A fire at a large Lyondell chemical factory in Pasadena, Texas, in early March has hindered U.S. production of polyol, a key chemical used in the production of foam for mattresses. And the effects are starting to be seen.
Some mattress companies started to implement price increases about two weeks ago, including Helix, Jamison Bedding and Diamond Mattress, among others.
However, this is an industrywide problem that has already led to the allocation of existing foam.
John Merwin, CEO of 3Z Brands, says like most manufacturers, 3Z is seeing signs of foam and chemical cost increases tied to tightening raw material supply. While pricing is moving, the immediate focus for the company is maintaining stable, reliable supply as much as managing cost.
“We’ve stayed closely aligned with our supplier partners and planned ahead on inventory, which puts us in a strong position to navigate changes like this,” Merwin said. “Cost volatility isn’t new for the mattress industry. Companies that stay disciplined operationally and remain flexible tend to manage through these cycles without disrupting customers.
If current conditions continue, Merwin said he expects pricing pressure to build across the category over the coming months.
Sandman Bedding Co., a large producer of foam for brands across the mattress industry, continues to navigate the rising foam costs and the recently implemented foam allocations impacting the industry.
“Through strong supplier partnerships and disciplined operations, we have been successful in minimizing disruptions and limiting the impact on our customers,” said Travis Thigpen, executive vice president of Sandman.
“While these cost impactors are unavoidable, we are committed to minimizing the impact on our customers wherever possible,” he added. “We are working diligently to absorb increases as much as possible, limit disruptions and maintain the highest level of service our partners rely on.”
Greg Jent, co-founder of MIDAS and co-owner of Discount Mattress in Bowling Green, Kentucky, said there are two ways the industry is affected.
“One is price increase and the other one is being able to get the allocation,” he said. “I have one manufacturer that went from shipping in one week to shipping in three weeks. I’ve also spoken to manufacturers who have told me they’re expecting a follow-up increase in the mid- to end of summer.”
He adds that some brands are trying to eat some of the loss right now, hoping that there’s a correction so that they don’t lose spots on people’s floors at a time that they can’t afford to lose spots. Yet other manufacturers he’s spoken with are taking a totally different approach and simply increasing prices with the knowledge that the brand is strong and will still perform.
“The concern is about where the margin hits that the retailer will take,” said Steve Houk, owner of Boise Mattress. “So it depends on the merchandising in the store and what type of beds you display that are comparable. No matter what, we’ll have a $799, even if it was a $599 bed a month ago. We have to hit those price points.”
He adds that he would caution retailers who are thinking about taking brands off their floors because of price increases.
“Your importance to a manufacturer matters when it comes to allocation,” he said. “If you jump ship, you just went from being an established customer to being a new one.”
Despite the focus specifically on price increases, other industry challenges make the increases and allocations more severe.
“We’re seeing cost pressures arise due to several factors impacting the global supply chain,” said Derek Leishman, national sales director for Mlily USA. “There’s pressure on core chemical inputs that are closely tied to crude oil and the petrochemical market. Beyond raw material increases, there are higher transportation costs like ocean freight and fuel surcharges.”
According to Leishman, this is an evolving situation in which the entire industry is trying to adjust.
“While some level of pricing adjustment may be necessary over time, our approach at Mlily is to be very deliberate in how we respond,” he said. “Because we control our own foam pouring, we have greater flexibility to take a more intentional, measured approach. Our focus is on balancing rising cost pressures with the need to remain a consistent, stable partner for our retail customers. Ultimately, we’re trying to manage in a way that supports both our partners and the long-term health of the business.”
“Everybody sees the foam increase,” said Bedgear CEO Eugene Alletto. “Fewer people, however, are asking the harder question, which is, ‘What should we do about it beyond raising prices?’ Yes, petroleum matters. Yes, the Texas fire matters. Yes, allocations are real. But if the only move our industry has is to pass costs through, then we are not innovating fast enough.”
He said the consumer can trade down a lot faster than they will trade up. Every time the industry hollows out the middle, it makes the category easier to postpone.
“The answer is not just less petroleum-based foam,” Alletto said. “It is better engineering, less waste, smarter material choices and a stronger story around sleep, wellness, and environmental responsibility. When we create real value, the consumer responds. When we just create another price increase, they wait.”
Charles Scott, mattress buyer at The Furniture Mall in Wichita, Kansas, says he’s not as worried about foam price hikes as he is about potential delays as he experienced in 2021.
“Higher prices are much easier to manage than long wait times for customers in bedding,” he said. “We plan to beef up our stock as soon as the Memorial Day sales begin. We’re also considering a bulk purchase of king and queen mattresses with that popular hotel-bed feel. This would give us more flexibility to run a sale on them if delays hit any of our planned promotions later in the year.
“I think we’ll get through it fine,” he said. “In 2021, we placed massive orders and lost some sales from customers who didn’t want to wait, but many of them ended up coming back once they realized everyone was facing the same challenges.”
