Waking up to sleep economy, brands increase ad spends up to 100%

As Ikea intensifies its focus on sleep quality in India, homegrown brands are expanding their portfolios with sophisticated, health-centric sleep solutions, including AI-powered products, exclusive retail outlets, and enhanced digital communication.

By
  • Akanksha Nagar,
| April 11, 2025 , 8:33 am
With sleep quality now widely recognised as a key pillar of health, companies are prioritising advanced sleep products, AI-driven innovations, and omnichannel engagement. (Image source: Unsplash)
With sleep quality now widely recognised as a key pillar of health, companies are prioritising advanced sleep products, AI-driven innovations, and omnichannel engagement. (Image source: Unsplash)

India’s sleep economy is experiencing a sharp rise in advertising investments as brands adapt to growing consumer demand for premium sleep solutions. With sleep quality now widely recognised as a key pillar of health, companies are prioritising advanced sleep products, AI-driven innovations, and omnichannel engagement. This shift has led to a substantial increase in ad budgets, with brands like Magniflex doubling their spending and The Sleep Company boosting investments by over 90% this year.

According to a report by Mordor Intelligence, the Indian mattress market is projected to reach approximately USD 2.31 billion in 2025 and is expected to grow to USD 3.48 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.54% during this period. ​ The sleep aids market in India is anticipated to expand at a steady annual rate of 9.55%, increasing from $133 million in 2016 to an estimated $455 million by 2029.

The Sleep Company, known for its patented SmartGRID technology, has been at the forefront of innovation in sleep solutions. Ripal Chopda, CMO, elaborated on their expansion strategy, “Our focus on AI-driven automation has optimised our marketing efforts, with 60-70% managed through AI while maintaining a human touch for creative differentiation. We’ve increased our ad spends by 89.7% in FY24 compared to the previous year, with a budget allocation of Rs 80-100 crore for FY25. Digital platforms account for 75-80% of this investment.”

The Sleep Company is also redefining omnichannel engagement with its Research Online, Purchase Offline (ROPO) strategy, which integrates digital marketing with physical retail experiences. “With over 130+ COCO stores across India, we are strengthening our presence in tier-I and tier-II markets. Our goal is to blend online and offline experiences to drive higher consumer engagement,” Chopda added.

Anand Nichani, MD of Magniflex India, underscored the rising demand for international sleep solutions. “Indian consumers prefer high-quality European sleep technology. We are expanding our retail presence, planning to grow from 80 stores to 150 across India, including 10 exclusive franchise outlets in major cities.”

To support this growth, Magniflex has doubled its ad spending in 2025. “Our strategy includes digital-first engagement, expert-backed content, and immersive in-store experiences to educate consumers about sleep health. Trust-building and emotional connection are key to our brand communication,” he shared.

Puneet Gulati, CMO of Sleepwell, highlighted the company’s recent growth trajectory, particularly following the strategic acquisition of KurlOn. “This acquisition has diversified our reach and strengthened our presence across India. Our growth strategy is focused on premiumisation and increasing the adoption of modern mattresses. Consumers are becoming more aware of the value of quality sleep and are willing to invest in products that provide superior comfort and durability.”

To support this expansion, Sleepwell has significantly increased its ad spending in 2025. “We have ramped up our investment in full-funnel digital campaigns, especially on social media, to engage consumers more effectively. Our strategy is data-driven, allowing us to personalise communication based on customer insights,” Gulati explained.

Strategic Marketing Investments in Sleep Awareness

Following Ikea’s announcement of its major plans to focus on sleep solutions in India, homegrown brands have intensified their efforts to enhance their portfolios. This year, the Swedish-furniture brand is promoting six key sleep essentials—Comfort, Light, Sound, Temperature, Air Quality, and Decluttering—as part of its mission to improve sleep quality. Susanne Pulverer, CEO and CSO, Ikea India, recently shared that with 80 years of experience, the company knows that quality sleep isn’t just about the right mattress—it’s about the right environment. In India, where busy lifestyles, shared spaces, and daily stress can make unwinding a challenge, Ikea designs solutions that bring comfort and order to the home. Its research-driven approach helps shape its product design.

“Sleep remains one of our key priorities because it is such an essential part of life at home and personal well-being,” said Jasper Wuts, range insights manager, Ikea. Ikea’s latest study, Sleep Uncovered, dived deep into the sleep habits of over 55,000 people across 57 countries, revealing how India navigates stress, shared spaces, and the pursuit of restful night

Chaitanya Ramalingegowda, co-founder and director of Wakefit.co, shared that its own initiatives, like the Sleep Internship and The Great Indian Sleep Scorecard, have helped spark meaningful conversations around sleep wellness. “We have grown from a sleep solutions brand to a comprehensive home solutions provider, thanks to an omnichannel approach and continuous product innovation. Digital remains our primary marketing focus, complemented by high-impact formats such as print and OOH,” he concluded.

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