U.S.
History of the water purification industry in the US
The US water treatment industry took off with the establishment of the National Sanitation Foundation in 1944. Seventy-six years on, the US water treatment industry has been a world-leading pioneer, as evidenced by its innovative products and invention of filters.
2 Most stringent standard for drinking water in the world
The revision of the Reduction of Lead in Drinking Water Act (RLDWA) in 2011 reduced the maximum lead content on the wetted surfaces of plumbing products from 8% to 0.25%. The amended Act also includes the statutory method for calculating lead contents.
The revision of this Act has raised the technical barrier for foreign products seeking to enter the U.S. market. Additionally, the National Sanitation Foundation has established a set of inspection standards for water treatment companies serving homes, businesses, industries, and small communities. These standards have become a global benchmark.
Notes:
RLDWA: Reduction of Lead in Drinking Water Act
NSF: National Sanitation Foundation
3 Popular brands in the UK:
Domestic brands:
ZeroWater, Pur, Frizzlife, Nakii, Apec, Glacial Pure, Waterdrop, Aquagear, Berkey, EpicWater, Aquabliss, Reshape, Max Strength Pro, Brio, GE, LEVOIT, Everpure, Aquaboon, Hskyhan, ExpressWater, Cuzn, Whirlpool, Bosnell, Mountain Flow, Crystala Filters, Santevia, Culligan, Amway, Tupperware, Avalon, Soma, EHM, Frigidaire, Sawyer, Dimener, AquaHomeGroup, Aquasana, AquaEarth, Elkay, EcoSmart, PureDrop, Pureza, Apusafe, Filtrete, FilterLogic, Frigidaire, Aquatic Life, Perfect Water, Watts, LAKE, PUREPLUS, Seychelle, Nathan Craig, Anpean, Belursus, 3M, Clearly Filtered, Atalawa, Yarna, Waten H2O, Brondell, RIPURI, ESOW, Moen, SimPure, Vitapur, DuPont, GOSOIT, Hima, Kraus, InSinkErator, Survivor, Fette, InvisiClean, Filmtech, iSpring
Foreign brands:
LG, BWT, Katadyn,
Samsung, Dew Filters, Wingsol,
EcoSmart, LifeStraw, Aquacrest,
Brita
Spain
(1) Long-standing popularity of RO purifiers in Spain
Spanish cities along the Mediterranean experience severe salinisation of groundwater and river water due to seawater intrusion. The total dissolved solids (TDS) in the water in these cities can reach up to 2500 ppm. The salt content in the water remains high, leading city authorities to blend RO-filtered water with river water to supply residents. Consequently, tap water charges are as high as €4 per cubic metre.
The “blended” tap water in these cities still contains 350 ppm to 550 ppm of TDS. This is why every household in Spain needs to install small RO purifiers. The unique water blending situation has made Spain a heavy user of RO purifiers, resulting in a highly competitive market.
Analysis of water quality in Spain:
https://ppt.cc/fQTeGx
(2) Key Issues for Selling Home-Use Water Purifiers in Spain
1.About Investing in Production Facilities
The rise of China has impacted all traditional industries in Spain, and understandably, the home-use water purifiers industry is no exception. Spain has almost entirely relied on imports for its supply of home-use water purifiers over the past few decades. This implies a slim chance of success in establishing production facilities here.
Imported water purifiers in Spain come from the following countries: 1.1 Germany: approximately US$21.47 million 1.2 France: approximately US$13.97 million 1.3 China: approximately US$13.78 million 1.4 Taiwan: approximately US$12.96 million 1.5 U.S.: approximately US$10.10 million
2 Advice to New Brands Seeking to Enter the Market and M&As Among Heavyweights
The BWT Group from Germany acquired the water purification business from Fluidra in Spain. This was followed by Kinetico from the U.S. acquiring a 50% stake in Puricom Europe (formerly a joint venture between Ionfilter from Spain and Puricom from Taiwan). The other Spanish company, Hidro Water, was concerned that these two major companies would control the domestic market, so it decided to be fully acquired by Culligan from the U.S. Currently, these three major players dominate the Spanish market. It will be difficult for smaller brands to enter the market.
(3) The most important trade show in Spain for the water treatment industry is the biennial Smagua.
The next expo venue: Zaragoza, Spain Expo dates: 2nd to 4th March 2021
Website: https://lihi1.com/1aMsr
3 Popular Brands in Spain
Domestic Brands: Tapp, Spardar, YJHome, Osairous, Ecopure, Waterdrop, Goeco, WinArrow, Bestever, Geyser, H2O Taps, Aqua Optima, Slickbox, Rowenta, Newdora, PowerDoF, TM Electron, Orinko, Filterportal, iWater, Ghonlzin, Bestever, Desconocido, GRIFEMA, Cadrim, XREXS, Bbagua, RUNACC, ADOVEL, BETOY, GXHGRASS, Aigostar, CANALETAS, SILBERTHAL, Finerfilters, Haofy, Fdit, Czxwyst, AIMIUVEI, KURO-Bō, Nrpfell, Enzege, CREA, Vibratis
Foreign Brands: Brita, Geyser (Russian), Waterdrop (UK), BWT, Boston Tech (USA), AEG (Germany), Aquaphor (Russian), LaVie (France), MAURER (UK), Baytiz (UK)
Iran
4.1 A Special Country
Iran is a unique country. Due to its development of nuclear weapons, it has been economically sanctioned by the U.S. for years. There are no American-style fast-food restaurants, American cars, bars, or cafés. U.S. dollars are not in circulation here, and Iranians cannot use international credit cards. There is no foreign currency in use, and no other countries accept the Toman, the Iranian currency. Conducting business here relies on the local black market for U.S. dollars, which comes with an extraordinarily high fee.
4.2 Dramatic Depreciation of the Iranian Currency
COVID-19 wreaked havoc in Iran in February 2020. This shock brought the Iranian economy to its knees once again. The dramatic depreciation of the Rial continued, increasing by 3500 times over the past 49 years. The long history of the Rial, the Iranian currency, came to an abrupt end with the introduction of the Toman in May 2020. The value of four zeros in the Rial was converted into one Toman.
4.3 Recent Developments in the RO Water Purifiers Market in Iran
Until 2018, around 5 million RO water purifiers had been sold in Iran. Importers in Iran estimate that the market size has the potential to reach 15 million, assuming each household replaces its RO water purifiers every ten years.
4.4 Growth and Trends of the RO Water Purifiers Market in Iran
2000-2005
During these early five years, Aquajoy and Ronak were the only two brands active in the market.
2006-2010
Approximately 10 brands were active in the market. This included Puricom and Watersafe.
2011-2012
In these two years, the number of brands in the market increased to 25 (e.g., Easywell, Purepro, and Fluxtek).
2013-2015
By 2015, the market was crowded with over 50 brands (including Easywell, Puritec, and Masoumi).
2016-2019
The number of brands in the marketplace exceeded 100. Most of these brands are local players who process and assemble key components procured from China.
4.5 Economic Difficulties in Iran
Despite the chronic currency depreciation, a sluggish economy, and high unemployment, the demand for clean drinking water remains strong. Iran is a heavy user of RO water filters, primarily imported from China and Taiwan. However, the Trump administration nearly halted Taiwan’s export of water purifiers (and, of course, other essentials) to Iran, due to a complete blockage of goods and capital flows. The development of the water purifiers market in Iran is worth monitoring, given the ongoing economic sanctions from the U.S. and the impact of the pandemic.
4.6 Popular Brands in Iran
Foreign brands:
- BOSCH
- ALYA (Taiwan)
- Puricom (Taiwan)
- Aqua Spring (Taiwan)
- Takoman (Vietnam)
- AquaPro (Taiwan)
- Aqua Sol (Denmark)
- AquaSpring
- Sole Aqua
- AquaBlue (Egypt)
- Aqualife (U.S.)
Domestic brands:
- UltraJet
- MaxTec
- Salamat Gostar Warsh
- PureLine (Sahand Industries)
- Aqua Blue
- Violet
- Soft Water
- Tasfieh Sazan Mehr
4.7 Doing Business in Iran
Almost all buyers from Iran request credit. This may be part of their business practice or a method to extend their own capital indefinitely.
The author has encountered an Iranian client who requested unreasonable price reductions by using product quality as an excuse. The content of this article is free to use, but please attribute the source.
Author: Rodger Lin, Easywell Water Systems Inc.
For more information, please visit https://ppt.cc/fbr7rx
Egypt
5.1 Heavy Contamination of the Nile River
Egypt is best known for its pyramids and the longest river in the world – the Nile River, which stretches 6,853 kilometres. This river is the cradle of ancient Egyptian civilisation and the main water source for the people of this desert state. As much as 90% of its population lives in the plains and delta regions along the Nile. The water for daily use and irrigation comes from this river of life.
As all the wastewater and rubbish from factories and farms have been dumped into the Nile River for years, pollution in the downstream Greater Cairo Area is alarmingly severe. Some people even avoid eating freshwater fish and shrimp. The tap water must be filtered and sterilised by local residents.
According to a 2016 report by the House Committee of the Parliament of Egypt, the water in 18 governorates was too polluted to be used for drinking. The survey by the National Water Research Centre (NWRC) indicates that 17,000 children die from dysentery due to unhygienic drinking water over a prolonged period.
Although the Egyptian government asserts that the tap water is safe and clean, many families remain concerned. The affluent purchase bottled water for drinking.
Most of the water purifiers and components sold in Egypt are sourced from China and Taiwan. Price competition is as fierce as in the Turkish market.
5.2 Doing Business in Egypt
B2B clients in Egypt are known for the following characteristics:
- Price orientation: They first consider the prices and then the quality. This is why inexpensive water purifiers from China have flooded the market.
- 80% of buyers request A/A (documents against acceptance) for transactions, and most claim that this is a legal requirement.
- They request exclusive distribution rights for all products before placing even the first order.
5.3 Bottled Water Market in Egypt
Nestlé is the leading brand of bottled water in this market. Other international brands include:
- Pepsi Aquafina
- Baraka (a Nestlé sub-brand)
- Dasani (a Coca-Cola sub-brand)
There are also some popular local brands such as Aqua, Siwa, and Safi.
5.4 Water Purifiers Market in Egypt
Import data released by the Egyptian government suggests that 236,000 water purifiers are imported annually by the country. About 25% of the imported purifiers are for home use. This is clearly a market with significant potential, particularly for RO (reverse osmosis) filters with five to seven stages. However, prices remain the primary consideration.
5.5 Water Equipment Tradeshow in Egypt
Expo name: WatexExpo
Expo period: 11/1-11/3 2020
Website: https://www.water-filter-manufacturer.com/
5.6 Popular brands in Egypt
Domestic brands:
Maxsome, Tango, Tank Power,
Zoosen, Hi Tech,Aqua Jet, Aqua Trex, Soul Water, Lockk & Lock
Generic, Universal, Moma, Blu,Uno, Konka,
Foreign brands:
Panasonic, Brita. Culligan, Sprite, CCK, FreshWater (UK)
