Global Carpets & Rugs

Global Carpets & Rugs

Global demand for carpets and rugs is forecast to increase 2.3% per year to 5.4 billion square meters in 2027, valued at $63.7 billion. Market advances will be supported by:

• increased construction of new residential and nonresidential buildings, particularly in the Asia/Pacific and Africa/Mideast regions
• rising usage of carpet tile in nonresidential buildings due to their ease of installation and replacement
• a global rebound in motor vehicle production

However, carpets continue to lose share to hard surface flooring, especially in countries where wall-to-wall carpeting has historically been popular, such as the US, Canada, and the UK. Despite this, rugs will continue to see opportunities in these markets as they can be used with hard surface flooring for decorative or utilitarian purposes.

Carpet Losing Share to Hard Surface Flooring, but Carpet Tile Offers Opportunities

Globally, carpets and rugs have lost market share to hard surface flooring over the past decade and will continue to do so through 2027. Products such as luxury vinyl tile have made massive market inroads in the large carpet markets of the US and Western Europe, particularly the residential side. Despite sluggish performance for wall-to-wall carpet in that market, carpet tiles continue to increasingly see use in the nonresidential market, where these products' durability and easier installation when compared to broadloom carpeting make them ideal for buildings that see high levels of foot traffic.

Popularity of Hard Surface Flooring & Cultural Preferences Bolster Rug Sales

As wall-to-wall carpeting continues to fall out of favor in the large US and European markets, the rising use of hard surface flooring is creating opportunities for area rugs and mats in building construction applications. In particular, woven rugs – which can impart a more luxurious atmosphere in corporate headquarters, hotels, and resorts – will benefit from strong growth in nonresidential building construction in the Asia/Pacific and Africa/Mideast regions. Additionally, above average population growth in areas of the latter region that have significant numbers of Muslims will support demand for prayer rugs, particularly in Saudi Arabia.

Rising Motor Vehicle Production Aids Demand for Carpets & Rugs

Although it is the smallest carpet and rug market, transportation will account for sizable share of absolute gains as motor vehicle production improves significantly following difficulty during the pandemic. After weathering a significant drop in production in 2020, a combination of supply chain issues – most notably a semiconductor shortage – and high interest rates in a number of countries restrained greater output growth. With most supply chain issues having either resolved themselves or eased significantly, production is poised to grow at a rate more in line with pre-pandemic periods. As such, demand for needlepunch carpeting, which accounts for the majority of transportation demand, will rebound at a healthy rate.

Study Description

This Freedonia industry study analyzes the $53 billion global carpets and rugs industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by product (carpet, rug) production process (tufted, woven, other carpets and rugs), market (residential, nonresidential, transportation), application (new, remodeling) and major global region and country. Annual historical data and forecasts are also provided from 2019 to 2026. The study also evaluates company market share and competitive analysis on industry competitors including Mohawk Industries, Shaw, and Engineered Floors.