Global Home Decor Market
The global home decor market size is estimated to reach USD 1079 billion by 2029 from USD 777 billion in 2024, with a CAGR of 6.8% from 2024 to 2029.
Current Scenario of the Global Home Decor Market
The home décor market is undergoing a shift due to the advent of modern technologies, rising e-commerce and digital service. Today customers have more options in their hands owing to the availability of information, product offers, and interior decoration with smart technologies. This is also fuelling the demand for uniqueness and customised products. Moreover, the market is experiencing growth and development in major world economies despite elevated costs and interest rates.
Market Drivers
The rising pace of urbanisation and demand for smart houses drives the growth of the home décor market. Digital technology is broadly seen as a major factor causing the development in both furniture industry and this market. The innovation in smart homes is reshaping home furnishing. Today buyers first explore different designs and options suitable to their requirements, then physically examine the available products. The transition in customer preferences for urban lifestyle is because of the rising pace of urbanisation and e-commerce. The change started with e-commerce, but fresh advancements like the Internet of Things (IoT), blockchain, Virtual Reality (VR), and Augmented Reality (AR) truly lead customers into the modern age of furniture retail. According to the research, 77 per cent of AR consumers stated that they utilise it to notice and view product differences, like potential changes in styles and colours. Thus, it is propelling the home décor market forward.
Market Restraints
The home décor market expansion is affected by several reasons including, the high cost of premium offerings, rising product visualization online, building trust on digital platforms, etc. For instance, in an attractive market like India, the cost of a basic interior for a living room is between 20 to 50 thousand rupees, whereas, that of a premium setup ranges from 75 thousand to 100 lakh rupees.
Segment Analysis
By Product Type
- Furniture
- Home Textiles
- Floor Coverings
The floor coverings segment is believed to have gained the maximum share of the home décor market. The progress of the segment can be credited to the advantages of strong flooring like durability, odor-proofing, waterproofing, and impact and scratch resistance, in contrast to other options. In addition, the increased expenditure on soft flooring at the time of remodelling and home renovation activities, added to the expansion of the segment’s market share. As per Floor Covering Weekly, the sales of floor covering in the United States rebounded in the fourth quarter of 2023 as interest rates lowered.
By Distribution Channel
- Supermarkets and Hypermarkets
- Specialized Stores
- E-Commerce
- Others
The specialized stores segment dominated the home décor market and is projected to keep its significance even with the integration of digital technologies and applications during the estimation period. One of the factors propelling forward the segment is the higher consumer confidence in the knowledge of store executives, the wide variety of products and better quality. Moreover, these stores perform even better in the luxury product category. However, the e-commerce segment is witnessing a swift rise in this market share due to the assistance in making appropriate decisions and the availability of other customer reviews and ratings.
By Income Group
- Lower Middle Income
- Upper Middle Income
- High Income
The high-income segment is the leading category of the home décor market and is estimated to grow at a steady pace in the forecast period. This dominance can be linked to the increasing per capita spendable income and a better understanding of interior design.
By Price Point
- Mass
- Premium
The mass segment captured the larger share of the home décor market and is anticipated to move forward at a considerable CAGR in the coming years. The elevating importance of interior design among the masses in emerging economies are fuelling the segment’s market growth.
Regional Analysis
North America is at the forefront of the home décor market and is believed to maintain its position throughout the estimation period. The United States drives the regional market owing to growing investments in home improvement. Especially, New England, Mountain West, and Northwest especially came on top with high spending in 2022. In Canada, the proceeds from interior designers have risen in recent years, however, it continues to be unstable. The market in the country is greatly intense due to lower industry concentration.
Asia Pacific is quickly rising in the home decor market and is expected to remain the most attractive region for companies during the forecast period. China is spearheading the regional market. The APAC customers are progressively inclining towards natural materials, neutral colours, and clean lines.
Recent Market Developments
- In February 2024, Havenly, a prominent interior design service and home furnishing firm, reported it had come to a substantive agreement to take over The Citizenry. This acquisition is under its current measures to make a collection of home technologies and brands to attract the next generation of buyers.
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