The mattress industry and its related enterprises across the world have been growing since its origins, especially in the United States of America. Mattress’ consumers represent an ever-changing demand. Recent researches show how the United States of America is one of the top countries regarding mattress’ purchases and sales. In this post, we give some conclusions about the mattress industry in the US.

According to IBISWorld analytics and reports, the amount of revenue of the Mattress manufacturing in the US during the first semester of 2017 was around 9 billion dollars with an annual growth of 0.2%.


The Five Forces of Porter in the analysis of the Mattress Industry in the US

The Five Forces of Porter analysis will provide an overview of the industry’s attractiveness:

1. Threat of new entrants: There are not congested niche markets to operate into, as main example the online market. Online market reduces considerably the barriers of geographical situation and due to industry’s regulation the threat of entrance is low.
On the other hand, this fact makes operating in online market a more attractive and lucrative strategy to focus on it, with low switching costs due to standardization of mattresses’ dimensions, increasing the threat of new entrants. Taken all these aspects into account, it could be considered as relatively medium threat.

2. Threat of suppliers: low due to relatively low raw material manufactures’ concentration (polyurethane foams, innersprings, latex, cotton textiles), low switching cost when changing suppliers and the fact that suppliers cannot forward integrate into the industry.

3. Power of buyers: strong individual consumer demand but with low power due to information asymmetry. Easily influenced trends due to continuous innovation and almost non existing switching cost.

4. Threat of substitutes: is almost nonexistent due to the consideration of mattresses as primary goods.

5. Rivalry: Concentration in the Mattress Industry in the US is high as the top three players (Serta International, Select Comfort Corporation and Simmons Bedding Company) are holding about 70% of the market share and more than 300 companies compete for the remaining share of the market. This ensures a stable price situation and a demanding innovation strategy, also because of a stable market growth during the last years.

An emerging sector inside the industry is the online market, which represents 5% of the total sales in 2017 and keep growing fairly fast (expected up to 10% for 2018).That means it has a great profitable potential but with also a high level of competition.


After this analysis, we can conclude that the mattress’ industry is a high concentrated market, with a high rivalry level and relatively medium entry barriers. Therefore, a new entrant will have to struggle for the almost 30% of share with the remaining c.300 companies in US.

On the other hand, the growth of sales online in this market niche is considered an appealing opportunity of business, as well as the development of the mattress industry itself. In addition to this, users show an increasing interest in the qualitative improvements that promotes innovation by companies.

Thereupon, it can be concluded that the Mattress Industry in the United States is an attractive market with a stable and sustained growth, a vast potential in innovation and indeed, profitability in the years to come.