Home Decor Market

Home Decor Market Size & Growth (2023 to 2028)

The global home decor market size was valued at USD 727.6 billion in 2022 and is anticipated to reach USD 939.7 billion by 2028, registering a CAGR of 6.8% from 2023-2028

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 steadily increasing.

The global home decor market is highly fragmented due to multiple vendors among international and regional players. The rapid development of the real estate industry is resulting in the increasing demand for services such as interior design and home decor and contributing to these markets likewise. The global home decor market has seen promising growth in the recent past and is expected to grow steadily during the forecast period owing to 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 worldwide 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 many 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 demand for home decor products and services and this trend is likely to continue during the forecast period and contribute to the home decor market growth. The change in lifestyle entails adequately adapting furniture and appliances to high-end products of excellent quality. The statistics published by the United Nations say, that approximately 55% of the world's population resided in urban areas in 2018 and increasing gradually with each year passing, which is estimated to result in the increasing demand for home decor products and services and propel the market growth in the coming years.

The real estate industry has been experiencing promising growth worldwide and is resulting in an increasing demand for the services of home decor and favours the home decor market growth. The growth of the interior design industry has paved the way for premium and luxury home decor products that provide an enjoyable experience for visitors. These high-end, novelty products help bring spiritual and aesthetic pleasure and add sophistication to consumers living at home. The growing preference of consumers for home renovation fuels the availability of various interior design products such as wood or marble floors, decorative lighting and environmentally friendly furniture and drives the home decor market growth. The rising penetration of e-commerce and smart devices such as mobile phones and tablets with easy payment and dispensing options boosted the adoption of online home decor products as a means of purchase and this trend is expected to accelerate further in the coming years and propel the global home decor market growth.

MARKET RESTRAINTS:

Home decor products are often available at higher prices, making it difficult for consumers of all income levels to purchase. The higher cost of raw materials associated with products such as wood and leather that are essential in delivering the home decor services majorly hampers the global market growth.

REPORT COVERAGE:

This research report on the global home decor market has been segmented and sub-segmented into the following categories.

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 2022 globally and accounted for 37.7% of the global revenue share. The domination of North America in the worldwide market is anticipated to continue during the forecast period. Factors such as strong economy and consumer spending, changing interior design preferences, growth of online shopping and rising focus on sustainability propel the growth of the North American market. The U.S. is the most promising regional segment in North America for home decor products and services. Canada is another prominent regional market for home decor products and services in the North American region and is anticipated to occupy a considerable share of the regional market in the coming years.

The Asia Pacific region is projected to showcase a promising CAGR during the forecast period. The growing middle-class population with higher disposable incomes, rapid urban development, growing e-commerce industry across the Asia-Pacific region, increasing accessibility to decor products and booming real estate sector fuel demand for interior decor and propel the growth of the Asia-Pacific market.

Europe is predicted to occupy a substantial share of the worldwide market during the forecast period. Factors such as the growing urban population and smaller living spaces and rapid adoption of smart home technologies drive the growth of the European home decor market.

KEY MARKET PLAYERS:

IKEA Systems B.V., Kimball International Inc., Herman Miller, Inc., home24, Hanssem Corporation, Koninklijke Philips N.V., Conair Corporation, Suofeiya Home Collection Co. Ltd., Springs Window Fashions LLC and Siemens AG are some of the major companies in the global home decor market.

RECENT HAPPENINGS IN THE MARKET:

• In August 2020, Ashley Furniture announced that it was 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 announced that it would 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.