Home Decor Market - Analysis and Industry Forecast:
Home Decor Market is expected to garner $664.0 billion by 2020, registering a CAGR of 4.2% during the forecast period 2015-2020. Furniture, textiles and floor covering products are key components of home decor. Expansion and developments in real estate industry, have supplemented the growth of world home decor market. Globalization facilitates easier and wider availability of home decor products and designs for consumers. Moreover, growing consumer preference towards adoption and usage of eco-friendly products, known for their minimal impact on the environment, has also boosted the growth of the market.
Nowadays, consumers prefer online retail platforms for buying furniture, owing to availability of a wide array of home decor products at discounted/affordable price. Increasing cost of raw materials, such as leather and superior quality wood, is limiting the market growth. Improving lifestyle and increasing disposable income of individuals would offer several growth opportunities to the players operating in the market.
Top factors impacting world home decor market
Growing consumer interest towards home decor:
Number of homeowners has increased significantly in the recent years, especially in emerging economies, thereby spurring a growing interest, among these owners. Additionally, home décor products have gained a high acceptance among home owners who want to renovate the home interior and exteriors. The impact of this factor would increase during the forecast period, thereby consequentially fostering the demand of home décor products, during the forecast period. Real estate industry has witnessed significant market growth worldwide, owing to the increasing disposable income.
Growth in real estate industry:
Real estate industry has experienced growth in the last few decades in residential as well as commercial sector. Booming real estate industry is driving the growth of the home décor market. Increasing growth rate of new constructions, especially in developing Asian countries would influence the market by 2020.
Increasing rate of urbanization:
Increasing urban population is one of the strong impacting factors affecting the home decor market. Urban culture influences an individuals’ living style. Presently, most of the world population lives in rural areas. According to the data released by United Nations, near about 54% of the world’s population were living in urban areas in 2014, and more of rural population is expected to shift to urban areas during the forecast period. The impact of this factor would increase during the forecast period, thereby consequentially fostering the demand of home décor products in the near future.
Increasing cost of raw material:
Cost and availability of raw materials play a vital role in home decor market. Raw materials such as metal, wood, plastic, glass, leathers, rattan, fabrics and stone are used for manufacturing furniture. For floor covering, manufacturing tiles, wood & laminate, vinyl & rubber, carpet & rugs and others (linoleum, cork, bamboo, concrete), are essential raw materials. Cost of raw materials has increased significantly in the past few years. However, by 2020, it is expected that the cost of raw materials such as plastic and glass, would decrease owing to advancements in production technology of these raw materials Thereby, these factors would create a favorable environment for home decor market in future.
Value chain analysis
Value chain of the home decor market comprises various stakeholders, such as raw materials and components suppliers, manufacturers or furniture integrators and distribution channel. Each of these stakeholders share a specific value at their point of operation, which, in turn, contributes to the competitive value of the product. Materials, design, style and furnishing of the home décor products enhance the value associated with the end deliverable by each players.
Value chain analysis of home décor market
Top investment pockets
In the illustration for top investment pockets, home décor products, such as home textile, floor coverings and furniture, are positioned according to their respective market potential. The analysis presented in this section highlights the attractiveness of each segment in an effort to identify lucrative market areas for investment. Floor covering, is the most lucrative product amongst all home décor products in terms of market attractiveness. Floor covering segment occupies high market share as compared to furniture and textile segment. Furniture has witnessed an increased adoption among consumers, owing to increased disposable income and influence of western culture.
The world home decor market is segmented on the basis of products and geography. The product segment is further segmented into furniture, textiles and floor coverings. The furniture segment is sub-segmented into kitchen, living & bedroom, bathroom, outdoor and lighting. The textiles segment is further categorized into rugs textiles, bath textiles, bed textiles, kitchen & dining textiles and living room textiles. The floor coverings segment includes tiles, wood & laminate, vinyl & rubber, carpets & rugs and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific and LAMEA regions.
World Home Decor Market by Product
Based on product, the market is broadly classified into home textile, floor covering and furniture. Furniture has witnessed an increased adoption among consumers, owing to the increased disposable income and influence of western culture, especially growing adoption of modular kitchen and lighting. The furniture segment encompasses furniture used in kitchen, living and bedroom, bathroom, outdoor and lighting.
Furniture are used for domestic as well commercial purposes. Various materials such as metal, wood, plastic, glass and leather are used solely or in combination with other materials to manufacture parts of furniture. Shape and structure with reference to design are important factors in the furniture industry as it directly influences the consumers’ decision to buy a particular product. Multifunctional furniture is gaining popularity among urban consumers.
Globally, there are a large number of international and domestic players, who provide furniture in the market. Companies such as Kimball International, Herman Miller, Ashley Furniture Industries, Inc. and IKEA are some of the prominent players in the furniture market. These companies offer a wide range of furniture products of various categories, colors, material textures and styles.
- The study provides an in-depth analysis of the world home decor market with current and future trends to elucidate the imminent investment pockets in the market
- Current and future trends have been outlined to determine the overall attractiveness and single out profitable trends to gain a stronger foothold in the market
- The report provides information regarding key drivers, restraints and opportunities with impact analysis
- Quantitative analysis of the current market and forecast during the period from 2015-2020 have been provided to highlight the financial appetency of the market
- Porters five forces model analysis of the industry illustrates the potency of the buyers and suppliers participating in the market
- Value chain analysis in the report provides a clear understanding on the roles of stakeholders involved in the value chain
Home Decor Market Key Segments:
The world home decor market is segmented as:
Market by Product
- Living & bedroom
- Bath Textiles
- Bed Textiles
- Kitchen and Dining Textiles
- Living room Textiles
- Floor coverings
- Wood & Laminate
- Vinyl & Rubber
- Carpet & Rugs
- Others (Linoleum, Cork, Bamboo, Concrete)
Market by Geography
- North America