The rug and carpet market is a significant segment of the textile industry, growing at a steady pace fuelled by various factors such as changing consumer preferences, rising disposable incomes, technological advancements, and rapid urbanization. In addition, the use of innovative materials and technology, along with the popularity of e-commerce platforms and online sales channels, are also contributing to the growth of the market.
The global rugs and carpet market is valued at US$ 77 billion in 2021 and has been witnessing a growth at a CAGR of 4% over the past decade. The market is expected to reach US$ 95 billion by 2025 at a CAGR of 5% from 2020 to 20251.
Global Rugs & Carpets Market Scenario
Growth of rugs and carpets sector is highly dependent on the increasing demand for home décor products, recognition of carpet as a necessary product instead of luxury, growth in end-user segments such as hospitality, corporate, retail, entertainment, aviation, etc.
Figure 1:Global Rugs & Carpets Market Size (US$ bn.)
Source: Textile Focus, Floor Covering Weekly, Carpet Research Institute and Wazir Analysis
As of 2021, the global rug market comprises 30% of the overall market, valued at US$ 27 billion, with carpets accounting for the remaining 70%, valued at US$ 50 billion2 . The largest segments within the global rug and carpet market are bath rugs and wall-to-wall carpets.
The global trade of rugs and carpets have stood at US$ 17 billion in 2021, with tufted category holding the highest share of 43%, followed by woven 32%.3 The synthetic fiber segment dominates the market with 56% share, which is attributed to its economical prices, durability, and low maintenance requirements.
The USA is the largest market accounting for US$ 22 billion in 2021 having 29% market share, followed by Europe accounting for US$ 14 billion for the same period having 18% share. The synthetic fiber segment dominates the market with 56% share, which is attributed to its economical prices, durability, and low maintenance requirements
Figure 2: Global Market Size (2021)
More than 85% of the demand for carpets and rugs in the US is met by domestic manufacturing, with the remaining 20% being fulfilled through imports. According to the Carpet & Rug Institute (CRI), the state of Georgia alone accounts for over 45% of the world’s carpet supply. Interestingly, the top four countries that produce carpets are also the top four markets for carpets in the world.
India Rugs & Carpets Market Scenario
The growth of Indian market of rugs and carpets is steadily accelerating over last 10 years and the trend is expected to continue. Rugs and Carpets market of India stands at US$ 1.2 billion in 2021, growing at a CAGR of 3% since 2011, with rugs having a largest share of US$ 900 million and carpets holding a value of US$ 280 million6. Carpet market is yet to fully develop as majority of households do not use wall to wall carpets. Their usage is concentrated in
corporate, hospitality, aviation and entertainment industry.
Most of the demand is concentrated in low and economy segment with very low product prices. The demand across segments is growing but India remains a price sensitive market. An important character of Indian market is that almost 80-85% demand is catered to by unorganized, unbranded segment.
Figure 3:Indian Market of Rugs & Carpets (US$ Mn)
Source: Statista and Wazir Analysis
The market is segmented by product type into tufted, woven, needle-punched, knotted, and others. The tufted and woven rug segments are the most popular types of rugs and carpets, accounting for a significant share of India’s exports. Wool-based carpets are also highly sought after with India having a rich tradition of producing beautiful and durable woolen carpets.
India’s export India’s rugs & carpets export stood at US$ 2.2 billion in 2021, growing at a CAGR of 6% since 2011. Natural fibre based rugs & carpets such as of wool, cotton, jute, etc. are majorly exported from India.India’s exports of tufted carpets is gretaer compared to otherrugs and carpets segments.
Industry Dynamics
The global market for rugs and carpets is undergoing a rapid evolution, providing companies with the chance to broaden their customer base and enter new markets. In order to seize the immense opportunity available in the global rugs and carpets market, companies must prioritize product innovation, quality, and design. They must also adopt modern manufacturing processes and technologies to enhance their competitiveness and efficiency in the global market, and focus on sustainability and eco-friendliness to keep up with changing customer demands. Additionally, there are several trends observed in the industry that can be leveraged are:
• Increasing demand for eco-friendly and sustainable products
Sustainability concerns is causing shift towards environmentally friendly and circular fibres like recycled pet, nylon, PP. Rugs made out of nylon & wool are losing their market share to polyester & PP rugs, respectively due to price considerations.
• Increasing demand for customized rugs and carpets
Customers are becoming more interested in personalized products, and this presents an opportunity in the rug and carpet industry. Customized rugs and carpets can cater to the growing demand. Customers can choose the size, colour, and design of the rug or carpet they want, and a product that meets their specific requirements can be created. This can help market players differentiate themselves from their competitors and increase customer loyalty.
• Growing demand in emerging markets
Emerging markets, such as India present a massive opportunity in the rug and carpet industry. The middle class in these countries is growing, and with it, the demand for home
decor products, including rugs and carpets. Industry can leverage this opportunity by entering these markets and offering their products to the growing customer base.
• Technological Advancements
Due to price consideration, there has been a shift from handmade rugs to machine made rugs. Conventional dyeing processes are being replaced with dope dyed/solution dyed yarn dyeing processes saving water.
In conclusion, the global market opportunity for rugs and carpets is a promising one, with increasing demand from both residential and commercial sectors. As the world becomes more conscious of the need for sustainable and eco-friendly products, the rug and carpet industry has responded by innovating and producing environmentally conscious materials.
With the rising demand of stylish and functional floor coverings and growth of the global economy, manufacturers have the chance to expand their reach beyond their traditional markets and cater to a wider audience. It is clear that the rug and carpet industry is poised for continued growth and success, as long as it stays attuned to changing consumer needs and preferences.
