Market for sleep aids awakens

New products, companies aim to put insomnia to bed

The market for products to aid the sleep-deprived is growing in China, especially among young people looking to increase the quantity and quality of their slumber.

That means more demand for smart mattresses, respirators such as machines that treat obstructive sleep apnea and melatonin, a hormone that can induce sleep.

The daily average sleeping time of Chinese people has been in decline, now amounting to 7.06 hours. That's 1.5 hours less than a decade ago, according to the latest annual sleep report, released in March by the Chinese Academy of Social Sciences and the research institute of Xilinmen, a Chinese sleep products manufacturer.

More than 300 million Chinese have experienced problems with sleep, according to researchers. Such woes are particularly prominent among young people. Nearly half of those aged between 19 and 25 don't sleep until after midnight, according to a national report on healthy sleep patterns released in March by the Chinese Sleep Research Society.

"China's sleep sector has not created a mature business model. In fact, different sleep-related products belong to different industries. For instance, mattresses belong to the household sector, sheets belong to the textile industry, and there are also health products and electronic devices," said Zuo Heming, secretary general of the Chinese Sleep Research Society.

"Many types of sleep-related products and startups have emerged in recent years. Companies that have put more efforts into scientific research and development are expected to show greater vitality in the market," Zuo said.

Since the COVID-19 pandemic, people are paying more attention to health, and sleep is among the top priorities, leading to a boom in the sector's growth, he said.

Xilinmen, a long-established mattress manufacturer based in Shaoxing, Zhejiang province, has invested significantly in R&D and considers itself a sleep technology company.

In 2021, Xilinmen's sales revenue hit 7.77 billion yuan ($1.2 billion), up 38.21 percent year-on-year.

During the period, its net profit reached 559 million yuan, surging 78.29 percent year-on-year, according to its annual earnings report.

Between 2015 and 2021, Xilinmen invested more than 700 million yuan in R&D. The company said it has 812 patents, including 20 international patents.

"With rising demand for better products and improving health awareness on the part of consumers, we are constantly innovating ways to improve their sleep health using more scientific methods," said Shen Jie, secretary of the board of directors of Xilinmen.

"We were the first company to launch the innovative mattress series, such as a formaldehyde-free mattress, an antibacterial mattress and a mattress that kills dust mites. We have been taking the lead in ownership of multiple, independent intellectual property rights," Shen said.

From 2016 to 2020, China's sleep-related market grew from 261.6 billion to 377.9 billion yuan, up 44.5 percent over the period. By 2030, sales are forecast to exceed 1 trillion yuan, according to data analysis agency iiMedia Research.

Surveys showed some 40 percent of respondents with sleep problems said they are willing to buy sleep-aid products, and 70 percent of them prefer to make those purchases on e-commerce platforms. Online sales have become the main method to sell such products, iiMedia Research said.

Yet, more than half of surveyed respondents said that they have found the effectiveness of sleep-aid products to be weak, and that solving sleep problems with complex causes is difficult, the agency said.

Many young people born after 1995 turn in after midnight, and many of them say that's by choice. They say they don't want to sleep at an earlier time so they can have more free time after work, according to a recent report by the research institute of AliHealth, a unit of Alibaba Group.

New occupations, such as paying people to help lull their clients to sleep, have emerged online. They usually tell interesting stories or chat with their customers, who pay about 10 yuan an hour, according to Alibaba's e-commerce site Taobao.

Also, for serious insomniacs, sleep salons, sleep experience halls and sleep healing training centers have become increasingly popular. They provide a quiet environment and teach people how to relax and drift off to sleep.

China's Keeson Technology Corp－based in Jiaxing, Zhejiang province－is a serious contender in the sleep sector. It was the official supplier of smart beds for the 2022 Beijing Olympics and Paralympics. Using proprietary sensors and digital technologies to collect vital signs and information on sleep conditions, the smart bed can analyze such indexes and provide digital services regarding people's sleep health.

Last year, Keeson achieved sales of 2.97 billion yuan, up 31.28 percent year-on-year. Its net profit reached 357 million yuan, up 30.61 percent year-on-year, according to its annual earnings report.

There are more than 30 other companies involved in the business of manufacturing smart furniture in the Wangjiangjing town of Jiaxing. Officials say they aim to attract more sleep-related businesses, including medical equipment and wearable devices.

By the end of the 14th Five-Year Plan period (2021-25), the town expects its sleep product industrial park to achieve sales revenue of more than 100 billion yuan.

With work stress in cities at a high level and the pandemic affecting people's emotions, more people, especially young adults, are turning not only to smart devices, but also to scented candles and flameless aromatherapy for relaxation.

Top domestic fragrance and scented candle brands include Uttori, Reclassified and Young Beast. To Summer, a niche aromatherapy brand that employs traditional Chinese elements, has received two rounds of financing since 2019, with backers including IDG Capital, Sequoia China and ZhenFund.

China has more than 2,700 companies involved in businesses related to sleep, and about 18 percent were established over the past year, according to Tianyancha, a corporate information provider.