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The area rugs market is estimated to increase by USD 4.53 billion and to grow at a CAGR of 4.48% between 2022 and 2027. The growth of the market depends on several factors, including the consumer shift toward interior design, the growing demand for high-end luxury, and the growing popularity of omnichannel retailing.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The consumer shift toward interior design is notably driving the market growth, although factors such as the high cost of raw materials may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The consumer shift toward interior design is notably driving the market. Consumers around the world have become more conscious about interior design and are willing to invest both time and money in the best possible way to decorate their homes. This includes spending on uniquely designed home furnishings such as carpets, curtains, cushions, bedding, and other floor coverings that add to the aesthetic appeal.
A few of the reasons behind the increasing consumer interest in home decoration are rising consumer incomes, changing lifestyles, increased media coverage, and the adoption of different cultures. In addition, the increasing number of working women and their increased participation in making decisions about home decoration also drive market. These factors have led consumers to spend more money on various designed and luxurious carpets, leading to market during the forecast period.
Organized retailing is an emerging trend shaping the market. The high penetration of organized retail in many developing countries is one of the biggest future trends in the market. As a result, the availability of different types of carpets has increased. The rapidly developing global retail industry, especially in developing countries, is witnessing the emergence of many retail stores such as supermarkets, hypermarkets, and specialty stores.
Large organized retail stores have more brands and different types of carpets under one roof, which gives consumers more choices. As consumer brand awareness has grown, so has the importance of organized retailers that carry branded carpets and other home furnishing products. The expansion of organized retail allows consumers to search for information about different brands, and compare prices, quality, and design . Thus, the growth of organized retail will positively influence the market during the forecast period.
The high cost of raw materials is a major challenge impeding the market. The price of raw materials is a key factor in determining the production costs of surface rugs. An increase in the price of high-quality raw materials can increase the total cost of manufacturing carpets. This additional cost is usually passed on to consumers in the form of higher prices for carpets, which can limit purchases.
Recent increases in raw material prices and raw material shortages may have negatively affected the global carpet market. Furthermore, China's expanded carpet production capacity has created a global shortage of raw materials. As a result, the market was hit by repeated and sharp price increases for raw materials, especially flax, wool, silk, jute, and cotton. Thus, the high cost of raw materials poses a major challenge to the global market.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Capel Inc. - The key offerings of the company include area rugs.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the machine-made area rugs segment will be significant during the forecast period. These are made from wool as well as man-made fibers like nylon, polyester, polypropylene, olefin, or other suitable yarns.
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The machine-made area rugs segment USD 11.09 billion in 2017 and continued to grow until 2021. These can be made in less time compared to handmade ones and are available at a lower price than handmade ones. They usually have a shorter life span and lower resale value than handmade. The global market is expected to experience steady year-on-year growth during the forecast period. The main factors contributing to the steady growth are the growing urban population, an increase in the number of nuclear families, and the rapidly growing housing industry with an interest in interior decoration. Therefore, the segment will witness growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In terms of the sales, North America dominates the global market. The major reasons for the growth of the market in this region are the increase in per capita income, the growing number of residential and commercial construction projects, and the increasing adoption of carpet tiles in commercial spaces.
The construction sector in North America has been growing at a high rate since 2018. The number of offices, educational institutions, healthcare facilities, and public buildings in the region is growing at a steady rate. On the other hand, hotels and retail spaces are also expected to record a high rate during the forecast period. Therefore, the demand will increase during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market offers a wide range of options, including furniture such as sofas, TV stands, and tables, along with various types of rugs such as needlepoint, cut & loop, cut pile, and loop pile rugs. These rugs, including oriental rugs, kilim rugs, and floor cloths, are made from materials like cotton fabrics, offering a variety of textures and designs.
These are delicate, spoilable, and damageable, making them essential in anchoring a room's decor. They serve as a growth driver for the market, catering to various needs from food to medical and lifestyle products. The market's supply chain has faced challenges due to lockdown scenarios, labor shortages, and restrictions, impacting the economy's growth. However, the positioning of brands, customer preferences for luxury and unique looks, and the utilization of smart area rugs offer growth opportunities. Hand-made and machine-made rugs provide a unique aesthetic look, with global brands leading the market through strategic steps and future projections based on analytical depiction, current trends, and future estimations. The market's growth scenario, investment pockets, and competitive intensity are influenced by Porter's five forces analysis, highlighting the potency of buyers and suppliers in driving market trends over the next few years.
Area Rugs Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.48% |
Market growth 2023-2027 |
USD 4.53 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.42 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Balta Group NV, Berkshire Hathaway Inc., Capel Inc., Dixie Group Inc, Harounian Rugs International, Kalaty Rug Corp., Loloi Inc., Milliken & Co., Mohawk Industries Inc., Amara Rugs, Antep Rugs Inc., BRINTONS AGNELLA Ltd., Momeni Inc., Nourison, Safavieh LLC, STEPEVI Group, The Natural Carpet Co., United Weavers Inc., and Oriental Weavers Group |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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