After a decade, the world is finally beginning to pay attention. There is wearable technology, digital mattresses, sleep trackers, and sleep aids ranging from natural cures to CBD oil. While corporate sleep programmes are being implemented to help employees get a better night’s sleep, hotels are focusing on sleep tourism.
According to the consultancy firm Frost & Sullivan, the global sleep economy is estimated to be worth $585 billion this year. This figure highlights the significant size of the sleep industry, which addresses a fundamental societal issue while also creating numerous opportunities for investors and startups. However, how widespread is the “epidemic” of sleep issues, and are we taking sufficient measures to address them?
The World Health Organisation published research titled Sleep Problems: An Emerging Global Pandemic two years after the American Centres for Disease Control and Prevention (CDC) deemed sleep problems a “public health epidemic” in 2014.
Global health emergency
We’re not getting enough sleep, according to experts who agree with the CDC’s analysis. The Chief Executive of the National Sleep Foundation (NSF), an American non-profit organisation established to enhance public health and well-being by educating the public on sleep concerns, John Lopos, states, “It is absolutely correct to say that inadequate sleep is a health crisis.”
Additionally, chronic sleep deprivation is associated with an increased risk of burnout, anxiety disorders, and depression.
“According to the organisation’s research, almost 60% of US individuals do not receive the necessary seven to nine hours of sleep each night. Our findings indicate that US adults and teenagers would receive a letter grade ranging from a D to an F for their practice of healthy sleep habits and sleep satisfaction,” he said.
It’s not only the US. A 2023 Nuffield Health poll revealed that the average sleep duration in the United Kingdom was just under six hours, with 11% of respondents only getting two to four hours per night.
Japanese Society of Sleep Research found that 71% of Japanese men regularly get less than seven hours of sleep per night, making Japan the country with the lowest average sleep hours out of all 33 countries surveyed by the OECD in 2021. This finding caused widespread concern among health officials.
Numerous studies have examined the negative health effects of sleep deprivation, and experts are worried. In the study Workplace Interventions to Promote Sleep Health and an Alert, Healthy Workforce, researchers found that “less than seven hours of sleep is associated with increased risks for cardiovascular disease, obesity, diabetes, hypertension, depression, and all-cause mortality.”
In the meantime, researchers from the UK and Italy discovered that people who slept fewer than six hours a night had a 12% higher risk of dying than those who slept six to eight hours.
Els Van der Helm, a sleep researcher and adjunct professor at the IE Business School, told World Finance that sleep is essential for brain cleansing.
“The brain accumulates waste products while we are awake; sleep helps remove these toxins, preventing cognitive decline linked to neurodegenerative diseases like Alzheimer’s disease,” she explains.
According to her, “Long-term sleep loss is linked to a higher risk of depression, anxiety disorders, and burnout in addition to physical health risks. It’s crucial for immunity as well; even one sleep-deprived night impairs the body’s defences against infections.”
British neuroscientist Matthew Walker’s highly regarded book ‘Why We Sleep: The New Science of Sleep and Dreams’, published in 2017, raised awareness of the negative health effects of sleep deprivation and sparked a conversation about “low-level exhaustion,” which has become the norm for many people.
“People don’t realise how their chronic lack of sleep has affected their ability to think clearly and their physical health, including the gradual development of poor health,” he wrote.
Sleep deprivation impacts corporate profits
Widespread sleep deprivation is also having an adverse effect on corporate profits. Van der Helm, who works with executives and organisations to solve sleep disorders, asserts that “business performance is measurable when sleep is lacking.”
“It hinders creativity and logical reasoning and has an impact on memory, concentration, and problem-solving skills. Employees who don’t get enough sleep are more likely to make bad decisions, make mistakes, and react slowly. Two nights of sleep deprivation can raise errors by 300%, according to research,” she said.
The body’s defences against diseases are weakened by just one night of inadequate sleep.
Employees who don’t get enough sleep are also more prone to become burned out, which raises hiring expenses and turnover rates. Poor sleep also increases the likelihood that workers may take sick days and need expensive medical care. Lack of sleep affects a leader’s ability to control their emotions, which raises stress levels and strains relationships at work, she claims.
More than 23% of respondents (almost 50 million individuals) to a CDC poll claimed that their inability to focus throughout the day was caused by their lack of sleep, and 8.6% (18 million people) said that their inability to get enough sleep was directly affecting their ability to perform their jobs.
Statistics show that this is having a negative economic impact. A study conducted by the research organisation Rand Health (Why Sleep Matters – The Economic Costs of Insufficient Sleep) calculated that the annual cost of insufficient sleep in five OECD countries could reach $680 billion due to absenteeism, poor performance, and mortality.
Japan came in second with an estimated yearly loss of $138 billion, while the US accounted for $411 billion of that. Research indicates that the UK suffers losses of up to £50 billion, or 1.86% of GDP, as a result of lower productivity, higher medical expenses, and mishaps and mistakes brought on by sleep deprivation.
It’s not limited to the economy as a whole, either. According to a study conducted by LSE professors, a one-hour increase in weekly sleep increased an individual’s earnings by 5% over time. Researchers said in the report Sleeping Our Way to Productivity that “these results are economically relevant.”
They say that an additional hour of sleep a week increases income by about half the amount of an extra year of formal schooling.
The sleep economy
The world is beginning to realise this, and employers and consumers alike are beginning to pay attention.
“About ten years ago, the public began to make progress on this. Regular consumers now understand the importance even better and are willing to spend on things that can help them get enough of the quality sleep they want and need,” Lopos said.
The foundation found that 93% of persons surveyed were open to using a “sleep-promoting environment” to enhance their quality of sleep.
This is manifesting itself in a number of ways, not the least of which is the quick ascent of sleep technology. Customers are taking full advantage of the products being marketed, including wearable technology, timed lights, weighted blankets, smart thermostats, and even smart mattresses that can identify sleeping conditions and modify temperature and firmness accordingly.
According to a survey conducted by the American Academy of Sleep Medicine, over one-third of Americans have used a sleep-tracking device.
In addition to helping to mitigate the “epidemic” of sleep, that is opening up a whole new market for investors and business owners. Crunchbase reports that venture capital funding for sleep technology increased from just under $400 million in 2017 to about $800 million in 2021. Several sleep-focused venture capital firms have also begun to appear, such as San Francisco-based Supermoon Capital, which debuted in 2021 with a $36 million fund for start-ups with a sleep focus.
“Everywhere we have a live experience, there are genuine opportunities for products and services to help with sleep health. That could be on our bodies, in our homes, or in our workplaces and social settings. The only restriction on the list is our entrepreneurial creativity, which makes it difficult to cap,” Lopos added.
Holidays centred around sleep
The market is also seeing the emergence of subsectors. The travel industry is promoting “sleep tourism” extensively as hotels, airlines, and other businesses meet the increasing demand from customers for a restful night’s sleep. According to a study by the research firm HTF Market Intelligence, the worldwide sleep tourism market alone might expand by $400 billion between 2023 and 2028.
Misty Belles, Vice President of Global Public Relations at Virtuoso, a top worldwide network of travel consultants, claimed that “high-net-worth travellers are now seeking treatments for issues like insomnia, cognitive decline, and disease prevention. These initiatives include customised in-room amenities, sleep-optimised retreats, bespoke spa treatments, and cutting-edge technologies, like smart lighting systems.”
Because of all of this, experts think that the “sleep economy” has a lot of room to grow. According to Lopos, the worldwide sleep economy is worth around $600 billion.
“But when we take into account the whole range of daytime and nighttime activities we understand can contribute to healthy sleep, I think that is potentially underestimated,” he noted.
The worldwide value begins to rise over the hundreds of billions of dollars and approaches the trillion-dollar range that McKinsey recently proposed for the wellness sector.
The secret weapon?
Although these new sources of income are encouraging for business owners and venture capital firms involved in the sleep industry, will digital devices, sleep aids, and sleep-enhancing settings be sufficient to address ingrained problems?
Van der Helm is one specialist who expresses skepticism, pointing out that not all of these goods have scientific support.
“By providing consumers with daily insights, wearables and smart products can help raise awareness around sleep,” she said.
However, a lot of items on the market make unsupported claims about enhancing sleep, and this is why I continue to be skeptical.
She asserts that as consumers gain knowledge, they will start to favour goods with strong scientific foundations.
“In order to validate their products and achieve tangible, quantifiable improvements in sleep quality, companies are increasingly required to collaborate with sleep scientists,” she added.
Naturally, it goes beyond the items’ effectiveness. We must look beyond sleep-boosting products and sleep-focused vacations, even though these can help increase awareness of the problem. One such remedy is corporate interventions.
Rand Health experts think that organisations have a part to play. In the Why Sleep Matters article, they stated that employers should acknowledge the value of sleep and their part in promoting it.
“They should combat workplace psychosocial risks, discourage prolonged use of electronic devices, and design and construct brighter workspaces,” the experts stated.
Some businesses have already taken action in acknowledgement of the financial impact that sleep may have; in 2014, Aetna, a private health insurance firm in the United States, even started providing financial incentives to employees who slept for at least seven hours every night, as measured by sleep trackers.
A few years later, Crazy, a Japanese wedding firm, adopted a similar strategy, giving points to staff members who worked at least six hours per night, as shown by sophisticated mattresses.
Meanwhile, specialised businesses like Circadian and the Sleep Works are providing corporate sleep programmes to assist staff in getting the sleep they require.
Employer interventions may have a place, even though monitoring workers’ sleep might seem excessive. According to the Workplace Interventions paper, educational sleep programmes produced “self-reported improvements in sleep-related outcomes, and may be associated with reduced absenteeism and better overall quality of life,” indicating a clear value for organisations that prioritise sleep.
There is still work to be done, though, as most companies do not prioritise sleep “despite compelling evidence of the negative impact,” the researchers said.
Altering the work culture
Work-related stress, long hours, and digital habits significantly impact sleep quality. A study by economists Jeff Biddle and Daniel Hamermesh found that every additional hour of work reduces sleep by 13 minutes.
A recent Sleep Charity poll reported that 75% of respondents struggled with sleep due to work-related stress. Research by Joan Costa-Font indicates that people sleep better during economic downturns and worse during recovery.
Flexible work models, like hybrid schedules, help but remain insufficient. The National Sleep Foundation found that during the pandemic, Americans slept more due to increased work flexibility.
However, experts argue that many businesses still equate long hours with productivity, harming employee well-being.
Governments have taken steps to improve work-life balance. In 2021, Japan encouraged four-day workweeks, while Belgium became the first European country to legalise them in 2022. Despite this, factors like late-night screen use and blue light exposure disrupt sleep. A study titled Broadband Internet, Digital Temptations, and Sleep found that video games, smartphones, and TV reduce sleep duration by delaying sleep onset.
Experts call for sleep to be recognised as a public health issue. The World Sleep Society’s 2022 report urged for sleep to be treated as essential to health, like nutrition and exercise. It found that an extra hour of sleep per week increased wages by 5%. The report recommends global awareness campaigns, standardised sleep data, and legislative action. Advocates argue that sleep deprivation is a societal issue requiring urgent intervention.
Stopping the epidemic
They may have a valid point. This is a significant issue that requires attention at the individual, business, and social levels, if the mountains of study are any indication. Making realistic adjustments to our daily routines and work schedules could be a good beginning step, even though completely changing the way we live our lives from the inside out may be a difficult task.
We may eventually reduce the need for digital beds, sleep trackers, and other devices if the proper actions are taken. In an ideal world, we might not require them at all (for our predecessors, light and darkness were sufficient).
We appear to do so for the time being, which is at least somewhat advantageous. This rush of new products is, at the very least, drawing attention to a problem that has long plagued society and serving as a physical wake-up call for everyone to prioritise their sleep.
Time will tell what the effects will be, but it’s obvious that businesses’ bottom lines aren’t the only ones who stand to lose from this “epidemic.” If we take the warning seriously and begin addressing the underlying causes, we may be able to start curbing what some scholars have called “the most prevalent risky behaviour in our society.”