The global home bedding market is projected to register a CAGR of 5.35% during the review period. The growth of the market is attributed to the rising urbanization and increasing inclination toward branded home bedding. Market players are expected to witness profitable growth opportunities in the global market due to the growing demand for eco-friendly and smart home bedding products.
The key players operating in the global home bedding market include Kingsdown, Inc., Serta Simmons Bedding, LLC, Sleep Number Corporation, Crane and Canopy, Boll & Branch LLC, Portico, Inc., Acton & Acton, Hollander Sleep Products, Westpoint Home LLC, and Casper Sleep. The market comprises of tier 1, tier 2, and local players. Tier 1 and tier 2 players have a global reach along with a diverse product portfolio. Companies such as Kingsdown, Inc., Serta Simmons Bedding, LLC, Sleep Number Corporation, and Boll & Branch LLC are dominating the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are mainly focusing on making investments in strategic growth initiatives such as acquisitions, product launches, and expansion to strengthen their market position and to capture a larger customer base.
Michael Porter’s Five Forces model offers a framework to study the global home bedding market. Strategic business managers, trying to gain an edge over competing firms in the global home bedding market, can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each element in the context of the global home bedding market have been broken down and analyzed.
Threat of New Entrants
The global home bedding market is highly competitive due to the presence of major players across the globe. The established players in the market pose a challenge for new entrants to establish their brands. Additionally, the need for high initial investments is a major determinant posing barriers for the new market players. However, the rising demand for home bedding among various end users makes the market lucrative. A surge in the use of home bedding in emerging economies creates opportunities for manufacturers to develop innovative products and increase their customer base.
Hence, the threat of new entrants in the global home bedding market is expected to be moderate.
Bargaining Power of Suppliers
Raw material suppliers in the global home bedding market are third-party manufacturers who offer ready-to-assemble components or assembled machines. The bargaining power of suppliers is restricted due to high supplier concentration across the globe. Backward integration by manufacturers further leverages their power while reducing the bargaining power of suppliers. However, market players enter into partnerships and agreements with producers and suppliers of raw materials to ensure uninterrupted supply.
Hence, the bargaining power of suppliers in the global home bedding market is expected to be moderate.
Bargaining Power of Buyers
Several established home bedding manufacturers operate in this perfect competition market, which increases product availability and reduces the switching costs for buyers. The buyer concentration is high especially in developed economies. Moreover, brand loyalty is low among consumers. Product differentiation is moderate in the market as buyers have a wide range of products from which to choose and they base their choices on price and features.
Hence, the bargaining power of buyers in the global home bedding market is expected to be high.
Threat of Substitutes
There are no substitutes for home bedding. However, the market is highly fragmented and with intense internal competition based on quality, price, and convenience levels. For instance, consumers are substituting memory foam mattresses with hybrid mattresses based on their convenience and the comparative cost benefit. Thus, there are chances of product substitution on an internal level based on raw material and price.
Hence, the threat of substitutes in the global home bedding market is expected to be low.
Intensity of Rivalry
The global home bedding market is marked by high rivalry. Established players are targeting competitors on the basis of quality and price, making the industry competitive and reducing profit margins for all firms. Additionally, players operating in the market are competing based on customized offering and technological advancements.
Manufacturers in the global home bedding market have moderate production capacities and focus on strategic investments. The major players are inclined toward enhancing their production capacities in emerging economies to meet the high demand in these regions.
Hence, the intensity of rivalry in the global home bedding market is expected to be high.
