CAGR: 6%Current Market Size: USD 330 billionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The Global Sustainable Home Decor market is expected to grow from USD 330 billion in 2021 to USD 525.96 billion by 2029, at a CAGR of 6% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the increasing per capita income in developing regions.
Designing indoor and outdoor spaces that are both aesthetically pleasing and useful for occupants is known as sustainable home décor. Sustainable home décor goods are available for everything from furniture to floor coverings, including tiles, wood & laminate, vinyl & rubber, carpets & rugs, and others. They also include textiles for the house, including carpets, the bedroom, kitchen, and dining spaces, and textiles for the living room. Both automatic and manual procedures can be used to alter furniture designs. Globally, home décor is popular, and generalists are learning new ways to maintain the beauty and tranquilly of their houses. Sustainability is based on the simple principle that everything people need for their existence, and well-being depends on the natural environment, either directly or indirectly, according to the United States Environmental Protection Agency (EPA). The three commonly recognised facets of sustainability are social, environmental, and economical. These factors must be united for something to be truly sustainable. Sustainable design aims to ensure no negative environmental effects by implementing creative, environmentally mindful design. Utilizing renewable resources, having little impact on the environment, and promoting a sense of interconnectedness between people and nature are all part of this.
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Market Dynamics:
Drivers:
The adoption and promotion of "green construction" by prominent builders and real estate firms is one of the main factors driving the rise of the sustainable home décor sector. Typically, sustainable home décor is installed in tandem with urbanization's rapid pace. This makes money in two different ways. First, organisations like the National Center for Construction Education and Research, Green Building Certification Institute, and U.S. Green Building Council (USGBC) issue green certificates (NCCER). Second, it encourages interaction between homebuyers and builders.
Restraints:
The emergence of fake and inferior goods in the market for sustainable home furnishings gives the idea of eco-friendly and green furniture a bad rap. First, it discourages producers from coming up with novel concepts. The acceptance of counterfeit goods negates the need for the significant investment that the furniture industry requires. Additionally, it renders the entire design context irrelevant. Environmental testing is one more problem associated with fake and inferior goods. The genuine items undergo several examinations to obtain their official certifications, but the knockoffs do not.
Opportunities:
Due to the large global e-commerce boom, the online retailing of the home furnishings industry is anticipated to expand. Rising home furnishings spending is another factor driving the growth of the online market for household goods. One of the major variables affecting online home furniture purchases, including chairs, beds, tables, and closets, is the development of new chances for consumers to shop online. Consumers are more likely to buy foldable, multifunctional, and technologically advanced furniture through e-commerce websites due to the substantial discounts, comfort, and trendy designs, which is primarily responsible for the rise of these platforms.
Challenges
Single-person households are those where just one person resides. Naturally, a single person living alone won't need any additional furnishings. People are drawn to tiny homes and furnishings for this reason.
Segmentation Analysis:
The global sustainable home decor market has been segmented based on price point, income group, product type and regions.
By Price Point
Price point segment is premium and mass. The mass segment led the largest share of the sustainable home decor market with a market share of around 57.3% in 2021.
By Income Group
Income group includes lower middle income, upper middle income, and higher income. The higher income segment led the sustainable home decor market with a market share of around 34.08% in 2021. Impulsive buying is common among the high-income customer class, which is a key market driver. It is assumed that consumers with larger incomes will also tend to purchase items that are more expensively priced.
By Product Type
Product type includes floor covering, furniture and home textile. The furniture segment led the sustainable home decor market with a market share of around 38.08% in 2021. Many environmentally conscious furniture manufacturers only utilise natural materials and avoid synthetics because of environmental concerns. They also put a lot of focus on using sustainable natural resources, such quickly expanding bamboo and recycled wood. Most of these types of furniture have Forest Stewardship Council certification (FSC).
By Regional Analysis:
The regions analyzed for the sustainable home decor market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the Sustainable Home Decor market and held the 39% share of the market revenue in 2021.
Global Sustainable Home Decor Market- Country Analysis:
Germany's sustainable home decor market size was valued at USD 23.1 billion in 2021 and is expected to reach USD 31.61 billion by 2029, at a CAGR of 4% from 2022 to 2029.
Among the Western European nations, Germany is the top market for both importing and purchasing furniture. Consumers' living rooms include sustainable furniture as an essential component of their home furnishings and dcor. The growing emphasis on furnishing their homes with original furnishings and inventive design is a major driver of the sustainable home décor market. Customers look for high-quality products at premium costs in order to express their greater individuality or just to live distinctively.
China Sustainable Home Decor’s market size was valued at USD 29 billion in 2021 and is expected to reach USD 43.50 billion by 2029, at a CAGR of 5.2% from 2022 to 2029. China is the world's biggest exporter of furniture. Even though it might have a bad reputation for creating inferior goods, China makes amazing ecological furniture. China's furniture market, which covers everything from chopping wood to transporting it, is also the largest sector for employment creation due to the country's astoundingly high population. China is a sizable nation with local sustainable home decor businesses established all over the place.
India's Sustainable Home Decor market size was valued at USD 14.78 billion in 2021 and is expected to reach USD 21.18 billion by 2029, at a CAGR of 4.6% from 2022 to 2029. The demand for home décor items has increased as the interior design sector expands in emerging nations like India. Furthermore, the use of waste materials to create attractive looks has become more popular due to consumers' growing preference for eco-friendly goods. In turn, this has enhanced the creative element in the production of home décor goods in India.
Key Industry Players Analysis:
To increase their market position in the global sustainable home decor business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
6% |
Market Size |
330 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Price Point, By Income Group, By Product Type, and Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Duresta Upholstery Ltd., Mohawk Industries Inc., Cisco Brothers Corp., Ashley Furniture Industries,LLC, Forbo Management SA, Kimball International Inc., Herman Miller, Inc., Inter IKEA Systems B.V., Armstrong World Industries, Inc., Greenington Fine Bamboo, Suofeiya Home Collection Co., among others |
By Price Point |
|
By Income Group |
|
By Product Type |
|
Regional scope |
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Scope of the Report
Global Sustainable Home Decor Market by Price Point:
Global Sustainable Home Decor Market by Income Group:
Global Sustainable Home Decor Market by Product Type:
Global Sustainable Home Decor Market by Region:
Global Sustainable Home Decor market is expected to reach USD 525.96 billion by 2029, at growth rate of CAGR of 6% from 2022 to 2029.
2021 is the base year calculated for the sustainable home decor market.
The growth of online retailing as a distribution method is projected to influence the market in the upcoming years.
Floor covering is the most influential segment in the sustainable home decor.
Leading market players active in the global sustainable home decor market are Duresta Upholstery Ltd., Mohawk Industries Inc., Cisco Brothers Corp., Ashley Furniture Industries,LLC, Forbo Management SA, Kimball International Inc., Herman Miller, Inc., Inter IKEA Systems B.V., Armstrong World Industries, Inc., Greenington Fine Bamboo, Suofeiya Home Collection Co.
Political Factors- Political difficulties significantly impact the variables that can affect the long-term profitability of the consumer goods industry in a specific country or market. These policies impact the economy, consumer spending patterns, and international trade rules. Regarding these modifications, the business can do nothing more than follow them. Every nation is required to adhere by its political laws. The restrictions impact which things can be imported, exported and sold in stores. Retailers of home decor items are required to follow government-proposed regulations. If they don't, the corporation can face legal issues and have the products removed from the stores. One of the key elements that directly affect corporate growth is political stability.
Economical Factors- A more robust economy enables customers to purchase their desired goods. Rather than simply purchasing what they require. It also signifies that more investors are starting to show an interest in the financial potential of the sustainable home decor industry as the world is moving towards sustainability. Also, nowadays, people are willing to pay more for sustainable items. Only when the economy is expanding is this feasible. The cost of capital is also directly influenced by other factors such as interest rates, inflation rates, etc. For example, if the interest rate is greater, the cost of capital will rise, and if it is lower, the cost of capital will fall. This has a direct impact on the organization's growth and profitability.
Social Factor- The organizational culture in a particular location is influenced by the society's way of life and culture. The primary societal elements influencing the sustainable home decor sector are consumer preferences. Demographics, financial disparity, consumerism, change in lifestyle, law's impact on social behaviour, education levels, and more are additional variables influencing the sustainable home decor market. For instance, income distribution impacts the market since this reflects how income is dispersed throughout the economy. It directly affects the buyers' ability to make purchases. And eventually influences whether people consume more or less of the things.
Technological Factors- Technological aspects include R&D work, automation, technology incentives, and the rate of technological advancement. They can set up entrance barriers, determine the minimal effective level of output, and influence outsourcing decisions. Technological advancements may also impact prices, quality, and innovation. The sustainable home decor sector has benefited significantly from the internet as it offers services online. In addition to streamlining services, this will help us reach a global audience. The majority of businesses have a website. In essence, it serves as a digital inventory of their offerings. Online options are available from well-known companies. Products are shipped to consumers' homes or made available for pickup at the nearest store.
Environmental Factors- Environmental factors include ecological and environmental factors along with weather, climate, and climate change, which may damage specific economic sectors like tourism, agriculture, and insurance. The way businesses operate and the products they offer are changing. People's awareness of the potential repercussions of climate change, creating new markets and weakening or eliminating those that already exist. Climate change, greenhouse gas emissions, and rising pollution are factors that well-known market firms are successfully managing. Waste management, recycling, and renewable energy should receive more attention. It should also be conscious of how waste and resources are used since this could harm its brand's reputation and customer loyalty.
Legal Factors- The legal aspects of discrimination, consumers, antitrust, employment, and health and safety legislation are among them. These factors could affect a business's operations, costs, and product demand. Consumer goods companies must adhere to very severe legal restrictions. Consumers' rights are protected by law, and if they feel they have been taken advantage of, they can sue the seller. Market participants must follow all laws, obligatory rules, and regulations to win consumer loyalty and confidence in their brand items. Today, regulations governing consumer protection, data privacy, intellectual property rights (IPR), health and safety, and employees and the workplace must be obeyed in almost every country. As a result, it becomes crucial for this company to operate legally and ethically to avoid facing legal action, fines, or other sanctions from a court of law.
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