Latex use in bedding jumps 150% in 3 years
By David Perry -- Furniture Today, April 3, 2005
Shelton, Conn. — The U.S. market for latex mattresses is growing rapidly, according to the nation's only producer of latex bedding.
Latex International says the market grew 150% from 2001 to 2004, including a 46% increase last year alone, to $175 million in wholesale shipments. And the category is off to a vibrant start this year. Latex mattress sales were up 37% in January, according to Mike Lorelli, CEO and president.
Lorelli calls latex a "growth rocket." What's fueling it? There are several factors, according to Lorelli and Kevin Stein, Latex International director of marketing.
Lorelli said the high end of the bedding market, where latex is positioned, is growing at 20% to 30% a year. "That's a very nice tail wind," he said.
Added Stein, "Consumers have shown they will spend more dollars for a better night's sleep." He said that latex offers superior pressure relief, durability and comfort options to other types of bedding.
The company is supplying its latex foam to seven of the Top 10 bedding producers. "The majors have independent (latex) brands," Stein said. "They are also starting to put it in their flagship lines." He cited Sealy Posturepedic and Simmons Beautyrest as examples.
King Koil's Natural Response latex line is a strong performer on retail floors. So is Spring Air's Nature's Rest line.
Stein also said that latex bedding offers more profit dollars to retailers than they receive with lower-priced, conventional mattresses. A conventional bed retailing at $699, a key price point, will yield a $350 profit at a 50% margin he said. But a latex bed retailing at $1,599, a price point popular in a latex lineup, will yield an $800 profit at a 50% margin.
Not all of the growth in latex is coming in mattresses with latex cores. Hybrids — which include innerspring-core beds cushioned with latex — are also gaining in popularity. Stein said that while hybrids accounted for about 7% of all mattress units shipped last year, they generated about 13% of the dollars.
Those hybrids are introducing specialty bedding materials, including latex, to a broader market, thus setting the stage for even more growth, Stein said.
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Latex use in bedding jumps 150% in 3 years
Apr 4, 2005
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