The global mattress market was valued at USD 29.5 billion in 2019 and is expected to expand with a CAGR of 6.7%. Most of the mattress industry’s revenue is generated in the United States (USD 12.895 billion in 2020), where the segment is predicted to grow at a CAGR of 4.6% for the forecast period 2020-2023. Europe follows the US, with a CAGR of 7.2% over the forecast period. This trend is projected to continue over the next few years. APAC is projected to generate a revenue of USD 10.7 billion by 2025.

‍Segments of the Mattress Market There have been many innovations in the mattress industry, such as latex, cold foam, and memory foam mattresses; with memory foam alone holding a USD 5.6 billion market valuation as of 2019. Baby boomers contribute to 20% share of the mattress market in the US. They are the prime consumers for the memory foam mattress market in the country. Innerspring dominated the mattress market and held the largest share of 32.5% in 2018 and the size of the mattress market is projected to exhibit a significant increase in the next few years. The domestic segment - households - is the major segment, anticipated to reach USD 22.8 billion by 2025. The commercial segment - travel and tourism - is expected to expand at a CAGR of 7.1% over the forecast period.

Growth factors and Challenges of the Mattress market Growing demand from the hospitality and real-estate sectors, especially in developing and emerging countries such as India, China, and Brazil will create robust demand for the product over the forecast period. Millennials in these developing countries and the US and UK have come to be the biggest consumer base. They are gladly willing to pay higher prices for advanced products such as memory foam and airbed mattresses. Most consumers in the United States have also been open-minded about purchasing their new mattress online and having it delivered to their home, but unfortunately, only 38% of mattress retailers sell online. “The products sold in the U.S. mattress market continue to evolve and the sources of those products are changing,” said ISPA President Ryan Trainer. According to the Organization for Economic Co-operation and Development (OECD), the increasing average annual growth rate of disposable income with over 2%, coupled with government policies, has led to housing units becoming more affordable. The number of households consisting of cohabiting couples along with children has increased by 25.6% or 14,068 between 2011 and 2016. Furthermore, this rising middle-class population in urban areas and those moving from rural areas to urban areas for education and employment will drive the growth of this market. One of the biggest challenges for this category is its frequency of purchase. The Better Sleep Council recommends replacing your mattress every 7-10 years, depending on comfort and support. With the arrival of the coronavirus, mattress sales have gotten slammed. Tempur Sealy, a publicly-traded mattress company that controls more than 25% share of the mattress market, saw its sales plunge more than 50% in April.   Popular Mattress brands Key market players include… Tempur-Pedic International Inc; Purple Innovation, LLC; Simmons Bedding Company LLC; Serta Inc; Spring Air Company; Southerland Bedding Co.; Select Comfort; Kingsdown Inc.; KING KOIL Inc.; Sealy Corporation; Paramount Bed Holdings Co. Ltd. There are some 175 bed-in-a-box companies/D2C mattress companies that have cropped up in the last decade, and their sales account for 12% of the mattress industry, though only the top 10 companies make a significant dent. Purple is the only public bed-in-a-box company after it merged with a public investment shell company in 2018 at a valuation of $1.1 billion. It manufactured the World’s first No Pressure Mattress and is expanding its blended channel strategy across different locations in the US. Casper officially joined the unicorn club this year, with a valuation exceeding $1 billion after it raised $100 million in the first quarter in its latest funding round.

Casper's Showroom in US[/caption] Conclusion As the pandemic rages on, Casper’s sales have risen by 15% from the prior year. The DTC mattress brand also said that it is seeing strong demand in associated bedding products such as sheets and pillows. Purple, its competitor, also reported increased sales. The spike in mattress sales also aligns with the increase in sales seen in the wider home improvement market. What this seems to indicate is that although stay-at-home mandates may have eased, people are continuing to spend long hours indoors, and are rethinking every room and item and surprisingly, are making the large-ticket purchase that they may have otherwise delayed.