Don’t Nap On This: Why The Business of Sleep Will Keep Booming

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One day, when smog-free cars run on sea water and every loophole in the tax code has been closed, the entirety of humanity will be in such a glorious state of physical fitness and spiritual bliss that falling asleep will be as simple as  laying one’s head on a pillow. Until that day, however, the business of helping people get a good night’s rest is likely to remain what it is: A fast-growing sector in an otherwise slow-moving economy, with a little fuel additive in the mix that’s only going to make things more interesting. That would be the increasing awareness within the insurance industry that insomnia in all its guises is a real problem for much of the nation.Sleep-assistance is already a big business. Industry revenues are expected to surpass $32 billion in 2012, an average annual increase of 8.8% a year since 2008. That’s according to a recent report in The Fiscal Times, which offers a description of the sleep economy that  “includes everything from pills, products and medical devices to ‘sleep consultants’ who farm themselves out to hospitals, labs, and sleep centers, to luxe mattresses made with tension-relieving foams.”

In other words, almost any product or service that people use to help themselves nod off at night (or during the day), which represents a shockingly large number of folks. According to the Center for Disease Control, roughly a third of working Americans, or more than 40 million people, aren’t getting enough sleep—an amount of shuteye the National Sleep Foundation puts at 7 to 9 hours for adults. And, by some estimates, another 10 million to 30 million have trouble getting the rest they need on a regular basis. In fact, sleep-deprivation is such a widespread concern these days that “Increase the proportion of adults who get sufficient sleep” is one of the stated goals of Healthy People 2020, a U.S. Department of Health and Human Services program launched in 2010.

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Such “official” recognition of the problem, of course, is likely one of the reasons that sleep-industry revenues are growing. Because as government goes, more often than not, so goes the insurance industry. For example, the market research firm IBISWorld estimates that revenue growth in one segment of the sleep economy—clinics that treat sleep disorders—will increase in the low double digits in 2012, continuing a five-year trend. That’s due in part to “rising private and public health insurance coverage,” says IBISWorld analyst Kevin Culbert, who authored a recent report about the industry. As we’ve learned the hard way in healthcare, the willingness of third-party payers to pony up for services tends to increase demands for those services.

But don’t let concerns about the effect of Obamacare (or any other type of reform) keep you up at night fretting about sleep-industry growth. In addition to many of the usual suspects that have long been cited as causes of insomniastress, shift work, depression—there’s a more modern one that’s unlikely to abate any time soon: Too much computer screen time, too close too bed. “While sleep problem awareness grows,” Culbert says, “habits like using light-emitting electronics before bed are unlikely to subside, creating more sleep issues and demand for sleep clinic services.”

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All of which bodes well for clever entrepreneurs and savvy investors who can capitalize on insomnia as a growth business. Exhibit A: Sleep Train, an operator of free-standing mattress stores, based near Sacramento, which is launching a chain of mall-based stores as well. In addition to high-end mattresses, the retailer is selling snooze-friendly accessories and aids like white noise machines, scented candles, and lotions.

Exhibit B: The Benjamin Hotel in Manhattan, whose “sleep concierge” is just one aspect of a smartly differentiated approach to business travel; specifically, a focus on the part of business travel that involves sleeping. Which is, of course, the crucial part of any hotel stay, no matter how nice the gym or how well-stocked the mini-bar. As Daniel Goodman, Business Insider producer and author of the nifty tumblr blog The Sleepers Companion likes to say about his favorite subject: “Everyone does it and most want to do it more than they can.”

It’s hard to imagine there isn’t money to be made in a business like that.

19 comments
Palladia
Palladia

Try benadryl.  It's cheap, (about $.04/pill) available generically, works well, won't cause sleepwalking, and will help with allergies.

jennamyles
jennamyles

 While there are benefits for many people, this is a HUGE racket that can

suck in borderline people to large costs and cause enormous problems

for them if they try to then get insurance!...@facebook-100002292082585:disqus, Are you tired of bad finance? Are you working more than you are getting paid? If so, this may be just the right thing for you...  http://bitly.com/tv7YNH

jennamyles
jennamyles

 Marijuana works great for insomnia and it's free. Too bad using it can land you in the slammer and a lifetime criminal record.  @facebook-100003077208517:disqus, Most people work just hard enough not to get fired and get paid just enough money, not to quit... It' doesn't have to be like that...  http://bitly.com/tv7YNH

18235
18235

this article had a big build up to a zero climax....mentions a place in sacremento and one in manhatten----as though it's just an ad for the two two towns the writer flew to and from.

might as well mention MELATONIN...cheap over the counter pill that helps.

Firozali A.Mulla
Firozali A.Mulla

The skies too have gone

after the tragedies we have . All look gloomy and sad. Is there any good news?

An emergency layover in Syria's capital was bad enough. Then passengers on Air

France Flight 562

were asked to open their wallets to check if they had enough cash to pay for

more fuel. The plane, heading

from Paris to Lebanon's capital, diverted amid tensions near the Beirut airport

on Wednesday. Low on fuel, it instead landed in Damascus, the capital of

neighbouring Syria, where a civil war is raging. An Air France spokesman explained

Friday that the crew inquired about passenger cash only as a ``precautionary

measure'' because of the ``very unusual circumstances.'' Sanctions against

Syria complicated payment for extra fuel. He

said Air France found a way to pay for the fill-up without tapping customer

pockets, and apologized for the inconvenience. He wouldn't say how the airline

paid, or how much. One woman

aboard said the passengers had rounded up 17,000 euros. ``The pilot asked the passengers in

first class to get their cash together. Everyone started to collect money, and

they managed to collect 17,000, but the pilot in the end didn't take anything.

They resolved the problems with the Damascus airport,'' said a passenger

speaking on France-Info radio identified as May Bsat. The Boeing 777, carrying 185 people, took off for an

overnight layover in Cyprus then landed safely in Beirut on Thursday. Lebanon is a volatile mix of pro- and

anti-Syrian factions, and a series of hostage-takings has raised worries about

Lebanon being dragged deeper into Syria's unrest. Mobs supporting Syrian

President Bashar Assad blocked

the main airport highway in Beirut on Wednesday, before Lebanese military units

moved in. The layover was awkward

for Air France, the flagship carrier for a country whose government toes a hard

line against Syrian President Bashar Assad and warns all its citizens to avoid

or leave Syrian soil. France,

which once ruled Syria and Lebanon, championed European Union-wide economic

sanctions on Syria including its national airline, Syria Air. Air France

operated regular flights to Damascus until suspending them amid violence earlier

this year. While it was the first

time Air France said it had resorted to a request for passenger cash, it wasn't

the first airline to do so. Hundreds

of passengers traveling from India to Britain were stranded for six hours in

Vienna last year when their Comtel Air flight stopped for fuel, and the charter

service asked them to kick in more than 20,000 pounds($31,000) to fund the rest

of the flight to Birmingham, England. Thank you Firozali A.Mulla DBA

 

Ashley
Ashley

Age gap dating is gaining popularity and

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Bill Allen
Bill Allen

Marijuana works great for insomnia and it's free. Too bad using it can land you in the slammer and a lifetime criminal record. 

Choking Kojak
Choking Kojak

Why will the business of sleep keep booming?  

Because we're in a frigging bear market of  3D 12ft-tall Grizzly proportions

Try to float this  "...sleep...booming" piece during a bull market and most people in NYC would laugh so hard, they'd end up desufflating their dexedrine.

AdrianarmtRoben
AdrianarmtRoben

Melissa answered I'm shocked that someone can profit $5453 in a few weeks on the network. did you look this(Click on menu Home)

Frank Alie
Frank Alie

While there are benefits for many people, this is a HUGE racket that can suck in borderline people to large costs and cause enormous problems for them if they try to then get insurance!

Donna DeBoer
Donna DeBoer

Being able to sleep naturally anytime amp; anywhere is a survival skill you should learn.

Firozali A.Mulla
Firozali A.Mulla

Thursday, 16

August 2012.  We

still swim in the sincerity as the gloom and doom persists. Paulson, 56, who

became a billionaire in 2007 by betting against the US subprime mortgage

market, lost 23% in his Gold Fund through July as lower bullion prices and

slumping mining stocks contributed to declines. Armel Leslie, a spokesman for

Paulson, declined to comment. Michael Vachon, a spokesman for Soros, declined

to comment. Gold erased

its gains this year in May as investors favoured sovereign debt and the dollar

as economic growth slowed. The US currency gained 3.3% against a basket of

currencies last quarter. Hedge funds have cut their net-long position, or bets

on higher prices, by 66% from a record in August 2011. Their holdings fell to

85,510 futures and options on August 7, according to the US Commodity Futures

Trading Commission. Still,

prices have rallied for 11 consecutive years, gaining more than sevenfold, as

investors snapped up the metal after government and central bank stimulus

programs boosted speculation that inflation would accelerate. The metal is up

2.4% this year. Vinik

Asset Management, the Boston-based hedge fund founded by Jeffrey Vinik, who

formerly ran the Fidelity Magellan Fund, cut its entire stake in the gold ETF.

On March 30, the fund held 2.3 million shares, SEC data show. Eric Mindich's

Eton Park Capital also sold all of its 739,117 shares last quarter, a filing

showed. Jonathan Gasthalter, a spokesman for Eton Park, declined to comment. Moore Capital Management LP

acquired 120,000 shares of SPDR Gold Trust in the second quarter, a filing

showed on Tuesday. The hedge fund held no shares in the gold fund as of March

31. Global holdings in

exchange-traded products rose to a record 2,417.3 tonne on August 10, according

to data compiled by Bloomberg. Central

banks and the International

Monetary Fund are the largest bullion owners with 29,500

tonne at the end of last year, or 17% of all mined metal, World Gold Council

data show. Central banks have been net buyers for two straight years, the

council said. Purchases this year will probably exceed the 456 tonne added in

2011, the WGC estimates. ( We

have a bank in Tanzania names I M amp; ALL read hastily would could be IMF)

And that is what I call honesty I thank you Firozali A.Mulla DBAThis is from

the banks Directory Iamp;M Bank www.imbank.com/ShareI amp; M bank. Select

Country, Tanzania, Mauritius. I amp; MBank Limited. Home: About Us: Internet

... I amp; M Bank. Malaika Account. I amp; M Bank. Retail Banking ...