Overall, sales of air treatment products were negatively affected by the COVID-19 pandemic over the course of 2020. Split air conditioners in particular experienced a huge decline in demand over the second quarter of the year as the restrictions that were placed on the movements of the Indonesian population within the rubric of the quarantine measures that were imposed throughout the country made it difficult, if not impossible, for consumers to hire a technician to visit their home to install a split air conditioner.
Cooling fans recorded negative sales growth over the course of 2020, with the high penetration of this dominant category of air treatment products counting against it as pressure came on consumer spending at the peak of the COVID-19 pandemic. With cooling fans appealing mainly to low- and middle-income consumers, demand was adversely affected by the negative economic impact of the COVID-19 pandemic on the personal finances of less affluent Indonesians.
E-commerce registered very strong growth in the distribution of air treatment products during 2020, although it remained a marginal channel for the distribution of these products at the end of the year. Generally speaking, when it comes to buying an air conditioner, Indonesians would almost always choose to head to a store to review their options and gain first-hand knowledge of the products they are thinking of buying before committing to a purchase.
Sales of air treatment products are expected to make a full recovery from the declines registered during the COVID-19 pandemic by the end of 2021. The improving economic conditions are expected to result in many of those who chose not to invest in a split air conditioner or cooling fans during 2020 realising their deferred plans, with the resultant spike in demand in these categories expected to lift overall sales of air treatment products out of negative growth.
Air conditioners is slated for strong growth in 2021 and a dynamic performance over the forecast period, with the currently rather low household penetration set to ensure that demand remains buoyant for the foreseeable future. With just over one-third of Indonesian households already in possession of a split air conditioner, the rapid growth being seen in the country’s urban middle-class can be expected to underpin growing demand for these appliances.
Innovation is set to become a much more important aspect of air treatment products in Indonesia during the forecast period, with manufacturers increasingly sensing the need to launch innovative new products with features that have the potential to attract consumers while still maintaining affordable pricing. In particular, conditioners is expected to see inverter technology become an increasingly essential technical design aspect, with demand set to continue shifting towards air conditioners that make use of inverter technology as consumers become increasingly aware of the energy savings that inverter technology represents.
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Understand the latest market trends and future growth opportunities for the Air Treatment Products industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Air Treatment Products research and analysis database.
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