by Peter Kusnic
November 19, 2019
The global pool and spa market experienced considerable volatility in the past decade as the financial crisis severely restricted the ability of consumers in the mature US and West European markets to afford new installations. Preventing outright market declines during that time was the rapid influx of new pool and spa sales in large developing markets, such as China, which saw annual growth approaching 7% from 2008 to 2018.
However, while the global installed base for pools and spas reached 119 million units in 2018, purchase rates for pool and spa water treatment equipment and chemicals have decreased somewhat, in part due to the lax water quality standards prevalent in China and other developing countries that lead to:
According to a new Freedonia Group study, the dynamics of global markets for pools, spas, and related equipment and chemicals are expected to renormalize going forward based on mature-market trends, though continued expansion of developing markets will boost gains.
Mature Markets to Resume Normal Growth Patterns in New Pool & Spa Sales
Through 2023, new pool and spa sales in the US and Western Europe are expected to return to normal levels after spiking over the 2013-2018 period:
Accelerating Demand Growth Expected for Pool & Spa Water Treatment Products
Meanwhile, demand for pool and spa water treatment products is projected to accelerate through 2023 based on:
The leading equipment segment of the pool and spa water treatment product market is projected to increase its share of global demand at the expense of chemicals going forward. For example, ozone and ultraviolet disinfection systems cost more than conventional filtration systems and biocides, but these more advanced systems offer long-term cost savings by reducing need for chemicals.
Asia/Pacific Region Buys Far More Equipment & Chemicals than Rival Markets, But Spends Less
Unsurprisingly, penetration of high-value equipment and chemicals in the Asia/Pacific pool and spa water treatment market is extremely limited outside of upscale resorts and other hospitality facilities that serve affluent clientele. For example:
Nevertheless, rapidly expanding in-bound foreign tourism and hospitality industries in otherwise lower-income Asia/Pacific countries – such as Indonesia, Thailand, and Vietnam – will provide a source of demand for higher-value equipment and chemicals in the region.
Want to Learn More?
For more information on these and other relevant industry trends, see Global Pools & Spas, a new study from The Freedonia Group. The study covers the global markets for new pool and spa sales, the number of pools and spas in use, and pool and spa water treatment equipment and chemical demand by type, region, and major national market. In addition, the study provides regional market analysis – including Country Spotlights of important national markets including the US, Australia, Brazil, and China – and covers competitive strategies, mergers and acquisitions, marketing and distribution trends, and other supply-side activities of leading global industry participants.
Peter Kusnic is a Content Writer with The Freedonia Group, where he researches and writes studies focused on the consumer goods and packaging industries.
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