The Mattress Industry: Trends and Key Market Drivers
By Jowan Ng
The global mattress industry is poised for steady growth in 2024, with market projections surpassing expectations. Valued at $52.46 billion in 2023, the global market is expected to reach $54.54 billion in 2024, growing at a compound annual rate (CAGR) of 5.9%. This expansion reflects a convergence of factors, including rising consumer demand for home goods, increased awareness of health and wellness, and advances in mattress technology.
Key Drivers of Market Growth
Several factors are contributing to the sustained growth of the mattress market. One major driver is the rising demand for housing. The US saw an increase in homes from 132.29 million to 141.95 million in 2021. Newly built homes and home renovations both spur mattress purchases as homeowners often replace or upgrade their mattresses during these processes.
In addition to housing demand, increased disposable income enables consumers to spend more on home goods, including mattresses. In the US, spending on furniture and bedding increased to nearly $120 billion, indicating that consumers are willing to invest in higher-quality home goods.
Growing awareness of the importance of sleep quality is also a significant factor in shaping behaviour. As people become more conscious of how sleep quality impacts their overall well-being, they increasingly seek mattresses that offer better support, reduce body pain, and enhance overall sleep. This shift has driven demand for memory foam and hybrid mattresses, which are known for their comfort and ability to conform to the body.
Profit margins
The mattress industry has also been marked by robust profit margins, averaging around 50%, far exceeding margins in sectors such as groceries. The rise of e-commerce has played a pivotal role in maintaining these margins, allowing mattress retailers to reduce operational costs by eliminating the need for physical stores. This shift to online sales has expanded market reach and provided consumers greater convenience, further boosting the industry’s profitability.
Conclusion
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A mix of demographic trends, technological advancements, increased consumer spending, and a shift towards eco-friendly products is propelling the mattress market. The growing emphasis on sleep health and wellness and the convenience of online shopping has transformed how consumers approach mattress purchases, ensuring steady market growth through 2024 and beyond.