Decorative Rugs Market (2026 - 2033)

Decorative Rugs Market Summary

The global decorative rugs market size was valued at USD 4.4 billion in 2025 and is projected to grow from USD 4.6 billion in 2026 to USD 7.1 billion in 2033, at a CAGR of 6.4% from 2026 to 2033. North America dominated the market, accounting for a revenue share of 35.0% in 2025. The demand for decorative rugs is increasing worldwide due to several factors. Firstly, there is a rising trend in home decoration and renovation, driven by higher disposable incomes and a desire for personalized living spaces. In addition, the growing popularity of online shopping has made decorative rugs more accessible to a global audience. Finally, increased awareness of the importance of interior design in enhancing living environments has led to a higher demand for decorative rugs as essential elements of home decor.

Source: Grand View Research, IR Documents, Primary Interviews, Paid Databases

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The trend of increased holiday spending, particularly on decorations, is driving up the demand for decorative rugs. As Americans dedicate more of their holiday budgets to decor, their desire to create festive, cozy atmospheres in their homes grows. A survey of 2,100 Americans conducted by Rainbow Restoration found that the average annual expenditure on holiday decorations is USD 147 per person. As consumers seek to enhance their holiday ambiance, decorative rugs have become a popular choice to complement festive home decorations, contributing to the growing demand for these products.

Shopping trends among Gen Z and Millennials, particularly their focus on home-related items, are also boosting the decorative rugs industry. For instance, YPulse released its "Shopping for the Home Report" in October 2025, noting that Gen Z and Millennials are actively transforming their living spaces through home decor purchases, DIY projects, and personalized design choices. The report highlighted that younger consumers use social media platforms for home inspiration and prioritize products that add personality and comfort to their homes. This shift supports the demand for decorative items, such as rugs and other interior accessories. As these demographics age and become more financially stable, they are likely to become even more significant segments in the home decor market, presenting a substantial opportunity for the decorative rugs industry to cater to their preferences and purchasing habits.

Sustainability is an increasingly important trend in this market, with consumers across generations showing a preference for eco-friendly products. Polypropylene rugs are gaining popularity due to U.S. government approval for consumer use and their perceived environmental benefits compared to other plastics. In 2026, RugVista Group emphasized its commitment to sustainable rug production by incorporating certified, reused, recycled, and recyclable materials across its product line. The company reported utilizing sustainable materials such as recycled cotton, jute, and recycled polyester to reduce environmental impact and promote responsible consumption. This trend towards sustainability is expected to boost the market as more consumers prioritize eco-friendly choices.

In addition, continuous product innovation and strategic collaborations are supporting market growth by introducing aesthetically differentiated and functionally advanced rug collections. For example, in January 2025, Ruggable launched the Architectural Digest x Ruggable collection, featuring washable area rugs inspired by contemporary interior design trends. Developed in collaboration with Architectural Digest Global Interiors & Garden Director Alison Levasseur, the collection combines premium design aesthetics with machine-washable functionality. Such product launches reflect the industry’s growing emphasis on innovation, convenience, and premium design positioning to address evolving consumer preferences and strengthen competitive differentiation.

Analyst Perspective

The rugs market is growing steadily, driven by rising home improvement spending, demand for attractive interiors, and increasing interest in personalized décor. Adoption of sustainable materials, washable rugs, designer collaborations, and online customization is supporting market growth. Despite challenges such as raw material price fluctuations, supply disruptions, and low-cost competition, eco-friendly production and digital retail platforms are creating new opportunities. Innovative and consumer-focused products are expected to support long-term growth across residential and commercial segments.

Product Insights

The machine-made rugs segment accounted for over 40.0% of revenue in 2025. Machine-made rugs are more prominent in the decorative rug industry due to their cost-effectiveness, consistent quality and design, and ability to replicate intricate patterns and textures. These rugs are widely available, making them more accessible to a larger consumer base than handmade rugs. For instance, in March 2025, Harounian Rugs International launched its first machine-made rug collection, the Carlton Collection, after more than 60 years of specializing in handmade rugs. The collection uses Wilton loom construction, allowing the production of rugs with varied textures, patterns, and pile heights while maintaining consistent manufacturing quality. This launch highlights the growing demand for machine-made rugs that offer enhanced design options and greater accessibility than traditional handmade products.

The demand for flatweave rugs is expected to grow at a significant CAGR from 2026 to 2033. Flatweave rugs are highly durable and require minimal maintenance, making them ideal for use in high-traffic areas. Their lightweight and flexible nature also contributes to their popularity, as they can be easily moved and used in various living spaces. In addition, flatweave rugs often feature intricate patterns and designs, adding a stylish and personalized touch to any room.

Material Insights

The woolen decorative rugs segment accounted for about 40.0% of revenue in 2025. Woolen rugs are in demand and popular due to their natural warmth, softness, and durability. They provide excellent insulation, making them ideal for colder climates, and their natural resilience helps them maintain their shape and appearance over time. A constant series of product launches has also been pushing demand for wool decorative rugs. For instance, in October 2025, Jaipur Living launched the Bradley Odom x Jaipur Living collection, introducing six handmade rugs across two designs, Avis and Solum. The collection features rugs crafted entirely from wool, with a focus on natural textures, quality craftsmanship, and timeless designs that appeal to consumers seeking premium, durable home décor products.

The demand for cotton decorative rugs is expected to grow at a notable CAGR from 2026 to 2033. This is due to their soft texture, breathability, and versatility. Cotton rugs are lightweight and easy to maintain, making them suitable for a variety of indoor spaces. In addition, cotton is a natural and sustainable material, aligning with the increasing consumer preference for eco-friendly products. For instance, in July 2025, Sarah K. London launched its new collection of hand-woven cotton rugs made with natural dyes and cotton fibers. The collection focuses on soft textures, breathable natural materials, and environmentally conscious production methods by using plant-based dyes instead of synthetic alternatives. This launch reflects the growing consumer preference for cotton decorative rugs that offer comfort, versatility, and sustainable design benefits for modern interiors.

Application Insights

The residential segment held the largest revenue share of over 65.0% in 2025. Rugs can transform a room by defining areas, adding color and texture, and creating a cozy ambiance. The customization and premiumization trend is driving the decorative rugs industry. For instance, in April 2025, Loloi Rugs launched its collaboration with interior designer Jeremiah Brent, introducing a new collection of rugs designed for residential interiors. The collection included 20 rug designs inspired by Brent’s New York City aesthetic, featuring textured neutrals, geometric patterns, and versatile designs intended to complement a range of home styles. This trend reflects a shift towards personalized and luxurious home decor, driving demand for custom and premium decorative rugs.

Demand for decorative rugs in the commercial sector is set to grow at a significant CAGR from 2026 to 2033. Since interior architects and designers are increasingly using rugs to control acoustics and soften the look of hard-surface flooring, the need for decorative carpets in commercial settings is expected to rise. In July 2025, Shaw Contract launched its “Radiant” collection, a luxury carpet and rug line designed specifically for hospitality and commercial environments, including hotels, lounges, and public spaces. The collection offers customizable designs, multiple construction options, and a wide range of colors, enabling architects and interior designers to create visually appealing commercial interiors while meeting functional flooring requirements.

Distribution Channel Insights

Sales of decorative rugs through specialty stores dominated the market, accounting for around 35.0% in 2025. Specialty stores, including home improvement giants such as Home Depot, have been expanding their offerings and presence, benefiting the decorative rugs industry. For instance, in May 2025, The Home Depot hosted its annual Decor Days event, featuring home decor offerings including area rugs, furniture, lighting, and other interior products across its online platform. The event highlighted the retailer’s continued focus on helping customers refresh residential spaces by offering a broader selection of decor products, including decorative rugs from brands such as Ruggable, nuLOOM, and Home Decorators Collection. This reflects how large specialty home improvement retailers are increasing accessibility and visibility of decorative rugs, supporting growth in the residential decor market.

Sales of decorative rugs through online channels are expected to grow at a notable CAGR from 2026 to 2033. The demand for decorative rugs through online channels is expected to rise due to increased convenience and accessibility for consumers. Direct-to-consumer (D2C) brands play a significant role in this trend, offering unique and high-quality rugs directly to consumers, cutting out the middleman and providing a seamless shopping experience. For instance, in September 2025, Ernesta, a D2C rug brand, launched its new Fall Collection featuring nine custom-sized rug styles with designer-focused designs, natural fibers, and personalized sizing options. The company’s online-first model allows customers to order designer-quality rugs directly, access custom sizing, and receive a streamlined shopping experience without traditional retail intermediaries.

Regional Insights

The decorative rugs market in North America accounted for around 35.0% of global revenue in 2025. This is due to a strong preference for home decor and interior design, a large base of affluent consumers willing to invest in high-quality rugs, and a well-established retail infrastructure that includes specialty stores and online channels.

U.S. Decorative Rugs Market Trends

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The decorative rugs market in the U.S. is expected to grow at a significant CAGR from 2026 to 2033. The U.S. maintains its position as the leading global importer of rugs, importing a diverse range of styles, materials, and price ranges to meet the needs of its varied consumer market. For instance, according to the Observatory of Economic Complexity (OEC), the U.S. remained one of the largest importers of carpets and textile floor coverings, with imports reaching approximately USD 3 billion in 2026. Major sourcing countries included India, China, Turkey, and other global rug manufacturing hubs, reflecting strong demand for diverse decorative rugs in the U.S. market.

Asia Pacific Decorative Rugs Market Trends

The decorative rugs market in the Asia Pacific is set to grow at a notable CAGR over the forecast period. This is due to the rising disposable incomes, urbanization, and interest in home decor. Market players are recognizing the growth potential in Asia-Pacific, as exemplified by IKEA's strategic expansions in Japan, China, and Korea. IKEA Japan's increased accessibility through pop-up stores, pick-up points, and zero-emission deliveries reflects a broader trend of companies investing in the region's market. This expansion is likely to have a positive impact on the regional market.

Key Decorative Rugs Company Insights

The market is highly fragmented, with numerous leading and regional companies across major economies. Multinational companies such as Balta Group, Mohawk Industries Inc., and Oriental Weavers Group compete with local brands that offer consumer-centric products at competitive prices, driving innovation and product diversity in the market.

Key Decorative Rugs Companies

The following key companies have been profiled for this study on the Decorative Rugs market:

• Balta Group

• Mohawk Industries Inc.

• Oriental Weavers Group

• Nourison

• Capel Rugs

• Harounian Rugs International

• Loloi Inc.

• Milliken and Co.

• Momeni Inc.

• Agnella

Recent Developments

• In May 2026, Oriental Weavers launched a unified e-commerce growth platform to strengthen its digital retail presence and improve customer access to its carpet and rug portfolio. The platform was developed to enhance the online purchasing experience and support the company’s broader digital transformation strategy across decorative rug sales channels.
• In May 2026, Loloi Inc. introduced a new Spring 2026 rug collection in collaboration with Rifle Paper Co., featuring washable rugs and wool-based designs. The collection combined artistic patterns with functional product features, highlighting continued innovation in decorative rugs through designer collaborations and lifestyle-oriented product development.
• In April 2026, Nourison unveiled 14 new rug collections at High Point Market 2026 across its Nourison Home, Reserve by Nourison, and licensed brands. The launch included a broad range of textures, weaving styles, and design-focused area rugs, reflecting the company’s continued expansion of decorative rug offerings across multiple consumer segments.

Global Decorative Rugs Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global decorative rugs market report based on product, material, end-use, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2021 - 2033)

  • Machine-Made Rugs

  • Hand-tufted Rugs

  • Hand-knotted Rugs

  • Flatweave Rugs

  • Others

• Material Outlook (Revenue, USD Billion, 2021 - 2033)

  • Wool

  • Jute

  • Polyester

  • Cotton

  • Nonwoven

  • Others

• Application Outlook (Revenue, USD Billion, 2021 - 2033)

  • Residential

  • Commercial

• Distribution Channel Outlook (Revenue, USD Billion, 2021 - 2033)

  • Hypermarkets & Supermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Spain

    • Italy

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa