How Indonesia Mattress Market is positioned?
Indonesia is an island nation and is bolstered by a diverse minerals and natural resources industry, helping transform the already thriving middle class to improve their socio-economic status. Both residential sector including the demand for houses and apartments; and non-residential sector including hotels, hospitals, college hostels and other institutional buildings have majorly contributed to the demand for mattresses in the country. People in Indonesia have shown a shift from traditional sleep box mattresses to customizable ones. With the coming up of domestic as well as foreign firms from major countries such as US, Germany and Italy into the Indonesia mattress market, they brought along new and updated techniques to customize mattresses, which further led to production of customized mattresses in the country. Presently, various types of mattresses re available in the market such as spring, foam, latex, hybrid and therapeutic beds in different mattress sizes such as king size, queen size, single beds and others.
The revenue from sale of mattresses was estimated at USD ~ million in 2011, thus generating sales volume of ~ units and exhibiting a five year CAGR of ~% for revenues and ~% for sales volume during 2011 to 2016. The market for sales witnessed a positive trend in the country as the sales volume increased to ~ units, thus generating revenue worth USD ~ million in 2016. These revenues were derived from both residential and non-residential sales.
Indonesia Mattress Market Segmentation
By Size of Mattress
Based on size of mattresses, Indonesia mattress market was classified into king size, queen size, single size and other mattress sizes. The king size segment dominated the mattress market with volume share of ~% in 2016 owning to rising number of hotel beds which is one of major factors responsible for increase in demand for king size mattresses in Indonesia. Whereas queen size, single size and other mattress sizes segment were witnessed to generate ~%, ~% and ~% volume shares respectively in Indonesia mattress market in 2016.
By Type of Mattress
Based on type of mattresses, Indonesia mattress market was classified into spring, latex, hybrid, foam and other mattresses. Spring mattress segment dominated the mattress market with revenue share of ~% in 2016. Rising awareness among the people regarding the role of a mattress in maintaining a proper health and for a good sleep augment the sales of spring mattress. Whereas latex, hybrid, foam and other mattress segment were witnessed to generate ~%, ~%, ~% and ~% revenue shares respectively in Indonesia mattress market in 2016.
By Market Structure
Based on market structure, mattress market in Indonesia is classified into organized and unorganized sector. Organized sector dominated the mattress market by capturing ~% of total revenues in 2016. On the other hand, unorganized sector captured ~% of total revenues in 2016.
By Urban and Rural Demand
The demand for mattresses in urban areas dominated the Indonesia mattress market with revenue share worth ~% in 2016. The revenue generated from the sale of mattresses in the rural area displayed a very low rate of ~% in the overall mattress market.
By Regional Demand
Jakarta region held the highest share in the market in 2016 which was of ~% of the overall mattress market with revenue of USD ~ million. Bali region contributed a share of ~% in the overall revenue of the Indonesian mattress market during 2016. Surabaya and other regions collectively held the remaining revenue share of ~% generating revenue of USD ~ million in 2016.
By Mode of Distribution
Based on type of distribution channel, Indonesia mattress market was classified into retail, direct and online distribution channel. Retail segment dominated the mattress market with revenue share of ~% in 2016. On the other hand, direct distribution channel followed retail segment with revenue share of ~% in 2016. Whereas online distribution system captured the remaining revenue share worth ~% in Indonesia mattress market in 2016.
By End User
Based on end users, mattress market in Indonesia was classified into residential and non-residential sector. Residential sector dominated the mattress market by capturing ~% of total revenues, whereas non-residential captured ~% of revenues.
Trade Scenario of Indonesia Mattress Market
Indonesia is a big market for international heavy mattress brands which was evident from the fact that the country’s mattress exports exceed the import value, thus boosting the domestic manufacturing. In Indonesia, mattresses comprising of material such as latex, foam, therapeutic mattress, coir mattress, airbed and waterbed make up ~% of total export earnings and spring mattress accounted for the remaining ~% of total exports for the year ending 2016. The export market of Indonesia mattress market was transformed due to increasing demand for high end luxury mattresses and customized mattresses in foreign countries. The technologies used in Indonesia to produce mattresses in order to meet quality standards are gaining importance in foreign countries.
Key imports of mattresses include spring mattresses and all other mattresses of other material such as latex, foam, hybrid and therapeutic mattresses. In Indonesia, spring mattresses make up ~% of total imports and other mattresses of other material accounted for remaining ~% of total imports for the year ending 2016. The import market of Indonesia mattresses was majorly affected due to rise in domestic production of mattresses in the country. The domestically produced mattresses are cheap in comparison with the imported ones, thus leading to irregular trend among the import values for a period of four years from 2011 to 2015.
Trends and Developments of Indonesia Mattress Market
The major trend to be witnessed in Indonesia mattress market is the increasing preference towards customized mattresses. The mattresses available in Indonesia are customized in accordance with consumer expectations, thus allowing one mattress to have different color tones, size, design and layers. Indonesia is gaining attraction in terms of high end online retailing. Indonesia’s e-commerce market is on track to be one of the leading amongst Asia, utilizing mobile-first platforms to provide all Indonesians with convenient access to buy mattresses online. Increasing mergers and acquisitions in Indonesia have led to market consolidation and expansion for mattresses in the country. Leading organized players are witnessed to acquire small players for their specialized mattresses in order to increase their market size and target audience. The demand for eco-friendly and organic mattresses have been observed to be growing at a significant pace owning to rising health concerns among the Indonesians. Consumers’ buying habits have been changing majorly due to increase in public awareness on environmental issues. Increasing demand for special features such as international quality level, comfortable, elegant, classy finish, luxury, better support and others are collectively driving the production and growth of luxury mattresses within the country. Orthopedic health concerns in the country are witnessed to increase, especially in women due to increasing cases of back pain, body aches and sores, thus driving continuous innovations by companies.
Issues and Challenges in Indonesia Mattress Market
From 2012 to 2014, an increase in price of raw materials was witnessed owing to the price increase of petroleum and steel. The prices further decreased in 2015 and 2016 thus, severely affecting the Indonesia mattress industry. The manufacturers present either have to maintain their inventory by increasing the price of the final product to offset their increased investment in raw material procurement, or they have to reduce their profit margins. Moreover, the maritime logistics system in Indonesia has certain limitations such as low frequency of service and problems in network structure which led to improper product handling and late delivery of products.
Indonesia mattress market is highly concentrated with presence of major players such as Dunlopillo Indonesia, Massindo Group (Spring Air Indonesia), Tempur Mattress, King Koil Indonesia, Serta Indonesia, Sealy Indonesia, Romance Bedding and Furniture, Violand Mattress Manufactures Indonesia and Spinno Indonesia. Technical advancements in sleep technology such as hybrid mattresses with responsive coils and mattresses with climate control systems for recording ideal sleep temperature majorly contributed towards the rapid growth in demand of premium of mattresses in the industry, thus leading to emergence of several players.
Future Outlook and Projections in Indonesia Mattress Market
Over the forecast period of four years from 2017 to 2021, Indonesia mattress market will prepare itself to meet the future demand expected from substantial investment proposed in key segments such as residential housing and institutional sector including hospitals, hotels and college hostels. Increasing consumer expenditure coupled with rising awareness among the people regarding sound sleep quality are going to increase the demand for mattresses in near future. Growing health concerns such as mental tiredness and fatigue are affecting an individual’s sleep quality; one of the major driving forces which is expected to create demand for premium mattresses in the country. Mattress manufacturers are planning to increase their production budget in order to produce technologically advanced mattresses in comparison with traditional cotton filled mattresses. Inclusion of online retailing as a part of distribution channel is expected to set an opportunity for the mattress companies to increase the number of customers and ensure a wider reach. Entry of international players such as, Tempur and others to the market are some of the major driving forces which are expected to generate revenue worth USD ~ million in the year ending 2021, thus growing at a CAGR of ~% over the forecast period of four years from 2017 to 2021 in Indonesia mattress market.
Companies Cited in the Report
List of Companies Companies Covered in the Report
Massindo Group (Spring Air Indonesia)
King Koil Indonesia Major Players
Romance Bedding and Furniture
Violand Mattress Manufacturers Indonesia
Key Factors Considered in the Report
Comprehensive analysis of Indonesia mattress market and its segments.
Listed major players and their positioning in the market.
Identified major industry developments in last few years and assessed the future growth of the industry.
To know more about the research report:
Related Reports by Ken Research
Ankur Gupta, Head Marketing & Communications