Mature market

A market for a product that is no longer expanding or one that is shrinking. An example might be the cigarette market. It’s generally a bad idea for a company to be a late entrant into a mature market. Mature markets often produce the highest profits for companies because development costs for products have already been amortized and attention can be given to lowering other costs of doing business. Many companies use these profits to fund R&D costs for products with promise for the future.