United States Home Decor Market by Products (Furniture, Floor Covering, Home Textiles, and Others), Distribution Channel (Supermarkets & Hypermarkets, Specialty Stores, E-Commerce, Others), Income Group (Higher Income, Upper-middle Income, and Lower-middle Income), and Company Analysis 2025-2033

Home décor is one of the most significant markets in the USA, primarily driven by changing consumer preferences towards modern, minimalistic, and sustainable designs. With growing disposable incomes and the increasing impact of social media and interior design trends, Americans are investing more in their living spaces. The pandemic further accelerated this trend as people spent more time at home, emphasizing comfort and personalization. E-commerce platforms have also made high-quality, customizable décor accessible to a broader audience. Sustainable and eco-friendly home décor products are becoming increasingly popular as consumers prioritize environmentally conscious choices. For example, a Juniper survey reported 47% of consumers prefer chatbots for online shopping because it offers 24/7 support, which contributed almost $112 billion in retail e-commerce sales by 2023. E-commerce merchants also capitalize on seasonal seasons and holidays with seasonal discounts and promotions.

Driving Growth in the United States Home Décor Market

Heightened Interest in Home Personalization

Consumers in the U.S. are increasingly making homes personalized because of their need to have living spaces that reflect their tastes and lifestyles. Social media platforms, such as Pinterest and Instagram, have popularized interior design trends, which inspires people to change their homes. Customizable furniture, decor items, and DIY solutions have become more in demand as a result of this trend. Moreover, through e-commerce platforms, consumers can access various products, thus making home personalization more accessible. This has led to significant growth in the home décor market, especially among the younger and tech-savvy demographics. August 2024, Tailored Canvases is thrilled to introduce its customizable home décor collection, which includes a range of canvas prints, wall signs, and decorations that can be tailored to individual styles.

Rising Disposable Incomes and Lifestyle Changes

As disposable incomes increase, Americans spend more on home improvement and décor. The trend is further reinforced by lifestyle changes, such as remote work, which necessitates functional yet attractive home office environments. Millennials and Gen Z consumers are willing to invest in trendy and high-quality decoration items. Enhanced financial stability has also led to increased homeownership, providing opportunities for home décor businesses to address new homeowners who need to furnish and decorate their homes. In 2023, U.S. consumers spent an average of 11.2 percent of their disposable personal income on food, a percentage that was consistent with the previous year, according to the USDA. Going forward, the estimated real disposable personal income per capita for October 2024 is expected to be $52,205.

Home Decor E-Commerce Growth

E-commerce has transformed the home décor industry in the U.S., allowing customers to shop conveniently for products online. Extensive catalogs, competitive prices, and easy delivery make the store reach out to more customers. Online tools, such as AR for viewing decorations in outdoor spaces, have enriched customer experiences. E-commerce also presents sustainable and specialty home decor brands, expanding customer choice. The shift to online shopping, coupled with targeted marketing and personalization, is a key growth driver in the market. In 2023, e-commerce in the United States accounted for 22.0% of total retail sales, as Digital Commerce 360's analysis of data from the U.S. Department of Commerce reported. This is higher than in 2022 at 21.2%. According to the Pew Research survey carried out in July 2022, close to 32% of respondents in the US used their smartphones to complete their purchases online. 21% of the respondents utilized desktops or laptops, while 7% used a tablet for shopping purposes.

Obstacles in the Home Décor Market of the United States

Excessive Competition in the Market Sectors

The U.S. home décor market is highly competitive, with the presence of many players: from major retailers to small businesses and niche brands. This causes intense competition, which eventually leads to price wars that reduce companies' profit margins. The smaller companies find it difficult to compete because established brands can offer huge product ranges and discounts through the e-commerce platform. Furthermore, consumer trends are changing rapidly and are always in need of new fashionable products, which results in a continuous innovation by the companies, thus adding more to the operational costs. Ensuring quality, price, and innovation is always the constant problem for the companies amidst this saturated market.

Rising Raw Material Costs and Supply Chain Breakages

Raw material cost volatility such as wood, metals, and textiles significantly affect the cost of producing home décor products. These disruptions worsen the problems created during global crises, extending periods between availability of products and increases in shipping costs. Increased retail prices affect consumer affordably. Moreover, more stringent requirements about sustainable materials increase their complexities. Eco-friendly alternatives can often be more expensive and this challenge home décor businesses in the United States in managing supply chain inefficiencies while maintaining affordability and sustainability.

USA Tables & Desks Industry

Rapid urbanization, population growth, and increased disposable incomes are driving the popularity of tables and desks in different designs, materials, and shapes. Tables have become an integral part of household furniture as they not only serve as tables and desks but also host social gatherings with friends and family, a virtual classroom for children, and a temporary home office. These factors are leading to increased adoption of dining tables by residential users and thus contribute to overall USA market growth.

In addition, the trend of major industry players increasing their online presence is likely to boost sales of the product in the near future. A good example is Coco Republic, an Australian furniture company, which opened its online store in July 2023, offering quality and affordable furniture, including dining tables, to the U.S. market.

Products – Market breakup from 4 viewpoints:

1.    Furniture
2.    Floor Covering
3.    Home Textiles
4.    Others

Distribution Channel – Market breakup from 4 viewpoints:

1.    Supermarkets & Hypermarkets
2.    Specialty Stores
3.    E-Commerce
4.    Others

Income Group – Market breakup from 3 viewpoints:

1.    Higher Income
2.    Upper-middle Income
3.    Lower-middle Income

All companies have been covered from 3 viewpoints:

•    Overview
•    Recent Development
•    Revenue

Company Analysis:

1.    Inter IKEA Systems B.V.
2.    Bed Bath & Beyond Inc,
3.    Herman Miller Inc.
4.    Mohawk Industries Inc.
5.    Williams-Sonoma, Inc.
6.    Kimball International, Inc,
7.    HNI Corporation

Report Details: