Global Decorative Rugs Market – Industry Trends and Forecast to 2032

Global Rice Decorative Rugs Segmentation, By Product (Knotted Pile, Needle Punched, Woven and Others), Material (Animal Made, Plant Made, Synthetic Fibers), Application (Residential and commercial) - Industry Trends and Forecast to 2032

Decorative Rugs Market Size

• The global decorative rugs market size was valued at USD 4.30 Billion in 2024, is expected to reach USD 6.74 Billion by 2032, growing at a CAGR of 5.8% during the forecast period of 2025 to 2032
• Changing home décor trends, influenced by factors such as interior design magazines, social media, and home improvement shows, drive the demand for decorative rugs. As people seek to update their living spaces, they often invest in new rugs to refresh the look of their rooms
• Urbanization and increasing disposable incomes lead to higher demand for housing and home furnishings, including decorative rugs. As more people move into urban areas and invest in their homes, they are such asly to purchase decorative rugs to personalize their living spaces

Decorative Rugs Market Analysis

• The global decorative rugs market is experiencing steady growth, driven by increasing demand across residential and commercial sectors, technological advancements, and evolving consumer preferences
• Europe dominated the decorative rugs market with the largest revenue share of 39.5% in 2024, driven by strong demand for premium home décor, rising renovation activities, and an established culture of interior design excellence
• Asia-Pacific decorative rugs market is projected to grow at the fastest CAGR of 12.6% from 2025 to 2032, fueled by rapid urbanization, increasing disposable incomes, and the rising popularity of modern home décor
• The woven segment dominated the market with the largest revenue share of 44.6% in 2024, attributed to its superior craftsmanship, durability, and ability to deliver both traditional and modern designs

Report Scope and Market Segmentation

Decorative Rugs Market Trends

Consumers Increasingly Favor Eco-Friendly Materials

• Consumers increasingly favor eco-friendly materials such as organic wool, recycled fibers, and jute, reflecting a growing commitment to environmental responsibility
• Textural variety is also on the rise, with high-low piles, tufted details, and three-dimensional designs adding depth and tactile appeal to spaces. The traditional rectangular rug is evolving into more organic, asymmetrical shapes, offering fluidity and softness to modern interiors
• Bold geometric patterns and vintage-inspired floral motifs are making strong comebacks, providing both contemporary edge and nostalgic charm. Layering rugs to create textured, multi-dimensional looks is becoming popular, while monochromatic color schemes offer sleek, minimalist aesthetics
• Furthermore, customization and personalization options are gaining traction, enabling consumers to create unique pieces that reflect their individual styles. Overall, these trends reveal a market moving towards more expressive, sustainable, and versatile decorative rugs that enhance both comfort and design

Decorative Rugs Dynamics

Drivers

Rising Disposable Incomes and Increased Urbanization

• The growth of the decorative rugs market is primarily driven by rising disposable incomes and increased urbanization, which are encouraging consumers to invest more in home décor and interior aesthetics
• The rapid expansion of e-commerce platforms has made purchasing decorative rugs more convenient, offering a wider variety of styles and price points to a global audience
• Technological advancements in manufacturing, including machine-made and tufted rug production, have improved efficiency and design versatility, making rugs more affordable and appealing to diverse consumer segments
• In addition, the growing emphasis on sustainability is fueling demand for eco-friendly materials such as organic cotton, recycled fibers, and natural dyes. Customization and personalization trends are also gaining momentum, as consumers seek unique pieces that reflect their individual tastes
• Furthermore, the expanding commercial sector, including hospitality and office spaces, is boosting demand for decorative rugs due to their aesthetic appeal and functional benefits such as noise reduction and comfort

Restraints/Challenges

Competition from Alternative Flooring Options

• Competition from alternative flooring options such as hardwood, laminate, vinyl, and tiles remain significant, as these materials often offer greater durability and easier maintenance
• Fluctuations in raw material prices, especially for wool, cotton, and synthetic fibers, can increase production costs and affect profit margins
• Supply chain disruptions, caused by global events or logistical issues, may lead to delays and higher expenses. Economic uncertainties and recessions can reduce consumer spending on non-essential home décor items, including decorative rugs
• In addition, the market grapples with the influx of counterfeit and low-quality products, which can damage consumer trust and brand reputation
• Stricter environmental regulations on synthetic materials and chemical dyes also pose challenges, requiring manufacturers to adapt processes that could raise costs and impact pricing

Rice Decorative Rugs Market Scope  

The market is segmented on the basis of product, material, and application.

• By Product

On the basis of product, the decorative rugs market is segmented into knotted pile, needle punched, woven, and others. The woven segment dominated the market with the largest revenue share of 44.6% in 2024, attributed to its superior craftsmanship, durability, and ability to deliver both traditional and modern designs. Woven carpets are widely used in high-end residential spaces, hotels, and offices, valued for their luxurious texture and long lifespan. Their role in premium flooring solutions and decorative appeal ensures consistent demand across mature markets.

The needle punched segment is anticipated to witness the fastest CAGR of 20.1% from 2025 to 2032, driven by its cost-effectiveness, ease of installation, and suitability for temporary or high-traffic environments. These carpets are increasingly adopted in exhibitions, event flooring, and commercial spaces where functional, affordable, and low-maintenance options are preferred.

• By Material

On the basis of material, the decorative rugs market is segmented into animal made and plant made. The animal-made segment held the largest revenue share of 57.3% in 2024, primarily supported by the demand for wool-based carpets. Wool carpets are renowned for their softness, resilience, natural insulation, and premium aesthetic appeal, making them the preferred choice in colder regions and luxury interiors. Their renewable and eco-friendly properties further enhance their attractiveness, particularly among environmentally conscious consumers.

The plant-made segment is expected to grow at the fastest CAGR of 19.4% from 2025 to 2032, propelled by the rising adoption of sustainable, affordable, and natural fiber options such as jute, coir, and sisal. Increasing environmental awareness, combined with the rustic and natural appeal of plant-based carpets, is expanding their demand in both residential and commercial applications.

• By Application

On the basis of application, the decorative rugs market is segmented into residential and commercial. The residential segment dominated the market with the largest revenue share of 62.8% in 2024, owing to the increasing trend of home renovation, rising disposable incomes, and growing consumer preference for comfort-oriented, decorative flooring. Carpets are favored in living rooms, bedrooms, and luxury apartments for their ability to add warmth, safety, and visual appeal. Residential demand is also supported by urbanization and booming real estate projects worldwide.

The commercial segment is projected to record the fastest CAGR of 18.6% from 2025 to 2032, driven by strong adoption in offices, hotels, retail stores, and institutional spaces. Carpets in commercial settings provide benefits such as noise reduction, design flexibility, and safety in high-traffic areas. The growing emphasis on aesthetic workspaces and luxury hospitality interiors is fueling robust demand in this segment.

Decorative Rugs Market Regional Analysis/Insights

• Europe dominated the decorative rugs market with the largest revenue share of 39.5% in 2024, driven by strong demand for premium home décor, rising renovation activities, and an established culture of interior design excellence
• Consumers in the region are particularly inclined towards luxury woven and hand-crafted rugs, valuing aesthetics, sustainability, and traditional craftsmanship blended with modern designs
• The adoption of decorative rugs is further supported by high disposable incomes, eco-conscious consumer behavior, and robust retail networks, positioning Europe as a global leader in this market

U.K. Decorative Rugs Market Insight

The U.K. decorative rugs market is projected to grow at a notable CAGR during 2025–2032, fueled by the rising trend of home personalization and luxury interiors. Consumers in the U.K. are increasingly opting for bespoke and artisanal rugs that enhance both aesthetics and functionality. In addition, a growing preference for online rug purchases, supported by strong e-commerce penetration, is boosting the market. Concerns around sustainability and a preference for natural fibers such as wool and jute are further driving demand in the country.

Germany Decorative Rugs Market Insight

The Germany decorative rugs market is anticipated to expand steadily during the forecast period, underpinned by the country’s robust housing sector and rising focus on eco-conscious living. German consumers highly value durable, sustainable, and design-centric rugs, with a preference for locally crafted and certified eco-friendly products. The integration of decorative rugs into smart and energy-efficient homes is also becoming more prominent, reinforcing demand across residential and office spaces. The market is further supported by a strong distribution network, including specialty stores and premium retailers.

Which Region is the Fastest Growing Region in the Decorative Rugs Market?

Asia-Pacific decorative rugs market is projected to grow at the fastest CAGR of 12.6% from 2025 to 2032, fueled by rapid urbanization, increasing disposable incomes, and the rising popularity of modern home décor. The growing adoption of rugs in countries such as China, India, and Japan is being supported by expanding real estate development, cultural appreciation for traditional weaving, and the availability of affordable mass-produced as well as luxury hand-knotted options. In addition, the region’s role as a major manufacturing hub ensures both supply capacity and competitive pricing.

China Decorative Rugs Market Insight

The China decorative rugs market accounted for the largest share in Asia-Pacific in 2024, driven by rapid urban development, a booming middle class, and strong domestic production capabilities. Chinese consumers are increasingly blending modern designs with traditional handmade rugs, fueling diverse demand across residential and commercial spaces. The government’s push toward smart cities and premium housing is also expanding rug usage. Affordable pricing, coupled with e-commerce growth, ensures widespread accessibility of decorative rugs in China.

Japan Decorative Rugs Market Insight

The Japan decorative rugs market is witnessing strong growth, driven by the country’s emphasis on minimalistic yet stylish interiors. Rugs are gaining popularity as a way to enhance compact urban living spaces while maintaining a blend of functionality and aesthetics. The aging population is also contributing to demand, as rugs are seen as both decorative and safety-enhancing floor coverings. Increasing preference for natural fibers and handcrafted rugs aligns with Japan’s cultural values of simplicity, sustainability, and elegance, fostering market expansion.

Some of the major players operating in the market are:

• Tai ping carpets international Ltd. (China)
• Mohawk Industries (U.S.)
• Lowe’s Companies Inc. (U.S.)
• Tarkett Group (France)
• Victoria carpets Ltd. (U.S.)
• Shaw Induatries Group Inc. (U.S.)
• Inter Ikea System B.V. (Netherlands)
• Genie carpet manufacturers (India)
• Royalty Carpet Mills Inc. (U.S.)
• Oriental Weayers Company (Egypt)

What are the Recent Developments in Decorative Rugs Market?

• In April 2024, Amer Rugs Inc. placed itself by showcasing a unique rug collection. A perfect mixture of contemporary aesthetics and traditional craftsmanship can be observed in this collection. Various weaves, yarns, and design styles were included in the collection, benefitting the market position of the organization
• In April 2023, Capel Inc. launched a new wool rug collection. The business innovated in terms of the texture and colors of its woollen rugs. Due to the product launch, the organization could market itself better, gaining more customer attention. Moreover, this helped the organization to augment its product portfolio

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