The online home decor market has experienced significant growth over the past few years and is expected to continue to grow at a considerable rate in the coming years. The global online home decor market revenue is expected to grow at a CAGR of 17% during the forecast period of 2023 to 2031. The growth of the online home decor market can be attributed to various factors, including the increasing popularity of online shopping, rising disposable incomes, and the growing trend of home renovation and interior design. Moreover, the convenience and ease of shopping online, coupled with the availability of a wide range of products and attractive deals and discounts, have also contributed to the market's growth. The market is driven by factors such as increasing disposable income, changing consumer lifestyles, and the growing trend of home renovation and interior design. Moreover, the convenience and ease of shopping online, coupled with the availability of a wide range of products and attractive deals and discounts, have also contributed to the market's growth. The market presents significant growth opportunities for players in the space, with the furniture segment expected to account for the largest market share.
Changing Consumer Lifestyles
One of the key drivers of the online home decor market is the changing consumer lifestyles. In recent years, there has been a significant shift in consumer preferences toward more modern and functional home decor items. Consumers are increasingly looking for products that not only enhance the aesthetics of their homes but also provide practical benefits. For example, the demand for furniture items such as convertible sofas and multifunctional beds that can serve multiple purposes has been on the rise. Similarly, the demand for energy-efficient lighting and home automation systems has also increased in recent years. According to a report by the National Kitchen and Bath Association, over 80% of homeowners in the US are now choosing open-concept kitchens and larger islands, reflecting a trend towards more functional and practical home designs.
Rising Disposable Income
Another driver of the online home decor market is the rising disposable income of consumers. With an increase in income, consumers can afford higher-quality and more expensive home decor products. Additionally, consumers are also more willing to spend on home renovation and interior designing. According to a report by the US Bureau of Economic Analysis, disposable personal income in the US increased by 5.9% in 2021 compared to 2020, indicating a growing trend of rising disposable income among consumers.
Growing Trend of Online Shopping
The growing trend of online shopping is another key driver of the online home decor market. Consumers are increasingly turning to online platforms for their home decor needs due to the convenience and ease of shopping online. Additionally, online platforms offer a wide range of products and attractive deals and discounts, making them more appealing to consumers. According to a report by the National Retail Federation, online sales in the US increased by 20.6% in 2021 compared to 2020, indicating a growing trend of consumers turning to online platforms for their shopping needs.
Lack of Tangibility and Inability to Experience Products to Constrain Market Growth
One of the major restraints for the online home decor market is the lack of tangibility and the inability to experience products before making a purchase. This can be a significant barrier for consumers who prefer to physically see and feel the products before making a purchase decision. Online shopping for home decor items can often lead to disappointment, as the product may not meet the consumer's expectations in terms of quality, color, or design. According to a survey conducted by PWC, 65% of consumers reported that they prefer to shop for furniture and home decor items in-store rather than online. This highlights the importance of being able to experience the products before making a purchase decision. Furthermore, the lack of tangibility can also make it difficult for consumers to accurately judge the size and scale of the products.
This can lead to issues such as products being too big or too small for the intended space, resulting in the need for returns or exchanges. Overall, the inability to experience products before making a purchase can be a significant barrier for the online home decor market. Retailers need to provide accurate and detailed product descriptions and images, as well as offer flexible return and exchange policies, to mitigate this restraint and provide consumers with a satisfactory online shopping experience.
Furniture Segment Dominates the Product Market
This segment can be further divided into furniture, home textiles, floor coverings, lighting, and wall decor. The furniture segment dominated the market in 2022, with the highest revenue share. The demand for furniture is increasing due to the rising trend of home renovation and interior design. The shift towards eco-friendly and sustainable furniture products is also driving the growth of this segment. Consumers are increasingly becoming conscious of the environmental impact of their purchases and are willing to pay a premium for products that are eco-friendly and sustainable. Overall, the furniture segment is expected to remain the major market in the online home decor industry due to the increasing demand for furniture products and the rising trend of eco-friendly and sustainable products. The home textiles segment is also expected to witness significant growth, driven by the increasing demand for premium quality bedding and bath linens. The floor coverings segment is expected to grow at a steady pace due to the rising demand for carpets and rugs. The furniture segment is expected to grow at a CAGR of 14.5% from 2023 to 2031. The home textiles segment is expected to grow at a CAGR of 15.5% during the same period.
E-Commerce to be the Fastest Growing Market
The e-commerce segment is expected to witness significant growth in the online home decor market during the forecast period. The e-commerce segment is expected to grow at a CAGR of over 13.5% during the forecast period of 2023 to 2031, driven by the increasing adoption of e-commerce platforms among consumers. Company websites are an important distribution channel for the online home decor market. Companies typically have websites where they showcase their products and offer consumers the ability to purchase directly from their sites. This distribution channel offers companies the opportunity to have complete control over the customer experience, from the presentation of their products to the checkout process. This also enables companies to establish a direct relationship with their customers, allowing them to gather valuable data and insights into their customers' preferences and shopping behaviors. E-commerce platforms, on the other hand, are third-party platforms that allow multiple sellers to offer their products to consumers. E-commerce platforms offer consumers a wide range of home decor products to choose from, along with the convenience of shopping from their homes. Some popular e-commerce platforms for home decor products include Amazon, Wayfair, and Overstock, among others.
APAC to Remain as the Global Leader
North America is expected to hold the largest market share due to the high disposable income and the increasing trend of home renovation and interior design in the region. North America is expected to grow at a CAGR of 14.5% from 2023 to 2031. North America and Europe have traditionally been the major markets for home decor products due to the high disposable incomes and high living standards in these regions. However, the market has been witnessing significant growth in Asia-Pacific and other emerging regions due to the increasing trend of home renovation and interior design. Europe is also expected to witness significant growth in the online home decor market due to the increasing adoption of e-commerce platforms and the rising trend of home renovation and interior design. The Asia Pacific region is expected to grow at a CAGR of 16.7% during the forecast period of 2023 to 2031. The Asia-Pacific region is expected to witness the highest growth in the online home decor market due to the increasing urbanization and rising disposable incomes in the region. The increasing trend of home renovation and interior designing is also driving the demand for home decor products in the region.
The Market Competition to Intensify During the Forecast Period
The online home decor market is a highly competitive market, with several players operating in the market. The market is characterized by intense competition among the players, with each player striving to gain a competitive advantage over the others. The key players in the online home decor market include IKEA, Home Depot, Wayfair, Inc., Lowe's Companies, Inc., Bed Bath & Beyond Inc., Amazon.com, Inc., and Alibaba Group Holding Limited, among others. To gain a competitive advantage, players in the online home decor market are focusing on product innovation, customer service, and marketing. Product innovation is a key focus area for players, as consumers are constantly seeking new and innovative home decor products. Players are investing heavily in research and development to come up with new and innovative products that meet the changing needs and preferences of consumers. Customer service is also a key focus area for players in the online home decor market. With the increasing adoption of e-commerce platforms, players are striving to provide a seamless and hassle-free online shopping experience to their customers. This includes providing fast and efficient delivery services, easy returns and refunds, and personalized recommendations based on customer preferences. Overall, the online home decor market is witnessing intense competition among players, with each player striving to gain a competitive advantage over the others. To succeed in the market, players are focusing on product innovation, customer service, and marketing to attract and retain customers.
Historical & Forecast Period
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Online Home Decor market are as follows:
- Research and development budgets of manufacturers and government spending
- Revenues of key companies in the market segment
- Number of end users and consumption volume, price and value.
- Geographical revenues generate by countries considered in the report
- Micro and macro environment factors that are currently influencing the Online Home Decor market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
Market Segmentation
Product
- Furniture
- Living Room
- Dining Room
- Bedroom
- Kitchen
- Others
- Textiles
- Bed Linen
- Bath Linen
- Kitchen Linen
- Upholstery
- Others
- Flooring
- Ceramic & Stone Tiles
- Wood & Laminates
- Vinyl Flooring
- Carpets & Rugs
- Others
- Wall Decor
- Wall Stickers
- Clocks
- Hanging
- Frame Works
- Metal Works
- Shelves
- Others
- Lighting
- Chandeliers
- Lamps & Shades
- Light Bulbs
- Others
- Others
Price Category
- Mass
- Premium
Distribution Channel
- Company Websites
- E-commerce Websites
Key questions answered in this report
- What are the key micro and macro environmental factors that are impacting the growth of Online Home Decor market?
- What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
- Estimated forecast and market projections up to 2031.
- Which segment accounts for the fastest CAGR during the forecast period?
- Which market segment holds a larger market share and why?
- Are low and middle-income economies investing in the Online Home Decor market?
- Which is the largest regional market for Online Home Decor market?
- What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
- Which are the key trends driving Online Home Decor market growth?
- Who are the key competitors and what are their key strategies to enhance their market presence in the Online Home Decor market worldwide?
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Table of Contents
Companies Mentioned
- IKEA
- Home Depot
- Wayfair Inc.
- Lowe's Companies Inc.
- Bed Bath & Beyond Inc.
- Amazon.com Inc.
- Alibaba Group Holding Limited
