purifiers in the Vietnamese market. The company has pioneered providing water purifier rental services for a commitment period of 36 or 60 months in the country.
Meanwhile, Japan’s Mitsubishi Chemical Cleansui has secured a strong footprint in Vietnam’s water purifier market since its inception in the country in 2017. The company has set up two showrooms in Hanoi and Ho Chi Minh City. It has also established a nationwide system of sales and warranty channels with hundreds of distribution agents nationwide.
The ongoing expansion of these players reflects the competitive landscape of Vietnam’s water purifier market. Data from the Vietnam Chamber of Commerce and Industry reveals that Vietnam is now home to over 400 domestic and foreign water purifier brands. Vietnam’s water purifier market has become more competitive than ever before as businesses are vying for a share in the lucrative market.
According to Karan Chechi, research director of TechSci Research, a research-based global management consulting firm, market players are investing significant amounts in research and development activities to launch novel products and improve the performance of water purifiers.
The integration of advanced technologies like automatic-variable filtration and photocatalytic water purification in a water purifier is expected to enhance the quality of water filtered through the water purifier.
“The rapid launch of new products and the use of quality materials to manufacture water purifiers are expected to influence the market demand. Digitalisation and adoption of the latest technology for business operations by the market players are expected to propel the growth of the Vietnam water purifier market till 2027,” he added.
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