US Home Décor Market Outlook to 2028
June 2024
100
About the Report
About the Report
US Home Décor Market Overview
- The US home decor market is valued at approximately $165 billion in 2023, growing at a CAGR of 6.3% from the historical period 2018 to 2023. However, in 2018, the market size was around $120 billion. The period from 2018 to 2023 saw a significant increase due to the rise in home renovation activities and a booming real estate sector.
- Prominent players in the market include IKEA, Bed Bath & Beyond, Wayfair, Home Depot, and Target. These companies dominate due to their extensive product ranges, strong brand presence, and effective distribution channels.
- Key drivers include growing consumer interest in interior design, the rise of e-commerce, increasing homeownership rates, and technological advancements in home decor products.
- The market faces challenges such as high competition, fluctuating raw material prices, and supply chain disruptions. Additionally, sustainability concerns and changing consumer preferences require continuous innovation.
US Home Décor Current Market Analysis
- The US home decor market is thriving with a diverse range of products from furniture and textiles to decorative accessories. The market has seen a significant shift towards online shopping and personalized home decor solutions.
- Furniture remains the largest product segment, accounting for a significant share of the market. The demand for multifunctional and space-saving furniture is particularly high.
- Among the various products, sofas, and sectionals are the bestselling items, driven by their essential role in living room aesthetics and functionality.
- IKEA leads the market due to its affordable pricing, wide range of products, and strong brand recognition. Its effective supply chain management and innovative marketing strategies also contribute to its dominance.
US Home Decor Market Segmentations
By Product Type: In 2023, the U.S. Home Décor Market is segmented by Product Type into Furniture, Textile, Wall Décor, Lighting, Flooring, and Accessories. Furniture holds the largest market share due to its essential role in home functionality and aesthetics. Consumers are increasingly investing in high-quality, multifunctional furniture that complements their lifestyle and space requirements.
By Distribution Channel: In 2023, the U.S. Home Décor Market is segmented by Distribution Channel into Online and Offline. Despite the rise of e-commerce, offline stores still dominate due to the tactile nature of home decor purchases. Consumers prefer to see and feel products before buying, especially for high-value items like furniture and flooring.
By End User: In 2023, the U.S. Home Décor Market is segmented by End User into Commercial and Residential. The residential sector is the largest end-user segment due to increasing homeownership rates, which drive demand for home improvement products and services. The growing trend of home renovation and personalization further boosts this sector as homeowners seek to enhance their living spaces, reflecting personal style and improving comfort and functionality, thus fueling significant market growth.
US Home Decor Market Competitive Landscape
Company Name |
Establishment Year |
Headquarters |
IKEA |
1943 |
Leiden, Netherlands |
Wayfair |
2002 |
Boston, MA, USA |
Bed Bath & Beyond |
1971 |
Union, NJ, USA |
Williams-Sonoma, Inc. |
1956 |
San Francisco, CA, USA |
Ashley Furniture |
1945 |
Arcadia, WI, USA |
- Strong brands like IKEA and Bed Bath & Beyond have established a significant presence through extensive marketing and consistent quality. IKEA's annual revenue in the US alone surpassed $5 billion in 2022, reflecting the high consumer trust and loyalty towards well-known brands.
- Effective distribution channels ensure product availability nationwide. For instance, Home Depot operates over 2,300 stores across the US, allowing it to serve a broad customer base and maintain a strong market presence.
- Competitive pricing helps attract a broad consumer base. Wayfair's average order value increased to $287 in 2023, showcasing how value-for-money offerings can drive sales while maintaining profitability in a highly competitive market.
US Home Décor Market Industry Analysis
US Home Décor Market Major Growth Drivers
- Smart Home Décor: The adoption of smart lighting systems, which allow users to control lighting through mobile apps, has seen a 20% increase in sales year-on-year since 2020.
- Consumer Spending Power: The US Bureau of Economic Analysis reported a 5% increase in personal disposable income from 2018 to 2022. Higher-income levels allow consumers to spend more on upgrading their living spaces, which has fueled growth in the home décor market.
- Urban Population Growth: The US Census Bureau noted that the urban population grew by 7% from 2015 to 2020. Urban residents tend to have smaller living spaces, leading to a higher demand for multi-functional furniture and space-saving décor solutions.
- Online Shopping Trends: According to the US Department of Commerce, online retail sales of home décor products increased by 15% annually from 2018 to 2023. This trend is driven by the convenience of online shopping, wider product availability, and competitive pricing.
US Home Décor Market Challenges
- Raw Material Costs: Fluctuating prices of raw materials affect production costs. The cost of lumber, a key material in home decor, saw significant volatility in 2022, with prices peaking at $1,500 per thousand board feet, impacting furniture manufacturing costs.
- Regulatory Compliance: Stringent safety and quality regulations increase operational costs. Compliance with the Consumer Product Safety Improvement Act (CPSIA) requires regular testing and certification, adding to the cost burden for manufacturers.
- Competition: Intense competition from local and international brands. Over 50,000 home decor businesses operate in the US, leading to a saturated market where continuous innovation and marketing are essential to maintain market share.
- Consumer Preferences: Rapidly changing preferences necessitate agility. The trend towards minimalist design requires companies to frequently update their product lines, impacting inventory management and production planning.
US Home Décor Market Recent Developments
- IKEA acquired TaskRabbit: To enhance its service offerings, providing assembly and installation services, which led to a 10% increase in customer satisfaction scores in 2023.
- Wayfair: Introduced a new range of eco-friendly furniture made from recycled materials, contributing to a 15% year-over-year increase in its sustainability-focused product sales.
- Home Depot: Expanded its online platform and fulfillment centers, increasing its digital sales by 20% in 2023 and enhancing customer delivery experiences.
- Crate & Barrel New Launch: A program to eliminate single-use plastics from its packaging by 2025, which has already reduced plastic waste by 30% in 2023.
- Green Living Programs: The introduction of tax credits for eco-friendly home renovations in 2020 led to a 15% increase in sales of sustainable home décor products. These incentives have made it more affordable for consumers to purchase environmentally friendly items.
US Home Décor Market Future Outlook
The US home decor market is projected to grow exponentially by 2028 due to urbanization and increasing demand for personalized home decor solutions.
- Green Building Council: The U.S. Green Building Council reports a rise in the demand for sustainable building materials and home décor. The number of LEED-certified homes steadily increases, reflecting the consumer shift towards sustainability.
- Consumer Technology Association (CTA): Amart home technology adoption is increasing, with over 69 million U.S. households having at least one smart home device in 2022. Smart lighting and smart speakers are among the most popular categories.
- U.S. broadband households Plan: A smart home device in the next 12 months, with a growing interest in devices that integrate seamlessly with home décor. This sentiment is mirrored in the U.S., where eco-friendly products are seeing increased demand.
Scope Of The Report
Scope of the Report
US Home Decor Market Segmentation |
|
By Product Type |
Furniture Textile Wall Décor Lighting Flooring Accessories |
By Distribution Channel |
Online Offline |
By End User |
Residential Commercial |
Products
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- Home Decor Manufacturers
- US Home Décor Retailers and Wholesalers
- E-commerce Platforms
- Interior Designers and Decorators
- Real Estate Developers
- S. Investment Firms and Analysts
- S. Market Research Companies
- Global and U.S. Local Raw Material Suppliers
- Global and U.S. Technology Providers
- Government Agencies and Regulators
- Bank and Financial Institutions
Time Period Captured in the Report:
- Historical Period: 2018-2023
- Base Year: 2023
- Forecast Period: 2023-2028
Companies
Players Mentioned in the Report:
- IKEA
- Bed Bath & Beyond
- Wayfair
- Home Depot
- Target
- Williams-Sonoma
- Crate & Barrel
- Ashley Furniture Industries
- Havertys
- Restoration Hardware
- Pier 1 Imports
- Lowe’s
- Macy’s
- Ethan Allen
- West Elm
- Pottery Barn
- Kirkland's
- At Home
- HomeGoods
- CB2
Table of Contents
Table of Contents
1. US Home Decor Market Overview
1.1 US Home Decor Market Taxonomy
2. US Home Decor Market Size (in USD Bn), 2018-2023
3. US Home Decor Market Analysis
3.1 US Home Decor Market Growth Drivers
3.2 US Home Decor Market Challenges and Issues
3.3 US Home Decor Market Trends and Development
3.4 US Home Decor Market Government Regulation
3.5 US Home Decor Market Swot Analysis
3.6 US Home Decor Market Stake Ecosystem
3.7 US Home Decor Market Competition Ecosystem
4. US Home Decor Market Segmentation, 2023
4.1 US Home Decor Market Segmentation by Product Type (in value %), 2023
4.2 US Home Decor Market Segmentation by Distribution Channel (in value %), 2023
4.3 US Home Decor Market Segmentation by End User (in value %), 2023
5. US Home Decor Market Competition Benchmarking
5.1 US Home Decor Market Cross-Comparison (no. of employees, company overview, business strategy, USP, recent development, operational parameters, financial parameters and advanced analytics)
6. US Home Decor Future Market Size (in USD Bn), 2023-2028
7. US Home Decor Future Market Segmentation, 2028
7.1 US Home Decor Market Segmentation by Product Type (in value %), 2028
7.2 US Home Decor Market Segmentation by Distribution Channel (in value %), 2028
7.3 US Home Decor Market Segmentation by End User (in value %), 2028
8. US Home Decor Market Analysts’ Recommendations
8.1 US Home Decor Market TAM/SAM/SOM Analysis
8.2 US Home Decor Market Customer Cohort Analysis
8.3 US Home Decor Market Marketing Initiatives
8.4 US Home Decor Market White Space Opportunity Analysis
Disclaimer
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Research Methodology
Research Methodology
Step: 1 Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step: 2 Market Building:
Collating statistics on US Home Decor Market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for US Home Decor Market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.
Step: 3 Validating and Finalizing:
Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step: 4 Research output:
Our team will approach multiple Home Décor suppliers and distributors companies and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from Home Décor Manufacturers and Retailers.
Frequently Asked Questions
Frequently Asked Questions
01 How big is the US home decor market?
The US home decor market was $165 billion as of 2023. It will see a significant increase due to the rise in home renovation activities and a booming real estate sector.
02 Who are the key players of US home decor market?
Key players in the market include IKEA, Bed Bath & Beyond, Wayfair, Home Depot, Williams-Sonoma, Crate & Barrel, and Target.
03 What factors drive the US home decor market?
Key growth drivers include urbanization, rising disposable incomes, growing health consciousness, technological advancements, and the expansion of e-commerce.
04 How many people in US use home decor?
In 2018, the market size of USA Home Décor was valued at $158 billion. A significant increase is seen due to the rise in home renovation activities and a booming real estate sector.
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