Dec, 2018      |     By Anil Kumar, Pakhi Saxena and Saurav Chachna

Overview of Mattress Market in India

The mattress market in India is around USD 1.7 Bn in 2018 and is expected to grow at a CAGR of 10% to reach USD 2.5 Bn by 2022


Authors

Anil Kumar

Anil Kumar

CEO

Pakhi Saxena

Pakhi Saxena

Vice President

Saurav Chachna

Saurav Chachna

Consultant

Home and Living Market in India

Home & Living market in India stands at USD 28 Bn in 2018 comprising furniture and home furnishing. Furniture contributes to ~60% of the Home & Living market while home furnishing constitutes 40% of the market.

Exhibit 1: Home & Living Market in India (USD Bn)

Exhibit 2: Share of Furniture in Home & Living (2018)

Home furniture market comprises beds, wardrobes, sofas, mattresses and other products such as chairs, almirahs etc.
Home Textile & Home Decor mark the Home Furnishing market. Home Textile comprises ~40% of the home furnishing market while Home Décor constitutes 60% of the home furnishing market

Exhibit 3: Furniture Market in India

Exhibit 4: Home Textile Market in India

Furniture market i.e. Beds, Wardrobes, Sofas etc. is dominated by unorganized and unbranded players. The organized market is driven by retailers and their private label offerings. Overall branded share of key categories in furniture such as Beds, Wardrobes and Sofas is ~12% and is contributed mostly by private label rands

Whilst demand driven factors are uniform across furniture and home furnishing category, the mattress players have demonstrated distinct supply driven initiatives enabling growth.

Mattress Market in India

The mattress market in India is around USD 1.7 Bn in 2018 and is expected to grow at a CAGR of 10% to reach USD 2.5 Bn by 2022. The mattress market comprises Polyurethane (PU) Foam, Rubberized Coir, Spring and Cotton mattresses

Exhibit 5: Mattress Market in India (USD Bn)

The mattress industry has transitioned over the last few years from a largely unbranded market to branded market. The branded market comprising large, mid-size and smaller manufacturers constitute around 34% of the market, with around 20-25 players spread across the geographies. The branded mattress market is expected to grow at a CAGR of ~13% over next 5 years to constitute 37.5% of the market by 2022. Implementation of GST has narrowed the price gap between branded and unbranded players leading to increase in opportunity for branded mattress players.

Exhibit 6: Branded Mattress Market in India (% of Overall Market)

Branded mattress market broadly comprises rubberized coir, PU foam and spring mattresses with PU foam accounting for the major share of the market (50%) followed by Rubberized Coir (28%) and Spring Mattress (22%). However, going forward the share of rubberized coir mattress market is going to fall to 20% of the branded market in 2022 resulting from falling demand owing to increasing price of rubber and inherent quality issues such as premature sagging. Also, branded spring mattress is expected to grow at a CAGR of ~23% over next 5 years which will increase the share of spring mattress to 30% of branded market by 2022 due to increasing popularity among customers owing to changing lifestyle and preference of mattress with thickness and bounce. However, spring mattress tend to be more popular in urban regions due to their high pricing.

Exhibit 7: Branded Mattress Market by Mattress Type (% of Branded Mattress Market)

In terms of split of branded mattress market by price point, Economy segment with price less than INR 8,000 constitutes ~25% of the market while Mid segment mattress with price range from INR 8,000-30,000 constitutes the bulk share of the market (50%)

Exhibit8: Mattress Market by Price Point (% of Branded Mattress Market)

Based on distribution channel, the branded mattress market is dominated by distributor/ dealer network constituting ~88% of the market followed by EBOs of brand and online platform. Going forward, the share of online is expected to increase owing to rising youth population and increasing reach of online platforms.

Exhibit9: Mattress Market by Distribution Channel (% of Branded Mattress Market)

Mattress Market by Distribution Channel-2018

In terms of geography, Southern India dominates the mattress market with ~30% share of the market followed by North, West and East region in the country.

Exhibit10: Mattress Market by Region (% of Overall Mattress Market)

Mattress Market by Distribution Channel-2018

Based on the consumer type, the residential consumers constitute the bulk share with ~80% of the market while the remaining 20% comprises of institutional customers which includes hotels, hospitals and educational institution.

Exhibit11: Mattress Market by Consumer Type (% of Overall Mattress Market)

Mattress Market by Consumer Type

Growth Drivers of Mattress Market in India

Consumer driven factors such as increasing population, rising urbanization, and improvement in institutional infrastructure (housing, hospitality and healthcare segment) are key growth drivers for entire home & living industry including mattress market. However, the high share of branded players in the mattress market can be attributed to the efforts and investment made by mattress players to increase consumer awareness about quality mattresses through development of retail infrastructure and marketing activities.

Mattress Market by Consumer Type

1. Population Growth and Nuclearization of Families
2. Rising Urbanization and Increase in Disposable Income
3. Increasing Awareness on Health
4. Increase in Institutional Infrastructure
     • Housing Segment
     • Hospitality Segment
     • Healthcare Segment

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