Despite the supply chain woes and the logistics challenges that the home furnishings industry is combatting during this time of exaggerated consumer demand, players in the mattress segment continue to reap the rewards of increased sales.
That’s good news for the industry as steady growth will continue.
The latest numbers from the International Sleep Products Assn. indicate that the growth will continue by healthy percentages over the next few years. The organization’s statistics committee, which develops the consensus forecast for the association, projects growth in mattress and foundation value of 8.5% for this year, and 4.5% for 2022 and 2023. The group predicts steady growth in units through 2023 with 1.5% for this year and next, and 2% for 2023.
The forecast includes U.S.-produced and imported mattresses, stationary foundations and motion bases.
According to ISPA’s panel, the growth in total shipment units and dollar value for this year is due to a continued “increase in disposable income as economic activities rebound from the pandemic, and the strong growth in the housing market tin both housing starts and housing resales.”
For 2020, the number of shipments increased 7%, and the value of shipments jumped 6.9% compared with 2019.
Looking ahead to 2022, the panel predicts growth on a smaller scale “as growth in the housing market cools down” compared with this year and as federal stimulus income slides. In 2023, the panel’s forecasted 2% growth in mattress units and 4.5% increase in mattress value “supported by the increase in disposable income and the continued albeit muted growth in the housing market.”
Another bright spot: The association predicts that the average unit price for mattress shipments will increase by 7% this year and again by 3% in 2022 and 2.5% in 2023.
The mattress segment is a strong force and will remain so for the next several years.
Most economic indicators point in that direction. GDP for this year is expected to grow 5.8% and then moderate through 2023. Home sales are predicted to climb by 4% this year, 1.9% next year and 0.6% in 2023. Disposable income offers a roller coaster ride for future with an increase of 1.9% this year, and a 3.3% decrease in 2022. 2023 offers a bit of a rebound with a growth of 2.3%.
A hefty mattress increase in 2023 to $13.3 billion in value and 59.5 million in units is nothing to sneeze at.
The industry’s success will depend on smart navigation of the same issues that have plagued companies since 2020. We, as a publication, remain vigilant in covering those issues, but just in case, foam supply, logistics, increased costs for labor, materials and transportation will all continue to impact the business,s and force manufacturers and retailers to continue to innovate and remain strategic in business plans.
Many have already taken bold action in expanding manufacturing and distribution warehousing, as well as developing products that take advantage of new, alternative materials to address the shortages and delays. More such innovative, strategic thinking remains on the horizon.
The bedding industry is filled with creative business people who laugh at adversity and figure out a way to tackle it. This year and last taught us that, and the foundation is placed to continue along the growth trajectory.
As the ISPA numbers point out, the curve won’t likely be as dramatic as this year has delivered; however, the forecast does trend upward with a steady slope, and that puts the segment on firm footing for the next few years.
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November 16, 2021 at 12:37AM
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Blog: Continued growth on horizon into 2022 and beyond - Furniture Today
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