Sleep Aids Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The COVID-19 pandemic had an unprecedented health concern and adversely affected communities, industries, businesses, and lives around the world and is still affected by the rise of new variants of the virus. COVID-19 had a profound impact on the people having disorders associated with sleep as due to restrictions the diagnostics and treatment procedures were impacted along with the ongoing research activities in the area. As per the study “Global prevalence and burden of depressive and anxiety disorders in 204 countries and territories in 2020 due to the COVID-19 pandemic“ published in October 2021, there were an estimated 75.2 million additional dealing with anxiety disorders in 2020. The cases increased by 25.6% in 2020 as compared to 2019. This pandemic has created an increased urgency to strengthen mental health systems in most countries. Therefore, COVID-19 has provided the opportunity for market players to innovate methods to address the global burden of anxiety disorders, thereby impacting the market growth. According to the Survey on COVID-19 and Mental Health (SCMH) in May 2021, one in four (25%) Canadians aged 18 and older screened positive for symptoms of depression, anxiety, or posttraumatic stress disorder (PTSD). Furthermore, as per an October 2021 published article, titled, “Global prevalence and burden of depressive and anxiety disorders in 204 countries and territories in 2020 due to the COVID-19 pandemic”, major depressive disorder caused 49 - 4 million (33 - 6 to 68 - 7) disability-adjusted life-years (DALYs) and anxiety disorders caused 44 - 5 million (30 - 2 to 62 - 5) DALYs globally in 2020. Hence, the market growth is adversely affected due to COVID however, it is likely to grow in the upcoming future.

Factors such as the growing prevalence of insomnia and other disorders and the increasing adoption of wearable monitors and sensors are expected to increase the market growth. According to the article published in the PLOS ONE in December 2021, titled “Association between the course of hypnotics treatment for insomnia and work functioning impairment in Japanese workers” Sleep disorders that last a month or longer are common among Japanese people, accounting for about 20% of the population. In Japan, the economic cost of sleep problems, such as insomnia, is estimated to be around 3,500 billion yen (about 3 billion US dollars). Thus, the increasing prevalence of insomnia rise in demand for sleeping aids thereby boosting the market growth in Japan. According to the study title “Management of insomnia in primary care” published in the NPS Medicine in August 2021, chronic insomnia is the most common sleep problem in Australia, affecting 12.2% of adults. Only 7.5 percent of people say they've been diagnosed by a medical practitioner, indicating that it's typically underdiagnosed. The associated healthcare expenditures are USD1.24 billion, with a lost productivity cost of USD 12.19 billion. Thus, rise in prevalence of insomnia in the country as well spending on the treatment of insomnia boost the market over the forecast period. Wearable technologies are advancing the market growth by providing better technolocial support. For instance, in July 2019, a research study published titled "Wearable Sleep Technology in Clinical and Research Settings" stated that about one-third of the population is struggling with their sleep, a number that is estimated to increase. Wearable sleep trackers are being increasingly adopted by both the general public and sleep researchers and clinicians. The second generation of multisensory sleep trackers opens a path for greater accuracy in measuring sleep, as compared to the motion-based approach to sleep/wake assessment. However, overlapping motivations of various end-users’ groups (e.g., research and clinical sleep community, wearable industry, consumers), partnership with industry is beneficial to combine excellence and speed in technological advancement from industry and advanced psychophysiological knowledge and scientific rigor from sleep science. Hence, due to abovementioned factors the market is likely to grow in the future.

However, a shortage of skilled medical professionals is likely to hinder the market growth.

Key Market Trends

Insomnia is Expected to Hold a Significant Market Share Over the Forecast Period

Insomnia is known as a common sleep disorder that can make it hard to fall asleep, hard to stay asleep, or cause to wake up too early and difficulty causing get back to sleep. People suffering from insomnia may still feel tired after waking up. The major factors bolstering the market growth are the high number of people suffering from insomnia, the implementation of strategic initiatives by the market players, and the growing focus on the research and development of sleeping aid systems for sleep disorder. For instance, a June 2021 published article, titled, “International study of the prevalence and factors associated with insomnia in the general population”, comparison of the prevalence of insomnia in 57,298 participants across 13 countries, using the same methodology. The results revealed that out of the 57,298 participants, 11.3% had a diagnosis of short-term insomnia disorder, with significant differences in prevalence between sites, ranging from 2.3% to 25.5%. Thus, the studies indicate that the need for sleeping aids for insomnia is increasing which is contributing to the market growth. Additionally, the increasing focus on research and development of sleeping aid systems is increasing the adoption of devices for insomnia, thereby contributing to the market growth. For instance, as per a July 2021 update, a research project led by National Cheng Kung University (NCKU) Professor Sheng-Fu Liang is aiming to develop an intelligent neurofeedback training and sleep quality assessment system for chronic insomnia especially for residual insomnia, the treatment of which is a large unmet need in the management of patients with depression or anxiety. This ongoing project is under the Artificial Intelligence Biomedical Research Center (AIBMRC) supported by the Ministry of Science and Technology (MOST) Taiwan to develop innovative AI biomedical technology for smart medicine and smart healthcare. Moreover, some of the market players are undertaking strategic initiatives that is supporting the market growth. For instance, in October 2021, Interaxon, a consumer neurotechnology and meditation company, launched the second generation of its popular EEG meditation & sleep headband, Muse S. This updated plush brain-sensing headband uses real-time biofeedback. Thus, the aforementioned factors are likely to drive the growth of the segment during the forecast period.

North America is Expected to Dominate the Market Over the Forecast Period

The North America region is expected to dominate the market. During the projected period, the market will be driven by the rising prevalence of the target illnesses, technical advancements, and research increasing product launch with the advances in technology in the region. Stress can cause adjustment insomnia which hampers the functioning of the brain. According to the American Academy of Sleep Medicine 2020, insomnia affects up to 20% of persons in the United States each year. Youngsters with poor sleeping patterns are more likely to develop behavioral insomnia, which affects 30% of children. Insomnia is caused by prescription medicines, substance misuse, medical diseases, and mental health concerns, and it affects roughly 3% of the population. According to the article published in the National Center for Biotechnology Information in January 2022, by Charles M Morin, from 2018 to 2020, the prevalence of insomnia in Canada grew by 26.7 %, from 25.4 % to 32.2 % (symptoms) and 16.8 % to 19 percent (syndrome), for a total rise of 26.7 percent. In comparison to 2018, the COVID-19 pandemic resulted in a considerable worsening of sleep quality, exhaustion, anxiety, and sadness. Drug approval is another factor in the growth of the market. For instance, in July 2021, the US Food and Drug Administration (FDA) approved fexinidazole as the first all-oral treatment for both stages of the Trypanosoma brucei gambiense form of sleeping sickness (Human African trypanosomiasis) in patients 6 years of age and older and weighing at least 20 kg. Product launches are another factor in the growth of the region. For instance, in June 2020, Eisai Inc. launched its in-house discovered orexin receptor antagonist DAYVIGO (lemborexant) CIV for the treatment of adults with insomnia in the United States.

Hence, due to the abovementioned factors the market is expected to grow in the future.

Competitive Landscape

Most of the players are based in developing counties due to more technological advancements. But due to the ease of connectivity in modern times, these players have also penetrated developing countries and are trying to establish a market in these countries as well. The market is partially fragmented and consists of several major players. Some of the companies which are currently dominating the market are Cadwell, Compumedics Limited, DeVilbiss Healthcare LLC, Merck & Co., Inc, and Natus Medical Incorporated among others.

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• The market estimate (ME) sheet in Excel format
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