PUBLISHER: The Business Research Company | PRODUCT CODE: 1816368
PUBLISHER: The Business Research Company | PRODUCT CODE: 1816368
Decorative rugs are floor coverings designed primarily for aesthetic purposes, adding a decorative touch to a room. Available in a variety of shapes, sizes, colors, patterns, and materials, these rugs can enhance or complement the decor of any space. Their versatile design elements make them a valuable addition to both residential and commercial settings.
The main types of decorative rugs include hand-knotted rugs, hand-tufted rugs, machine-made rugs, flat-weave rugs, and others. Hand-knotted rugs are crafted by tying individual knots of yarn into a foundation, distinguishing them from machine-woven rugs. These rugs are made from various materials such as wool, nylon, cotton, polyester, jute, and more. They are distributed through multiple channels, including wholesalers, hypermarkets, specialty stores, online retailers, and others, catering to a range of applications in both residential and commercial environments.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting strain on trade relations in spring 2025 are significantly impacting the Paper, Plastics, Rubber, Wood, and Textile sector by driving up the costs of essential imported inputs such as pulp, resin, synthetic rubber, lumber, and cotton, many of which have limited domestic alternatives. Packaging manufacturers, for instance, are facing higher prices for plastic films and corrugated materials, further squeezing margins in an already highly price-sensitive environment. Similarly, textile producers are grappling with increased costs for imported yarns and dyes, adding to the burden of rising labor expenses. In response, some companies are turning to recycled or biodegradable materials, while others are consolidating their supplier base to secure bulk discounts.
The decorative rugs market research report is one of a series of new reports from The Business Research Company that provides decorative rugs market statistics, including decorative rugs industry global market size, regional shares, competitors with a decorative rugs market share, detailed decorative rugs market segments, market trends and opportunities, and any further data you may need to thrive in the decorative rugs industry. This decorative rugs market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The decorative rugs market size has grown strongly in recent years. It will grow from $3.8 billion in 2024 to $4.04 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth in the e-commerce sector, rising home renovation demand, increasing disposable incomes, increasing consumer awareness of economic growth, and increasing consumer preferences.
The decorative rugs market size is expected to see strong growth in the next few years. It will grow to $5.29 billion in 2029 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period can be attributed to increasing awareness of the role of interior design, increasing holiday spending, increasing preference for sustainable products, increasing accessibility to decorative rugs, and increasing convenience and accessibility for consumers. Major trends in the forecast period include the development of innovative materials and designs, adoption of sustainability and eco-friendly materials, innovation in smart rugs embedded with technology, and demand for durable and weather-resistant rugs.
The forecast of 7.0% growth over the next five years reflects a modest reduction of 0.2% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through elevated tariffs on tufted and woven rugs imported from Turkey, India, and China, raising costs in residential and hospitality interior furnishing markets. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The increasing focus on home decor and interior design is expected to drive growth in the decorative rug market. Home decor and interior design involve enhancing indoor spaces to create more appealing and functional environments. This includes selecting colors, furniture, and layouts that reflect personal preferences and needs. The rise in home decor and interior design is fueled by a desire to personalize living spaces, increased disposable incomes, and social media trends showcasing stylish interiors. Decorative rugs play a significant role in home decor by adding color, texture, and warmth, defining spaces, providing comfort, and either complementing or contrasting with other furnishings. For example, in March 2024, the Furniture Industry Research Association, a UK-based organization, reported that the UK furniture and furnishings sector achieved a manufacturing turnover of £11.35 billion ($14.69 billion) in 2022, a 10% increase from the previous year. This trend highlights how the emphasis on home decor and interior design is boosting the decorative rug market.
Leading companies in the decorative rugs market are concentrating on innovative weaving techniques and designs, such as hand-knotted braided rugs, to gain a competitive edge. Hand-knotted braided rugs feature knots tied by hand and braided elements for added texture and pattern. For instance, in July 2023, Capel Rugs, a US-based rug manufacturer, introduced the Aria wool rug collection. These hand-knotted Aria rugs, made in India from natural undyed wool, showcase geometric and bohemian-inspired patterns with a high-low profile.
In October 2022, Sage Park, a US-based investment firm, acquired Orian Rugs Inc. for an undisclosed amount. This acquisition aims to strengthen Sage Park's reputation for high-quality American-made textiles, expand its manufacturing capabilities, and enhance its customer offerings while preserving Orian's legacy as a prominent producer of decorative rugs and specialty yarns. Orian Rugs Inc., based in the US, specializes in manufacturing decorative area and scatter rugs.
Major companies operating in the decorative rugs market are Mohawk Industries, Shaw Industries Group Inc., Milliken Co, Tarkett Group, Oriental Weavers, Balta Rugs NV, Safavieh Inc., The Dixie Group, Surya Inc., Nourison Co, COURISTAN Inc., Loloi Rugs, Colonial Mills Inc., Capel Rugs, Jaipur Living Inc., Dalyn Rugs Co, Momeni Rugs Inc., Kaleen Rugs Inc., Samad Rugs, Harounian Rugs International, Tamarian, EXQUISITE RUGS
North America was the largest region in the decorative rugs market in 2024. The regions covered in the decorative rugs market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the decorative rugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The decorative rugs market consists of sales of piles, backings, bindings, and edge finishing, dyes and colours, tufting guns, and looms. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Decorative Rugs Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on decorative rugs market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for decorative rugs ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The decorative rugs market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.