The U.S. chemical industry is facing a series of challenges in 2024. From the macroeconomic environment to specific market changes, these challenges not only test the adaptability of chemical enterprises but also deeply impact downstream industries, especially the mattress sector.
Firstly, high inflation is weighing on the chemical industry. The rise in raw material and energy prices significantly increases the production costs of chemical enterprises. Meanwhile, supply chain stability is being impacted, further exacerbating these enterprises’ operational risks. This environment indirectly affects the mattress market because the costs of chemical products such as polyurethane used in mattress manufacturing are increasing, which will ultimately be reflected in the prices of mattresses.
Secondly, the rising Consumer Price Index (CPI) also heightens cost pressures on chemical enterprises. The high CPI growth rate leads to higher costs for chemical enterprises in purchasing raw materials, paying wages, and rent. These cost pressures ultimately spread to the mattress market, causing mattress prices to rise, thereby affecting consumers’ purchase intentions.
Geopolitical conflicts are also important factors impacting the chemical industry. While the U.S. is not directly involved in the conflicts, the soaring energy and raw material prices still affect the U.S. chemical industry. It is reflected not only in the rising production costs but also in supply chain instability. For the mattress market, this instability could lead to interruptions in the supply of raw materials, thereby affecting the production and supply of mattresses.
Furthermore, the rise in U.S. mortgage rates has also affected the mattress market. The rising mortgage rates in 2023 led to higher home-buying costs, pushing monthly payments skyward. This reduced homebuyers’ purchasing willingness and affordability, thereby affecting industries related to real estate, such as construction and furniture. As an important component of furniture, the market demand for mattresses is also indirectly affected. In 2024, as economic growth slows and inflation pressures ease, the Federal Reserve starts signaling interest rate cuts, leading to a decline in mortgage rates. Even though they remain relatively high, there is a more optimistic outlook.
We have also observed significant changes within the mattress market. While traditional spring mattresses still hold the largest market share, composite mattresses are gradually gaining ground. This shift not only reflects consumers’ pursuit of comfort and health in mattresses but also signifies the continuous advancement in mattress manufacturing technology. For the chemical industry, this means the need to continuously develop new chemical products to meet the demand for high-quality materials in the mattress market.
Lastly, it is worth noting that the reduction in the number of foam manufacturers and the industry trend towards vertical integration are also impacting the U.S. mattress market. Over the past few decades, the number of foam manufacturers in the U.S. has been rapidly decreasing, and vertical integration in the industry is evident. This trend has propelled upholstered furniture manufacturers into manufacturing foams by their own, while foam manufacturers are also getting involved in the production of products such as mattresses, pillowcases, and pillows. This change not only improves the efficiency and quality of mattress manufacturing but also provides new development opportunities for the chemical industry.
