PUBLISHER: The Business Research Company | PRODUCT CODE: 1929976
PUBLISHER: The Business Research Company | PRODUCT CODE: 1929976
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.
Tariffs are influencing the decorative rugs market by increasing costs of imported raw materials such as wool, cotton, jute, and finished rugs. Retailers and distributors in North America and Europe are most affected due to reliance on imported rugs, while Asia-Pacific faces cost pressures on rug exports. These tariffs are increasing retail prices and affecting sourcing strategies. However, they are also promoting domestic rug manufacturing, regional material sourcing, and innovation in synthetic and blended rug materials.
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 of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The decorative rugs market size has grown strongly in recent years. It will grow from $4.04 billion in 2025 to $4.32 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to growth in residential renovation activities, expansion of hospitality and commercial spaces, availability of skilled rug craftsmanship, rising consumer spending on interiors, growth of global rug trade.
The decorative rugs market size is expected to see strong growth in the next few years. It will grow to $5.66 billion in 2030 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period can be attributed to increasing demand for eco-friendly rugs, rising popularity of contemporary interior designs, expansion of online visualization tools, growing customization in rug designs, increasing demand from commercial interiors. Major trends in the forecast period include increasing demand for sustainable and natural fiber rugs, rising preference for custom and designer rugs, growing adoption of online rug retail platforms, expansion of machine-made rug production, enhanced focus on versatile interior styling.
The increasing focus on home decor and interior design is expected to drive the growth of the decorative rugs market in the coming years. Home decor and interior design involve enhancing indoor spaces to create more visually appealing and functional environments through thoughtful selection of colors, furnishings, and layouts that reflect personal preferences and lifestyle needs. The rising interest in home decor and interior design is fueled by the desire to personalize living spaces, growth in disposable incomes, and the influence of social media showcasing stylish and well-designed interiors. Decorative rugs play an important role in interior design by adding color, texture, and warmth, defining spaces within a room, providing comfort, and either complementing or highlighting existing furniture and decor elements. For example, in November 2025, according to the Australian Bureau of Statistics, an Australian-based government agency, household spending in New South Wales increased in September 2025, mainly driven by a 1.1% rise in the furnishings and household equipment category. Therefore, the growing emphasis on home decor and interior design is supporting the expansion of the decorative rugs market.
Companies operating in the decorative rugs market are increasingly focusing on innovation in weaving techniques and design styles, such as hand-knotted braided constructions, to gain a competitive edge. Hand-knotted braided designs involve manually tying knots and incorporating braided elements to create enhanced texture, depth, and distinctive patterns. For instance, in July 2023, Capel Rugs, a US-based rug manufacturing company, introduced the Aria wool rug collection. These hand-knotted Aria rugs feature geometric and bohemian-inspired designs and are crafted in India using natural, undyed wool with a high-low pile structure, offering a blend of visual appeal and tactile richness.
In January 2025, Jaipur Rugs Company Private Limited, an India-based home textiles and rugs manufacturer, acquired Shyam Ahuja Limited for an undisclosed amount. Through this acquisition, Jaipur Rugs aims to broaden its presence in the premium and luxury rugs segment by integrating Shyam Ahuja's high-end designs, craftsmanship expertise, and established brand heritage. This move strengthens Jaipur Rugs' position in the upscale home textiles market. Shyam Ahuja Limited is an India-based luxury textile and rug manufacturer specializing in handcrafted rugs, carpets, and premium home textile products.
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 2025. The regions covered in the decorative rugs market report are Asia-Pacific, South East Asia, 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, Taiwan, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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