Market Analysis

Purpose of this analysis?

Just like with every new venture, it is necessary to understand the economics behind it and ensure that the manufacturing cost does not exceed the proposed benefit of the product. A similar endeavour is undertaken in our project, as mentioned in this document, where we aim to determine the manufacturing cost per unit and extrapolate that information to compare our product with other leading filters on the market.
Through this section, we aim to showcase the competitiveness of our product and demonstrate our readiness to transform lives in affected areas by utilising our proposed device. This analysis document is not intended to evaluate the profit that could be derived from the biofilter. The primary responsibility and duty are regarded as maximizing societal improvement through the efforts and products developed by the team.

Introduction

Current solutions are electricity-dependent, meaning they require a power grid connection to function correctly and filter water. The availability of a power grid is often a key limiting factor in rural areas, which further contributes to the use of contaminated water without treatment. Other solutions are also more expensive, which is not always within the means of communities with limited economic resources. Hence, we do hope to create an electricity-independent solution.
Our Prototype is relatively inexpensive and does not rely on electricity to function. Furthermore, we aim for it to be shipped in pre-made components, requiring only basic instructions for assembly and use as a filtration unit. To introduce our biofilter, it is composed of biopolymer beads made from sodium alginate that is crosslinked with either CaCl2 for surface gelation or GDL and CaCO3 for stronger, internal gelation. We can produce beads according to both protocols, as required. These beads are then supported by a mesh that is placed in a concave-convex pattern, and water is carefully passed through it. The result is filtered water that is devoid of any toxic metals.
Our solution promises to be a low-cost, eco-friendly alternative for household and community use, and we are proud to present the economics behind the manufacturer of this low-cost biofilter.

Global and Indian Market

The market reach of water purifiers in India was USD 2.19 billion in 2024. According to Forbes Business Insights, the market is estimated to reach USD 7.72 billion by 2032. This highlights the growing potential within this market, which is expected to continue increasing due to the prevalence of contaminated water and the increasingly neglected industry standards in our society. Another study by IMARC estimates the 2024 market size to be approximately USD 3.35 billion, rising to approximately USD 7.12 billion by 2033. But that is not all, the residential purifier segment alone is expected to grow from approximately USD 682 million in 2024 to USD 1.67 billion by 2030. Filtration system cost studies show that consumable costs (replacement filters/cartridges) constitute a significant part of the lifetime cost for users. For example, a magazine article, “The Cost of Filtration,” provides data on the price per 1,000 gallons treated in various filter systems.

India water purifer marker forecast imarc report

Competitor India Subcontinent region

Household water treatment items are available at various price points, reflecting the differing choices available based on brand, purification technology, and capacity (volume treated). In India, the market is primarily dominated by Eureka Forbes (Aquaguard series) and KENT, in addition to a few other notable Indian and international brands. Pricing for multi-stage RO+UV+UF purifiers typically ranges from approximately 7,447.37 INR to 21,278.42 INR, or $84 to $240. Meanwhile, models based on UF or UV-only technology start at around $30. For example, an Aquaguard Sure Delight NXT (a small 15 litre household/ domestic consumption unit/ OR ANY SUCH SMALL DESCRIPTION) unit is available for around $102. The KENT Pearl or Grand models are advanced and tend to be marketed at $204–240. The replacement filter cartridges start at $8. They can cost upwards of $30, depending on the complexity and/or special features that technology incorporates into the water purification process (in addition to replacing cartridges, there may be additional maintenance required). Other notable Indian brands include Pureit (Hindustan Unilevel Limited), Blue Star, Livpure, and Tata Swach, which have combinations available at various price points from gravity-based purifiers that can range from $18 to $36, as well as really advanced RO packages that range from $144 to $216.

An overall, global tendencies generally appear in that household water treatment categories that are countertop or water filter of some sort tend to run at $30–150, the price point that is typically available as well as an appropriate pricing range for some of the midrange items treating RO/UV/UF water, and advanced multi-stage or IoT innovative models price average range around $400–1,200+. Thus, the news is that there is some weekly, as well as annual service, by way of actual cartridge replacement that adds to the overall "general cost" of any household water treatment system. We would like to note that the general cost of a household water purifier comprises an initial fee and may also include annual servicing expenses, as well as the costs of filter(s) and/or yearly maintenance, which collectively account for a significant portion of the overall cost of ownership.

Raw Material Probable Cost Breakdown

The initial cost of setting up a laboratory, which includes electrical sockets, lab equipment such as pipettes, beakers, and glassware, as well as access to distilled water, is easily offset by the presence of various in-house labs in our chemistry and biology departments. The biopolymer that forms the basis of our system is relatively inexpensive at $40 per 500g, and we can prepare more than 250 sets of beads with this amount. Similarly, we can obtain GDL, CaCO3, and CaCL2 at a relatively low cost and use them to create multiple batches. This step is essential for reducing the cost of manufacturing, as it ensures that we utilize the first batch of material to create various subsequent batches.

Material	Approx Cost(per 500gm)	Cost per cartridge
Sodium Alginate	$40.57	<$1.0
GDL	$16.31	$1.1-$1.5
CaCO3	$1	<$0.1
Cacl2	$25	<$1.0
Mesh support	$10	$3.0-4.0
Total		$6.2-$7.7

Suppose we need to factor in the cost of electricity or water into the cost per cartridge. In that case, it still does not exceed $ 1 due to the nature of our manufacturing, which focuses on bulk preparation. This overall cost per cartridge ensures that our solution is economically viable and can be used multiple times for filtration purposes.

Unit Economics

However, other unit economics, such as logistics, transportation, and packaging, can increase the total cost slightly for the consumer. Due to the bulk nature of our biofilter construction, we do save up a lot on the raw materials, but the downstream components, such as packaging and logistics, may add up a little amount.
However, we estimate this to be the case only for the first year of trials. Once we establish a steady pipeline to ensure adequate supply meets demand, we can further reduce logistics costs and make the process even more consumer-friendly in the long run.

Cost Component	Cost
Raw materials	$6.2-$7.7
Packaging	$1.0
Quality Testing and Wastage	$1.5
Logistic distribution	$2.5
Marketing and sales	$2.0
Admins and Overheads	$1.5

Total Cost per Cartridge=~$16.2
Suggested Selling Price = $20-25
Margin ≈ 20–25%