Global Home Decor Market Overview, 2024-29

Global Home Decor Market Overview, 2024-29

The global home décor sector includes a wide range of products designed to improve the aesthetics and functioning of living areas. From furniture and lighting to textiles and decorative accessories, the home decor market caters to a wide range of consumer preferences and lifestyle requirements around the world. As urbanization and disposable incomes rise, particularly in emerging economies, so does demand for home design products, fueling industry growth and innovation. One of the distinguishing features of the worldwide home decor market is its dynamic and ever-changing nature. Changes in consumer preferences, socioeconomic developments, technical advancements, and cultural influences all have a significant impact on home décor trends. As a result, businesses working in this area must constantly alter their product offerings and marketing strategies to stay relevant and competitive. The introduction of digital technology and e-commerce has substantially revolutionized the home decor business, changing how consumers discover, acquire, and interact with products. Online platforms and smartphone apps have become critical channels for home decor businesses to reach a larger audience by providing ease, tailored recommendations, and immersive shopping experiences. Furthermore, social media platforms have developed as effective tools for inspiring and influencing purchasing decisions as customers seek design ideas and product suggestions from influencers and peers. Sustainability has become an important factor for both home decor companies and customers. With increased awareness of environmental issues and social responsibility, there is a greater demand for eco-friendly and ethically sourced home design products. As a result, businesses must implement sustainable practices throughout their operations, from sourcing materials to manufacturing processes and distribution.

According to the research report, “Global Home Decor Market Outlook, 2029” published by Bonafide 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 expand and household incomes improve, customers have more disposable income to spend on home design items. This tendency is especially noticeable in emerging economies like China, India, and Brazil, where a growing middle class drives demand for higher-quality and more luxurious home furnishings. Changing demographics, such as the rise in single-person homes, dual-income families, and an older population, have an impact on consumer tastes and purchase behavior in the home decor market. For example, millennials prefer experiences over material belongings, which have raised demand for low-cost, personalized design options. The rise of e-commerce platforms and digital technology has altered the home decor business, allowing customers to discover, research, and buy products online. Companies are investing in their online presence, leveraging social media, augmented reality, and virtual reality to enhance the shopping experience and reach a broader audience. Sustainable home design products, such as bamboo, reclaimed wood, recycled glass, and organic textiles, are becoming increasingly popular. Minimalist and Scandinavian design trends remain popular, with clean lines, neutral hues, and a focus on functionality and simplicity. As smart home technology advances, connected devices and gadgets are increasingly being integrated into home design products. Consumers are using smart lighting systems, thermostats, security cameras, and voice-controlled assistants to improve the ease, comfort, and security of their homes.

Market Drivers
• Urbanization and housing market dynamics: Global urbanization trends, which include the shift of inhabitants from rural to urban areas, have increased demand for housing and, as a result, home design items. The fast expansion of urban centers provides chances for interior designers, architects, and home decor shops to meet the changing demands and preferences of urban people. Furthermore, fluctuations in the housing market, such as changes in property prices, mortgage rates, and housing building activity, have a direct impact on consumers' propensity to invest in home design, as homeowners strive to personalize and add value to their homes.
• Consumer lifestyles and design preferences: Evolving consumer lifestyles, driven by social, cultural, and technological variables, generate changes in design preferences and product demand in the home decor industry. Minimalism, sustainability, and smart home integration are popular trends among consumers looking for useful, aesthetically pleasing, and environmentally friendly decor solutions. Furthermore, the development of digital platforms and social media channels has democratized design inspiration, allowing customers to explore, share, and replicate a wide range of decor designs from all over the world.

Market Challenges
• Long product replacement cycle: The extended product replacement cycle of home decor products, which results in occasional purchases, poses a substantial impediment to market development. Customers' purchasing selections for residential indoor furnishings are heavily influenced by the most recent design trends. Furniture, on the other hand, is not supposed to be changed frequently because it lasts for so long. Most furniture items are costly and considered one-time expenditures. As a result, following the initial purchase, buyers do not see the need for repeated replacements. Branded home decor goods are long-lasting and reliable, with the majority being of high quality.
• Sustainability and environmental concerns: In recent years, there has been a growing concern about the environmental impact of the home decor sector. Consumers are increasingly looking for eco-friendly and sustainable home decor solutions, citing concerns about the use of unsustainable materials and the carbon footprint of manufacture and shipping. This presents a problem for enterprises in the global home decor market, as they must reconcile the desire for environmentally friendly products with the necessity to remain profitable. Furthermore, maintaining openness and accountability along the supply chain is critical for establishing confidence with environmentally concerned customers.

Market Trends
• Increasing preferences for personalization: Individuals changing preferences are driving increasing demand for home decor items, which is supporting market growth. As a result, people all around the world are more interested in individualized and aesthetically beautiful home designs. Furthermore, consumers are increasingly looking for distinctive and personalized design pieces that reflect their individuality and flair. Aside from this, the growing emphasis on handmade and artisanal decor products is propelling market expansion. Furthermore, the increased demand for decor products made from sustainable materials is creating a good market outlook. Aside from that, rising demand for decor products as a result of people's increased reliance on social media is driving market expansion. Furthermore, different social media channels feature inspiring home ideas, encouraging individuals to purchase similar decor elements. Moreover, the increasing adoption of decor items with minimalist designs, vintage aesthetics, or eco-friendly options is contributing to market growth.
• Increased integration of smart technology: The incorporation of smart technology into decor products helps to provide individuals with greater experiences. In addition, it provides greater convenience and control. Homeowners may easily handle a variety of components of their living environment, including lighting and thermostats, voice-activated assistants, and motorized window coverings. This level of control improves both comfort and efficiency. Aside from that, smart decor items help to increase energy efficiency by allowing customers to monitor and adjust energy consumption. Smart lighting systems may automatically adjust brightness based on natural light levels, saving electricity and energy costs. Furthermore, smart technology provides personalization, allowing users to change the lighting colors, brightness levels, and patterns to suit their mood or occasion. Furthermore, voice-activated assistants offer personalized guidance and information. Smart decor products often include security features like connected cameras, doorbell cameras, and smart locks. These enhance home security and offer peace of mind to homeowners, allowing them to monitor their properties remotely.

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.

Based on product type segment is divided into home furniture, home textiles, flooring, wall décor, lighting and others. Home furniture product type is expected to lead the global home decor market.

Home furniture is predicted to dominate the global home decor industry for several compelling reasons. First and foremost, furniture is a vital component of any living area, serving both functional and aesthetic purposes. As a result, it controls a sizable portion of consumer spending on home decor items. Furniture, whether it's a sofa, dining table, bed, or storage solution, is essential to defining a home's design and feel. Furthermore, the global home furniture industry benefits from current trends such as urbanization, population growth, and increased disposable incomes. As more people relocate to cities and buy or rent homes, there is a growing demand for furniture to furnish and beautify their living spaces. Furthermore, increased wages in emerging markets contribute to increased spending on home furnishings, driving growth in the global furniture market. Home furniture's dominance in the home decor market is also fueled by the cyclical nature of furniture purchasing. While other home design items, such as decorative accessories or fabrics, may be purchased less frequently, furniture purchases are typically larger and less frequent, resulting in higher transaction prices. As a result, furniture is a substantial source of revenue for home décor companies. Furthermore, advances in manufacturing methods and materials have enabled home furniture manufacturers to provide creative and adaptable goods that meet evolving consumer demands. Whether it's modular furniture that adapts to different living areas or eco-friendly materials that appeal to environmentally aware customers, furniture makers are constantly inventing to remain competitive in the market.

The distribution channel market is bifurcated into home decor stores, supermarkets and hypermarkets, online store, gift shops and others. Online channel is expected to grow at fastest rate in global home decor market. Based on segment market includes indoor and outdoor. Outdoor application is predicted to grow at rapid pace in global home decor market.

Online shopping provides exceptional convenience and accessibility, allowing customers to browse and buy home decor products from the comfort of their own homes at any time of day or night. Online merchants frequently provide a larger selection of home decor products than brick-and-mortar stores, giving customers access to a diverse range of styles, designs, and pricing points from both domestic and international brands. Online retailers regularly provide competitive pricing and discounts on home decor products, taking advantage of decreased overhead costs and economies of scale to pass along savings to customers. Online shopping platforms continue to evolve and innovate, introducing new features and functionalities to enhance the online shopping experience for consumers. Outdoor living and entertainment are becoming increasingly popular, owing to factors such as a renewed emphasis on fitness and sustainability and a desire to reconnect with nature. As urbanization accelerates and living spaces grow more confined, outdoor spaces such as balconies, patios, rooftops, and gardens are increasingly being used as useful extensions of residential homes. Homeowners and renters alike are investing in outdoor furniture and decor to transform their outdoor areas into efficient and inviting getaways that improve their quality of life while also connecting them to the natural world. Consumers want to expand their living spaces beyond the constraints of their homes, establishing outdoor locations that can be used for relaxing, socializing, dining, and recreation.

Based on report market includes five major regions North America, Europe, Asia-Pacific, South America and Middle East & Africa. Asia-Pacific region is expected to grow at fastest rate in global home decor market in upcoming time frame.

The Asia-Pacific region's increasing growth in the worldwide home decor industry is due to a combination of numerous major reasons, making it a hotspot for expansion in the coming years. For starters, demographic developments in the region, such as an expanding middle class and increased disposable incomes, are fueling strong demand for home decor products. As more people gain purchasing power, they are more likely to invest in upgrading their living spaces, resulting in an increase in demand for furniture, textiles, lighting, and other decorative things. Furthermore, urbanization is a key factor driving the growth of the Asia-Pacific home decor market. As cities grow and residents congregate in metropolitan areas, there is an increased demand for housing solutions and interior design services. This trend not only boosts the demand for home decor products but also fosters innovation in design and construction techniques to cater to the diverse preferences of urban dwellers. Furthermore, the rapid digitization and e-commerce expansion in Asia-Pacific are changing the way people shop for home decor. The convenience of online shopping platforms, combined with a diverse selection of options and cheap pricing, is attracting more customers to buy home decor products online. This transition to e-commerce channels creates new opportunities for market players to reach a larger client base and develop their presence in the region. Furthermore, cultural influences and a rich tradition of craftsmanship in nations around the Asia-Pacific contribute to the diversity and uniqueness of home decor options. Consumers are increasingly looking for things that reflect their cultural identity and interests, which is driving up demand for artisanal and handcrafted home decor items. This provides opportunities for both local artisans and international brands to tap into niche markets and offer distinctive products tailored to specific cultural tastes.

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 Outlook 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.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.