The signal: Sleep science is closely linked with other wellness trends. If you take a look at the r/sleep subreddit, for example, you’ll notice that its related subreddits give us insight into what sleep advocates also care about. Looking closely, you’ll notice that the space lies adjacent to the nootropics industry.
Source: Anvaka.github.io/sayit
Melatonin, the chemical that helps regulate your Circadian rhythm, is sold over the counter in the United States. Consumers search for it thousands of times each month:
According to Market Research, the insonia pharma market is dominated by 3 major players:
Other commonly used insomnia drugs include:
The opportunity: Many insomnia drugs have been declining in value due to the expiration of patents. The patent on Silenor, a relatively popular insomnia drug, expired this week, with other insomnia patents expected to expire over the next decade. To continue monitoring pharma patent expiries, you can do so here.
Market Research suggests that the OTC segment of the sleeping pills market is growing faster (currently $576m) as well. Another area to watch includes beauty supplements tailored toward sleep. For example:
As more solutions enter the market, it will inevitably be difficult to differentiate between legitimate products and the more questionable -- especially for serious sleep conditions.
The market is waiting for a third-party review site to provide clarity as the market takes off. It also wouldn’t surprise us to see the emergence of sleep bloggers and vloggers, akin to the thousands of beauty bloggers out there.
If you liked this signal, read our full report on the sleep industry here.