Area Rugs Market Size, Analysis Report 2028

[Research Report] The area rugs market size is expected to grow from US$ 11.35 billion in 2022 to US$ 15.00 billion by 2028; it is estimated to register a CAGR of 4.8% from 2023 to 2028.

 

Market Insights and Analyst View:

Area rugs are typically used to decorate and enhance homes and cover floors in residential and commercial settings. Area rugs come in two different varieties: those created by machines and those that are handmade. They come in various designs, sizes, shapes, and colors and are typically constructed of wool, cotton, nylon, polypropylene, polyester, jute, silk, sisal, and seagrass. The area rugs market is a significant segment within the broader home decor industry. Area rugs are versatile and functional decorative pieces that add warmth, style, and comfort to various spaces, including living rooms, bedrooms, dining areas, and offices. The area rugs market has experienced steady development in recent years, driven by increasing disposable income, urbanization, and a growing emphasis on home aesthetics. Consumers are increasingly investing in home decor to enhance the visual appeal and create a cozy atmosphere in their living spaces, driving the demand for area rugs. With the growing awareness of environmental concerns, consumers seek rugs made from natural and organic materials, such as wool, cotton, jute, or bamboo. Online retail channels have also played a significant role in the area rugs market growth, providing consumers with convenient access to a wide selection of area rugs from local and international suppliers.

Market Driver and Challenges:

The growing emphasis on home aesthetics has become a significant driving force behind expanding the area rugs market growth. In recent years, homeowners and renters have placed increasing importance on creating visually appealing living spaces that reflect their style and taste. Area rugs offer a versatile and functional solution to elevate the aesthetics of any space. By incorporating a carefully chosen area rug, individuals can transform a space's ambiance and visual interest, creating a more inviting and stylish environment. With an extensive range of designs, shapes, sizes, and materials, consumers can select rugs that align with their unique style preferences and seamlessly complement their existing furniture and decor. Social media platforms and interior design websites also contribute to the growing demand for area rugs. Platforms such as Instagram and Pinterest showcase beautifully styled homes, inspiring consumers to recreate similar aesthetics in their spaces. Area rugs often feature prominently in these visually appealing setups, making them highly desirable among consumers seeking a trendy and well-curated interior design. Hence, the

However, one factor affecting the global area rugs market growth is the limited consumer awareness. Limited consumer awareness acts as a restraint in the area rugs market due to its impact on area rugs demand and purchasing decisions. When consumers are unaware of the benefits, versatility, and potential of area rugs, they may need to pay more attention to their value in enhancing their living spaces. Additionally, limited consumer awareness can result in a missed opportunity for manufacturers and retailers to educate and inform consumers about the wide range of rug options available, various materials and styles, and how area rugs can transform and elevate their home aesthetics. By addressing this restraint through effective marketing strategies, product information dissemination, and showcasing the benefits of area rugs, the market can overcome the limited consumer awareness barrier and unlock its growth potential in the area rugs market.

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Area Rugs Market: Strategic Insights

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Report Segmentation and Scope:

Based on type, the global area rugs market is segmented into wool, nylon, synthetic fibers, and others. Based on end use, the global area rugs market is segmented into residential and nonresidential.

Segmental Analysis:   

Based on end use, the global area rugs market is segmented into residential and non-residential. In 2022, the residential segment dominated the area rugs market. The residential segment holds a larger share in the area rugs market due to various factors. Residential properties represent a significant portion of the real estate market, leading to a higher demand for home decor. Homeowners and renters prioritize personalizing their living spaces; area rugs are vital in adding warmth and style. Residential consumers also tend to invest in durable, long-lasting rugs. The growing popularity of home renovation activities further drives the demand for area rugs in the residential sector. These factors collectively contribute to the residential segment's dominance, resulting in area rugs market growth.   

Regional Analysis: 

Based on geography, the global area rugs market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa.

North American region held a substantial share of the global area rugs market, having revenue above $ 4 billion in 2022.  In the region, rising construction and home decoration & renovation activities in residential and commercial projects drive the demand for area rugs as they are often used to enhance flooring aesthetics. Consumers in North America often spend on area rugs owing to their design benefits.   

The Europe area rugs market is expected to reach revenue of more than $3 billion in 2028. Due to rising spending by constructors, growing residential housing construction activities in European countries such as the UK, France, and Russia are expected to increase the demand for flooring aesthetics, including area rugs, during the forecast period.

The Asia Pacific area rugs market is expected to grow at a CAGR above 5%. In Asia Pacific, the construction industry is expected to be driven by high spending on commercial sector development. Asia Pacific is the world’s largest region in terms of infrastructure investment. Increased commercial projects in emerging countries such as India, China, Indonesia, Vietnam, and the Philippines will positively contribute to the area rugs market growth.    

COVID-19 Impact: 

The COVID-19 pandemic has had a significant impact on the area rugs market. Initially, the market faced significant disruptions due to lockdown measures, supply chain disruptions, and reduced consumer spending. As people spent more time at home during lockdowns and work-from-home arrangements, the demand for home decor, including area rugs, initially declined as consumers prioritized essential purchases. As a result, there was a resurgence in demand for area rugs as people turned to home improvement projects and sought to enhance the ambiance of their surroundings. Area rugs were a way to delineate and visually enhance the designated workspace, providing a sense of separation from the rest of the home environment. The pandemic also accelerated the shift toward online shopping. With restrictions on physical retail and safety concerns, consumers increasingly turned to online platforms to purchase area rugs. This led to a significant surge in e-commerce sales within the market. However, the pandemic also brought challenges to the area rugs market growth. Supply chain disruptions, including factory closures and transportation constraints, affected the production and availability of rugs. Economic uncertainties and job losses also impacted consumer purchasing power, leading to cautious spending and a shift toward more affordable options.

Area Rugs Market Regional Insights

The regional trends and factors influencing the Area Rugs Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Area Rugs Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Area Rugs Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Area Rugs Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Area Rugs Market are:

1. Amer Rugs Inc
2. Capel Inc
3. Dalyn Rug Co
4. Faze Three Ltd
5. Golden Carpets Ltd.

Disclaimer: The companies listed above are not ranked in any particular order.

Industry Developments and Future Opportunities: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the area rugs market. A few recent key market developments are listed below:

• In Apr 2023, Capel Inc released a new wool rug collection featuring different colorations, textures, and braids. This product is available in 4 colors, i.e., black/white, ivory, natural and beige, and in four sizes – 3’ x 5’, 5’ x 8’, 8’ x 10’, and 9’ x 12’.

• In October 2021, Kaleen expanded area rugs' broadloom designs and styling options. Customers can choose from any of the company’s broadloom options, including new styles from all four lines–Kaleen Broadloom, Hook & Beam, Pure Life, and Home and Porch. ​

• In August 2022, Cali Bamboo, LLC launched Cali Rugs, a new collection of area rugs, designed to complement the Omni-channel company’s flooring and decking. The Cali rugs collection contains an array of colors and patterns, largely drawing upon classic neutrals that are easy to incorporate into existing designs. ​  

Competitive Landscape and Key Companies:

The area rugs market analysis consists of players such as Dalyn Rug Co, Sams International Inc, Riztex USA Inc, Amer Rugs Inc, Capel Inc, Nodi Handmade Rugs Ltd, Riviere Rugs Ltd, Maa Collections, Faze Three Ltd, and Golden Carpets Ltd.