Global Carpet Market Outlook to 2029

Global Carpet Market Overview

Global carpet market was valued at USD 54 billion in 2023, driven by increasing urbanization and a rise in residential and commercial construction activities. The surge in home renovation trends, particularly post-pandemic, has fueled demand. Additionally, the growing popularity of eco-friendly and sustainable carpeting solutions has contributed to market expansion.

Prominent players in the market include Mohawk Industries, Shaw Industries, Tarkett Group, and Beaulieu International Group. These companies dominate due to their extensive product offerings, technological innovations, and strong distribution networks.

In 2023, Mohawk Industries Inc. made significant strides in expanding its insulation business by acquiring Xtratherm and Ballytherm. This strategic move has allowed the company to extend its reach into the United Kingdom and Ireland while simultaneously bolstering its sales in the Benelux region (Belgium, Netherlands, Luxembourg).

Global Carpet Current Market Analysis

North America as dominant region: North America holds a prominent position in the global carpet market, driven by substantial consumer demand and advanced manufacturing capabilities. The region's market strength is underpinned by significant recent legislative support, such as the Inflation Reduction Act and the CHIPS and Science Act, which incentivize domestic manufacturing.Leading carpet manufacturers like Mohawk Industries, The Dixie Group, and Bentley are well-established in North America, supported by extensive retail networks.The market features a diverse range of carpet styles and technologies, including cut pile and loop pile carpets, catering to both residential and commercial sectors. In 2023, Mohawk Industries, for example, reported revenues of $11.1 billion, reflecting its significant role in the market.

APAC as emerging region: The Asia-Pacific region is emerging as a key player in the global carpet market, driven by rapid economic growth, increasing urbanization, and rising disposable incomes. With a population of 2.5 billion in 2023, countries like China and India are leading this growth. China exported carpets worth $4 billion in 2023, a 3.82% increase from 2022.India, a major producer of handmade carpets, exported $916.15 million worth of carpets between April and November 2019, with 90% of its production going abroad. Key export markets for Indian carpets include the USA, Japan, Saudi Arabia, Malaysia, and Iraq.The region's cultural diversity and advancements in manufacturing technologies, such as digital printing, along with a focus on sustainability, are driving substantial growth in the Asia-Pacific carpet market.

USA as dominant country: The USA leads the global carpet market due to its advanced manufacturing, technology, and strong domestic demand. With a 65.1% owner-occupation rate for single-family homes in 2021, well above the OECD average, and $427 billion spent on renovations in 2022, there is significant investment in flooring, including carpets.A 9.3% rise in new house sales in March 2023 is expected to further drive carpet demand. U.S. companies like Shaw Industries and Mohawk Industries are investing in innovative, sustainable practices, enhancing product quality and competitiveness. The robust export network also strengthens the USA's global market position.

Global Carpet Market Segmentation

The Global Carpet Market can be segmented based on several factors:

By Product Type: Global carpet market is segmented by product type into carpet and rugs. In 2023, carpets led the market by value. Carpets, known for their widespread use in both residential and commercial spaces, have seen increased demand due to factors such as urbanization, rising disposable incomes, and the growing trend of home renovations.

By End-User: Global carpet market is segmented by end-user into residential, commercial & industrial. In 2023, residential led the market driven by trends in interior design, increased urbanization, and rising disposable incomes. Homeowners are increasingly investing in high-quality carpets for their aesthetic appeal, comfort, and insulation properties, making the residential sector a key driver of growth in the market.

By Sales Channel: Global carpet market is segmented by sales channel is divided into Offline & Online. In 2023, Offline sales channel led the market reflecting consumers' preference for in-store purchases where they can physically experience the texture, color, and quality of carpets before making a decision. Traditional brick-and-mortar stores, showrooms, and specialty retailers continue to be the primary avenues for carpet sales, particularly for high-end and custom designs.

Global Carpet Market Competitive Landscape

Name of CompanyEstablishment Year/VintageHeadquarterMohawk Industries Inc.1992Calhoun, Georgia, USAVictoria PLC1895Worcester, WorcesterTarkett SA1997FranceShaw Industries Inc. (Owned by Berkshire Hathaway)1967Dalton, Georgia, USAMannington Mills1915New Jersey, USADixie Group1920Dalton, GeorgiaInterface Inc.1973Atlanta, Georgia, USA

Interface Inc.: In 2024, Interface Inc., has introduced its latest collections: Etched & Threaded carpet tile and Earthen Forms luxury vinyl tile (LVT). These new offerings push design boundaries while upholding Interfaces commitment to purpose-driven, uncompromising flooring solutions. The modular tiles feature innovative, eye-catching textures, natural patterns, and neutral tones, allowing for seamless mixing and matching.

Victoria PLC: In 2022, Victoria PLC completed the acquisition of Balta Group, marking a significant milestone in its growth strategy worth USD 176.53 million. This move has solidified Victoria's dominant position in the flooring industry, enhancing its product portfolio and market reach.

Tarkett: In 2022, Tarkett launched its DESSO Origin carpet tile collection, which features 100% recyclable tiles with the lowest circular carbon footprint in Europe, measuring just 1.4 kg CO2/m. This carbon footprint is at least six times lower than that of competing products in the market.

Global Carpet Industry Analysis

Global Carpet Market Growth Drivers:

Growing Construction Industry: The global construction industry's expansion, particularly in residential and commercial sectors, drives carpet demand. With construction-related spending accounting for 13% of the world's GDP, increased urbanization and infrastructure development have significantly boosted the need for carpets in new buildings and renovations.

Growth of E-commerce: By the end of 2023, 2.64 billion people were shopping online. Platforms like Amazon, Wayfair, and RugsUSA have facilitated easier carpet purchases, offering detailed product information and home delivery, leading to a substantial increase in online carpet sales. The rise of e-commerce has revolutionized the carpet industry, allowing consumers to browse extensive collections, compare prices, and read reviews from the comfort of their homes.

Rising Disposable Income and Living Standards: Higher disposable incomes and improved living standards have led to increased spending on home decor. In the U.S., disposable income per capita was USD 60,276 in 2023. This surge in disposable income has empowered consumers to invest more in enhancing their living spaces, with a particular focus on home decor items like carpets, furniture, and artwork.

Global Carpet Market Challenges:

Raw Material Price Volatility: The prices of raw materials like wool, nylon, and polyester are highly volatile, influenced by factors such as fluctuating oil prices, supply chain disruptions, and geopolitical tensions. For example, nylon, a common carpet fiber, experienced significant price increases in 2022 due to supply chain challenges, impacting the overall cost structure and profitability of carpet manufacturers.

Environmental Concerns and Regulations: Carpet manufacturers face increasing pressure to comply with environmental regulations, such as the EU's REACH, aimed at reducing carbon footprints and promoting eco-friendly materials. Adhering to these regulations can be both costly and challenging, necessitating investments in sustainable practices and materials, which may increase production costs and impact the overall competitiveness of the carpet industry.

Global Carpet Market Government Initiatives:

U.S. Infrastructure Investment and Jobs Act: Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law, was enacted on November 15, 2021, and represents a significant investment in U.S. infrastructure, totaling $1.2 trillion. This legislation aims to address the longstanding issues of deteriorating infrastructure across the country and is seen as a response to the urgent need for modernization and repair.

India's Production-Linked Incentive (PLI) Scheme for Textiles: India's Production-Linked Incentive (PLI) Scheme for Textiles aims to enhance the country's manufacturing capabilities. The scheme was officially launched on September 24, 2021, with operational guidelines released on December 28, 2021. It is set to run for five years, from FY 2025-26 to FY 2029-30, with a budgetary allocation of USD 1.3 billion aimed at incentivizing incremental sales from domestic production.

Global Carpet Future Market Outlook

Global carpet market is poised for significant growth over the next five years, as the market is expected to reach USD 68 Bn, driven by a combination of rising consumer demand for sustainable products, technological advancements in smart home integration, and government initiatives aimed at promoting domestic manufacturing.

Future Market Trends

Integration of Smart Technologies: Over the next five years, the carpet market will see increased integration of smart technologies, with products that can monitor room conditions, track foot traffic, and even detect spills gaining popularity. These innovations will be particularly attractive in the commercial and luxury residential sectors, where there is a growing demand for products that combine functionality with advanced technology.

Rise of Sustainable and Recyclable Carpets: The demand for sustainable and recyclable carpets will continue to grow, driven by both consumer preferences and regulatory requirements. Manufacturers will increasingly invest in developing carpets made from recycled materials and those that are fully recyclable at the end of their lifecycle. This trend will be particularly strong in regions like Europe, where circular economy policies are becoming more entrenched.

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