ACQUISITION TAKES UNILEVER INTO NEW CATEGORY

On August 16, Unilever announced that it has agreed to acquire Blueair, a Stockholm-based supplier of mobile indoor air-purification technologies, for an undisclosed amount. Unilever describes Blueair as the leading player in the premium category of air purifiers in markets such as China, the US, Japan, South Korea and India, and said that the business will complement its existing water-purification operation. Blueair’s products are sold in 62 countries. Unilever reported that Blueair, founded in 1996, had a turnover of US$106 million in 2015.

OUR VIEW: TAPPING THE URBANIZATION TREND

The acquisition of Blueair takes Unilever into a new market, one that is significantly different from its core fast-moving consumer goods and food and beverage categories. But we think this acquisition helps Unilever tap into two trends: The first is consumers’ steady move toward urban living, which is what we are seeing in developed markets in North America and Europe. The second is the still-rapid economic growth and consequent urbanization of developing economies. Both of these trends are likely to fuel consumer concern for the quality of the air they breathe. According to a recent report from market researcher TechSci Research, growth in the global air purifiers market is being underpinned by increasing vehicular and industrial pollution, growing incidence of airborne diseases, heightened health consciousness among consumers and the introduction of advanced air-purification technologies. TechSci Research forecasts that the global market for air purifiers will reach US$59 billion by 2021. Separate analysis from research firm Markets And Markets puts the global air-purification-systems market at US$14.5 billion in 2015, growing to US$20.7 billion in 2020, representing a CAGR of 7.4%. Whichever number we use, analysts agree that air purification is a high-growth market, underpinned by demographic trends and greater consumer awareness of health issues.

Source: Blueair.com