LATEST FIGURES RELEASED BY CSIL

According to CSIL, the global mattress market, valued at approximately USD 30 billion, has returned to pre- pandemic levels after a period of significant fluctuations. Over the past decade, the market grew steadily (and slowly) at 2% annually. However, 2021 saw an exceptional double-digit increase compared to 2020, followed by contractions of -9% in 2022 and -3% in 2023, bringing the market back to its 2019 figures. Asia-Pacific and North America remain the leading markets, with North America increasing its share at Europe’s expense over the last decade. The US and China dominate the market, together accounting for nearly 70% of global consumption.

WORLD. MATTRESS CONSUMPTION, 2014-2023. PERFORMANCE. USD BILLION

Source: CSIL

GLOBAL MARKET TRENDS

A significant driver for the mattress industry is growing consumer awareness about the health benefits of better sleep. This trend is evident in both traditional and emerging markets. The high-end segment, less affected by inflation, presents notable growth opportunities. Additionally, the increasing demand for roll-packed and compressed mattresses in both online and traditional sales channels is pivotal. The revival of the contract segment, which was stalled during the pandemic, also offers potential growth for companies. The e-commerce boom has significantly impacted the mattress market. Online mattress sales were already rising before the pandemic but surged during it. According to CSIL, in 2023, online sales are estimated to account for 23% of the global market.

TRADE LANDSCAPE IS CHANGING

The mattress industry has been heavily affected by US trade tensions and anti-dumping policies, particularly against China and other export-oriented countries. The latest anti-dumping duties, effective from May 2024, will impose tariffs on almost all imported mattresses in the US. These measures have disrupted trade flows and influenced companies’ decisions on manufacturing locations, inventories, and supply chains. China’s dominance in US mattress imports has declined, with Indonesia and Mexico taking its place. Consequently, Chinese mattress exports are now primarily directed to Asian markets such as Japan, South Korea, and Australia. The future of international trade in this sector remains uncertain, depending on the impact of US regulations and the ability of Chinese exporters to relocate production to the Asia-Pacific, Europe, and North America. Leading mattress manufacturers are increasingly adopting a diversified manufacturing strategy to navigate these challenges.

COMPANIES CHALLENGES AND STRATEGIES

The competitive landscape of the mattress industry is highly globalized, with large groups offering major brands often manufactured under license locally. Production agreements between leading companies and licensee manufacturers are crucial in this global competitive system. The sector has seen increased consolidation through mergers and acquisitions, with suppliers increasingly manufacturing finished mattresses and significant integrations between manufacturing and retail activities. The mattress companies face several challenges. Geopolitical uncertainty remains a primary concern, with ongoing conflicts such as the war in Ukraine, the Israel-Hamas conflict, and attacks in Yemen exacerbating global macroeconomic conditions. Logistical and transportation issues continue to be significant, especially given the bulky nature of mattresses and the volatility of transportation costs. Production costs remain high, particularly due to labor costs and difficulties in sourcing skilled workers. Additionally, a slowdown in furniture and mattress demand, especially in Europe, poses a challenge as consumers’ purchasing power is reduced by high inflation and interest rates.

In response to these challenges, mattress manufacturers are focusing on several strategies. Investments in digitalization and automation are prioritized to enhance efficiency and introduce new product innovations. Shortening supply chains and regionalizing markets are key strategies to mitigate the impacts of geopolitical tensions, logistical issues, and trade barriers. Vertical integration, particularly in the production of PU foam and springs, is becoming more common. Additionally, manufacturers are considering nearshoring—moving production closer to key markets—to minimize supply chain disruptions and reduce delivery times.

MARKET OUTLOOK

Looking ahead, the global mattress market is expected to stagnate in 2024 and return to grow in 2025. World GDP is projected to grow by 3.2% in both 2024 and 2025, with emerging economies outpacing advanced ones. Global inflation is expected to decrease from 2.8% at the end of 2024 to 2.4% at the end of 2025. However, regional conflicts, slow growth in China, and increasing geopolitical fragmentation pose significant risks to this outlook.

CSIL AT THE EUROPUR 2024 ANNUAL CONFERENCE

With a speech on the latest European mattress industry trends, CSIL participated to the 2024 Europur Annual Conference, held in Istanbul on June 12-13. The event attracted 530 participants from over 160 companies, including more than 60 foam producers. Two days rich of contents, with speeches and discussions covering the entire value chain, from the flexible PU foam markets to downstream markets (soft furniture, automotive), with a focus on Türkiye. The second day focused on technical topics, featuring several presentations on sustainability, automotive advancements, product stewardship, novel raw materials, machinery, digitalization, and health and safety.

The CSIL Report ‘The World Mattress Industry’ (July 2024) offers an in-depth analysis of the global mattress sector with the latest trends and data: mattress market indicators from 2014 to 2023, covering production, consumption, and interna- tional trade flows, mattress market forecasts for 2024 and 2025, competitive landscape analysis with detailed profiles of the leading world mattress manufacturers and their strategies.  The CSIL Report ‘The World Mattress Industry’ is available for online purchase and immediate download at www.worldfurnitureonline.com

 Source:  CSIL World Furniture Magazine #03 September 2024.