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Why Mattresses Are So Expensive

In the past decade, the mattress industry in the U.S. has undergone significant change with the emergence of popular direct-to-consumer brands like Casper, Purple and Saatva. As many as 225 e-commerce companies started during this time, challenging both the brick-and-mortar business model and legacy names Tempur-Sealy and Serta Simmons. The DTC upstarts eliminated the overhead costs associated with middlemen and expensive storefronts, allowing them to offer lower prices. However, inflation and higher commodity prices took a toll on more than 100 of the newcomers, forcing them to shut down. Meanwhile, Tempur-Sealy and Serta Simmons, which hold about 60% of market share, had a tough year in 2022. Change may have come to the industry, but revenues haven’t climbed to the record heights of $10.2 billion in 2013. Chapters: 00:00 — Intro 01:15 — How beds are made 04:13 — Retailers 07:45 — Rise of DTC Producer: Darren Geeter Senior Managing Producer: Tala Hadavi Animation: Jason Reginato, Christina Locopo, Alexander Wood Additional Footage: Casper, Tempur Sealy » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC Why Mattresses Are Expensive