Luxury Interior Fabric Market Size, Share & Trends Analysis Report By Product (Curtains, Upholstery, Bed Linen, Mattress Coverings), By Raw Material (Cotton, Velvet, Linen, Jacquard, Others), By Distribution Channel (Online, Offline), By End-User (Domestic, Commercial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global luxury interior fabric market size was valued at USD 1.892 billion in 2022. It is estimated to reach USD 4.721 billion by 2031, growing at a CAGR of 10.3% during the forecast period (2023–2031).

A piece of luxury fabric is of the utmost quality, typically scarce, and is used by top designers to create elegant wardrobe staples. They are primarily made of natural fibers or the newest, most cutting-edge materials. Material selection is the most crucial factor in achieving the design's goal for an interior. The rest of the design is determined by the fabric's drape, texture, and weight and depends on careful material selection. Fabric color selection is important in interior design because it must match the furniture.

A room's luxury interior fabric selection can be challenging, especially when covering furniture and making window treatments or decorative pillows. The fiber a garment is made from can occasionally affect its cost. These products are produced with materials other than the usual ones. Some manufacturers use high-grade components to create fabrics of the greatest quality. These fabrics stand out from other fabrics because they are made from the best and rarest materials.

Highlights

• Upholstery dominates the product segment
• Offline channel dominates the distribution channel segment
• Domestic dominates the end-user segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global luxury interior fabric market drivers

Rising disposable income and affordability

Rapid growth in disposable income and affordability has resulted in increased consumer spending, which has allowed the emergence of additional market segments, including luxury interior fabrics. In an era of quickly changing trends, luxury businesses have started to keep an eye on a new consumer class that is growing and expected to become increasingly significant soon. Rapid industrialization and urbanization steadily improve the quality of life, making consumers demand quality interior products.

Additionally, growing awareness of the benefits and comfort provided by these fashionable interior fabrics is driving market expansion. As lifestyles change, consumers are inclined towards good quality, comfortable, and visually attractive interior fabrics. Several developed economies highly recommend such fabrics in luxury interior specialty and branded stores. As the requirement for luxury yet comfortable interiors is increasing, the market is anticipated to represent great progress over the forecast period.

Flourishing real estate market

Growth of the real estate market and developing living standards have resulted in improved spending on interiors and home decor. This is also expected to be one of the key factors enhancing the market growth during the forecast period. The market will experience growth in the interior sector due to real estate expansion, which will likely lead to an increase in demand for high-end interior fabric in these markets. In 2016, according to HSBC's Global Real Estate report, real estate was valued at USD 228 trillion, a 5% increase from 2015's valuation.

Additionally, the market is expected to expand shortly due to the rising demand for new homes from a growing population. According to the National Association of Home Builders, the number of permits for single-family homes in the United States increased by 8.4% in 2018. Therefore, developments in the domestic category are anticipated to drive demand for opulent interiors, thereby driving market expansion.

Global luxury interior fabric market restraint

Fluctuation in the prices of raw materials

Prices of raw materials such as cotton have risen over the past few years. Global cotton mill use is likely to remain stable as comparatively higher cotton prices deter growth in demand. Suppose the cost of raw materials, for example, cotton or any other material, rises. In that case, the cost of cotton goods, both finished goods like cotton fabrics and semi-finished goods like yarn, manufactured while cotton was cheap, also rises. As a result, continuous fluctuation in the prices of raw materials is anticipated to restrict the growth of the market.

Global luxury interior fabric market opportunities

Technological advancements transforming the retailing of luxury interior fabrics

Technological advancements are changing the retailing of luxury interior fabrics, which is expected to have a profound implication on the market's future. Technological innovations online and in-store and changing consumer expectations are transforming interior fabric retailers' operations. The growth of online luxury interior fabric retail is supported by technological advancements focusing on improving the shopping experience and fulfillment capabilities. It also provides a considerable growth opportunity as manufacturers and retailers invest in ease and convenience, personalization, and combine online and offline to meet diverse customer needs.

Additionally, technological advances alter the manner in which individuals search for luxury interior fabrics. It is projected that physical stores will offer improved customer experiences due to the growth of digitalization and consumer-facing technologies, making it easier for customers to explore, find, and buy interior fabrics. As more consumers rely on technology to inform their purchasing decisions, retailers utilize this information to drive sales, creating market expansion opportunities.

Regional Analysis

Based on region, the global luxury interior fabric market is bifurcated into North America, Europe, and Asia-Pacific.

Europe dominates the global market

Europe is the most significant global luxury interior fabric market shareholder and is anticipated to exhibit a CAGR of 11.6% during the forecast period. Europe emerged as the largest market for luxury interior fabric, led by countries such as the U.K., Germany, Italy, and France; the demand for luxury interior fabric in Europe continues to be driven by the increasing popularity of luxury and sustainably sourced products. Growing consumer awareness regarding luxury fabrics for the interior décor of their homes is boosting the market growth in the region. Moreover, prominent brands in the region, such as Nina Campbell and Dedar S.p.A., are another factor driving the market growth. The growing demand for personalized interior fabrics has been contributing significantly to the growth of the luxury interior fabric market. In the coming years, luxury interior fabric manufacturers will likely offer custom personalized products to their customers, given the rising demand for creative designs and the growing competition in the regional luxury interior fabric market.

Asia-Pacific is estimated to exhibit a CAGR of 13.2% over the forecast period. Despite the COVID-19 pandemic significantly impacting Asia-Pacific growth in 2020, the region has seen a significant economic decline over the previous two decades. Growing prosperity, a rising affluent population, and the availability of abundant resources for manufacturing products in the region have led to an encouraging environment for the growth of the luxury interior fabric market. In addition, the increasing per capita income of people across the region has enhanced their purchasing power. The region's prospering building and construction industry will likely boost the luxury interior fabric market growth.

Additionally, Asia now stands as the world's key growth engine. There is a very high degree of urbanization in emerging economies of Asia, including India and China. Over the last two decades, the region has witnessed significant growth in urban centers as people move from the countryside to cities to work and live. This is expected to increase their purchasing power and drive growth in the luxury interior fabric market.

North America is expected to grow significantly over the forecast period. Improving economic conditions all over the region has created favorable conditions for the growth of the luxury interior fabric market. The growing purchasing power of consumers across the U.S. and the growing real estate sector are the major factors supporting the market growth. The growing demand for luxury fabrics for interiors in American households is attributed to their high aesthetic value. Moreover, the country's economic growth is another factor expected to contribute toward the growth of the U.S. luxury interior fabric market over the forecast period.

Segmental Analysis

The global market is segmented by product, raw material, distribution channel, and end-user.

Based on product, the global market is bifurcated into curtains, upholstery, bed linen, and mattress coverings. 

The upholstery segment dominates the global market and is predicted to exhibit a CAGR of 12.2% over the forecast period. One of the fastest-growing segments of the global furniture industry is upholstered furniture. Beds, chairs, sofas, and cushions with padding and fabric covering are in high demand, as upholstered furniture is more comfortable than unupholstered furniture. The increasing purchasing power of consumers, along with advances in the standard of living and a shift in lifestyles, has resulted in the development of upholstery made from luxurious fabrics for various types of seating furniture.

In addition, increasing the number of building constructions also benefits the industry due to the need for new furniture in newly constructed homes. The popularity of modern and contemporary furniture is expected to favor the market over traditional pieces. Trends such as modular and combination furniture allow consumers to have wide open living areas and spaces, resulting in the integration of various materials in luxury fabrics for upholstery. Numerous innovations and developments in the fabric industry led to consumers opting for luxury upholstered fabric.

Based on raw materials, the global market is segmented into cotton, velvet, linen, jacquard, and others. 

The velvet segment owns the highest market share and is estimated to grow at a CAGR of 12.4% during the forecast period. Velvet is a woolen fabric, originally made with the addition of silk or viscose, and now with other synthetic fibers that make it more practical for use. It is a highly breathable, medium moisture-wicking and heat-retaining, and low-stretch fabric. The main desirable attribute of velvet is its softness and distinctive visual allure, so it is commonly used in home decor for applications such as curtains and throw pillows. In addition, velvet has been a staple in fashion and interior design for years, and its luxurious texture and appearance make it an ideal fabric for sophisticated design. It is a sleek, soft fabric commonly used in intimate garments, upholstery, and other textile applications. Velvet looks nice as drapes, curtains, or cushions in combination with antique furniture. Due to its softness, velvet is sometimes used in bedding. In particular, this fabric is commonly used in insulative blankets between sheets and duvets.

Based on distribution channels, the global market is divided into offline and online channels. 

The offline channel segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 12.01% over the forecast period. In this industry, company retail stores, supermarkets and hypermarkets, specialty shops, and multi-brand stores are some notable offline distribution methods. Customers prefer the offline distribution route because it lets them see the fabrics up close, making checking the quality and specs simple. Brands have developed a distinctive shopping experience for customers with the aid of conventional brick-and-mortar establishments.

Additionally, consumer preference for high-end interior fabrics has increased, mostly sold at a company's retail store or specialty stores. These stores provide a rich shopping experience and make it simpler for consumers to understand the specifications and quality of the fabric. Moreover, company retail and specialty stores have become a symbol of genuine products, and companies can curb the reach of counterfeit items through these sales channels. This gives consumers a sense of confidence regarding product quality.

Based on end-user, the global market is divided into domestic and commercial. 

The domestic segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 12.11% over the forecast period. The rise of the domestic segment is mostly driven by rising domestic household expenditure on home decor and rising demand for branded and upscale furniture textiles. Luxury interior materials from North America, Europe, and Asia-Pacific offer the ideal aesthetic and reflect sheer comfort. In recent years, the tendency toward pleasant luxury has become more popular.

A manifestation of a sophisticated lifestyle is designing living spaces in homes in a way that is both exceptional in quality and performance and designed for everyday use. The growth of domestic construction and the real estate industry is also a major factor driving the market for luxury interior fabrics. New housing units in countries like the U.S. are boosting the demand for luxury and superior-quality furniture. This has augmented the growth of the market in the domestic end-user segment.

Recent Developments

• March 2023-D'décor, the world's largest manufacturer of soft furnishing textiles, introduced its new upholstery collection, which features modern yet adaptable designs. D'décor fabrics, identified by grace, splendor, and globally local, are a force to be reckoned with in the ever-changing decor industry. The collection blends basic fabrics and invitingly soft textures in natural and subdued hues, meticulously curated by their design team.
• August 2022- Crypton Home Fabric, Celliant, and Kravet revealed their exclusive collaboration on a line of opulent upholstery fabrics that can genuinely promote home wellness. The advantages of wellness vary from accelerated recovery times to enhanced sleep and increased energy. Only Kravet carries the Wellbeing Textures collection featuring Crypton Home Celliant technology.