Investment Rating - The investment rating for the industry is "Strong Buy" for key companies such as Shenzhou Digital and Midea Group [2]. Core Insights - The water purifier industry is experiencing continuous growth driven by rising health awareness among consumers and technological advancements in product features. Domestic subsidies are accelerating market penetration, leading to an increase in average prices and a gradual replacement of foreign brands by domestic ones. The overseas demand remains strong with high purchasing power [1][6][11]. Industry Overview - The global water purifier market is projected to reach USD 35 billion by 2024, with North America holding approximately 34% of the market share, followed by the Asia-Pacific region at 30% and Europe at 25% [6][13]. - In China, the retail sales of water purifiers reached CNY 11 billion in the first half of 2025, marking a 22% year-on-year increase. The current penetration rate in first and second-tier cities is about 40%, while the overall penetration is only 23%, indicating significant growth potential compared to developed countries [6][21]. Market Dynamics - The market is characterized by a shift from a focus on "safe drinking water" to a broader demand for "healthy water" that encompasses various household uses. This change is driven by heightened consumer awareness regarding water quality [11][15]. - The online sales channel accounted for 55% of the market share in 2025, with significant growth in offline sales driven by government subsidies [25][51]. Competitive Landscape - The competitive landscape features four main categories of players: global companies (e.g., A.O. Smith), home appliance giants (e.g., Midea, Haier), specialized brands (e.g., Qinyuan, Angel), and internet players (e.g., Xiaomi, Yunmi). The latter two categories are gaining market share through competitive pricing and user engagement strategies [47][48]. Company Focus: Yunmi Technology - Yunmi Technology has restructured its business to focus on water purifiers, achieving profitability after a challenging period. The company is closely tied to Xiaomi, benefiting from its brand strength and distribution channels [56][61]. - In 2024, Yunmi's revenue is expected to reach CNY 2.12 billion, a 29% increase, with a net profit of CNY 62 million, marking a turnaround from previous losses [58][70]. Product Trends - The market is witnessing a rise in the popularity of mineral water purifiers and integrated heating purifiers, with their market shares increasing significantly due to consumer preferences for health-oriented products [35][43]. - The average price of water purifiers in the first half of 2025 was CNY 1,729 online and CNY 4,933 offline, reflecting a year-on-year increase of 1.85% and 7.47%, respectively [35][42]. Future Outlook - The domestic market for water purifiers is expected to grow significantly, driven by government subsidies and increasing consumer awareness of health. The overseas market, particularly in North America and Southeast Asia, shows promising growth potential [70][74].