2025 was another eventful, challenging year for the sleep products industry. On-and-off-again tariffs created uncertainty, and a moribund housing market plus chronically anemic consumer demand dragged much of the industry down.
But the bedding industry wasn’t stagnant. It was a big year for mergers and acquisitions, starting with the completion of Somnigroup’s $5 billion purchase of retailer Mattress Firm in February, followed by the bedding major’s announcement in December that it had offered to buy industry supplier Leggett & Platt for $1.6 billion. Maker of the Sealy, Tempur-Pedic, and Stearns & Foster brands, Somnigroup’s acquisition of L&P would make it the industry’s largest vertical supplier by far. In a smaller but notable deal, Somnigroup also took a minority interest in luxury bed brand Kingsdown.
Throughout the year, there were other acquisitions, including ABM International’s purchase of two major mattress machinery producers: Global Systems Group in March (now called Gribetz) and Atlanta Attachment Co. in the fall which ABM has since reestablished as the Atlanta Attachment Co. division. The deals continued with licensing group Therapedic International announcing in December that it had merged with its largest licensee, Sleep International, owned by Steve Antinori. The new entity is being rebranded as Therapedic Worldwide.
Despite headwinds in the broader economy, 2025 also was a time of innovation and creative thinking, as companies honed strategies, developed new partnerships, and expanded market share. Companies serving the luxury side of the bedding market had a stronger-than-average year, benefiting from high-income earners who continued to spend freely.
Manufacturers, suppliers, and retailers alike focused on improving efficiencies, turning to automation, artificial intelligence and other means to reduce costs and cope with shortages in skilled labor.
Companies also continued to find ways to improve sustainability within their manufacturing practices and products. The International Sleep Products Association held its fourth annual Sustainability Conference in September, and the Mattress Recycling Council, which operates mattress recycling programs in California, Connecticut, and Rhode Island, launched its statewide program in Oregon last January.
We checked in with several industry leaders to get their assessment of the year. We were also curious to see what they expect in 2026 and how they are addressing key business issues and industry trends. Read on for their insights. (A bit of context for Sean Bergman’s answer to a question about AI: We asked everyone to keep their responses to 125 words or less.)
BedTimes: What word or short phrase would you use to describe 2025?
“The year of transition.” — Gerry Borreggine, president and CEO of Therapedic Worldwide, a mattress manufacturer and licensing group based in Princeton, New Jersey
“These are exciting times we are living in.” — Neal Schwarzberger, president of ABM International, a mattress machinery supplier based in Montgomery, Texas
“Momentum! We have had a fantastic year to date, up over 40%, and much better than we anticipated. While we certainly planned for growth this year, the numbers have far exceeded our expectations.” — David Binke, CEO of mattress producer King Koil, based in Avondale, Arizona
“Unnecessarily difficult.” — Sean Bergman, president and CEO of Phoenix-based sleep accessories producer Purecare
“Opportunity!” — Camilla Franklin, vice president of North America for Maes Mattress Ticking, a fabric producer with global headquarters in Zwevegem, Belgium, and U.S. headquarters in Gastonia, North Carolina
“2025 was a year of growth for Englander, not just in sales and new accounts but in product, marketing and social media. It was a year of renewed focus on all aspects of our business.” — Lou Paige, president and CEO of Chicago-based licensing group Englander
“Refining.” — Michael Faus, senior vice president of Richmond, Virginia-based foam supplier Carpenter Co.
BT: What trend, economic condition, or event most affected your business this year? How did your company respond?
“The upper tier of the K-shaped economy has helped sustain strong business for Maes. Since our fabrics largely serve the luxury end of the market and deliver strong value, we’re seeing growing demand. Many retailers are building on higher price points and margin-rich products as higher-income consumers remain active shoppers and are less affected by inflation concerns.” — Franklin, Maes
“Tariffs had the greatest impact on our business this year. We responded by diversifying our supply chain across multiple countries to ensure consistent product availability and to reduce exposure to future trade shifts. We also worked to minimize the downstream impact of these increases for our customers.” — Bergman, Purecare
“The economy and the housing market impacted the mattress business in 2025. We responded by meeting with current and potential retail partners to help their RSAs improve their close ratios. With fewer consumers walking through the doors, it is even more important to close sales by delivering a great night’s sleep to the consumer.” — Paige, Englander
“We are a little insulated, but customer consolidation and financial instability are at the top. We continue to be agile and hone our execution.” — Faus, Carpenter
“I believe the tariffs will improve the business of domestic bedding manufacturers, (and) we acquired two great American powerhouse bedding machinery manufacturing companies in response.” — Schwarzberger, ABM
“We were steadfast about executing our strategic objectives, despite a challenging retail environment. We believe the ultra-premium luxury consumer is savvy enough to navigate the ongoing news cycle around economic conditions. That’s the market we cater to, and we have never wavered. That’s been the key to our success.” — Binke, King Koil
BT: Which product categories, features, or trends are generating the most interest from retailers and consumers?
“Englander continues to see the consumer’s interest in the latex category—60% of the Englander assortment incorporates latex. The trend also continues about a better night’s sleep and the health benefits of good sleep, whether it be from new raw materials in mattresses, related products such as pillows, or new technologies to monitor our sleep. Consumer awareness about quality sleep continues to grow.” — Paige, Englander
“Comfort and luxury are key trends for us—not only in how a fabric looks and feels, but in how it performs. Natural luxury fibers continue to gain momentum, especially as sustainability becomes increasingly important at the upper end of the market. I’m encouraged to see Tencel gaining ground, with its strong sustainability story and moisture-management and cooling performance. Our unique wool-blend fabrics are also gaining attention for their strong performance benefits in the higher price range.” — Franklin, Maes
“We are enjoying the biggest increases on better goods.” — Borreggine, Therapedic
“Retailers are asking for value: well-made products at strong price points that help them compete more effectively. We’re focused on delivering high-quality assortments that meet those expectations without compromising performance.” — Bergman, Purecare
BT: Sustainability is a focus of the industry. What are your sustainability goals for 2026?
“In 2026, Carpenter will continue to expand our circular economy efforts by focusing on projects that improve the sustainability of our raw materials, operations, product use/longevity, and material end of life. … Our vision is to be ‘Carpenter Conscious’—mindful of our responsibility for the well-being of individuals impacted by our company, while taking steps to preserve our planet.” — Faus, Carpenter
“Since we introduced our ReSpun collection, we have been out in front of the sustainability movement. To us, sustainability is a very large umbrella, and it includes everything from how you treat your employees to the components we use to how you exist in the environment. For us, sustainability is an evolution, not a revolution, but it remains vitally important to King Koil.” — Binke, King Koil
“Sustainability has always been a core focus. Our plant and all our products are Oeko-Tex certified, and we operate using our own solar array and long-established water treatment system. We’re expanding our work with biodegradable, natural, and renewable fibers, while strengthening process efficiencies that reduce waste and energy use. We’re also committed to greater transparency in material sourcing and environmental impact. You can read more about our approach on the ‘Infinite’ page of our website—an initiative that is especially important to our CEO Aurélie Maes.” — Franklin, Maes
“Sustainability is another growth category. Englander will continue to look toward new sustainable raw materials in 2026 to incorporate into products. We have had several meetings with new suppliers that offer wider ranges of sustainable components to mattress manufacturers, and we will continue to meet with them and others as we move toward more and more sustainable mattresses.” — Paige, Englander
BT: Use of artificial intelligence is growing rapidly. How are you using AI in your business? What are your plans for AI in the coming year?
“I’m using AI right now. It allows me to focus more on ideas and less on mechanics. Clear communication matters, and having tools that help translate thoughts quickly into concise, well-structured language is meaningful to me. ‘125 words or less per answer?’ ChatGPT says, ‘No problem.’” — Bergman, Purecare
“We are meeting with experts and learning how applying AI can help our retailers and, thereby, their customers. Whether it be through marketing or education, AI is a powerful tool that will grow in importance.” — Paige, Englander
“We are learning daily about the AI applications we may employ in all our work. We live in an exciting time to have access to these forward-thinking tools in our everyday business.”
— Borreggine, Therapedic
“AI continues to be an ever-changing landscape. Carpenter is heavily interested in leveraging available tools to not only improve existing processes but establish new ones that empower our employees. For Carpenter, it’s about freeing up our workforce to do more meaningful work where a human touch is needed. Externally, AI provides interesting opportunities to expand and improve our customer experience.” — Faus, Carpenter
“We use AI for customer assistance and machine troubleshooting. We plan to continue expanding our depth of knowledge with AI and utilizing it to positively impact our customers.” — Schwarzberger, ABM
BT: Do you expect the bedding industry to experience growth, consolidation, or continued caution over the next 12 months?
“Modest growth with further consolidation. Demand remains choppy, so we need to be prudent as we deal with that.” — Faus, Carpenter
“(I expect) continued caution. Why? We need interest rate reductions to improve home sales and grow the economy, which will positively impact the bedding industry.” — Schwarzberger, ABM
“More consolidation and strong growth are my forecast for 2026.” — Borreggine, Therapedic
“After the last few years, I think there will be pent-up demand that will help fuel growth. If interest rates tick down a point or a point and a half, we should see a healthy boost for consumers, given where we’ve been for the last four years.” — Binke, King Koil
“I’d rather try to predict the weather.” — Bergman, Purecare
“I expect growth in 2026. Late in 2025, we saw some exciting results as consumers purchased mattresses.” — Paige, Englander
BT: What is the biggest opportunity you see for the bedding industry in 2026? How will your company address it?
“Due to the tariffs, (U.S.-based) companies will have an opportunity to take back market share from unfair trade practices. We are ready and waiting to supply mattress manufacturers with the best machinery in the world.” — Schwarzberger, ABM
“The industry is consolidating rapidly, and there will be fewer viable retailers selling in 2026 and 2027. The opportunity for a company the size of King Koil is that we’re nimble and we can be quicker on our feet. We can develop our strategies based on where we can have the most success, rather than trying to be all things to all people.” — Binke, King Koil
“The strongest opportunity lies in helping specialty retailers expand into top of bed. Roughly 65% of consumers buy a mattress and then purchase sheets, pillows, and comforters elsewhere. Capturing those add-on sales can significantly increase revenue without additional customer acquisition. Whether through [direct-to-consumer] fulfillment or in-store inventory, we’re supporting retailers with programs, logistics, and [point-of-sale] solutions that reduce operational burden and highlight these categories effectively.” — Berman, Purecare
“We always look for the positives. There has been a lot of maneuvering in the industry this year, and I think that provides us with a lot of good opportunities in 2026. We are in a strong position with the financial investments we’ve made to support our customers. We’re sharpening our focus on our core businesses and enhancing our ability to navigate the challenging environment. At the same time, we’re executing on our long-term strategic objectives, and I am more excited than ever about the opportunities that lie ahead.” — Faus, Carpenter
“Providing alternative products to the status quo is where Therapedic excels. We are planning on offering unique alternatives in the premium bedding category in the coming year.” — Borreggine, Therapedic
“Our best opportunity is at the upper end of the market. This is where Maes is strongest. We will continue to do what we do best: offer impeccable quality, stunning designs, and consistent, reliable service.” — Franklin, Maes
BT: What gives you the most hope—or concern—about the state of the bedding industry in 2026?
“We are still an industry that is tied to the real estate market. From the standpoint of the macro environment, my hope is that the industry will see some relief with interest rates in the first or second quarter, which will open up the housing market. Interest rates are never going to be at previous levels, but if they adjust downward at all, it should give a boost to the refinancing market and relocation market, which is the biggest trigger for our business. If that happens, I believe we’re going to see double-digit growth as an industry, which happened briefly post-COVID.” — Binke, King Koil
“Lower interest rates and an increase in housing starts should have a positive impact on the bedding industry in 2026.” — Borreggine, Therapedic
“I believe we are at a bottom and, as interest rates improve and the tariffs take full effect, the market conditions will improve.” — Schwarzberger, ABM
“Consolidation will continue to affect the bedding industry, which will bring both challenges and opportunities. Ongoing supply chain disruptions remain a concern, but our Belgium team continues to navigate them effectively, which can give us a strategic advantage. There are certainly some bright spots: New innovations and the projected strengthening of the housing market give us hope for 2026.” — Franklin, Maes
“I’m hopeful that a healthier housing market emerges in 2026, with lower interest rates and more attainable pricing. Increased mobility in the housing sector typically drives traffic back into mattress and furniture stores, which would provide a meaningful lift for the industry.” — Bergman, Purecare
