17 November 2019 (closed)
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One of the solid growing markets in Indonesia that remains untapped is the water purifier market. Although Indonesia holds six percent of the world’s fresh water resources, the quality of Indonesia’s public piped water is inadequate (contaminated with E. coli, fecal coliforms and other pathogens). Moreover, roughly 80 percent of the Indonesian population lacks access to piped water hence relying on river water for drinking, washing and bathing. However, the water of most Indonesian rivers do not meet drinking water requirements.
Due to weak awareness, weak compliance to rules and weak law enforcement domestic and industrial waste is continuously being discharged into rivers, causing that most river water in Indonesia is polluted. The growing population and industrialization only exacerbates the situation. For example, rivers near mining sites contain an increasing level of mercury, causing that the water in at least six major rivers on Java does not meet drinking water requirements.
Meanwhile, weak government investment in water pipes caused that in most parts of the country the piped water supply has become undrinkable over the past decades due to contamination. As such, Indonesians are mostly dependent on bottled water or boiled river water for their water consumption. The purchase of a water purifier may be a cheaper solution to people’s water demand.
Based on the report “Indonesia Water Purifiers Market Forecast & Opportunities, 2020”, published TechSci Research, Indonesia’s water purifiers market is forecast to grow at a CAGR of over 5.7 percent over the years 2015-2020. This growth is driven by rising awareness about drinking water safety (and its health effects) and increasing urbanization. Currently, more than half of Indonesia’s population lives in urban areas. The United Nations (UN) projects that by the year 2050 around 75 percent Indonesia’s population resides in urban areas.
The report states that the western part of Indonesia forms the largest market for water purifiers, primarily on account of industrial development in this region (causing polluted river water). It also mentions that “although the most preferred sales channel for water purifiers in Indonesia is indirect sales through retailers and distributors, direct sales via online sales platforms are gaining traction in the country”.