Area Rugs Market Research Report and Outlook by 2028

The market for area rugs is projected to expand from US$ 11.35 billion in 2022 to US$ 15.00 billion by 2028, reflecting a compound annual growth rate (CAGR) of 4.8% from 2023 to 2028.

Area rugs serve as textile floor coverings that typically cover a specific portion of a room or floor. They play a crucial role in creating a cozy and inviting atmosphere by anchoring furniture within a space. Available in a multitude of styles, shapes, and designs, area rugs can be crafted from various materials, including wool, nylon, synthetic fibers, and more. The increasing consumer demand for personalized items has prompted manufacturers to produce customized area rugs made from natural materials like cotton, flax, and jute. Factors contributing to the growth of the area rugs market include a rising urban population, an increase in nuclear families, and a booming housing sector with a keen interest in interior design. Additionally, area rugs are becoming increasingly popular in commercial settings such as offices, hotels, spas, restaurants, and bars.

The global area rugs market is categorized by type into wool, nylon, synthetic fibers, and others. In 2022, the synthetic fibers segment led the market. Rugs made from synthetic fibers are constructed from man-made materials designed to replicate the look and feel of natural fibers while providing advantages such as enhanced durability, stain resistance, and cost-effectiveness. Common synthetic fibers used in area rugs include nylon, polyester, acrylic, and polypropylene. These rugs offer an affordable solution for consumers seeking stylish and resilient options. Synthetic fibers are engineered for high durability, resistance to wear, and reduced likelihood of fading or color loss. Furthermore, they are less likely to trigger allergies compared to natural fibers like wool, which can attract dust mites and other allergens. For those with allergies or sensitivities, synthetic fiber rugs may be a more suitable choice.

In 2022, North America accounted for the largest share of revenue in the global area rugs market. The region's demand for area rugs is driven by an increase in construction and home decoration and renovation activities in both residential and commercial sectors, as these rugs are often utilized to enhance the aesthetic appeal of flooring. Consumers in North America frequently invest in area rugs due to their design advantages. Area rugs, which are typically smaller than the dimensions of the room, also provide sound-dampening benefits and help mitigate noise. They play a vital role in protecting floors from damage caused by furniture, pet claws, and other sharp or heavy objects that can leave unsightly scratches. Their lightweight and portable nature allows for easy removal whenever necessary. Consequently, the growing awareness of the benefits of area rugs, coupled with increased spending on home aesthetics, are key factors driving market growth in North America. On May 17, 2023, the US Census Bureau and the US Department of Housing and Urban Development (HUD) reported that 1,375,000 privately-owned housing construction projects were completed in April 2023, an increase from 1,361,000 in April 2022. This growth in the residential construction sector in North America further stimulates the demand for home decoration, remodeling, and renovation, positively impacting the area rugs market in the region.

Prominent players in the global area rugs market include Dalyn Rug Co, Sams International Inc, Riztex USA Inc, Amer Rugs Inc, Capel Inc, Nodi Handmade Rugs Ltd, Riviere Rugs Ltd, Maa Collections, Faze Three Ltd, and Golden Carpets Ltd. These companies are committed to delivering high-quality products that meet customer expectations, investing significantly in research and development to achieve this goal.

The overall size of the global area rugs market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the area rugs market. Additionally, numerous primary interviews were conducted with industry participants to validate the findings and gain deeper analytical insights. Participants included industry experts such as VPs, business development managers, area rugs market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the area rugs market.