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 320 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 67 workers, and generates about $22 million annually.
- The mattress manufacturing industry consists of about 320 companies which employ about 21,600 workers and generate about $7 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 Simons, Sleep Number (Select Comfort), and Corsicana. Large firms may also have foreign operations.
Industry Forecast
Mattress Manufacturers Industry Growth
Recent Developments
Mar 9, 2023 - Mattress Shipments Slip in Fourth Quarter
- The total unit shipments of mattresses and foundations from US producers and imports fell nearly 30% in the fourth quarter of 2022, compared with the fourth quarter of 2021, according to the Bedding Market Quarterly from the International Sleep Products Association in BedTimes Magazine. The wholesale value of those units also dropped 22.9% compared to 2021. For the full year 2022, sales of units decreased by 17.9%, and the wholesale value declined by 12% compared to the previous year.
- Consumer confidence levels declined in February 2023 for the second consecutive month, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 102.9 in February 2023 from 106 in January 2023, as high prices and rising interest rates affected consumers’ willingness to spend. According to Ataman Ozyildirim, a senior director of economics at The Conference Board, “Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more.” Plans to purchase homes, vehicles, and appliances have cooled, in addition to a drop in vacation intentions, per Ozyildirim.
- Major mattress manufacturer Serta Simmons Bedding filed for Chapter 11 bankruptcy in January 2023, according to Retail Dive. The company says it is “operating as normal,” paying employee wages and benefits without interruption, and proceeding with launches from its Serta and Beautyrest brands this year. The funded debt under the proposed agreement would drop from about $1.9 billion to $300 million. New proposed financing, along with cash on hand and cash from ongoing operations, is expected to support the business during the Chapter 11 process. According to Serta’s CEO Shelley Huff, the process will lead to a “stronger financial foundation” for the company. Serta is also working to uphold terms of an earlier 2020 loan that has been the subject of ongoing disagreements.
- Digitally native mattress brands have opportunities to grow sales by partnering with physical retailers, according to a report on trends in BedTimes Magazine. The online mattress segment has exploded in recent years and accounts for about one-third of the market in dollars, with a higher percentage in units. According to a retail survey by Piper Sandler cited in the report, most retailers carry at least one direct-to-consumer (DTC) brand. Three-quarters of retailers are carrying Purple (up from 45% a year ago), 63% carrying Nectar (up from 36%), and 25% carrying Casper (up from 18%). Physical retailers that do not offer any DTC brands should consider adding one or more digitally native brands to their product lineup to gain a sales boost from their popularity.
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