Decorative Rugs Market Report 2026

The decorative rugs market size has grown strongly in recent years. It will grow from $4.04 billion in 2025 to $4.32 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to growth in residential renovation activities, expansion of hospitality and commercial spaces, availability of skilled rug craftsmanship, rising consumer spending on interiors, growth of global rug trade.

The decorative rugs market size is expected to see strong growth in the next few years. It will grow to $5.66 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to increasing demand for eco-friendly rugs, rising popularity of contemporary interior designs, expansion of online visualization tools, growing customization in rug designs, increasing demand from commercial interiors. Major trends in the forecast period include increasing demand for sustainable and natural fiber rugs, rising preference for custom and designer rugs, growing adoption of online rug retail platforms, expansion of machine-made rug production, enhanced focus on versatile interior styling.

The increasing focus on home décor and interior design is expected to drive the growth of the decorative rugs market in the coming years. Home décor and interior design involve enhancing indoor spaces to create more visually appealing and functional environments through thoughtful selection of colors, furnishings, and layouts that reflect personal preferences and lifestyle needs. The rising interest in home décor and interior design is fueled by the desire to personalize living spaces, growth in disposable incomes, and the influence of social media showcasing stylish and well-designed interiors. Decorative rugs play an important role in interior design by adding color, texture, and warmth, defining spaces within a room, providing comfort, and either complementing or highlighting existing furniture and décor elements. For example, in November 2025, according to the Australian Bureau of Statistics, an Australian-based government agency, household spending in New South Wales increased in September 2025, mainly driven by a 1.1% rise in the furnishings and household equipment category. Therefore, the growing emphasis on home décor and interior design is supporting the expansion of the decorative rugs market.

Companies operating in the decorative rugs market are increasingly focusing on innovation in weaving techniques and design styles, such as hand-knotted braided constructions, to gain a competitive edge. Hand-knotted braided designs involve manually tying knots and incorporating braided elements to create enhanced texture, depth, and distinctive patterns. For instance, in July 2023, Capel Rugs, a US-based rug manufacturing company, introduced the Aria wool rug collection. These hand-knotted Aria rugs feature geometric and bohemian-inspired designs and are crafted in India using natural, undyed wool with a high-low pile structure, offering a blend of visual appeal and tactile richness.

In January 2025, Jaipur Rugs Company Private Limited, an India-based home textiles and rugs manufacturer, acquired Shyam Ahuja Limited for an undisclosed amount. Through this acquisition, Jaipur Rugs aims to broaden its presence in the premium and luxury rugs segment by integrating Shyam Ahuja’s high-end designs, craftsmanship expertise, and established brand heritage. This move strengthens Jaipur Rugs’ position in the upscale home textiles market. Shyam Ahuja Limited is an India-based luxury textile and rug manufacturer specializing in handcrafted rugs, carpets, and premium home textile products.

Major companies operating in the decorative rugs market are Mohawk Industries, Shaw Industries Group Inc., Milliken Co, Tarkett Group, Oriental Weavers, Balta Rugs NV, Safavieh Inc., The Dixie Group, Surya Inc., Nourison Co, COURISTAN Inc., Loloi Rugs, Colonial Mills Inc., Capel Rugs, Jaipur Living Inc., Dalyn Rugs Co, Momeni Rugs Inc., Kaleen Rugs Inc., Samad Rugs, Harounian Rugs International, Tamarian, EXQUISITE RUGS.

North America was the largest region in the decorative rugs market in 2025. The regions covered in the decorative rugs market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the decorative rugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The decorative rugs market consists of sales of piles, backings, bindings, and edge finishing, dyes and colours, tufting guns, and looms. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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