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Home Decor Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global home decor products market was valued at USD 564.7 billion in 2022 and is projected to expand at a CAGR of 6.5% from 2023 to 2030. The increasing interest of people in interior design is causing a surge in demand for home decor items. The rising trend of home decor among the millennial population is playing an important role in driving the market. Furthermore, the advent of e-commerce platforms has made home decor products easily accessible for customers, which in turn is driving the market growth.
The growing demand for multifunctional products such as modular furniture is driving the market. Modular furniture offers customers the flexibility to modify their existing furniture layouts according to their needs, which is boosting the demand for these products. For instance, in October 2021, Kompanero launched a modular furniture collection, ‘The NOMAD Collection’, which offers the flexibility to customize furniture pieces according to the customer’s needs.
Moreover, rising adoption of smart home technology is positively impacting the market growth. This technology enables customers to control various home appliances using voice command, which is driving the demand for home decor products. For instance, Amazon’s Echo range of smart home products offers voice command features to control various home decor items.
Furthermore, the growing trend of DIY (do it yourself) projects among consumers is driving the demand for home decor products. Consumers are increasingly participating in DIY projects to design their homes according to their preference, which is propelling the demand for home decor products. For instance, in March 2021, the US-based online retailer Home Depot launched a new DIY project website, ‘DIY Network’, which provides tips and tricks for DIY projects.
In addition, the rising trend of personalization and customization of home decor products is further driving the market. Increasingly, customers are opting for personalized products for their homes, which are boosting the demand for home decor products. Furthermore, market players are launching new ranges of home decor products to cater to the demands of customers. For instance, in May 2021, the home furnishing company, Zara Home, launched a new range of custom-made furniture, allowing customers to customize their furniture according to their needs.
Product Insights
The lighting segment led the market and accounted for a share of around 18.7% in 2022. The demand for lighting products has been increasing significantly due to the rising trend of home décor and the need for energy-efficient lighting solutions. According to an article published by The Future Market Insights, in August 2020, the demand for LED lights is expected to rise as they offer energy-efficient illumination and are available in various shapes and sizes. Furthermore, increasing awareness among consumers regarding energy efficiency and rising disposable income are some of the key factors driving the demand for lighting products.
The wall décor segment is anticipated to expand at the fastest CAGR of 10.3% over the forecast period. The rising trend of home décor and the increasing demand for wall art and wallpapers are some of the key factors driving the growth of the wall décor segment. Furthermore, the emergence of various digital printing technologies and the increasing availability of customized wallpapers are some of the factors driving the growth of the wall décor segment. Moreover, increasing adoption of smart home technology has further spurred the demand for home décor products.
Distribution Channel Insights
The specialty stores segment accounted for the major share of the home decor products market in 2022. The growth of this segment is largely attributed to the growing number of specialist retailers such as Pier 1 Imports, Bed, Bath & Beyond, and HomeGoods. These stores offer a wide variety of home decor products, from furniture to decorations, in a wide range of styles and at different price points. Additionally, some of these stores also offer services such as interior design consultations, which are becoming increasingly popular among consumers.
The online segment is expected to witness significant growth over the forecast period. The growth of this segment can be attributed to the increasing popularity of online shopping and the growing presence of e-commerce players such as Wayfair and Amazon. The convenience of online shopping, increasing internet penetration, and growing use of smartphone and tablets are some of the factors driving online sales of home decor products. Moreover, online players offer discounts and promotions, which further boost sales.
Type Insights
The furniture segment accounted for the largest revenue share of 66.3% in the year 2022. The increasing trend of home decor among consumers, especially in urban areas, is driving the segment. Moreover, the surge in the number of working couples has increased the demand for stylish and convenient furniture products. This has led to the launch of various new furniture products by key players. For instance, in June 2022, IKEA launched a new range of adjustable furniture for small home decor. This range provides a variety of options for people living in small houses.
The lighting segment is anticipated to expand at the highest CAGR of 8.9% over the forecast period. The growing preference for energy-efficient lights, especially LED lights, is driving the segment’s growth. Moreover, the increasing trend of home automation systems is projected to fuel the segment’s growth over the forecast period. For instance, in October 2022, Philips launched a new range of lighting products with HomeKit technology, which enables users to control the lighting of their homes using their smartphones or tablets.
Regional Insights
Europe held the largest market share of over 41.3% in 2021 and is expected to remain the largest region throughout the forecast period. The presence of high-end and luxury home decor products in the region, combined with the increasing demand for eco-friendly home decor products, is driving the growth of the market in the region. Moreover, the increasing number of home renovation and interior design activities in the region is also contributing to the growth of the market.
Asia Pacific is expected to witness the fastest growth in the coming years. The increasing disposable income of consumers in the region, combined with the increasing demand for stylish and luxurious home decor products, is expected to drive the growth of the market in the region. Moreover, the increasing number of e-commerce platforms in the region is expected to provide lucrative opportunities for the growth of the market. For instance, in April 2021, Alibaba launched a new home decor product line in India.
Financial Projections
In this part of the home decor products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a home decor products business comes from selling products such as furniture, bedding, lighting, and wall art. Additionally, other sources of income can include services such as interior design and consultation, and the sale of gift cards.
Projecting Expenses
In this section, all the regular expenses related to keeping the home decor products business running will be described. The list of operating expenses includes labor, rent, inventory costs, advertising, utilities, insurance policies, shipping/packaging costs, and others.
Key companies & market share insights
Some of the key companies operating in the home decor market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In October 2022, IKEA launched the ‘VEDDINGE’ series of home decor products designed for a contemporary look.
– In November 2022, Bed Bath & Beyond launched the ‘Sway’ collection of home decor products focusing on the modern aesthetic.
– In December 2022, Wayfair launched the ‘Luxury Home’ collection of home decor products with a focus on luxury and sophistication.
Some of the prominent players in the home decor market include:
– IKEA
– Bed Bath & Beyond
– Wayfair
– Amazon.com
– Home Depot
– Target Corporation
– Lowe’s Companies, Inc.
– Anthropologie
– Pier 1 Imports
– West Elm.
Global Home Decor Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global home decor products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Wall Decor
– Window Treatments
– Floor & Carpet Decor
– Lighting
– Furniture
– Textiles
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– DIY
– Pre-Made
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Outlook for Home Decor Products Market?
[A]: The global home décor products market is expected to witness significant growth during the forecast period due to an increase in disposable incomes, a rise in the number of single-person households, and a surge in the demand for home décor products from the millennial population. Additionally, increasing investments in smart home technology, increasing popularity of eco-friendly home décor, and a rise in the DIY trend are further driving the market growth.
[Q]: Who are the Key Players in the Home Decor Products Market?
[A]: Major players operating in the global home décor products market include Williams-Sonoma, Inc., Bed, Bath & Beyond, Inc., Restoration Hardware, Inc., IKEA AB, H&M Hennes & Mauritz AB, Amazon.com, Inc., Target Corporation, J. C. Penney Corporation, Inc., Pier 1 Imports, Inc., and Home Depot, Inc.
[Q]: What are the Types of Home Decor Products?
[A]: Home décor products can be categorized into wall décor, home textiles, furniture, decorative accessories, and others. Wall décor products such as wallpapers, ornamental mirrors, clocks, artworks, and others are witnessing a surge in demand. Home textiles include curtains, carpets, rugs, and bedding products. Furniture includes beds, sofas, tables, and chairs. Decorative accessories include photo frames, vases, and lamps.
[Q]: What are the Factors Influencing the Home Decor Products Market?
[A]: Factors such as a rise in the demand for eco-friendly home décor products, an increase in disposable incomes, the growing trend of DIY projects, and a surge in the demand from the millennial population are some of the key factors driving the growth of the global home décor products market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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