Wanting Again, Wanting Forward » BedTimes Journal

2025 was one other eventful, difficult yr for the sleep merchandise trade. On-and-off-again tariffs created uncertainty, and a moribund housing market plus chronically anemic client demand dragged a lot of the trade down.

However the bedding trade wasn’t stagnant. It was a giant yr for mergers and acquisitions, beginning with the completion of Somnigroup’s $5 billion buy of retailer Mattress Agency in February, adopted by the bedding main’s announcement in December that it had supplied to purchase trade provider Leggett & Platt for $1.6 billion. Maker of the Sealy, Tempur-Pedic, and Stearns & Foster manufacturers, Somnigroup’s acquisition of L&P would make it the trade’s largest vertical provider by far. In a smaller however notable deal, Somnigroup additionally took a minority curiosity in luxurious mattress model Kingsdown.

All year long, there have been different acquisitions, together with ABM Worldwide’s buy of two main mattress equipment producers: International Programs Group in March (now known as Gribetz) and Atlanta Attachment Co. within the fall which ABM has since reestablished because the Atlanta Attachment Co. division. The offers continued with licensing group Therapedic Worldwide asserting in December that it had merged with its largest licensee, Sleep Worldwide, owned by Steve Antinori. The brand new entity is being rebranded as Therapedic Worldwide.

Regardless of headwinds within the broader financial system, 2025 additionally was a time of innovation and artistic pondering, as corporations honed methods, developed new partnerships, and expanded market share. Firms serving the posh aspect of the bedding market had a stronger-than-average yr, benefiting from high-income earners who continued to spend freely. 

Producers, suppliers, and retailers alike centered on bettering efficiencies, turning to automation, synthetic intelligence and different means to scale back prices and address shortages in expert labor. 

Firms additionally continued to seek out methods to enhance sustainability inside their manufacturing practices and merchandise. The Worldwide Sleep Merchandise Affiliation held its fourth annual Sustainability Convention in September, and the Mattress Recycling Council, which operates mattress recycling packages in California, Connecticut, and Rhode Island, launched its statewide program in Oregon final January.

We checked in with a number of trade leaders to get their evaluation of the yr. We have been additionally curious to see what they count on in 2026 and the way they’re addressing key enterprise points and trade developments. Learn on for his or her insights. (A little bit of context for Sean Bergman’s reply to a query about AI: We requested everybody to maintain their responses to 125 phrases or much less.)

BedTimes: What phrase or quick phrase would you utilize to explain 2025?

“The yr of transition.” — Gerry Borreggine, president and CEO of Therapedic Worldwide, a mattress producer and licensing group based mostly in Princeton, New Jersey

“These are thrilling instances we live in.” — Neal Schwarzberger, president of ABM Worldwide, a mattress equipment provider based mostly in Montgomery, Texas

“Momentum! We have now had a implausible yr to this point, up over 40%, and a lot better than we anticipated. Whereas we definitely deliberate for progress this yr, the numbers have far exceeded our expectations.” — David Binke, CEO of mattress producer King Koil, based mostly in Avondale, Arizona

“Unnecessarily tough.” — Sean Bergman, president and CEO of Phoenix-based sleep equipment producer Purecare

“Alternative!” — Camilla Franklin, vp of North America for Maes Mattress Ticking, a cloth producer with world headquarters in Zwevegem, Belgium, and U.S. headquarters in Gastonia, North Carolina

“2025 was a yr of progress for Englander, not simply in gross sales and new accounts however in product, advertising and marketing and social media. It was a yr of renewed deal with all elements of our enterprise.” — Lou Paige, president and CEO of Chicago-based licensing group Englander

“Refining.” — Michael Faus, senior vp of Richmond, Virginia-based foam provider Carpenter Co.

BT: What development, financial situation, or occasion most affected your enterprise this yr? How did your organization reply?

“The higher tier of the Ok-shaped financial system has helped maintain sturdy enterprise for Maes. Since our materials largely serve the posh finish of the market and ship sturdy worth, we’re seeing rising demand. Many retailers are constructing on larger worth factors and margin-rich merchandise as higher-income shoppers stay energetic buyers and are much less affected by inflation issues.” — Franklin, Maes

“Tariffs had the best influence on our enterprise this yr. We responded by diversifying our provide chain throughout a number of nations to make sure constant product availability and to scale back publicity to future commerce shifts. We additionally labored to reduce the downstream influence of those will increase for our clients.” — Bergman, Purecare

“The financial system and the housing market impacted the mattress enterprise in 2025. We responded by assembly with present and potential retail companions to assist their RSAs enhance their shut ratios. With fewer shoppers strolling by way of the doorways, it’s much more necessary to shut gross sales by delivering an awesome evening’s sleep to the patron.” — Paige, Englander

“We’re slightly insulated, however buyer consolidation and monetary instability are on the high. We proceed to be agile and hone our execution.” — Faus, Carpenter

“I imagine the tariffs will enhance the enterprise of home bedding producers, (and) we acquired two nice American powerhouse bedding equipment manufacturing corporations in response.” — Schwarzberger, ABM

“We have been steadfast about executing our strategic aims, regardless of a difficult retail surroundings. We imagine the ultra-premium luxurious client is savvy sufficient to navigate the continued information cycle round financial circumstances. That’s the market we cater to, and we’ve by no means wavered. That’s been the important thing to our success.” — Binke, King Koil

BT: Which product classes, options, or developments are producing essentially the most curiosity from retailers and shoppers? 

“Englander continues to see the patron’s curiosity within the latex class—60% of the Englander assortment incorporates latex. The development additionally continues about a greater evening’s sleep and the well being advantages of fine sleep, whether or not or not it’s from new uncooked supplies in mattresses, associated merchandise comparable to pillows, or new applied sciences to observe our sleep. Client consciousness about high quality sleep continues to develop.” — Paige, Englander

“Consolation and luxurious are key developments for us—not solely in how a cloth appears and feels, however in the way it performs. Pure luxurious fibers proceed to achieve momentum, particularly as sustainability turns into more and more necessary on the higher finish of the market. I’m inspired to see Tencel gaining floor, with its sturdy sustainability story and moisture-management and cooling efficiency. Our distinctive wool-blend materials are additionally gaining consideration for his or her sturdy efficiency advantages within the larger worth vary.” — Franklin, Maes

“We’re having fun with the most important will increase on higher items.” — Borreggine, Therapedic

“Retailers are asking for worth: well-made merchandise at sturdy worth factors that assist them compete extra successfully. We’re centered on delivering high-quality assortments that meet these expectations with out compromising efficiency.” — Bergman, Purecare

BT: Sustainability is a spotlight of the trade. What are your sustainability targets for 2026?

“In 2026, Carpenter will proceed to develop our round financial system efforts by specializing in tasks that enhance the sustainability of our uncooked supplies, operations, product use/longevity, and materials finish of life. … Our imaginative and prescient is to be ‘Carpenter Acutely aware’—conscious of our accountability for the well-being of people impacted by our firm, whereas taking steps to protect our planet.” — Faus, Carpenter

“Since we launched our ReSpun assortment, we’ve been out in entrance of the sustainability motion. To us, sustainability is a really giant umbrella, and it consists of the whole lot from the way you deal with your workers to the elements we use to the way you exist within the surroundings. For us, sustainability is an evolution, not a revolution, nevertheless it stays vitally necessary to King Koil.” — Binke, King Koil

“Sustainability has at all times been a core focus. Our plant and all our merchandise are Oeko-Tex licensed, and we function utilizing our personal photo voltaic array and long-established water remedy system. We’re increasing our work with biodegradable, pure, and renewable fibers, whereas strengthening course of efficiencies that cut back waste and power use. We’re additionally dedicated to better transparency in materials sourcing and environmental influence. You may learn extra about our strategy on the ‘Infinite’ web page of our web site—an initiative that’s particularly necessary to our CEO Aurélie Maes.” — Franklin, Maes

“Sustainability is one other progress class. Englander will proceed to look towards new sustainable uncooked supplies in 2026 to include into merchandise. We have now had a number of conferences with new suppliers that provide wider ranges of sustainable elements to mattress producers, and we are going to proceed to fulfill with them and others as we transfer towards an increasing number of sustainable mattresses.” — Paige, Englander

BT: Use of synthetic intelligence is rising quickly. How are you utilizing AI in your enterprise? What are your plans for AI within the coming yr?

“I’m utilizing AI proper now. It permits me to focus extra on concepts and fewer on mechanics. Clear communication issues, and having instruments that assist translate ideas rapidly into concise, well-structured language is significant to me. ‘125 phrases or much less per reply?’ ChatGPT says, ‘No downside.’” — Bergman, Purecare

“We’re assembly with consultants and studying how making use of AI may also help our retailers and, thereby, their clients. Whether or not or not it’s by way of advertising and marketing or training, AI is a strong device that can develop in significance.” — Paige, Englander

“We’re studying each day concerning the AI purposes we could make use of in all our work. We reside in an thrilling time to have entry to those forward-thinking instruments in our on a regular basis enterprise.”
— Borreggine, Therapedic

“AI continues to be an ever-changing panorama. Carpenter is closely thinking about leveraging obtainable instruments to not solely enhance present processes however set up new ones that empower our workers. For Carpenter, it’s about liberating up our workforce to do extra significant work the place a human contact is required. Externally, AI gives attention-grabbing alternatives to develop and enhance our buyer expertise.” — Faus, Carpenter

“We use AI for buyer help and machine troubleshooting. We plan to proceed increasing our depth of information with AI and using it to positively influence our clients.” — Schwarzberger, ABM

BT: Do you count on the bedding trade to expertise progress, consolidation, or continued warning over the subsequent 12 months?

“Modest progress with additional consolidation. Demand stays uneven, so we must be prudent as we take care of that.” — Faus, Carpenter

“(I count on) continued warning. Why? We want rate of interest reductions to enhance dwelling gross sales and develop the financial system, which can positively influence the bedding trade.” — Schwarzberger, ABM

“Extra consolidation and powerful progress are my forecast for 2026.” — Borreggine, Therapedic

“After the previous couple of years, I feel there can be pent-up demand that can assist gas progress. If rates of interest tick down a degree or a degree and a half, we should always see a wholesome increase for shoppers, given the place we’ve been for the final 4 years.” — Binke, King Koil

“I’d fairly attempt to predict the climate.” — Bergman, Purecare

“I count on progress in 2026. Late in 2025, we noticed some thrilling outcomes as shoppers bought mattresses.” — Paige, Englander 

BT: What’s the largest alternative you see for the bedding trade in 2026? How will your organization tackle it?

“Because of the tariffs, (U.S.-based) corporations could have a chance to take again market share from unfair commerce practices. We’re prepared and ready to produce mattress producers with one of the best equipment on the earth.” — Schwarzberger, ABM 

“The trade is consolidating quickly, and there can be fewer viable retailers promoting in 2026 and 2027. The chance for an organization the dimensions of King Koil is that we’re nimble and we may be faster on our ft. We will develop our methods based mostly on the place we are able to have essentially the most success, fairly than attempting to be all issues to all individuals.” — Binke, King Koil

“The strongest alternative lies in serving to specialty retailers develop into high of mattress. Roughly 65% of shoppers purchase a mattress after which buy sheets, pillows, and comforters elsewhere. Capturing these add-on gross sales can considerably enhance income with out further buyer acquisition. Whether or not by way of [direct-to-consumer] achievement or in-store stock, we’re supporting retailers with packages, logistics, and [point-of-sale] options that cut back operational burden and spotlight these classes successfully.” — Berman, Purecare

“We at all times search for the positives. There was a variety of maneuvering within the trade this yr, and I feel that gives us with a variety of good alternatives in 2026. We’re in a robust place with the monetary investments we’ve made to assist our clients. We’re sharpening our deal with our core companies and enhancing our means to navigate the difficult surroundings. On the similar time, we’re executing on our long-term strategic aims, and I’m extra excited than ever concerning the alternatives that lie forward.” — Faus, Carpenter

“Offering different merchandise to the established order is the place Therapedic excels. We’re planning on providing distinctive options within the premium bedding class within the coming yr.” — Borreggine, Therapedic

“Our greatest alternative is on the higher finish of the market. That is the place Maes is strongest. We’ll proceed to do what we do finest: supply impeccable high quality, beautiful designs, and constant, dependable service.” — Franklin, Maes

BT: What provides you essentially the most hope—or concern—concerning the state of the bedding trade in 2026?

“We’re nonetheless an trade that’s tied to the actual property market. From the standpoint of the macro surroundings, my hope is that the trade will see some reduction with rates of interest within the first or second quarter, which can open up the housing market. Rates of interest are by no means going to be at earlier ranges, but when they modify downward in any respect, it ought to fortify the refinancing market and relocation market, which is the most important set off for our enterprise. If that occurs, I imagine we’re going to see double-digit progress as an trade, which occurred briefly post-COVID.” — Binke, King Koil 

“Decrease rates of interest and a rise in housing begins ought to have a constructive influence on the bedding trade in 2026.” — Borreggine, Therapedic

“I imagine we’re at a backside and, as rates of interest enhance and the tariffs take full impact, the market circumstances will enhance.” — Schwarzberger, ABM

“Consolidation will proceed to have an effect on the bedding trade, which can carry each challenges and alternatives. Ongoing provide chain disruptions stay a priority, however our Belgium staff continues to navigate them successfully, which can provide us a strategic benefit. There are definitely some shiny spots: New improvements and the projected strengthening of the housing market give us hope for 2026.” — Franklin, Maes

“I’m hopeful {that a} more healthy housing market emerges in 2026, with decrease rates of interest and extra attainable pricing. Elevated mobility within the housing sector sometimes drives visitors again into mattress and furnishings shops, which would supply a significant carry for the trade.” — Bergman, Purecare