As the predictive analysis of AVC, in 2017, the market capacities of water purifiers and air filters were 32.94 billion yuan and 18.64 billion yuan, respectively, with over 15% of growth rate, comparing with the same period of previous year.

With the economic development and health awareness increase, the water purifiers and air filters will keep positive increase in 2018.  The environment policies were blooming in 2017, especially focusing on air and water pollutants prevention and management.  Serious water and air pollution, positive GDP growth and two-child policy are the drivers of the markets development.  However, the costs increase including raw materials prices, logistics and labor cost also hindered the further development.

Water purifier

1.    Brands: integrating and merger

2018 is a period transferring from marketing increase to further merger for offline market, the companies with less financial support and outdated technology will be phased out.  Industry standardization will lead a healthy development.  Some new domestic brands expanded their market shares by online sales as priority.  According to the data, the domestic brands dominated 59.1% of China water purifier offline market and remain were foreign brands in 2017.  But for the offline market, the market shares of domestic and foreign brands were 59.4% and 40.4%, respectively.

2.    Products: reverse osmosis and large capacity products further monopolized the market

The shipment of reverse osmosis products continually increased in recent years, with advantages of water and space savings as well as secondary pollution prevention.  The data shows that the shares of the products are 91.2% for offline market and 72.8% for online market, respectively, with further expansion in 2018.

3.    Market: rural demands increased

The data shows that rural market increased 29.8% in 2017, compared with the same period of previous year, with great potential.

Air filter

1.    Brands: foreign brands is majority

In the initial period, domestic brands were not mature both in technology and marketing, but with time going by, domestic brands gradually mastered core technologies with strong competitiveness.  In 2017, the online market share of domestic brands reached 38.1% and will be the same as the foreign brands in 2018.  It is predicted that the concentration of air filters in offline market will be increased and the brands competitiveness of online market will be serious.  Top 5 brands occupied 67.1% of offline market share in 2017, increased 6 percents comparing with previous year.

2.    Products: the market share of products with high CADR (clean air delivery rate) will increase

Weather significantly impacts on the air filters market, so it is not good for long term development with single feature of PM2.5 prevention, which leads to a new breakthrough of methane prevention.  The data shows that the shares of the products with 300+ CADR were 15% for online market and 25% for offline market, with gradual growth, and predicted to further increase in 2018.