Global Home Decor Market Overview, 2024-29

Market Dynamic

Market Drivers • Urbanization and housing market dynamics: Global urbanization trends, which include the shift of inhabitants from rural to urban areas, have increased demand for housing and, as a result, home design items. The fast expansion of urban centers provides chances for interior designers, architects, and home decor shops to meet the changing demands and preferences of urban people. Furthermore, fluctuations in the housing market, such as changes in property prices, mortgage rates, and housing building activity, have a direct impact on consumers' propensity to invest in home design, as homeowners strive to personalize and add value to their homes. • Consumer lifestyles and design preferences: Evolving consumer lifestyles, driven by social, cultural, and technological variables, generate changes in design preferences and product demand in the home decor industry. Minimalism, sustainability, and smart home integration are popular trends among consumers looking for useful, aesthetically pleasing, and environmentally friendly decor solutions. Furthermore, the development of digital platforms and social media channels has democratized design inspiration, allowing customers to explore, share, and replicate a wide range of decor designs from all over the world. Market Challenges • Long product replacement cycle: The extended product replacement cycle of home decor products, which results in occasional purchases, poses a substantial impediment to market development. Customers' purchasing selections for residential indoor furnishings are heavily influenced by the most recent design trends. Furniture, on the other hand, is not supposed to be changed frequently because it lasts for so long. Most furniture items are costly and considered one-time expenditures. As a result, following the initial purchase, buyers do not see the need for repeated replacements. Branded home decor goods are long-lasting and reliable, with the majority being of high quality. • Sustainability and environmental concerns: In recent years, there has been a growing concern about the environmental impact of the home decor sector. Consumers are increasingly looking for eco-friendly and sustainable home decor solutions, citing concerns about the use of unsustainable materials and the carbon footprint of manufacture and shipping. This presents a problem for enterprises in the global home decor market, as they must reconcile the desire for environmentally friendly products with the necessity to remain profitable. Furthermore, maintaining openness and accountability along the supply chain is critical for establishing confidence with environmentally concerned customers. Market Trends • Increasing preferences for personalization: Individuals changing preferences are driving increasing demand for home decor items, which is supporting market growth. As a result, people all around the world are more interested in individualized and aesthetically beautiful home designs. Furthermore, consumers are increasingly looking for distinctive and personalized design pieces that reflect their individuality and flair. Aside from this, the growing emphasis on handmade and artisanal decor products is propelling market expansion. Furthermore, the increased demand for decor products made from sustainable materials is creating a good market outlook. Aside from that, rising demand for decor products as a result of people's increased reliance on social media is driving market expansion. Furthermore, different social media channels feature inspiring home ideas, encouraging individuals to purchase similar decor elements. Moreover, the increasing adoption of decor items with minimalist designs, vintage aesthetics, or eco-friendly options is contributing to market growth. • Increased integration of smart technology: The incorporation of smart technology into decor products helps to provide individuals with greater experiences. In addition, it provides greater convenience and control. Homeowners may easily handle a variety of components of their living environment, including lighting and thermostats, voice-activated assistants, and motorized window coverings. This level of control improves both comfort and efficiency. Aside from that, smart decor items help to increase energy efficiency by allowing customers to monitor and adjust energy consumption. Smart lighting systems may automatically adjust brightness based on natural light levels, saving electricity and energy costs. Furthermore, smart technology provides personalization, allowing users to change the lighting colors, brightness levels, and patterns to suit their mood or occasion. Furthermore, voice-activated assistants offer personalized guidance and information. Smart decor products often include security features like connected cameras, doorbell cameras, and smart locks. These enhance home security and offer peace of mind to homeowners, allowing them to monitor their properties remotely. Covid-19 Impacts The home decor industry faced significant disruptions in its global supply chains due to factory closures, transportation delays, and logistical challenges. The inability to source materials and finished products, coupled with increased demand, led to inventory shortages and delayed deliveries. These disruptions had financial implications for businesses and often resulted in higher production costs. The pandemic prompted a significant shift in consumer behavior, with more people spending increased time at home. This shift led to a surge in demand for home decor items as individuals sought to enhance their living spaces for comfort, productivity, and aesthetics. Home became not just a place to reside but also a multifunctional space accommodating work, leisure, and various activities. With lockdowns, social distancing measures, and safety concerns limiting in-person shopping, there was a notable acceleration in e-commerce for the home decor industry. Consumers increasingly turned to online platforms to browse, purchase, and virtually visualize how products would fit into their homes. The convenience of online shopping became a crucial factor in sustaining industry sales during periods of restricted movement. The widespread adoption of remote work prompted a renewed focus on home offices. This translated into increased demand for office furniture, ergonomic accessories, and decor items that enhance the functionality and aesthetics of home workspaces. The home decor industry responded by introducing products tailored to the needs of remote workers. The pandemic heightened awareness of environmental and social issues, leading consumers to prioritize sustainable and eco-friendly home decor options. Companies that incorporated sustainable practices in their manufacturing processes and product offerings gained favor among consumers who were increasingly conscious of the environmental impact of their purchases. With more time spent at home during lockdowns, individuals engaged in do-it-yourself (DIY) projects and home improvement activities. This trend resulted in increased sales of DIY-friendly decor items, paint, wallpaper, and other materials as people sought to personalize and upgrade their living spaces.

Key Development

• August 21, 2023: Herman Miller Inc introduced fuld nesting chair designed in collaboration with Stefan Diez. It has a sleek design that enables flexible configurations for workspaces. Available in dipped-in-color options consisting of the seat, seat-back, and legs in one hue and dual-color combinations. • September 2022: Home24 launched marketplace offers in Austria, France and Switzerland. This enabled Home24 to expand the accessory, home textile, and seasonal product categories. • July 20, 2022: Inter IKEA Systems B.V., the leading Swedish home furnishings retailer, will open its third store in Mumbai at R CITY, Ghatkopar (W). This will strengthen the commitment of the company to India, making the brand more accessible to a larger consumer base. • July 2022: Armstrong World Industries, Inc. and Price Industries, two leading innovators in the commercial construction industry, announced an expanded partnership focused on accelerating the development of holistic solutions to promote healthy indoor spaces.