Home Decor Market size is set to grow by USD 326.66 million from 2024-2028, Rising disposable income among global consumers boost the market, Technavio

NEW YORK, May 28, 2024 /PRNewswire/ -- The global home decor market size is estimated to grow by USD 326.66 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 7.34% during the forecast period.

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Market Driver

The global home decor market is experiencing significant growth due to the increasing demand for eco-friendly furniture and interiors. This trend is driven by both consumer preference and environmental regulations. The health concerns associated with traditional furniture, which emits harmful volatile organic compounds (VOCs), are also fueling this demand.

As a result, there is a strong focus on sustainable materials such as reclaimed wood, rubberwood, bamboo, rattan, and wicker. Popular furniture companies are responding to this trend by offering certified and salvaged products, contributing to the expansion of the eco-friendly office furniture market. According to the Environmental Protection Agency (EPA), 8.5 million tonnes of office furniture are disposed of annually, highlighting the need for sustainable alternatives. 

The home decor market is currently experiencing a surge in trends, with smart technology leading the way. Devices such as voice assistants, urban planning, and bedrooms are being integrated with technology for convenience and efficiency. Carpets and consoles are popular decor choices, with consumers seeking rugs and room dividers that add style and function to their spaces.

Bedrooms are a focus area, with consumers looking for comfortable and stylish bedding and storage solutions. Prefabricated and consumer-friendly home decor solutions are also gaining traction, offering affordability and ease of installation. Overall, the home decor market is seeing a shift towards practicality, convenience, and technology integration. 

Market Challenges

• The home decor market has faced challenges due to rising raw material costs. Polyurethane foam, used in seat cushioning, experienced product shortages and price increases in late 2020. Other materials, including springs, fabrics, and packaging goods, have also become more expensive.
• Additionally, container rates surged due to a global shortage, increasing transportation expenses. Freight prices, which were previously around 5% of sourcing costs, now account for over 20% for lesser-value products. These cost increases may lead to higher final product prices, potentially hindering market growth.
• The home decor market faces several challenges in today's consumer landscape. Decor trends change frequently, requiring businesses to keep up with the latest styles and designs. Consumers demand customization and personalization, making it essential for companies to offer unique and innovative products. Sourcing raw materials and managing supply chains can also be complex issues.
• Additionally, the rise of e-commerce platforms has intensified competition, requiring businesses to have a strong online presence and efficient delivery systems. Lastly, sustainability and eco-friendliness are becoming key considerations for consumers, posing a challenge for businesses to adopt eco-friendly practices and communicate their commitment effectively.

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Segment Overview 

1. Product 
• 1.1 Furniture
• 1.2 Floor coverings
• 1.3 Others
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Furniture- The furniture sector in the global home decor market experiences continuous growth due to consumers' desire for functional and stylish home solutions. This category encompasses products like sofas, chairs, tables, beds, and storage units, with designs ranging from traditional to modern.

The preference for wooden furniture among middle- and high-income demographics fuels this growth, driven by its superior quality and aesthetic value. Furthermore, the increasing adoption of modular kitchens and closets, as well as eco-friendly materials, broadens the market scope.

Ashley Global Retail LLC, a leading American manufacturer and retailer, offers a diverse range of home furnishings, including the Signature Design by Ashley sofa collections, the Bolanburg dining room set, and the Porter bedroom series, catering to various preferences. Consequently, the increasing demand for furniture products will propel the furniture segment's expansion in the home decor market during the forecast period.

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Research Analysis

The home decor market encompasses a wide range of products, including furniture, textiles, and floor coverings, catering to the needs of small-sized houses and enhancing living standards. Skilled labor plays a crucial role in the production of these items, ensuring high-quality craftsmanship. Transportation and infrastructure facilities are essential for the seamless movement of raw materials and finished goods.

Physical retail stores continue to be popular among consumers, allowing them to touch and feel the products before making a purchase. However, consumer interests and lifestyles have shifted towards online retail outlets, offering convenience and competitive pricing. Disposable incomes and the desire for lifestyle improvement have fueled the demand for house possessions, leading to an increase in housing starts.

Customer service is a key differentiator in the home decor market, with companies focusing on providing personalized experiences to meet consumer preferences. Decor, fixtures, and consumer preferences continue to evolve, with a growing trend towards environmentally friendly items made from timber flooring and other raw materials.

Market Research Overview

The Home Decor market is a thriving industry that caters to the aesthetic needs of modern living spaces. It encompasses a wide range of products, including textiles, furniture, lighting, and home accessories. Consumers seek out unique and innovative designs to personalize their homes, leading to a constant demand for new and trending items.

The market is also influenced by various factors such as changing consumer preferences, technological advancements, and sustainability concerns. Retailers offer both online and offline shopping options, making it convenient for customers to make purchases at their own pace. The home decor market is a dynamic and competitive landscape, with numerous players vying for market share through various strategies and offerings.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Furniture
• Floor Coverings
• Others
• Distribution Channel
• Offline
• Online
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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