Textile Home Decor Market to Reach USD 146.9 Billion by 2031, Fueled by Rising Urbanization, Consumer Spending, and Sustainability Trends - Analysis by TMR

The textile home decor industry has emerged as a vital segment of the broader interior design and home improvement space, reflecting evolving consumer lifestyles and growing emphasis on aesthetic living. This market encompasses a wide array of products, including curtains, carpets, upholstery, bed linens, cushions, and wall coverings. Rising disposable incomes, increased real estate activity, and the social influence of digital design trends have elevated home decor to a core component of personal expression and household investment. As consumers seek more customized and thematic interiors, the demand for textile-based decor continues to escalate globally.

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Market Size and Growth

In 2022, the market was valued at US$ 92.5 billion, with substantial traction across both emerging and developed economies. The industry is forecasted to grow at a CAGR of 5.4% through 2031, reaching US$ 146.9 billion. Growth is being fueled by factors such as the proliferation of e-commerce, which provides a platform for niche and artisanal brands, and rapid urbanization that promotes apartment living and frequent interior makeovers. Moreover, increased home ownership and renovation activities in the post-pandemic era have amplified the uptake of textile-based furnishings, making it a high-growth segment within the lifestyle market.

Market Segmentation

The textile home decor market is segmented by product type, distribution channel, price range, and end-use. Product types include curtains & drapes, bed linen, kitchen linen, cushions & covers, carpets & rugs, and others. Curtains and carpets dominate due to their immediate impact on room ambiance. By distribution channel, the market is bifurcated into offline (hypermarkets, specialty stores) and online. The online segment is experiencing exponential growth, driven by enhanced digital interfaces, AR-enabled try-ons, and the convenience of home delivery. In terms of price range, mid-range products command the largest share, striking a balance between affordability and quality. End-use segmentation includes residential and commercial, with residential applications leading the market due to the growing culture of home personalization.

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Regional Analysis

Geographically, Asia Pacific is projected to witness the fastest growth, led by rising urban population, increasing disposable incomes, and a booming real estate market in countries like China and India. North America and Europe remain lucrative markets due to high consumer spending on home improvement and a mature retail landscape. In North America, lifestyle-oriented shopping and premium home brands drive sustained demand, while Europe is heavily influenced by sustainability and eco-conscious textile sourcing. The Middle East & Africa and Latin America show untapped potential, supported by infrastructural growth and rising middle-class populations.

Market Drivers and Challenges

Key market drivers include the increasing influence of interior design trends on social media platforms, rising disposable income, and heightened consumer interest in home beautification. Moreover, the shift toward eco-friendly and sustainable textile materials, including organic cotton and recycled fabrics, is shaping product innovation and marketing narratives. However, challenges such as fluctuating raw material prices, supply chain disruptions, and competition from counterfeit or low-quality imports persist. Navigating these challenges will require robust logistics strategies, R&D investment, and brand differentiation.

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Market Trends

Several prominent trends are influencing the textile home decor industry. Sustainable and ethical sourcing is becoming non-negotiable for both consumers and regulators. Brands are increasingly turning to biodegradable, certified organic, or recycled materials to appeal to eco-conscious buyers. Additionally, digital transformation, including AI-driven design customization and AR-based room simulations, is enhancing the shopping experience. The rise of minimalist and Scandinavian design preferences is also reshaping product portfolios, while multi-functional textiles, such as thermal curtains or antimicrobial linens, are adding utility to aesthetics.

Competitive Landscape

The market is highly competitive and fragmented, with both global corporations and regional artisans vying for market share. Key players such as Inter IKEA Systems B.V., Mohawk Industries, and Ashley Furniture Industries dominate through extensive supply chains and brand recognition. Companies like Berkshire Hathaway leverage diversified holdings, while regional leaders like Nitori Holdings excel with localized designs and pricing strategies. Innovation, design variety, and sustainability credentials are increasingly becoming the cornerstones of competitive advantage, prompting companies to invest in green manufacturing and digital consumer engagement.

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Future Outlook

Looking ahead, the textile home decor market is expected to see accelerated innovation, especially in sustainable materials, AI-assisted shopping tools, and global digital marketplaces. As urbanization continues and consumer interest in home aesthetics deepens, the industry is likely to become even more integral to lifestyle spending. Cross-category collaborations (e.g., tech-textiles for smart homes), omni-channel retail models, and data-driven personalization will be key to unlocking future growth. Emerging markets in Southeast Asia, Africa, and Latin America are poised to become major demand hubs as infrastructure and purchasing power improve.

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