Decorative Rugs Market Size

Decorative Rugs Market Size

Decorative Rugs Market size crossed USD 3.7 billion in 2022 and will exhibit a 6.5% CAGR from 2023 to 2032. The rise in spending on home décor is expected to propel the demand for decorative rugs.

Recently, consumer interest in luxury interior décor and aesthetics has increased significantly. The growing need for comfortable lifestyles has spurred the adoption of décor products to improve the overall ambiance of a room by enhancing style, character, and warmth. As consumer interest in personalizing homes increases, the demand for decorative rugs will grow.
 

However, rapid urbanization and a solid growth in disposable incomes across developed and developing countries will complement industry growth. A rise in the urban population has also contributed to a growing inclination toward luxury lifestyles, augmenting spending on high-quality, durable, and stylish decorative rugs. According to World Bank data, more than 50% of the global population currently lives in urban areas. By 2045, the global urban population is estimated to surge by 1.5 times and exceed 6 billion.
 

Economic fluctuations are serving as a roadblock for decorative rugs market growth, given their impact on consumer spending patterns. Volatile economic conditions and economic downturns are affecting consumer purchasing power, compelling consumers across low- and middle-income countries to adopt a minimalistic lifestyle and reduce their spending and luxury products. In situations like economic crises or inflation, consumers also tend to cut back on discretionary spending including home décor items such as rugs and furniture, which may limit the sales of decorative rugs.