The sleep industry has strikingly grown over the past few years, driven by factors such as increased awareness, lifestyle changes, and tech innovations
Bengaluru: Less than a decade ago, sleep was simply a part of the day. However, in recent years, with the rise of the ‘social media university’, sleep—specifically at least 8 hours of it—has been highlighted as a crucial aspect of life, essential for healthy skin, stable mood, and overall mental and physical well-being.
According to a McKinsey study, sleep ranks as the second-highest health and wellness priority for consumers and is also identified as the area where they experience the most unmet needs.
“Sleep health is impacted by lifestyle trends such as sedentary work culture that reduces physical activity, unhealthy dietary patterns, extended screen time at night that exposes individuals to blue light, impairing melatonin synthesis,” said Aparna Santhanam, a dermatologist and holistic wellness coach. “Also, erratic weekend schedules, often referred to as social jet lag, contribute to chronic sleep debt.”
Now, Indian consumers are increasingly prioritising sleep wellness, adopting aids such as medications and supplements, therapeutic devices like smart rings, apps, and trackers, as well as behavioral and cognitive tools such as meditation and aromatherapy.
From a retail perspective, this shift has positively impacted the sleep market, making it one of the most thriving industries in India. In 2024, the revenue generated in the country’s sleep aids market is estimated to reach $289 million, according to Statista.
Growth drivers of the market
- Increased awareness of sleep health
Growing knowledge has reshaped consumer attitudes, with many viewing quality sleep not as a luxury but as a necessity. As a result, demand for sleep-enhancing products and services, including comfortable mattresses, sleep aids, and digital sleep monitoring solutions, has surged.
“The renewed focus on the importance of good sleep for good health is driving up the average selling price of mattresses. Consumers are not shying away from spending an extra dime on sleep solutions that really meet their needs,” said Sridhar Balakrishnan, Group CEO of the 60-year old mattress brand Duroflex.
According to Priyanka Salot, Co-Founder, The Sleep Company, an omnichannel mattress brand, “Consumers are investing more time and effort into their mattress choices. What was once considered a low-involvement purchase has now become a high-involvement decision, with people spending hours researching options and visiting experience centers to test products.”
- Changing lifestyles
Consumer lifestyles have changed over the years, influenced by urbanisation, changes in working hours, the rise of nuclear families, and compact living spaces. Also, increasing disposable incomes, especially among the middle class and upper-middle class population, created a willingness to invest more in areas of health and wellness.
Staying in has become a popular trend, with people now choosing to spend their weekends on beds or couches instead of going out. A study by Godrej Interio, the home and office furniture division of Godrej & Boyce, revealed that one in three respondents (33%) views their home as a sanctuary for self-care and rejuvenation, with quality sleep at its core.
According to Rohit Agarwal, Head Of Business Operations, at Urban Space, an Ahmedabad-based home-decor brand, “As consumers continue to prioritise comfort and wellness, coupled with changing seasonal preferences, the demand for high-quality, sleep-related products such as comforters, throws, and bed linens is expected to rise.”
Gen-Z and millennials are currently the leading age groups purchasing sleep wellness supplements, surpassing older generations in their investment in overall wellness, as stated by Avnish Chhabria, Founder of the nutrition brand Wellbeing Nutrition.
While for Dame Health, a women’s health and wellness brand, adults between 30 and 50 are currently the largest buyers of sleep products. “As we age, melatonin production decreases, making it harder to get by with poor sleep habits,” said its Co-Founder Sahil Agarwal. “While younger people might get away with less sleep, those in their 30s and up start feeling the effects more and become more receptive to sleep support products.”
- Technological advancements
Like every other retail industry, the sleep market has also seen numerous technological innovations, ranging from smart sleep technologies, such as mattresses with adjustable firmness, to wearables that monitor sleep patterns. As a result, consumers now have more choices, encouraging increased purchases.
Duroflex has launched India’s first firmness-adjustable mattress, ‘Neuma’, while The Sleep Company introduced the ‘SmartGRID’ mattress, featuring a hyper-elastic polymer for personalised support, and the 8-shape ErgoRelief pillow to reduce head, neck, and shoulder stress.
Meanwhile, global luxury mattress brand Magniflex uses materials like ‘Memoform’, a memory foam that molds to body contours, and ‘MagniProtect’, offering antimicrobial protection. The brand is also focusing on temperature regulating innovations, including cooling gel-infused layers, to address overheating discomfort.
“Looking ahead, we are exploring AI-integrated sleep tracking and smart mattress technology to offer real-time insights into sleep quality and personalised adjustments,” said Anand Nichani, MD of Magniflex India.
Future potential
The growth of this industry is anticipated to persist, with the sleep aids market in India projected to expand at a steady annual rate of 9.55%, rising from $133 million in 2016 to an estimated $455 million by 2029.
Moreover, India dominates the South Asian sleep supplement market with a total market share of about 44.6% and is expected to grow at a compound annual growth rate (CAGR) of 3.8% through 2034, as per studies.
Recognising the market’s high potential, brands are preparing for revenue growth by expanding their product offerings and incorporating more tech-innovations.
Online-first mattresses and home furniture brand Wakefit has recently achieved a milestone by crossing the Rs 1,000 crore revenue mark, recording Rs 1,017 crore. It also returns to EBITDA profitability for Fiscal year (FY) 2024. with an year-on-year (YoY) revenue increase of 24% from FY23.
“As we approach 2025, we are aiming to maintain double-digit growth while expanding its product categories and doubling down on omnichannel expansion,” said Ankit Garg, Co-Founder and CEO of Wakefit.
Magniflex is expecting a CAGR of around 10-15% within the premium segment. “By FY25, we project that our product lines and new sleep-centric technologies will capture a larger market share, supported by strategic expansions in metro and tier-2 cities across India,” said Nichani.
The Sleep Company aims to achieve a revenue of Rs 1,000 crore in the next 2-3 years and expand its store count from 100 to 200. Similarly, Godrej Interio targets growing its mattress segment revenue from Rs 100 crore to Rs 170 crore, with a 20% CAGR over the next three years, said Dev Sarkar, Senior-VP and Head of Consumer Business (B2C) at Godrej Interio.
Not just product brands, but wellness centers are also seeing growth. Niraamaya Wellness Retreats, an Ayurvedic spa, reported nearly double the growth in last year in the number of guests choosing treatments specifically for improved sleep.
“Looking ahead, we expect this trend to continue as guests increasingly incorporate spa therapies, yoga sessions, and meditation into their stays, all in pursuit of enhanced sleep quality, particularly in FY25 and beyond,” said Unnikrishnan Mohandas, yoga instructor at Niraamaya Retreats Surya Samudra.
