Mattress Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 325 mattress manufacturers in the US produce mattresses and related sleep products. Primary products include innerspring and foam mattresses, sleep systems (flotation and adjustable), sleep sofa mattresses, and foundations. Mattresses are sold primarily through licensed dealers, company owned stores, furniture stores, department stores, wholesale clubs (Costco) and manufacturers’ websites.
Competition from Low-cost Imports
Domestic mattress manufactures compete in the US market against imports that are often priced at below-market values.
Competition from Smart Beds
The majority of firms produce traditional mattresses, but are experiencing increased competition from health and technology conscious customers moving to smart beds that biometrically track sleep.
Industry size & Structure
A typical mattress manufacturer operates out of a single location, employs 77 workers, and generates about $23 million annually.
- The mattress manufacturing industry consists of about 325 companies which employ about 25,000 workers and generate about $8.2 billion annually.
- Customers include furniture and mattress stores, hotels and motels, healthcare facilities, furniture manufacturers (sofa beds), furniture wholesalers, wholesale clubs (Costco) and department stores, and the US government (shelters, public housing, military barracks).
- The industry is concentrated with the 20 largest firms representing 76% of industry revenue.
- Large companies include Tempur-Sealy, Serta Simmons, Sleep Number (Select Comfort), and Corsicana. Large firms may also have foreign operations.
Industry Forecast
Mattress Manufacturers Industry Growth
Recent Developments
Nov 12, 2024 - Manufacturing Activity Contracts, Employment Down
- US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Producer prices for mattress manufacturers were flat in September 2024 compared to a year ago, according to the latest data from the Bureau of Labor Statistics (BLS). Employment by mattress manufacturers declined 3.8% in October 2024 compared to a year ago, while wages at furniture and related products manufacturers rose by 3.7% in October year over year, per the BLS.
- A new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals shows the tariffs could increase costs of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- According to the International Sleep Products Association, mattress manufacturers will need to adhere to a new law in New York regulating flame retardants going into effect in December 2024. Part of the Family and Fire Protectant Act, the new regulations prohibit the sale of new mattresses and upholstered furniture that contain the following flame retardant chemicals: halogenated, organophosphorus, organonitrogen, and nanoscale flame retardants. Mattress manufacturers cannot “intentionally add” the listed chemicals to a new mattress sold in New York. Manufacturers must provide written certification that the products comply or fall under one of the exceptions. The New York Department of Environmental Conservation is expected to set the levels of allowable covered flame retardant chemicals to be used by manufacturers.
- A $4 billion acquisition by mattress manufacturer Tempur Sealy of retailer Mattress Firm has been blocked by the Federal Trade Commission, due to competition and pricing concerns, according to the Wall Street Journal. In July, the FTC issued an administrative complaint and authorized a lawsuit in federal court to stop the deal. According to the FTC, “The proposed vertical acquisition would merge Tempur Sealy’s manufacturing and supply operations with Mattress Firm’s vast retail footprint, giving the combined company enormous power at multiple parts of the mattress supply chain.” Tempur Sealy expressed confidence in the deal and noted that Mattress Firm holds only a small percentage of US storefronts selling bedding products. In addition, the company said in a statement that it is open to divesting stores to complete the deal if necessary. Tempur Sealy expects it could still complete the deal by the end of the year or early 2025 if it pursues a successful litigation process, per the report.
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