Global Home Decor Market Size, Share & Analysis Report 2020-2027
The world home decor market size was estimated at USD 689.26 billion in 2019, the market is anticipated to reach a market size of USD 852.20 Billion by 2027, growing at a CAGR of 4.8% over the forecast period. Growing demand for furnishing, decoration & fabric products, especially through e-commerce is driving the market growth. The demand for modular furniture has increased exponentially in the last few years; wooden flooring is in high demand particularly in the North American market.
Increasing environmental awareness & preference towards eco-friendly products to reduce the carbon footprint has increased demand for home furniture crafted from eco-friendly material. Growing urbanization has led to a radical shift in people’s lifestyles as well as their choices for home décor items. For Instance, The United Nation predicted in 2018 that around 55% of the population lives in urban areas, and is expected to reach about 68% by 2050. Such a massive urban shift shall boost the real-estate sector exponentially. The growing residential segment shall be led to a progressive increase in demand for the home décor industry.
E-commerce is playing a crucial role in growing the home decor sales online, companies such as IKEA has gained significant market share by entering the online marketplace. E-commerce offers buying flexibility, greater discounts, shipping & installation services, and easy payment options such as easy monthly installments on a credit card or debit card. All such advantages are attracting customers to shop for home decor items online. The traditional brick & mortar stores still dominate the home decor industry, many customers still desire to purchase home decor products through physical shopping to make a better purchase based on their color, design, size and shape requirements.
The concept of minimalist design is trending in the western countries, the customer are preferring limited but attractive minimalist furniture for their homes. Minimalist home design is a modern interior designing concept that focuses on decluttering homes with minimizing furniture and other stuff. Most of the minimalist design furniture has white, black, or brown color shades with a simplistic design.
The increasing cost of raw material such as wood, leather, glass, metals is significantly affecting the home decor product prices, the prices have surged by almost 10% in the last 5 years.
Based on product type the market has been segmented into furniture, flooring, textile, and others. The furniture emerged as the largest market segment with greater than 50% market share in 2019. Variety such as wooden furniture, metallic furniture, and a mixture of these both, wooden furniture is the highly preferred type of furniture as it offers a premium look at an affordable price compared to the metallic counterparts.
The customer attractiveness towards Natural and eco-friendly home decor has increased substantially in the past few years; this trend can be clearly observed the demand for wooden furniture or and artifacts have grown especially from the first time home buyers. Moreover, innovative designs are acting as a key market driver for the furniture market, few prominent examples are are foldable furniture, convertible furniture, contrast furniture, and several other innovative furniture types that have been developed recently and have captured significant market demand.
The textile segment includes door and window curtains, upholstery, bedsheets & coverings among others. The importance of using various fabrics and patterns has increased considering the growing importance of interior designing in small and medium houses. Companies are offering a wide range of textile fabric in vivid colors, patterns, and textures in order to fulfill the customer demand, there are certain companies which also offer customized fabric solutions in case of bulk orders. The textile market has experienced a magnificent change in customer buying behavior and is trying to Fulfil the changing demands.
The market has been segmented based on application into Supermarkets & Hypermarkets, Specialty Stores, E-commerce, and Others. The specialty stores are leading the market and it is expected to grow at a CAGR of 5.2% between 2020 to 2027, Growing demand for customized furniture is driving the market growth. Most of the cities in developing countries such as India, Brazil has a greater proportion of specialty stores selling home decor products compared to supermarkets/hypermarkets; therefore, the segment is witnessing a sustainable growth rate.
The E-commerce segment is expected to emerge as the fastest-growing segment over the forecast period, as most of the major home decor companies opening their online marketplaces. Moreover, leading e-commerce companies such as Amazon are also providing their platform for selling these products, and the response is overwhelming. The e-commerce stores innovating the customer’s online shopping experience using augmented reality & virtual reality, for instance, Ikea launched its mobile application that shows in realtime how the furniture would look in the desired place using AR technology & camera. Innovation is the key to success in the online home decor industry.
North America region accounted for the largest global market share of 38.5% in 2019, the growth can be attributed to the increasing penetration of e-commerce and the growing demand for customized furniture in the region. North American countries such as the United States has the presence of all major home decor companies, it is considered as one of the most lucrative markets in the world considering high per capita income and buying capacity. The demand for glass and metal-based furniture, Ambient lighting, different types of fabrics, and other decorative material is considerably high in this particular region.
The growing urbanization in developing countries such as India, China, and Indonesia, is driving the market growth for the Asia Pacific region. The APAC home decor market is expected to emerge as the fastest-growing market from 2020 to 2027. Growing construction Residential as well as commercial infrastructure, increasing per capita income, and willingness to purchase home decor products is expected to drive the market growth.
The Global home decor market is highly competitive in nature and has the presence of a large number of players competing on the basis of product quality and prices. Companies are using strategies such as technological innovation, disruptive pricing, and merger & acquisition in order to gain greater market share. Following is a list of companies that are covered in this particular report:
Get a tailor-made report suitable to your budget. Connect with us to buy specific chapter, a country level report or just the datasheet of this report.