Korea’s Sleep Industry Booms as Bed Market Splits Between Premium and Budget

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As inflation persists, more consumers are spending on better sleep, expanding South Korea’s sleep industry. In the bed market, demand is increasingly splitting between ultra-premium products and mid- to low-priced options, a widening polarization trend.

The Korea Sleep Industry Association said May 3 that the domestic sleep market grew sharply from about 480 billion won in 2011 to 3 trillion won in 2021 and about 5 trillion won last year.

The mattress market, valued at 1.2 trillion won in 2024, is projected to grow 6.7% annually to about 2.3 trillion won by 2033. As the market expands, it is being reshaped around “premium” and “mid- to low-priced” brands.

Premium bed maker Simmons has reinforced its leading position with its Beautyrest Black line. Despite prices above 10 million won, monthly sales topped 500 units in March. It was the first time since the line’s 2016 launch that monthly sales exceeded 500.

The company said the results reflect a growing focus on sleep quality, along with the product’s comfort and safety. Simmons said it increased research and development spending to about 1.5 billion won last year, up 21% from the previous year, and raised labor costs by 10% as it sought to strengthen competitiveness.

Swedish luxury brand Hastens is also stepping up its push into the ultra-high-end segment, expanding and renovating its Apgujeong Galleria store into a “sleep showroom,” even as its top products are priced in the 1 billion won range.

The mid- to low-priced market, typically 1 million to 3 million won, is also shifting. Coway has gained traction among single-person households by promoting rental plans that reduce upfront costs and offering regular care services.

Sealy and Best Sleep are expanding share with hybrid product lines and customized sleep solutions. Sealy plans to strengthen supply capacity with the completion of an integrated production base in Yeoju in the second half of this year.

As these brands advance, Ace Bed, a long-time market leader, has struggled. Its revenue last year fell 2.7% from a year earlier, with bed-segment revenue down more than 6%.

Industry officials said prolonged external uncertainty is expected, and that the market’s polarization is becoming a broader survival strategy rather than a passing consumer trend.

“Consumers increasingly see sleep as an investment in health, and needs are clearly splitting by purchasing power,” an industry official said. “The mid-priced segment is gradually disappearing, and the structure will deepen, with premium dominated by Simmons and overseas brands and mid- to low-priced led by Coway and Sealy.”

* This article has been translated by AI.

JUNG YEON WOO ynu@ajunews.com