Global Home Decor Market Research Report, 2029

The home decor industry, beyond being a marketplace of furniture and accessories, is a realm of creativity, innovation, and cultural expression. The culture of the home decor industry is shaped by a confluence of influences, including design trends, consumer preferences, craftsmanship, and societal values. At the heart of the home decor industry is a celebration of artistic expression. Designers and artisans bring their creativity to life through a diverse array of styles, ranging from classic and timeless to modern and avant-garde. The culture values innovation, pushing the boundaries of traditional aesthetics and introducing novel concepts that captivate and inspire. Craftsmanship is a cornerstone of the home decor culture, where skilled artisans employ traditional techniques to create unique and high-quality pieces. Whether it's handcrafted furniture, intricate textiles, or artisanal ceramics, the industry often pays homage to time-honored methods. This emphasis on craftsmanship not only elevates the quality of products but also contributes to the preservation of cultural heritage. The home decor industry is a melting pot of influences, with designers drawing inspiration from various cultures around the world. Globalization has facilitated the exchange of ideas, resulting in a rich tapestry of designs that seamlessly blend cultural elements. Consumers can now adorn their homes with items that tell stories of far-off lands, fostering a sense of connection to diverse traditions. In recent years, there has been a growing recognition of the importance of inclusivity and representation within the home decor industry. Designers are incorporating a broader range of cultural motifs, celebrating diversity in styles, and ensuring that their offerings resonate with a global audience. This cultural inclusivity not only reflects the evolving values of society but also opens up new avenues for creative exploration. Collaborations within the industry, whether between designers, brands, or with local artisans, are emblematic of the culture that thrives in the home decor sector. These collaborations often result in unique and limited-edition pieces, showcasing the collective creativity of the community. Additionally, the industry fosters a sense of community among designers, enthusiasts, and consumers who share a passion for creating spaces that reflect individual tastes. A cultural shift towards sustainability has permeated the home decor industry. Many companies are adopting ethical and eco-friendly practices, reflecting a collective consciousness about environmental impact. This cultural commitment to sustainability extends to the materials used, production processes, and the overall lifecycle of products, aligning with a growing consumer demand for responsible and mindful choices. The home decor culture empowers consumers to be active participants in the design of their living spaces. The industry values personalization, allowing individuals to express their unique tastes and preferences. Whether through customizable furniture, DIY projects, or design consultations, the culture encourages consumers to curate homes that authentically reflect their personalities. According to the research report, “Global Home Decor Market Research Report, 2029” published by Actual Market Research, the market is anticipated to cross USD 945 Billion by 2029, increasing from USD 684.28 Billion in 2023. The market is expected to grow with 5.62% CAGR by 2024-29. As economies grow and disposable incomes increase, consumers are more willing to invest in their homes. The ability to spend more on non-essential items, such as home decor, contributes to the overall growth of the market. Higher income levels enable consumers to prioritize aesthetics and invest in creating personalized and stylish living spaces. Modern consumers, especially younger demographics, place a high value on individuality and personal expression. This shift in preferences has led to an increased demand for unique and customized home decor items. Companies that offer a wide range of styles, from traditional to contemporary, and allow for personalization are likely to capture a larger market share. Social media platforms play a significant role in shaping consumer trends and preferences within the home decor market. Platforms like Instagram, Pinterest, and TikTok showcase a plethora of design ideas and inspirations, driving consumers to seek out trendy and aesthetically pleasing decor items. The visual nature of these platforms fuels the desire for constant home upgrades and renovations. The growth of e-commerce has transformed the way consumers shop for home decor items. The convenience of online shopping, coupled with a vast array of choices and often competitive prices, has driven the shift from traditional brick-and-mortar stores to digital platforms. The ease of purchasing and the ability to access a global marketplace contribute significantly to the overall expansion of the home decor market. Technological advancements, particularly in augmented reality (AR), have enhanced the shopping experience for consumers. AR applications allow users to virtually visualize how furniture and decor items will look in their homes before making a purchase. This technology-driven convenience is a compelling factor driving the growth of the home decor market. The global trend toward urbanization has led to smaller living spaces, prompting consumers to prioritize efficient and aesthetically pleasing home decor solutions. Compact and multifunctional furniture, along with space-saving decor items, are in high demand. Manufacturers and designers addressing these urban living challenges contribute to the overall market growth. Market Drivers • Technology Integration: The integration of technology, including augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), has significantly enhanced the home decor industry. AR and VR applications allow consumers to visualize furniture and decor items in their homes before purchasing, providing a more immersive and personalized shopping experience. AI is also used for personalized recommendations, helping consumers discover products that align with their tastes. The seamless integration of technology enhances customer engagement, reduces the uncertainty associated with online purchases, and contributes to the overall growth of the home decor market. • Sustainability and Eco-Friendly Practices: Increasing environmental awareness has led to a growing demand for sustainable and eco-friendly home decor products. Consumers are now more conscious of the materials used, the production processes, and the overall ecological impact of their purchases. Companies adopting sustainable practices, such as using recycled materials and reducing carbon footprints, are gaining favor among environmentally conscious consumers. Sustainability practices not only appeal to eco-friendly consumers but also position companies as socially responsible. This focus on sustainability is driving innovation in materials and production methods, influencing both consumer choices and industry practices. Market Challenges • Supply Chain Disruptions: The home decor industry, like many others, faces challenges related to global supply chain disruptions. Factors such as the COVID-19 pandemic, geopolitical tensions, and natural disasters can impact the production and transportation of materials and finished products. Delays and interruptions in the supply chain can lead to inventory shortages and increased production costs. Supply chain disruptions can result in higher prices, delayed product launches, and a strain on relationships between manufacturers, suppliers, and retailers. The industry must implement robust strategies to manage and mitigate the impact of such disruptions. • Fast-Changing Consumer Trends: The home decor industry operates in a dynamic environment where consumer preferences and design trends can change rapidly. Keeping up with these changes and adapting products accordingly can pose a significant challenge for manufacturers and retailers. Failure to stay in tune with evolving trends may result in outdated inventory and decreased market competitiveness. Industry players need to invest in market research, trend analysis, and agile production processes to respond quickly to shifting consumer preferences. This adaptability is crucial for maintaining relevance in a competitive market. Market Trends • Biophilic Design: Biophilic design, which incorporates natural elements into interior spaces, is gaining popularity. This trend includes the use of indoor plants, natural materials, and designs inspired by the natural world. Biophilic design not only enhances aesthetics but also promotes well-being and a connection to nature within living spaces. • Remote Work Influences: The rise of remote work has influenced home decor trends, with an increased focus on creating functional and aesthetically pleasing home office spaces. Furniture and decor that support productivity, comfort, and video conferencing requirements have become essential in response to the shift towards remote work. Covid-19 Impacts The home decor industry faced significant disruptions in its global supply chains due to factory closures, transportation delays, and logistical challenges. The inability to source materials and finished products, coupled with increased demand, led to inventory shortages and delayed deliveries. These disruptions had financial implications for businesses and often resulted in higher production costs. The pandemic prompted a significant shift in consumer behavior, with more people spending increased time at home. This shift led to a surge in demand for home decor items as individuals sought to enhance their living spaces for comfort, productivity, and aesthetics. Home became not just a place to reside but also a multifunctional space accommodating work, leisure, and various activities. With lockdowns, social distancing measures, and safety concerns limiting in-person shopping, there was a notable acceleration in e-commerce for the home decor industry. Consumers increasingly turned to online platforms to browse, purchase, and virtually visualize how products would fit into their homes. The convenience of online shopping became a crucial factor in sustaining industry sales during periods of restricted movement. The widespread adoption of remote work prompted a renewed focus on home offices. This translated into increased demand for office furniture, ergonomic accessories, and decor items that enhance the functionality and aesthetics of home workspaces. The home decor industry responded by introducing products tailored to the needs of remote workers. The pandemic heightened awareness of environmental and social issues, leading consumers to prioritize sustainable and eco-friendly home decor options. Companies that incorporated sustainable practices in their manufacturing processes and product offerings gained favor among consumers who were increasingly conscious of the environmental impact of their purchases. With more time spent at home during lockdowns, individuals engaged in do-it-yourself (DIY) projects and home improvement activities. This trend resulted in increased sales of DIY-friendly decor items, paint, wallpaper, and other materials as people sought to personalize and upgrade their living spaces. Furniture was the largest product segment in 2023, due to increasing preference for wooden furniture on account of premium quality and looks has fueled the segment growth. Shifting trends towards the adoption of eco-friendly products has increased the application of the product in different locations of the house such as bedroom, bathroom, outdoor, and indoor. Various raw materials used in the manufacturing of furniture such as metal, plastic, glass, and leather, in combination with pinewood as an alternative, have gained traction in the market. Moreover, the increasing popularity of multifunctional furniture owing to its greater convenience is boosting the growth of furniture in the market. Consumers seek furniture not only for its practical use but also as a means of expressing personal style and enhancing the visual appeal of their homes. This category includes items such as sofas, chairs, tables, beds, and storage solutions, with designs ranging from classic to contemporary. The growth is linked to the rising popularity of wooden furniture among middle- and high-income communities, who value it for its higher quality and aesthetic appeal. Additionally, changing trends toward the adoption of eco-friendly products have led to an increase in the usage of eco-friendly products in various sections of the home, including the bedroom, bathroom, outdoor space, and indoor space. In addition to pinewood as an alternative, various raw materials such as metal, plastic, glass, and leather have made strides in the market. Ashley Global Retail LLC (Ashley) is a prominent American manufacturer and retailer known for its comprehensive range of home furnishings. The company offers products like the Signature Design by Ashley sofa collections, the Bolanburg dining room set, and the Porter bedroom series, catering to various tastes and lifestyles. Thus, the growing need for furniture products will drive the growth of the furniture segment in the market during the forecast period. Home decor stores are retail outlets that exclusively sell decor products. These stores offer a wide selection of furniture, textiles, wall decor, and lighting, allowing individuals to physically inspect and purchase items. Home decor stores typically offer a wide and curated range of products, including furniture, lighting, textiles, wall art, and accessories. The diversity in their product offerings allows consumers to explore various styles and find items that suit their preferences, creating a one-stop shopping destination for all their home decor needs. Leading home decor stores often curate collections that align with current design trends and consumer preferences. By staying attuned to emerging styles and market demands, these stores can set trends and influence the overall aesthetic direction of the home decor industry. Their ability to showcase trendsetting designs attracts consumers seeking the latest and most stylish options. Brick-and-mortar home decor stores provide a tangible and immersive shopping experience for customers. The ability to physically interact with furniture and decor items, test their quality, and visualize how they might fit into a home contributes to consumer confidence and satisfaction. The in-store experience is especially crucial for items that customers prefer to see, touch, and experience before making a purchase. Many home decor stores employ knowledgeable staff or design experts who can provide personalized assistance and design guidance to customers. This expertise is valuable for consumers navigating through various styles, color schemes, and layouts. The availability of professional advice enhances the overall shopping experience and helps customers make informed decisions. Home decor stores often run promotions, offer discounts, and implement loyalty programs to attract and retain customers. These strategies not only drive foot traffic but also create a sense of loyalty among shoppers. By providing incentives and rewards, these stores build lasting relationships with customers who return for future purchases. Recognizing the growing trend of online shopping, many home decor stores have successfully integrated e-commerce platforms into their business models. This allows them to reach a broader audience, provide an additional channel for sales, and enhance the overall omnichannel shopping experience. E-commerce integration has become essential in catering to the diverse preferences of modern consumers. Based on application, indoor applications dominate the home decor industry, reflecting the fundamental importance people place on creating comfortable, aesthetically pleasing, and functional living spaces. Shifting trends towards creative and innovative furnishing as well as furniture has influenced the consumers to invest in these products. Increasing preference for compact products in the house has driven the market of foldable furniture, which provides ease of storage and convenience. For instance, in February 2019, Inter IKEA Systems B.V. has launched space-saving shelves under its IVAR storage system product line. The product is manufactured particularly for small space dwellers. Increasing usage of upholstery in various applications also pose a great potential in the indoor home décor market. While, increasing adoption of western culture lifestyle has largely influenced consumers to buy luxury products, particularly for the bathroom and bedroom. Whereas, increased experiments with different types of lightings decorating the living room space have gained greater demand in the market. However, increasing preference for outdoor seating of residential homes is driving the segment. Consumer inclination towards open space seating with fresh air and floral surroundings that provide a feeling of close to nature and growing preference for such surroundings among the majority of the urban consumers are the key driving factors. The rise in the urban population has helped increase the popularity of outdoor home décor. These urban consumers to relish their outdoor experience are largely investing in outdoor décor products such as furniture for outdoor seating, wooden or grassy floorings, and decorative lightings. Asia Pacific stands as another key region in the market as it has a rich heritage of craftsmanship and artisanal traditions. In addition, the rising focus on improving living spaces due to inflating income levels of individuals in the region is contributing to the growth of the market. Asia Pacific stands as a prominent leader in the home decor industry, underpinned by a confluence of factors that contribute to its influential role and growing market share. The region's remarkable economic growth, fueled by rapid urbanization, expanding middle-class populations, and rising disposable incomes, has led to a significant surge in demand for home decor products. The diverse cultures within Asia Pacific have played a pivotal role in shaping a unique and dynamic design landscape, influencing global decor trends with a fusion of traditional and contemporary elements. One of the key strengths contributing to Asia Pacific's leadership is the robust manufacturing capabilities of countries such as China and India. These nations have emerged as manufacturing powerhouses, producing a diverse array of home decor items ranging from furniture and textiles to decorative accessories. The cost-effectiveness and scale of production in the region make it a preferred choice for many global brands and retailers looking to source high-quality products at competitive prices. The growing prominence of e-commerce platforms has further accelerated the expansion of the home decor industry in Asia Pacific. With an increasing number of consumers turning to online shopping, the accessibility and convenience offered by e-commerce have propelled sales of home decor products to new heights. This shift towards digital platforms has not only broadened the market reach but has also enabled smaller, local artisans and businesses to showcase their products on a global scale, fostering a diverse and inclusive marketplace. Asian designers and manufacturers showcase a remarkable ability to seamlessly blend traditional craftsmanship with modern aesthetics. This adaptability positions Asia Pacific as an incubator of innovation in the home decor sector, offering a wide spectrum of design choices that cater to the evolving tastes and preferences of a global consumer base. The region's designers draw inspiration from their rich cultural heritage while embracing contemporary influences, creating a unique and sought-after fusion that resonates with consumers worldwide. Key players are expanding their product portfolios for catering to the wide range of needs and preferences of individuals. This includes introducing new designs, styles, and categories, such as sustainable products and smart home integration. They are focusing on maintaining sustainability by using eco-friendly materials, reducing waste, and adopting responsible manufacturing practices. They are also seeking various certifications to showcase their commitment to sustainable production. In addition, companies are increasingly focusing on their online presence and e-commerce capabilities. They are investing in user-friendly websites, mobile apps, and online marketplaces to reach a broader customer base and provide a seamless shopping experience. Apart from this, major manufacturers are offering personalized items by providing different colors and patterns in furniture and decor pieces. Furthermore, companies are integrating technology, such as smart lighting, thermostats, and voice-controlled devices. These innovations cater to individuals looking for convenience and modernity in their living spaces. • August 21, 2023: Herman Miller Inc introduced fuld nesting chair designed in collaboration with Stefan Diez. It has a sleek design that enables flexible configurations for workspaces. Available in dipped-in-color options consisting of the seat, seat-back, and legs in one hue and dual-color combinations. • September 2022: Home24 launched marketplace offers in Austria, France and Switzerland. This enabled Home24 to expand the accessory, home textile, and seasonal product categories. • July 20, 2022: Inter IKEA Systems B.V., the leading Swedish home furnishings retailer, will open its third store in Mumbai at R CITY, Ghatkopar (W). This will strengthen the commitment of the company to India, making the brand more accessible to a larger consumer base. • July 2022: Armstrong World Industries, Inc. and Price Industries, two leading innovators in the commercial construction industry, announced an expanded partnership focused on accelerating the development of holistic solutions to promote healthy indoor spaces. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Home Decor market Research Report with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Home Furniture • Home Textiles • Flooring • Wall Decor • Lighting • Others By Distribution Channel • Home Décor Stores • Supermarkets and Hypermarkets • Online Store • Gift Shops • Others By Application • Indoor • Outdoor The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Home Decor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.