Sleepy Consumers Need a Lift

Prior to the invention of the light bulb, people slept an average of 10 hours a night. Today, the average American sleeps less than seven hours per night, a decline of 25% since the early 1990s, according to Facts, Figures & the Future, a service of ACNielsen. As a result, sleep has become a multi-billion dollar industry, with about 42 million sleeping pill prescriptions filled last year, up nearly 60% from 2000. Meanwhile, advertising for sleep products exceeded $300 million in 2006 and is now the most prevalent pharmaceutical category of advertising on television.

To cope with their lack of sleep on a day-to-day basis, Americans now consume more caffeine-packed energy drinks, which are expected to bring in more revenue than regular soft drinks and sports drinks combined by the end of 2008, according to Facts, Figures & The Future.  

Generation Z (those aged 25-45) represents this over-stimulated and burned-out generation. For this generation, a wide range of health consequences for these behaviors are just becoming known. It is now estimated that America’s sleep deprivation costs over $100 billion per year in lost productivity, sick days, and healthcare costs. It is associated with an increase in domestic violence, lowered immunity, depression, anxiety, stress, traffic accidents and obesity.

Generation Z is also driving an entirely new business category for those seeking alternatives beyond the sleep deprived/caffeinated cycle. Requests for sleep programs have tripled at spas since 2005, including Canyon Ranch in Tucson, which offers “sleep labs” to evaluate one’s sleep patterns and devises therapeutic recommendations. Other product offerings include supplements, pillows, homeopathic atomizers, music therapy and high end mattresses.

The countertrend to Generation Z’s vicious cycle is reflected in the increased desire for real and sustainable energy. According to Natural Marketing Institute, four out of five consumers are maintaining a healthy lifestyle to have the energy to do the things they want to do. For example, interest in food with a low glycemic index has increased by 22% since 2004, as consumers try to avoid the “highs and lows.”