The global Mattress industry reached a total value of US$34.73 billion by the end of 2021, maintaining the same YoY growth rate of 6.5% as last year. According to several other reports, the future of the global mattress industry is looking just as impressive, with an estimated CAGR expectancy of 6.5%continuing at least until 2030.
The Global Mattress Industry May See a Big Jump in 2024
The mattress business has currently attained one of the steadiest YoY growth rates globally, but a jump in VAGR is expected by 2024 end. Let’s look at some of the key facts, as published by Statista to get a proper understanding.
- The YoY growth rate of 6.5% from 2021 is expected to continue and growtill 2027 at least.
- By the end of 2022, the industry’s total value should reach at least US$36.99 billion.
- The annual revenue is projected to reach US$39.4 billion by the end of 2023.
- The CAGR may cross 6.51% by the end of 2023,
- The report forecasts a sudden jump in CAGR, putting it at 9.14% in 2024.
- The annual revenue would jump to US$43+ billion by the end of 2023 if the forecasted 9.14% growth is indeed observed.
The Impact of Covid-19: How Did It Affect the Mattress Business?
The impact of COVID on the industry can be clearly seen by simply looking at historical data.The revenue growth percentage dropped from a CAGR of 7.06% in 2019, to 6.5% in 2020. However, considering how the pandemicimpactedmost industries globally, just a 0.56% drop in CAGR growth rate is still remarkable.
Note that a reduction in compound annual growth rate is not indicative of loss, but only indicates a comparatively slower YoY growth rate. At no point during the pandemic has the industry failed to grow its yearly revenues. Just check the stats next to understand better.
- 2019: US$30.62 billion generated in total global sales revenue at a CAGR of 7.06%.
- 2020: US$32.61 billion generated in total global sales revenue.
- 2021: $34.73 billiongenerated in total global sales revenue at a CAGR of 6.5%.
- 2022: US$36.99 billionin estimated total global sales revenue at an expected CAGR of 6.5%.
- 2023:US$39.4 billionin estimated total global sales revenue at an expected CAGR of 6.51%.
Changes in Consumer Behaviour
Gradually increasing awareness in consumer behaviour has remained a constant for many years now. There is an increased reliance on unbiased mattress review sites like Mattress Portal among consumers, rather than relying on brand name or marketing. It is also a more convenient, efficient, and faster process to go through reviews and order the right mattress online, rather than to do both separately.
In 2018, offline sales had the advantage with a 55% market share, although it was already on the decline even back then.Offline stores have the natural advantage of offering testing, which no online mattress seller can provide for obvious reasons.
However, since all reputed mattress manufacturers and sellers offer a no-cost return policy that lasts anything between 30 days to 120 days on average, the offline advantage has diminished over time.Online mattress sales are now estimated to account for 50% – 55% of the industry’s total sales number.
Conflicting Reports Based on Historical Data about Mattress Sales?
Market reports from different research and analytics companies tend to deviate from each other, but that deviation should never be too high if it concerns research based on historical data (past sales numbers are technically immutable).Any market revenue report generated for 2021 is historical data at this pointin time, and yet, there seems to be a vast difference between several of them.
For example, if we take a look at sales figures from 2021, most reports put the mattress industry’s total sales revenue for that year at US$32 billion to US$40 billion, but Fortune Business Insights maintains that the sales revenue generated by the mattress industry was closer to US$50 billion (US$49.4 billion).That’s a deviation of more than 40% from any other reputed report of the same kind.
Similarly, their report that states spring/coil mattresses accounted for more than 66.52% of the global sales in 2021 is even further from the average. At the same time, a report by Grand View Research maintains that foam mattresses were the most sold mattress type, accounting for almost 45% of global sales. The vastly different reports make it difficult to discern what was the most sold mattress in 2021 by type, even though such results should be somewhat similar, as they are based on historical data.