Home Decor Market

Home Decor Market Size & Growth (2022-2027)

The Home Decor Market was valued at $ 727.6 billion in 2021 and is anticipated to reach $ 939.7 billion by 2027, registering a CAGR of 6.8% from 2021 to 2027.

Home decor products include various items such as furniture, home textiles, and floor coverings. Depending on the end-user, furniture designs can be modified through mechanical and artisanal processes. Adoption of home decor products has been significantly high in developed regions such as the United States, Canada, and Germany while emerging countries such as China, Brazil, and India are seeing a steady increase.

The global home decor market is highly fragmented due to the presence of multiple vendors among international and regional players. The development of the real estate industry is driving the growth of the global interior design market in the current scenario. The worldwide home decor market has seen significant growth over the years and is expected to grow steadily over the outlook period. This is attributed to an increase in the popularity of interior design products such as furniture, home textiles, and flooring among worldwide consumers.

Impact of COVID-19 on the Home Decor Market

Home decor manufacturers around the world have halted production due to disruption in the supply of raw materials such as wood and metals (steel and aluminum) with restrictions on logistical mobility during the coronavirus lockdown period. The demand for interior design is expected to increase during COVID-19, as large numbers of employees work from home and need offices. During the pandemic, the buying behavior of consumers has changed, and they now prefer to buy home decoration products using e-commerce platforms instead of physical stores.

MARKET DRIVERS:

The shift in consumer trends towards an urban lifestyle due to the increasing rate of urbanization has fueled the growth of the global home décor market. The change in lifestyle entails the adequate adaptation of furniture and appliances to high-end products of excellent quality. According to the United Nations, 55.0% of the world's population resides in urban areas in 2018. Therefore, this increase in the rate will have a positive effect on the demand for home decor products during the forecast period. Also, the expansion and development of the real estate sector is supposed to complement the growth of the home décor industry. Globalization has led to a larger market for consumers, facilitating the availability of products with a variety of products in different distribution channels. Additionally, the growth of the interior design industry has paved the way for premium and luxury home décor products that provide an enjoyable experience for visitors. These high-end, novelty products help bring spiritual and aesthetic pleasure, which also adds sophistication to consumers living at home. The increasing preference of consumers for home renovation after a certain period of time increases the availability of different interior design products such as wood or marble floors, decorative lighting, and environmentally-friendly furniture. Besides, the increasing penetration of e-commerce and smart devices such as mobile phones and tablets with easy payment and dispensing options has increased the adoption of online home decor products as a means of purchase. Easy access to products and increased availability have also fueled the growth of the market with various interior decoration products.

MARKET RESTRAINTS:

Home decor products are often available at higher prices, making it difficult for consumers of all income levels to purchase. Furthermore, the higher cost of raw materials associated with products such as wood and leather is also responsible for slowing down market growth.

HOME DECOR MARKET REPORT COVERAGE:

Market Segmentation

Home Decor Market - By Product Type:

• Furniture

• Home Textiles

• Floor Coverings

Home Decor Market - By Distribution Channel:

• Supermarkets and Hypermarkets
• Specialized Stores
• E-Commerce
• Others

Among these, the specialty stores were the largest segment, with the highest share in 2020. However, the e-commerce segment is expected to experience the highest growth during the predicted period.

Home Decor Market - By Income Group:

• Lower Middle Income
• Upper Middle Income
• High Income

Home Decor Market - By Price Point:

• Mass
• Premium

Home Decor Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

North America was the largest regional market in 2021 and accounted for 37.7% of global revenue. The market growth is attributed to greater product accessibility, as well as greater penetration of online and offline interior design channels. The region with a big number of market players is witnessing the increased penetration of different decoration products such as furniture, lighting, decorative flooring, and use of textiles.

The United States dominates the global outdoor furniture market due to the increasing willingness of consumers to spend on home décor products. The Asia Pacific region is likely to see significant market growth due to the population shift to urban areas. The region is experiencing strong growth in the real estate sector involving the construction of new houses and buildings. Therefore, the new constructions derive from the new and innovative decoration products available on the market. The growth of the interior design industry in developing countries such as Indonesia, China, and India has increased the demand for interior design products. In addition, the growing inclination towards green products has increased the tendency of waste applications to achieve a modern look. This, in turn, has increased the creativity factor in the manufacture of interior design products.

Recent Developments and Trends:

• In August 2020, Ashley Furniture has announced that it is expanding its operations at its Verona and Saltillo facilities. The expansions will create 130 jobs at both facilities. Ashley will invest $ 13 million in its Verona plant, and this includes the construction of a building and the purchase of new equipment.
• In August 2020, The Home Depot has announced that it will open three new distribution centers in Georgia over the next 18 months to meet the growing demand for flexible pickup and delivery options for commercial and DIY customers.

Key Players:

Key manufacturers in the Home Decor Market include: 

1. IKEA Systems B.V.
2. Kimball International Inc.
3. Herman Miller, Inc.
4. home24
5. Hanssem Corporation
6. Koninklijke Philips N.V.
7. Conair Corporation
8. Suofeiya Home Collection Co. Ltd.
9. Springs Window Fashions LLC
10. Siemens AG