The global home decor market size was valued at USD 665,917.5 million in 2021. It is projected to reach USD 939,637.2 million by 2030, growing at a CAGR of 3.9% during the forecast period (2022-2030).
Home decor products such as furniture and textiles are installed across various settings, including spas, offices, clean rooms, restaurants, camping, bedrooms, the outdoors, the library, and stores. Home decor products include various items such as furniture, home textiles, and floor coverings. Depending on end use, furniture designs can be modified through machine-based processes and handcrafting. The developing real estate industry is driving the growth of the global home decor market in the current scenario. Moreover, the rise in the number of small houses has encouraged the use of products with facilities for extra storage and enhanced the aesthetical appearance of homes. In addition, the rise in popularity of eco-friendly home decor products among consumers, owing to increased environmental concerns, significantly contributes to the growth of the global market.
|Market Size||USD 939,637.2 million|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Consumer interest in home decor has grown dramatically recently across the globe. According to data, consumers in the United States are currently concentrating on house remodeling. The real estate sector has expanded significantly in emerging economies like China and India. Customers in these nations have shown a willingness to spend money on home decor items like furniture, fabrics, and floor coverings, which has fueled the global market expansion.
According to UN data, nearly 56% of the world's population resides in urban areas. In addition, fewer people live in metropolitan regions in Asia and Africa than in North America and Europe, with 49.9% and 42.5%, respectively. However, urbanization in these areas is anticipated to occur soon. As a result, an important driver promoting the expansion of the global market is the worldwide increase in urbanization. In contrast to the global average of 27.81%, 34% of Indians resided in urban areas, according to data given by the United Nations. The National Bureau of Statistics of China performed a survey, which revealed that 59.6% of China's population lived in urban areas. As a result, the increasing global urbanization significantly influences the home decor market share.
Suppliers of raw materials are essential in the home decor industry. The availability of high-quality wood is also limited due to strict controls placed on manufacturing and importing natural materials like wood, which harms the uptake of home decor products. Due to the significant demand created by industries like footwear and textile, the need for leather is considerable. On the other hand, there is a finite amount of leather. The market's growth is hampered by the increasing cost of raw materials brought on by these factors.
Individuals' discretionary income is rising across the globe. The gross disposable household income (GDHI) per person has increased across the UK, according to the Office for National Statistics (ONS). Additionally, people's discretionary income in North America and Asia-Pacific has been multiplying. Due to an increase in disposable income, consumers' lifestyles, particularly in urban areas, are dramatically improving. Additionally, floor coverings, textiles, and furniture have become essential components of modern living, and demand for these products is growing due to increased construction activities and customers' affluent lifestyles. As these products improve the aesthetic appeal of homes, an increase in consumers' willingness to spend more on home decor items is projected to provide lucrative chances for the growth of the global market.
The global home decor market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the largest shareholder in the global home decor market and is expected to grow at a CAGR of 3.2% during the forecast period. Globally, consumer interest in home decor has increased significantly in recent years. According to research, consumers in the United States are currently focusing on home improvement. The real estate market has grown tremendously in developing nations like China and India. Customers in these countries have demonstrated a willingness to spend money on home furnishings, textiles, and floor coverings, which has fueled the growth of the global market. The Asia-Pacific market's growth is driven by a rise in disposable income and rapid urbanization in Asian countries such as India, China, and Vietnam. Due to the expansion of the middle class and the region's real estate market, China currently commands the top spot in the Asia-Pacific region for furniture sales.
Consumer purchasing patterns have been influenced by the changing lives of people in Asia. Eco-friendly home decor products are becoming more and more popular with consumers due to rising environmental awareness, which stimulates market expansion. The region's increasing urbanization is a significant factor in the market's growth. Further, the region's real estate market is expanding, which in turn is fueling market expansion. Essential elements driving the market growth include an improvement in lifestyle, an increase in disposable income, and an increase in house renovation activities.
Europe is expected to grow at a CAGR of 3.8%, generating USD 269,002.1 million during the forecast period. Home decor products are mainly used in residential applications, followed by the European commercial sector. Due to a rise in the use of home decor items in the residential application sector, Spain currently dominates the global market for home decor in terms of revenue. Additionally, hospital furniture must be specially designed and produced by governmental requirements. As an illustration, the British Contract Furnishing Association mandates that hospitals' wooden furniture be sealed with premium clear lacquer. The region's consumers favor high-end and fashionable home decor items, which supports the market's expansion. Furthermore, due to a lack of space, there is a significant need for versatile furniture in the area.
The United States has a significant share of the North American home decor market demand because so many people in the country want home decor items. The major manufacturers try to dominate the North American market by employing cutting-edge manufacturing and marketing strategies and providing quicker delivery, more specialized product offers, and higher-quality artistry. Additionally, it is anticipated that Mexico's rising standard of living will stimulate the region's home decor sector. The sale of flooring goods that include hazardous compounds is prohibited in the US. Consumers' propensity for eco-friendly goods also increases the demand for eco-friendly and organic home decor items in North America due to increased environmental consciousness. Additionally, luxury home decor products have significantly increased in popularity in the area, which supports market expansion. Manufacturers are pressured by strict government laws in nations like the US to create eco-friendly home decor items.
Brazil, South Africa, the United Arab Emirates, and the rest of LAMEA are all examined together in the home decor market share in LAMEA. The market is in its infancy or development stage, but it is expected to grow strongly because of the sharp increase in the number of middle-class people. Contrarily, because they have less discretionary income, customers in emerging countries tend to spend less on expensive goods. Urbanization growth and lifestyle advancements are the main drivers of market expansion. Additionally, it is anticipated that a rise in disposable income would open up profitable chances for the home decor industry. Due to the availability of resources like wood and labor, many furniture manufacturers are moving their facilities to this area, helping the industry flourish.
The global home decor market is segmented by product type, distribution channel, price, and income group.
Based on product type, the global market is bifurcated into home textiles, floor covering, and furniture.
The floor covering segment is the highest contributor to the market and is expected to grow at a CAGR of 4.1% during the forecast period. Products for floor covering are tiles, wood and laminate, vinyl, and rubber. The understanding of the importance of recycling and reducing trash has expanded dramatically. Also, recycled materials such as wood, laminate, and tiles affect the flooring industry. Customers have demonstrated a high level of appreciation for fashionable floor coverings that are economical and environmentally beneficial. Due to continuing development projects, the Asia-Pacific area has experienced fast expansion. Growing urbanization and increased construction activity are significant market expansion drivers, particularly in nations like China and India.
Customers are buying more furniture than ever due to increased disposable income and the pervasiveness of Western culture. The increased use of modular kitchens and lighting also increases the need for furniture. Parts of furniture are made from various materials, including metal, wood, plastic, glass, and leather, alone or in conjunction with other materials. In the furniture sector, the shape and structure of design play a significant role since they directly impact consumers' decisions to purchase a given product. Additionally, the furniture business is expanding due to growing urbanization and a rise in the idea of the nuclear family. The growth of the real estate sector and the rapid uptake of e-commerce platforms are also anticipated to open up a lot of potential for the furniture business.
Based on distribution channels, the global market is bifurcated into supermarkets and hypermarkets, specialty stores, e-commerce, and others.
The specialty store segment owns the highest market share and is expected to grow at a CAGR of 3.7% during the forecast period. Many different products and related items are available at the home decor-focused specialty store outlet. The specialty shop offers specialized solutions to offices, apartments, and corporate customers. Additionally, specialty shops provide higher-quality customer care and expert advice when assisting consumers in selecting home decor items for various uses, including kitchens, bedrooms, and outdoor furniture. Consumers prefer to research and weigh options before purchasing, which helps improve retail sales of home decor goods in specialty shops. Consumers also examine the quality, dependability, and color options available in the stores and the accessories that work with them. Specialty stores are therefore expected to see an increase in demand in the future.
A supermarket is a self-service store with categories for organizing its broad selection of food items, home goods, furniture, and accessories. It is smaller than a hypermarket or superstore but is more prominent in size and offers a greater variety of goods than a typical store. The logistics cost has been significantly lowered thanks to the storage of furniture products in warehouses by various supermarkets and hypermarket players, resulting in lower home decor goods prices. Large home decor items, including floor covering, textiles, and furniture utilized in restaurants, offices, and residential segments, are a primary focus of supermarkets and hypermarkets. Due to increased competition from other features, such as e-commerce, supermarkets and hypermarkets have significantly upgraded their logistic chains to offer products at a lower price.
Based on price, the global market is bifurcated into premium and mass.
The mass segment is the highest contributor to the market and is expected to grow at a CAGR of 3.7% during the forecast period. Mass pricing is a smart way to sell to people who can't afford or don't want to buy higher-quality goods or services. The target market for this pricing category consists primarily of consumers from the lower and higher middle classes. Lower-middle and upper-middle class customers' increased use of mass-produced goods have a considerable positive impact on the market's expansion. The security or insurance fee is not included in the price of these products. In addition, the trend of middle-class consumers decorating their homes to mirror societal norms has increased the demand for mass-produced goods.
Based on income group, the global market is bifurcated into lower middle income, upper middle income, and higher income.
The higher income is the highest contributor to the market and is expected to grow at a CAGR of 3.9% during the forecast period. According to the World Bank Atlas calculation technique, the higher income group contains customers whose gross national income (GNI) per capita is USD 9,076 or more. The highest concentration of people in this income bracket may be found in developed economies. Most of the time, the wealthy consumer group belongs to the upper-income category. They frequently look to purchase high-quality goods due to their immense purchasing power. The high-income consumer segment is prone to impulsive purchases, a significant market driver.