KSA Mattress Market Outlook to 2030

KSA Mattress Market Overview

• The KSA mattress market, based on a comprehensive five-year historical analysis, is valued at approximately USD 1.12 billion. This market growth is primarily driven by increasing urbanization, rising disposable income, and expansion in the residential and hospitality sectors. The governments investments in large-scale real estate projects, such as NEOM and various housing initiatives under Vision 2030, are major catalysts for demand, especially in high-quality, durable mattresses.

• The market is dominated by key cities like Riyadh, Jeddah, and the Eastern Province due to their high concentration of population and economic activities. Riyadh, as the capital and business hub, experiences substantial demand from both residential and hospitality sectors. Additionally, the flourishing tourism sector in Jeddah and the Eastern Province drives the commercial mattress market. These cities also benefit from a higher average income, contributing to greater consumer spending on premium mattresses.
• All mattress imports and locally manufactured products must comply with SASO's stringent quality standards, ensuring consumer safety and product durability. In 2024, SASO introduced updated guidelines for flame retardancy, material safety, and ergonomic design, which all manufacturers and importers must adhere to. Compliance with these standards is mandatory, and failure to meet them can result in hefty fines or product recalls, making regulatory adherence critical for market participants.

KSA Mattress Market Segmentation

By Product Type: The KSA mattress market is segmented by product type into innerspring mattresses, memory foam mattresses, latex mattresses, hybrid mattresses, and smart mattresses. Among these, innerspring mattresses have a dominant market share due to their long-standing presence in the market, affordability, and general consumer familiarity with the product. Innerspring mattresses are also preferred in the hospitality sector due to their durability and ease of maintenance, making them the go-to option for hotels and furnished apartments.

By End-User: The market is segmented by end-user into residential, commercial (hotels, hospitals, educational institutions), and government. Residential dominates the market share due to the increasing number of housing projects initiated under the Vision 2030 agenda. The growing middle class and the expansion of housing programs fuel the demand for high-quality mattresses. The sector also benefits from the rising trend of apartment living, where consumers prioritize comfort and health, driving demand for orthopedic and memory foam mattresses.

KSA Mattress Market Competitive Landscape

The KSAn mattress market is primarily consolidated, with key players holding significant market influence. These companies are known for their established distribution networks, strong brand recognition, and focus on product innovation. Local manufacturers like Sleep High and Raha Mattress have a stronghold in the market, offering affordable, high-quality mattresses tailored to local preferences. International brands like Sealy Middle East and Serta Simmons cater to the premium and luxury segments, contributing to the competitive landscape.

KSA Mattress Industry Analysis

Growth Drivers

• Rising Disposable Income: KSA has experienced consistent growth in per capita income, driven by the government's Vision 2030 initiative, which focuses on diversifying the economy. In 2024, KSAs GDP per capita is projected to be around $25,000, an increase from $23,586 in 2022, according to the World Bank. This rise in disposable income enhances consumer purchasing power, leading to increased demand for premium mattresses and sleep products. The expanding middle class is further driving consumer spending on quality and luxury mattresses as people prioritize comfort and health.
• Expanding Real Estate & Housing Projects: The Saudi government has launched several large-scale housing projects under the Sakani and Vision 2030 programs. By 2024, the Ministry of Housing aims to deliver over 300,000 new residential units to meet the growing population needs, particularly in urban areas. This expansion in the real estate sector increases the demand for home essentials, including mattresses. The Sakani program alone has helped over 1.2 million families secure housing since its launch in 2017, boosting related industries like mattress production and sales.
• Increase in Hospitality Sector Demand: KSAs growing tourism and hospitality sector, bolstered by the Vision 2030 goal to attract 100 million tourists annually, has led to a rise in demand for mattresses, particularly in the hospitality industry. With 2.5 million visitors during the 2023 Hajj alone, hotel occupancy rates surged, requiring constant upgrades and refurbishments of amenities, including mattresses. The growing number of hotels and resorts, especially in cities like Riyadh, Jeddah, and Mecca, directly impacts mattress demand. Source: Saudi Ministry of Tourism.

Market Challenges

• Price Sensitivity Among Consumers: Despite rising incomes, a significant portion of Saudi consumers remains price-sensitive, especially in rural and lower-income areas. Around 17% of the population lives in rural regions where spending on luxury items like high-end mattresses is lower compared to urban areas. Consumers in these areas often prioritize affordability over quality, presenting a challenge for manufacturers and retailers targeting premium segments. The government's ongoing economic diversification plan aims to bridge this income gap, but it remains a barrier for now.
• Limited Penetration in Rural Areas: While urban areas such as Riyadh and Jeddah experience strong demand for mattresses, rural regions, home to approximately 5.6 million people, see lower market penetration. Poor infrastructure and a lower concentration of retail outlets hinder the distribution of mattresses in these areas. The Ministry of Economy has highlighted that rural regions account for just 12% of total retail sales in the country, making it difficult for mattress companies to expand their reach without significant investments in logistics and marketing.

KSA Mattress Market Future Outlook

Over the next few years, the KSAn mattress market is expected to experience significant growth driven by several key factors. The governments continued investment in housing projects under Vision 2030, along with a growing middle-class population, will drive demand in the residential sector. Additionally, the expansion of the tourism and hospitality industries, coupled with increasing consumer awareness of the health benefits of quality sleep, will fuel demand for premium and specialty mattresses, such as orthopedic and smart mattresses. The rise of e-commerce platforms and the increasing penetration of online retail will also create new avenues for market growth.

Opportunities

Growth in E-Commerce Sales Channels: The e-commerce sector in KSA is rapidly growing, with online sales projected to exceed $10 billion in 2024. This surge presents significant opportunities for mattress companies to tap into the growing online consumer base. Platforms like Amazon.sa and Noon are witnessing increased demand for home essentials, including mattresses, as consumers increasingly prefer online shopping due to convenience and a wider selection of products. This trend is especially pronounced in urban centers, where internet penetration rates are over 95%.

Rising Demand for Smart Mattresses: Smart mattresses, equipped with sleep-tracking and temperature-regulation features, are gaining popularity in KSA. With the countrys high smartphone penetration rate of 98% in 2024, tech-savvy consumers are increasingly adopting smart home devices, including smart mattresses. These mattresses cater to a growing demand for health-related and high-tech home products, with sales in this segment seeing substantial growth, especially in urban areas where consumers are more inclined to spend on innovative products.