Area Rugs Market Size was valued at USD 13.6 Billion in 2023. The Area rug market industry is projected to grow from USD 14.2 Billion in 2024 to USD 20.09 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.00% during the forecast period (2024 - 2032). The growing demand for aesthetic products in residential areas, wide availability through various distribution channels, and rising adoption due to improving people's living standards are expected to be significant market drivers for the Area Rugs Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Area Rugs is being driven by the Increasing renovation and remodeling and high growth of the real estate and hospitality industries. The growing demand for products stimulated by renovation and remodeling plays a crucial role in market expansion. The goods are valued for their beneficial functions, that is, the thermal insulation and slip resistance of the floor, as well as their aesthetic value. These forms of products are increasingly popular in the interior designing industry, and the consumer inclination towards interior aesthetics, along with the growth of online shopping platforms and the increased standards of living, play a significant role in the increasing market size. For example, the report from the U.S. Houzz & Home Study 2022 shows that home remodeling spending in 2021 had an increase of 21% compared to 2020 and had the highest amount in the last four years. The U.S. Joint Center for Housing Research at Havis University (JCHS) noted that Americans spent approximately $472 billion on home improvement in the year 2022. Home remodeling recorded as much as $369 billion in revenue throughout the year 2021. The average expenditure on lower-budget films is now $15,000, and the larger films tend to cost $85,000.
The developed real estate and hospitality sectors all over the world have served as a major boost for the growth of the area rugs market. According to ICRA’s expectations, corporate India planned to obtain > Rs 3.5 trillion (US$ 48 billion) from various infrastructure and real estate investment trusts in 2022, as compared with the raised funds that amount to US$ 29 billion to date. According to IBEF, By 2040, the real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. The real estate industry in India will likely be a trillion-dollar market by 2030 and contribute 13% of the country’s GDP by 2025. It will grow to USD 200 billion in 2021. As a result, it is anticipated that throughout the projection period, demand for the Area Rugs Market will increase due to Increasing renovation and remodeling and the high growth of the real estate and hospitality industries. Thus, driving the Area Rugs Market revenue.
The Area Rugs Market segmentation, based on Type, includes Wool Area Rugs, Synthetics Area Rugs, Sisal, Jute & Sea Grass Area Rugs, Animal Skins Area Rugs, Silk Area Rugs, Cotton Area Rugs, and Others. The synthetics area rug segment dominated the market, accounting for 58% of market revenue. Polymers such as polypropylene, nylon, and polyester have built repute by being durable and withstanding. Their superior durability allows them to compete with heavy foot traffic, making them an ideal option for high-traffic areas in homes, including living rooms, hallways, and entrances. This durability contributes to the extended lifespan of synthetic rugs, which makes them a desirable choice for many consumers.
The Area Rugs Market segmentation, based on Application, includes Commercial and Residential. The residential segment dominated the market, accounting for 58% of market revenue. Moreover, people are in higher demand for custom-made and varied home décor for more individuality. Therefore, it has caused an increase in the popularity of customizable area rugs that fulfill the buyers' requirements, such as the size, shape, color, and texture of their interior design.
Figure 1: Area Rugs Market, by Application, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Area Rugs Market segmentation, based on Distribution Channels, includes Online and Offline. The Offline segment dominated the market, accounting for 60% of market revenue. In physical stores, most of the time, customers get personalized advice from informed sales associates; even details like dimensions, style, and material could be told. This standard of customer service can enrich the shopping process and increase consumer trust in the retailer.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Area Rugs market in North America can be attributed to several key factors. The main catalyst in the North American carpet market is the rising number of home decorations and renovations with a hint of millennial influence. The data from the 2022 U.S. Houzz and Home Study demonstrates how homeowner spending has grown, with the median amount spending on home improvement going from $15,000 in 2020 to an increase of $3,000 to nearly $18,000 in 2021. Homeowners have spent 25% more on kitchen upgrades in 2021 than in 2020, and the average amount invested in kitchen remodeling has risen from $12,000 to $15,000.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: Area Rugs Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Area Rugs Market accounts for the second-largest market share as higher income and changing lifestyle preferences have resulted in an increased demand for improving home interiors, thus leading to a growing demand. Area rugs are one of the essential tools in home décor because they contribute so much by utilizing warmth, color, and texture that complement all living areas. In 2018-2022, both national brands and contract manufacturers’ products had market share increase rates ranging from 59% to 63%. It came into effect equivalence to €13 billion worth of domestic textiles from a total product of €20 billion in 2022. In 2022, Europe imported €24 billion worth of its total imports of finished textile products (HDHT) directly from other developing countries other than China. Given that individuals want to individualize their homes, the need for area rugs also increases, accompanied by it. Further, the German Area Rugs Market held the largest market share, and the UK Area Rugs Market was the fastest-growing market in the European region.
The Asia-Pacific Area Rugs Market is expected to grow at the fastest CAGR from 2024 to 2032. The consistent development of new housing and the expanding home improvement industry will lead to many sales in the upcoming years. The real estate market of Indian residential property achieved the highest sales value of INR 3,47 lakh crore (or about 42 billion USD) in the fiscal year of 23 (FY23). This was a 48% jump from last year’s sales volumes, as well as those units sold, which grew by 36% to reach 379.095 units. Developers involved in development in India's leading cities have already been on the path to prosperity in 2023 – they are expected to deliver around 558,000 homes. Moreover, China’s Area Rugs Market held the largest market share, and the Indian Area Rugs Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Area Rugs market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Area rug industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Area Rugs industry to benefit clients and increase the market sector. In recent years, the Area rug industry has offered some of the most significant advantages to the interior design sector. Major players in the Area Rugs Market, including Bukhara Carpets, Justina Blakeney x Loloi, The Dixie Group, The Natural Carpet Company, Milliken & Company, Balta Industries, BRINTON AGNELLA, Bella Dura, Shaw Industries, Haroun Ian Rugs International are attempting to increase market demand by investing in research and development operations.
Shaw Industries, a subsidiary of Berkshire Hathaway Inc., is a carpet manufacturer. The company has its operations in designing, manufacturing, and marketing floor and carpet coverings in almost all parts of the world. It provides many kinds of products, including carpets, hardwood, and laminate floors, synthetic turf, etc. Such as resilient flooring products, vinyl flooring, and tiles and stones. Shaw manufactures carpets for single-family homes and commercial clients. The company markets and distributes its product lines under different brand names like Anderson Tuftex, Shawgrass, Patcraft, Shaw Hospitality, US Floors, Southwest Greens, Shaw Hard Surface, Zeftron, Shaw Nonwovens, Spectra, Philadelphia, and Shaw Sports Turf. The company's head offices are located in the United States and Singapore, as well as in mainland China, Chile, India, Mexico, UAE, Australia, Belgium, Brazil, Canada, France, and Great Britain. Shaw, which is headquartered in the United States, is located in Dalton, Georgia. February 2024: Shaw Contract developed Creative Zone, which is a collection of innovative 24 x 24 carpet tiles. This collection is inspired by the transitory joy of the experience found in our everyday surroundings and has been created mindfully to be applied effectively in several different settings.
The Natural Carpet Company is the designer and manufacturer of specific floor coverings and wall coverings, ceiling fixtures, furniture, and accessories. As an expert in natural fiber products, the company is committed to giving out satisfactory items using abacá and other natural fibers. Being environmentally friendly, products maintain CRI (Carpet & Rug Institute) Green Label Plus certification and add up to LEED (Leadership in Energy and Environmental Design) certification points. Natural Carpet Company is cooperating with interior designers, architects, property managers, and hotel and resort owners. An extensive collection of natural area rugs and carpets is produced by the company, and custom projects are carried out in collaboration with designers. Products can be found in hotels all over the world, including but not limited to the following brands: Banyan Tree, Hyatt Regency, Four Seasons, Wynn Hotels, Sheraton Hotels, Ritz Carlton, and so on.
Key companies in The Area Rugs Market Include
Area Rugs Industry Developments
February 2024: Tarkett launched an upgraded QuickShip program for their carpet collection, featuring 73 soft surface products thoughtfully selected for dealers, architects, and designers. The highlight is the ability to deliver these products to any location nationwide within five business days.
March 2022: Capel Rugs announced plans to introduce an extensive selection of new rugs showcasing various styles, constructions, and price ranges, along with refreshed patterns and designs. Crafted from 100% wool sourced from India, the new collection aimed to offer retailers high-quality products for enhanced aesthetics.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 13.6 Billion |
| Market Size 2024 | USD 14.2 Billion |
| Market Size 2032 | USD 20.09 Billion |
| Compound Annual Growth Rate (CAGR) | 5.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | Bukhara Carpets, Justina Blakeney x Loloi, The Dixie Group, The Natural Carpet Company, Milliken & Company, Balta Industries, BRINTON AGNELLA, Bella Dura, Shaw Industries, Haroun Ian Rugs International |
| Key Market Opportunities | · Rising demand for sustainable and eco-friendly products |
| Key Market Dynamics | · Increasing focus on interior design |
Frequently Asked Questions (FAQ) :
The Area Rugs Market size was valued at USD 13.6 Billion in 2023.
The Area Rugs Market is projected to grow at a CAGR of 5.00% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are Bukhara Carpets, Justina Blakeney x Loloi, The Dixie Group, The Natural Carpet Company, Milliken & Company, Balta Industries, BRINTON AGNELLA, Bella Dura, Shaw Industries, Haroun Ian Rugs International, and others.
The Synthetics Area Rug segment dominated the market in 2023.
The Offline segment had the largest share in the global market.
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