The sleep aid market consists of products and technologies that either tackle specific sleeping disorders (like insomnia or sleep apnea) or that are just generally designed to help people sleep better. As technology has evolved, these products have taken the form of high-tech mattresses and pillows, in addition to medications, home sleep tests, and sleep laboratories.
The market has continued to evolve and become more mainstream in recent years as buzzy startup companies, like Casper Mattress, have brought attention and excitement to sleep technology. According to the BCC Research report, the sleep aid market was worth $81.2 billion in 2020. That’s up massively from the $49.5 billion in 2016.
Growth in the sleep aid market will be driven by an increasing prevalence of sleeping disorders around the world. In the United States (US) alone, between 50 and 70 million adults have some sort of sleeping disorder. Insomnia is the most common disorder, with roughly 30% of American adults suffering from short-term issues with insomnia and 10% battling chronic insomnia. 37% of adults between 20 and 39 years old report short sleep deprivation, while the percentage is even higher (40%) for those between 40 and 59 years old.
As these numbers tick upward — which they have been over the years — there is more interest in products and services that alleviate the problems. This rise in sleeping disorders have been driven in part by increasingly hectic lifestyles in many countries, which have increased mental stress. However, in addition to push factors, there have been pull factors drawing interest to the industry, like technological innovations.
All in all, these reports suggest the market will grow significantly over the next few years. The BCC Research report projects a compound annual growth rate (CAGR) of 6.8% through 2025. Meanwhile, a separate report from Zion Market Research projects the sleep tech devices market specifically will grow by a CAGR of around 12.44% through 2025.
This projected growth presents new opportunities for both existing and aspiring companies in the sleep aid market. Today the industry is dominated by a mix of large multinational companies and smaller, local players. Among the companies that hold the largest share in the global sleep aid market are French pharmaceutical company Sanofi, British pharmaceutical company GlaxoSmithKline, and American pharmaceutical company Pfizer. These companies are responsible for some of the biggest brands in the market: Ambien CR, QuilliChew ER, and Sominex.
However, it isn’t just big companies that have been benefiting from this boom. Investors have shown great interest in startup companies aiming to tackle sleeping problems. For example, California-based restorative sleep technology company Bryte recently raised $24 million in a Series A round. Meanwhile, ecommerce mattress company Casper went public in February of last year at $12 per share (share prices have since gone down).
Investment tracking website Crunchbase estimated that investors have pumped upward of $1.9 billion into global companies focused on sleep technology and equipment since 2016.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.