Vietnam Water Purifier Market Assessment, By Technology [Reverse Osmosis, Ultraviolet, Ultrafilters, Hybrid, Others], By Type [Point of Use, Point of Entry], By Application [Residential, Commercial and Industrial], By Distribution Channel [Direct Sales, R

Vietnam Water Purifier Market Assessment, By Technology [Reverse Osmosis, Ultraviolet, Ultrafilters, Hybrid, Others], By Type [Point of Use, Point of Entry], By Application [Residential, Commercial and Industrial], By Distribution Channel [Direct Sales, Retail Stores, Online, Others], By Region, Opportunities and Forecast, 2017-2031F

Vietnam water purifier market was valued at USD 392.54 million in 2023 and is expected to reach USD 1,050.92 million in 2031, with a CAGR of 12.94% for the forecast period between 2024 and 2031. During recent years, the market has seen substantial growth, owing to an increase in public awareness concerning diseases caused by contaminated water and raised apprehensions about the quality of water. The increasing rate of urbanization and industrialization has led to a worsening state of water pollution, making people look for reliable ways of purification solutions for water. The market consists of different technology-based segments, such as UV purifiers, RO purifiers, UF purifiers, and others, that suit the unique requirements of the customers.

For instance, in November 2023, one of the key German companies for sustainable climate solutions, Viessmann Climate Solution, part of Carrier Global Corporation, launched its range of Vitopure water purifiers and filters in Vietnam. Vitopure meets the need for drinking water and household water with its innovative water treatment technology and comprehensive testing conducted on water quality. Vitopure provides five distinct product lines, S2, S3, S4-RO, S5, and S6. Each has a distinctive, contemporary style and characteristics that are suited to a particular use of water.

Efforts by the government for better clean water access have been contributing to rapid market growth, which is further accelerated by increasing per capita incomes. This has resulted in the entry of foreign firms into the country alongside the growing number of domestic firms. Consequently, this has given rise to technological advancements and product range diversification with stiff competition between indigenous and foreign entities. There are higher product adoption rates in urban areas, especially in cities like Hanoi and Ho Chi Minh City, where there is better awareness and higher purchasing ability.

Moreover, there has been a further rise in health issues due to the COVID-19 pandemic, hence increasing the need for water purifiers. Despite the favorable movements, challenges like lack of knowledge about the importance of clean water in village areas and high initial costs exist. However, with a continued commitment to educating customers and improving affordability, the Vietnam water purifier market is set for continuous growth in the future.

Technological Advancements Fuel Demand for Water Purifiers

Technological advancements in Vietnam have made water purifiers increasingly important in human life. Current developments in filter technology have resulted in improved efficiency and, thus, more appealing to clients. Modern water purifiers combine UV, UF, and RO technologies with multi-stage filtration systems that help remove a wide range of contaminants such as heavy metals, viruses, bacteria, and fluoride. In October 2022, ROBOT INVESTMENT CORPORATION introduced a Smart alkaline iON electrolyte water purifier range using advanced technology and characteristics of the alkaline iON electrolyte market. The range includes iONsmart, iONprince, and iONqueen, the three alkaline iON electrolyte water purifiers, appealing to consumers and setting new trends in the country.

With soaring demand, companies are introducing features such as real-time water quality monitoring, automatic filter replacement alerts, and Wi-Fi connectivity. Such features offer hassle-free consistency and convenience in the filtration process targeted at tech-savvy individuals who do not want to spend their time managing their purification systems.

Concerns about high electricity usage have been effectively addressed by the introduction of power-saving machines, making water purifiers not only environmentally friendly but also affordable. The inception of small-size water purifiers that can be easily transported has further expanded the market. These compact machines cater to the needs of different categories of people, from personal use to commercial use, providing a cost-effective solution for clean and safe drinking water.

Government Initiatives Drive the Market Growth

Government measures have been instrumental in propelling the development of the water purifier market in Vietnam. The Vietnamese government has introduced several policies to enhance the quality and availability of pure drinking water. The government is prioritizing investments in water infrastructure, such as construction and upgrading water treatment plants, to solve pollution and contamination problems.

Market expansion has been supported by policies promoting public health and environmental protection. Government statistics show that poor water quality and inadequate sanitation cause approx. 9,000 deaths, 250,000 hospital admissions, and around 200,000 cases of cancer in Vietnam annually. The government’s partnership with global institutions helps it establish a water safety plan and strict guidelines for water quality, increasing awareness and increasing the use of water purifiers. For instance, in February 2023, the World Bank issued a USD 50 million Emission Reduction-Linked Bond to raise private capital for a water purification project in Vietnam. The distribution of water purifiers under the project aims to reduce greenhouse gas emissions by substituting purifying methods that rely on burning biomass to boil water, in addition to assisting in delivering reliable and safe drinking water.

Enhanced demand has been further promoted by the strategic use of subsidies and financial incentives given to schools, hospitals, and rural areas for setting up purification systems. These measures have not only made the systems more affordable but also underscored the government's commitment to public health. Public campaigns and educational initiatives targeted at enhancing awareness on the significance of clean water and advantages of water purifiers have stimulated interest among consumers, further reinforcing the effectiveness of these measures.

Reverse Osmosis Segment Holds the Larger Market Share

In 2023, the Vietnam water purifier market was largely led by reverse osmosis (RO) technology, which accounts for roughly 50% of the market share. This dominance is expected to continue through 2031. Reverse osmosis (RO) technology is credited with superior filtration capabilities and increasing consumer knowledge of water quality. RO purifiers effectively eliminate a wide range of pollutants, including dissolved salts, heavy metals, and harmful microorganisms, making them the preferred choice for health-conscious households and business enterprises.

Installing RO technology has become more preferred due to affected sources of domestic water. Strong water purification systems have been raised as waterborne diseases and industrial water body pollutants continue to increase. RO technology ensures improvements in technology, like the creation of smart, user-friendly models with minimal power consumption that can be remotely controlled or maintained. In November 2023, Panasonic Manufacturing Malaysia Berhad (PMMA) introduced its latest Reverse Osmosis Water Purifier (ROWP) in Vietnam. The product meets Japan Quality Standards, providing superior water quality as its reverse osmosis filter can remove 99.9% of the bacteria in water.

Moreover, cost-effectiveness has enhanced the presence of affordable models at varying rates, catering to premium and budget-conscious consumers. Product adoption has been driven by well-targeted marketing campaigns emphasizing savings on long-term costs and improved health via RO purifiers.

Southern Region Dominates Due to Economic Growth and Health Awareness

The key regions covered in the Vietnam water purifier market are north, south, and central, with the southern region holding a share of around 41% in 2023. This is due to rapid population growth, increased awareness about water quality issues, and robust economic development. Due to their economic center status, major cities, such as Ho Chi Minh City, further enhance higher disposable incomes and a better understanding of risks to health due to water quality, thereby fueling demand for water purification systems.

Moreover, the southern region of the country faces significant water contamination due to agricultural runoff and industrial waste, heightening the demand for effective purification solutions. Furthermore, the region enjoys improved infrastructure and a growing number of modern retail outlets, increasing consumer access to water purifiers. Overall, the region’s economic growth, awareness of health issues, and environmental challenges solidify its role as the backbone of Vietnam water purifier market.

Future Market Scenario (2024-2031F)

Urbanization and industrialization are increasing, which will continue to intensify water pollution issues, hence necessitating the availability of reliable water purification solutions. Consequently, consumers are likely to have higher expectations of sophisticated water purifiers in subsequent years.

Pivotal technological innovations such as advancements in filtration efficiency, smart features, and energy-saving water purifiers are expected to attract a wider customer base.

Government initiatives are expected to continue playing a key role in shaping the market scenario through policies meant to enhance water infrastructure and quality standards throughout the country.

As online shopping becomes more widespread, particularly in urban areas, consumers increasingly turn to digital platforms for water purifiers. The convenience of home delivery, a wide range of product options, and competitive pricing make e-commerce an attractive channel for buyers in the coming years.

Key Players Landscape and Outlook

The key players contributing to the Vietnamese water purifier industry are a blend of global giants and aggressive local companies who are fighting for market penetration using innovation, forming alliances, and strong distribution channels. In the premium market segment, top multinational brands have used advanced technology and robust product portfolios to take over the market. These global companies have taken advantage of their strong research and development capabilities to come up with hi-tech purification systems that appeal to health-conscious customers.

Also, local players have penetrated the market equally with available competitively priced products aimed at addressing the specific needs of Vietnamese customers. These local brands usually understand the best water quality situations within regions and customer tastes, which enables them to take up a large percentage of the market, particularly in the countryside and semi-urban regions.

The market is expected to continue moving upward in the future. It is anticipated that firms will broaden their product ranges by introducing affordable and energy-efficient smart water purifiers. Also, strategic partnerships, collaborations, and acquisitions will play a significant role in addressing underprivileged areas. In March 2024, AO Smith Group collaborated with a business that owned 100% Vietnamese capital, Phu Tien Co., Ltd., as a strategic partner to take care of all the market expansion roles for AO Smith in Vietnam. In addition to building a distribution and agent system and handling maintenance tasks, Phu Tien Co., Ltd. will proactively deploy communication and sales operations.

To remain relevant in such a dynamic environment with high competition, product innovation and strategies prioritizing consumers’ needs are very important while trying to hold and expand the market share."