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 64 workers, and generates about $23 million annually.

    • The mattress manufacturing industry consists of about 325 companies which employ about 21,000 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Jan 4, 2024 - New Home Sales Down in November
                                    • Home sales and consumer sentiment can serve as indicators of future mattress demand. New home sales dropped 12% in November 2023 from October 2023, and sales were 1.4% above the November 2022 estimate, according to data released by the US Census Bureau and the Department of Housing and Urban Development. Higher mortgage rates can dampen home sales as homeowners become less willing to sell their homes, which limits the inventory for sale. According to CNBC, the Federal Reserve has increased interest rates 11 times since March 2022, although the board left rates unchanged at its meeting in December 2023. The Index of Consumer Sentiment, released by the University of Michigan and Thomson Reuters, grew from 61.3 in November to 69.7 in December, showing consumers are more positive in their view of both current and future economic conditions.
                                    • Consumer confidence levels rose in December 2023 for the second month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 110.7 in December 2023 from 101 in November 2023. According to Dana Peterson, Chief Economist at The Conference Board, “December’s write-in responses revealed the top issue affecting consumers remains rising prices in general, while politics, interest rates, and global conflicts all saw downticks as top concerns.” Peterson added that the gains in consumer confidence were largest in householders aged 35-54 and households with income levels of $125,000 and above. Plans to purchase homes, autos, and large appliances rose on a month-to-month basis as interest rates moderated.
                                    • Lower consumer spending, lingering supply chain problems, and inflation are expected to limit growth in the US mattress manufacturers industry, which is projected to grow at a less than 1% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. The slowdown follows several years of high growth in 2021 (19.5%) and 2022 (12.9%).
                                    • US manufacturing activity contracted in December 2023, falling below the baseline for growth for the fourteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.4% in December, up from the 46.7% recorded in November. A reading above 50% indicates manufacturing expansion. December’s New Orders Index remained in the contraction zone at 47.1%. The December Production Index was 50.3%, up from November’s 48.5%. Only one manufacturing industry tracked by the ISM reported growth in December: Primary Metals. The industries reporting contraction in December were Printing & Related Support Activities; Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; Textile Mills; Petroleum & Coal Products; Paper Products; Wood Products; Fabricated Metal Products; Computer & Electronic Products; Miscellaneous Manufacturing; Furniture & Related Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Chemical Products.
                                    Get A Demo

                                    Vertical IQ’s Industry Intelligence Platform

                                    See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                    Build valuable, lasting relationships by having smarter conversations -
                                    check out Vertical IQ today.

                                    Request A Demo