Decorative Rugs Market Report 2026

Decorative Rugs Market Overview

• Decorative Rugs market size has reached to $4.04 billion in 2025 • Expected to grow to $5.66 billion in 2030 at a compound annual growth rate (CAGR) of 7% • Growth Driver: Growing Focus On Home Decor And Interior Design Boosts Decorative Rug Market • Market Trend: Innovative Advancements In The Decorative Rugs Market • North America was the largest region in 2025.

What Is Covered Under Decorative Rugs Market?

Decorative rugs are floor coverings designed primarily for aesthetic enhancement and to add a decorative touch to a room. They come in various shapes, sizes, colors, patterns, and materials, allowing them to complement or accentuate the décor of any space. These rugs have versatile design elements that can adapt to various styles and needs, making them a valuable addition to any home or space. The main products of decorative rugs are hand-knotted rugs, hand-tufted rugs, machine-made rugs, flat-weave rugs, and others. Hand-knotted rugs refer to a type of handmade rug where the rug is constructed by tying individual knots of yarn into a foundation rather than being machine-woven. The various materials, including wool, nylon, cotton, polyester, jute, and others. It is provided through many distribution channels, including wholesalers or distributors, hypermarkets or supermarkets, specialty stores, online retailers, and others, for varying applications such as residential and commercial.

What Is The Decorative Rugs Market Growth Forecast?

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 7.0%. 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.

What Is The Driver Of The Decorative Rugs Market?

The growing emphasis on home decor and interior design is expected to propel the growth of the decorative rug market going forward. Home decor and interior design focus on improving indoor spaces to create a more attractive and functional environment, involving choices in color, furniture, and layout to suit personal tastes and needs. The surge in home decor and interior design is driven by a desire to customize living spaces, higher disposable incomes, and social media trends featuring elegant interiors. Decorative rugs contribute to home decor and interior design by introducing color, texture, and warmth, defining areas, offering comfort, and either standing out or blending with other furniture. For instance, in November 2025, according to Australian Bureau of Statistics, an Australian-based government administration, in September 2025, household spending in New South Wales increased, primarily driven by a 1.1% rise in the furnishings and household equipment category. Therefore, the growing emphasis on home decor and interior design is driving the decorative rug industry.

Key Players In The Global Decorative Rugs Market

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

Global Decorative Rugs Market Trends and Insights

Major companies operating in the decorative rugs market are focusing on innovative weaving techniques and designs such as hand-knotted braided design to gain a competitive advantage. A hand-knotted braided design is a rug style where knots are tied by hand and braided details are added for extra texture and pattern. For instance, in July 2023, Capel Rugs, a US-based rug manufacturing company, launched the Aria wool rug collection. The hand-knotted Aria rugs feature geometric and bohemian-inspired patterns, crafted in India from natural undyed wool with a high-low profile.

What Are Latest Mergers And Acquisitions In The Decorative Rugs Market?

In January 2025, Jaipur Rugs Company Private Limited, an India-based home textiles and rugs company, acquired Shyam Ahuja Limited, for an undisclosed amount. With this acquisition, Jaipur Rugs aims to expand its product offering in premium rugs and high-end home textiles by integrating Shyam Ahuja’s luxury designs, craftsmanship, and brand heritage, thereby strengthening its market position across the upscale segment. Shyam Ahuja Limited is an India-based luxury textile and rug manufacturer specializing in handcrafted rugs, carpets, and upscale home textile products.

What Defines the Decorative Rugs Market?

The decorative rugs market consists of sales of piles, backings, bindings, and edge finishing, dyes and colors, 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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Decorative Rugs Market Report 2026?

The decorative rugs market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the decorative rugs Market Report 2026? The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the Market Report 2026?