PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887051
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887051
The global handloom carpet market continues to experience strong momentum as consumers increasingly appreciate artisanal craftsmanship and sustainable decor products. According to Fortune Business Insights, the market was valued at USD 959.45 million in 2024, supported by rising demand for handmade carpets, eco-friendly materials, and luxury interior decor trends. The industry is expected to expand further to USD 1,038.16 million in 2025, reflecting growing purchasing power and evolving home decor preferences across major economies. By 2032, the global handloom carpet market is projected to reach USD 2,009.96 million, driven by high-end residential decor adoption, custom-designed flooring solutions, and the continued dominance of Asian manufacturers.
Asia Pacific accounted for the largest market share of 34.74% in 2024, supported by rich weaving traditions, skilled labor, and expanding consumer demand for handcrafted products. Countries such as India, Turkey, and Iran lead global production through heritage craftsmanship and competitive manufacturing costs.
Market Growth Drivers
A major factor driving the market is the increasing global preference for sustainable and eco-friendly flooring solutions. Consumers are becoming more environmentally conscious, preferring carpets made from renewable materials such as wool, cotton, jute, linen, and silk. These natural fibers are biodegradable, durable, and free from synthetic chemicals, making them attractive alternatives to mass-produced machine-made carpets. Governments promoting sustainable home decor, along with a surge in eco-conscious interior design, are further accelerating demand.
Moreover, ethical consumerism plays a crucial role in supporting the market. Handloom carpets support artisan communities, preserve traditional craftsmanship, and offer unique, culturally rich designs. High-end residential projects, luxury hotels, and commercial spaces increasingly prefer handmade carpets for their durability, aesthetic appeal, and high-quality textures. As sustainability becomes a mainstream priority, demand for handcrafted flooring continues to rise.
Market Challenges
Despite strong opportunities, the handloom carpet market faces challenges related to high production costs. Handmade carpets require skilled artisans and take significantly longer to produce compared to machine-made alternatives. Additionally, raw materials such as wool and silk are often expensive, pushing manufacturers to adopt premium pricing. Price-sensitive consumers in mass markets sometimes prefer cheaper synthetic alternatives, limiting broader market penetration. Volatility in raw material prices and rising labor wages also pressure margins for manufacturers.
Market Opportunities
The largest emerging opportunity is the growing trend of digital customization and personalized carpets. AI-based tools, augmented reality (AR), and digital design platforms now allow customers to customize colors, patterns, textures, and sizes before production. This made-to-order model reduces inventory costs and increases customer engagement. High-end consumers, interior designers, and luxury hospitality brands are particularly attracted to personalized, artisanal carpets, opening new revenue channels for manufacturers.
Material Segment Insights
Wool retained the largest market share in 2024 and is expected to dominate through 2025 due to its stain resistance, durability, softness, and eco-friendly characteristics. Wool carpets also maintain their shape, offer excellent insulation, and have high aesthetic appeal, making them suitable for both luxury homes and commercial interiors.
Demand for silk carpets is also growing, particularly in luxury markets, as consumers seek premium, high-quality handwoven flooring pieces known for sheen, richness, and exclusivity.
Application Insights
The residential segment held the highest share in 2024, driven by rising home renovation trends and the popularity of decorative carpets that enhance interior aesthetics. Homeowners increasingly value artisanal, culturally rooted decor, which boosts demand for handcrafted carpets.
The commercial segment-including hotels, corporate offices, retail spaces, and restaurants-is projected to grow significantly through 2032 as businesses seek visually appealing and durable flooring solutions.
Distribution Channel Overview
The offline segment dominated in 2024, as consumers prefer to physically inspect carpets for texture, craftsmanship, and quality. Specialty stores and branded outlets play a vital role in offering personalized service and product guidance.
The online channel is expected to grow fastest through 2032, supported by global marketplace access, easy payment options, and rising digital adoption. E-commerce platforms now enable artisans and small manufacturers to reach international customers more effectively.
Asia Pacific
The region remained the largest market in 2024, driven by strong domestic demand and large-scale exports. India alone exports nearly 40% of global handmade carpets, supported by skilled labor, government programs, and internationally recognized brands such as Jaipur Rugs and Oriental Weavers.
North America
Demand continues to rise due to home renovation trends and preference for luxury, handcrafted decor. Persian and Indian design influences remain highly popular.
Europe
The region is projected to grow at the highest CAGR, benefiting from strong sustainability preferences, premium decor demand, and increasing interest in artisanal woven goods.
South America & Middle East/Africa
Growth is supported by rising urbanization, expanding commercial sectors, and increased access to global handcrafted decor via online channels.
Conclusion
With its unique blend of artistry, sustainability, and premium quality, the handloom carpet market is on a strong upward trajectory-rising from USD 959.45 million in 2024 to an anticipated USD 2,009.96 million by 2032. The combination of digital customization trends, expanding global demand for eco-friendly home decor, and strong production capabilities in Asia Pacific positions the industry for long-term success.
Segmentation By Material
By Application
By Distribution Channel
By Region