A growing health and wellness trend brings with it an increased focus on sleep health. Whilst the bulk of innovation is product-centric, brands are beginning to explore the broader sleep ecosystem. Retail channels are visually merchandising aspects of this ecosystem. Various expansion strategies are being tested out. Players that risk venturing into the ecosystem can be rewarded not only with system wide incremental revenue streams but also a first mover advantage for securing optimum partners.
This report comes in PPT.
The broader health and wellness trend has brought with it a focus on sleep health as well. As quality and quantity of sleep continue to be challenged by a myriad of factors, consumers are actively investing in ways to improve their sleep health. Be it through investing in a good quality mattress, sleep aids or developing a sleep time routine with elements like night-time teas, meditation apps and skin care routines, consumer investment in sleep presents opportunities for brands to tap into the different elements of sleep health.
The bulk of the innovation seen happening in the mattresses industry seems to be focused on the core product. Innovation around motion management, temperature control and even AI-powered smart mattresses is being tested out and deployed by brands across the world. However, a product-centric approach to innovation brings into question the limitations of incremental benefits as differentiation from the competition becomes harder.
Brands are deploying various strategies to grow revenue streams. While some are expanding into spaces within the bedroom and beyond, there are others that are tapping into the broader sleep ecosystem. System-wide thinking can help players not only test out their right-to-play in avenues across the ecosystem but also help drive incremental revenues. Categories like bedroom furniture and mattresses are expected to grow at CAGRs (2021-2026) of 2% and 3%, respectively, to reach market sizes of USD70 billion and USD150 billion, respectively. Add to this potential growth opportunities from other sections of the ecosystem, like skin care, sleep aids etc, and it highlights the potential of the system to bring in incremental value.
The US remains the biggest market in retail value terms, but Asia Pacific comes in second with the highest growth prospects over 2021-2026. With consumers in the region concerned about sleep problems, opportunities exist to offer solutions at the right price point. The rise of smart home ecosystems also presents opportunities to work with the right players to develop premium offerings for consumers with the right purchasing power.
This project has a strict focus on sales to consumers only. Trade and professional sales are excluded. Home and garden refers to gardening, home improvement, homewares and home furnishings.
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