Global Home Decor Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Home Decor Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Home decor is a way that a house or apartment is decorated with various furnishings and accessories that make it look more appealing. Home decor has recently gained importance in the global market where the generalists are learning various ways in which they can keep their home looking brilliant and peaceful. The western countries have long ago started the trend of home decor with shaping and designing their home in a fashionable way that will allure the residents and other visitors. It also talks about the taste of the people and the aura in which they believe to stay. In addition, home decor products such as furniture and textiles are installed across various settings, including spa, office, clean room, restaurants, camping, bedroom, outdoor, library, and stores. The home decor products include various items such as furniture, home textiles and floor coverings. Depending on end use, furniture designs can be modified through machine-based processes and handcrafting. The adoption of home decor products has been considerably high in the developed regions such as the U.S., Canada, and Germany, while emerging countries such as China, Brazil, and India are witnessing steady increase.

Market Overview:

The latest research study on the global Home Decor market finds that the global Home Decor market reached a value of USD 761518.0 million in 2022. It’s expected that the market will achieve USD 1123499.22 million by 2028, exhibiting a CAGR of 6.7% during the forecast period.

First of all, the increase in online sales has had a positive impact on the home improvement industry. Marketing channel sales will be affected differently, the COVID-19 Outbreak has led to a decline in offline passenger flow, and the advantages of e-commerce companies have become prominent. Prominent growth in the e-commerce business is one of the major positive influences of the COVID-19 outbreak, wherein companies are focusing on expanding their distribution networks to online channels in order to cater to the surging consumer demand. During the epidemic prevention and control period, some home decor enterprises did not carry out internet marketing and promotion for their business, so they encountered great resistance in undertaking business. For enterprises that fail to make good use of network promotion means, there is almost no market development during the epidemic period, and the original offline market development plan is disrupted, and the epidemic will face fierce market homogenization competition, which is expected to have a great impact on the company's business throughout the year. As a result of the ongoing pandemic crisis, there has been a drop in the overall performance of discretionary products such as decorative fixtures, bedding products, to name a few.

Nevertheless, upstream and downstream interactions will lead to disruption of business. The epidemic will have a short-term impact on home decor industry, but it is relatively limited. The transportation of raw materials and products is restricted, resulting in an increase in product inventory and a decrease in equipment operating rate. Due to the impact of the epidemic, the production of raw materials and equipment procurement and transportation supply are difficult to be in place, and upstream enterprises affect the work schedule of downstream enterprises. Equipment manufacturing and product manufacturing enterprises in home decor industry are affected to different degrees, and the production and delivery work may be delayed to some extent. Meanwhile, if it fails to meet the customer's delivery time requirements according to the contract, it may lead to the customer looking for another enterprise and lose business.

Moreover, the COVID-19 virus outbreak has affected the normal operation of the industry. The impact of COVID-19 on the home decor industry will involve all major links and all entities in the industry chain. The company's management efficiency has declined, commuting has been severely hindered, production plans have been severely hindered, network expansion has been delayed, marketing has been delayed, brand adjustments have been forced, market sales have declined, and company and employee revenue have declined. The government has also put forward higher requirements for the production and operation of enterprises. Although various industries around the world are gradually resuming work, production and demand will not pick up rapidly and substantially, and will require a certain recovery period.

Millennials become the major consumers in the house and home decor market

There are a large number of young people who have not yet bought and settled--the millennials, who were born between 1984 and 1995, are gradually starting to enter the field of home buyers, further promoting the local housing market. This also drivers the global home decor market.

Unlike their parents, millennials have experienced an explosive growth in interior design services as they grew up, so they are more likely to hire interior designers to support them in decorating their homes. On the other hand, the youngest millennials are at the beginning of their careers and are starting to have more disposable income. Millennials generally prefer to shop online, appreciate authenticity and sustainability, and are on-demand shoppers.

In addition, with customers' increasing awareness of the environment, environmentally friendly products have also become a key element of home decoration. Natural, recyclable, and organic materials will not only attract environmentally conscious customers, but also the millennials—an individualistic, nature-loving customer base.

Stiff competition

The Global home decor market is fragmented and competitive owing to a large number of manufacturers present globally. With major manufacturers and suppliers in the home decor industry competing at globally, the intensity of competition within the home decor industry has increased. The vendors adopt strategies like price premiums to stay competitive in the market. Meanwhile, the local vendors in developing nations are providing tough competition to the global players based on product pricing. The fierce competition is not conducive to the sustainable development of the industry. At the same time, small companies or small retailers enter the business consequently as venturing into a home decor business does not require immense capital or investment. However, this leads to the proliferation of sub-standard or duplicate products which then hampers the competitive scenario in the market as established home decor manufacturers are compelled to lower the price of their products, which ultimately impacts their profit margins and sales volumes.

In order to sustain in the highly competitive market, major players are offering quality products at considerably lower cost. This could result into reduced profits, which is a factor restraining revenue growth of the target market. Besides, the Global home decor market is highly fragmented owing to presence of large numbers of manufacturers globally. The presence of numerous players that offers home decor at lower prices to attract price-sensitive customers poses a significant threat to the market. Despite steady sales, the market for home decor has failed to achieve its full potential owing to competitive pricing strategies applied by regional players. They have inundated the market with cheaper products forcing the bigger players to offer multipack merchandise at throwaway prices. This has posed a challenge to revenue growth which in turn is negatively impacting the market. The fierce competition is not conducive to the sustainable development of the industry

Region Overview:

Geographically, North America held the largest market share – 33.88% in 2022.

Company Overview:

Home Depot is one of the major players operating in the Home Decor market, holding a share of 6.72% in 2023.

Home Depot

The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address

Lowe’s Companies

Lowe's Companies, Inc., doing business as Lowe's, is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

Segmentation Overview:

As for product types, the Furniture segment held the largest market share in 2022.

Application Overview:

In the Home Decor market, 70.73% of the total value was generated through the Home Use segment by application in 2022.

Key Companies in the global Home Decor market covered in Chapter 3:

Herman Miller
Ashley Furniture Industries
Walmart Stores
Lowe's Companies
Kimball International
Home Depot
Target
Mohawk Industries Inc.
Bed Bath & Beyond
Wayfair
Williams-Sonoma, Inc.
Shaw Industries
IKEA
Menard
John Lewis

In Chapter 4 and Chapter 14.2, on the basis of types, the Home Decor market from 2018 to 2029 is primarily split into:

Furniture
Textiles
Floor Coverings
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Home Decor market from 2018 to 2029 covers:

Home Use
Public Sector
Commercial Use

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)