Sure, American consumers bought a lot of furniture for their homes the past two years. And that’s peaked as spending on out-of-home activities increases.
But experts say that consumers aren’t done buying home décor accessory products like rugs and floor coverings and that they represent strong areas for sales in the post-pandemic era.
For much of 2020 and 2021 when Americans were spending so much time in their homes they went on an unprecedented spending spree on big ticket purchases like sofas, case goods, new kitchens and home remodeling projects. That’s leveled off now but the opportunities for retailers to sell decorating accents, either free-standing or as add-ons represent one of the best areas for business going into 2023.
In fact, some think that having made all those major purchases for their homes some consumers are now ready for a mild refresh and that floor coverings, along with other accents like decorative pillows and lighting, are likely to be among the best sellers going forward.
New findings from Allied Market Research, a market research and advisory company of Allied Analytics LLP, show that floor coverings will outpace the overall home sector for at least the next four years.
“According to the U.S. home decor market analysis the floor covering segment generated the highest revenue in 2019, and is expected to remain dominant throughout the forecast period,” the new report said. “The flooring segment is also expected to witness the highest growth rate of 8.4% from 2020-2027.” Research from other sources show similar growth rates for the $5.1 billion rug sector over the next few years.
That kind of growth rate could be why rug companies remain optimistic even as the overall home furnishings sector starts to come down from the boom of the past few years. “We see rugs as an easy way to refresh a room a consumer may have decorated during the pandemic,” said one of the market leaders, Nourison. “People are now looking for quick ways to redecorate a space and make everything look new again.”
Rugs remain one of the most popular decorating options for American households. Recent findings from Statista Research Corp. show that at least 79% of all homes in the country have at least one rug.
And because rugs are made in multiple locations around the world – Asia, Europe and still in the U.S. – they have not been caught up in many of the supply chain problems that have plagued other products that primarily come from fewer places. Plus, because rugs are made of many different kinds of fibers and fabrics – cotton, wool, linen, nylon and other synthetics – they also have remained great values even as costs of raw materials have risen.
The business the industry experienced during the pandemic may not return but there are still opportunities for growth in niche décor categories. You’re probably standing on one of them right now.
