Home Decor Industry Statistics and Forecasts

This article was written by our expert who is surveying the industry and constantly updating the business plan for an interior designer.

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The Dojo Business Team

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We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the interior design market.

1) What is the current global market size for home décor (revenue and volume)?

The home décor market in 2025 is valued between USD 681 billion and USD 960 billion, depending on the source and scope.

This range reflects different category definitions (e.g., inclusion of furniture, textiles, lighting) and varying channels measured. Industry analysts also report differing unit volumes due to fragmented SKUs across furniture, soft goods, decorative accessories, and lighting.

As a practical benchmark for interior designers, plan capacity and supplier terms against a USD 700–900 billion core addressable market, with furniture and textiles dominating unit counts. Track local volume via retailer sell-through and renovation permits to size your city-level demand precisely.

Translate these figures into serviceable obtainable market (SOM) by mapping your project mix (full-service design vs. e-design, room refresh vs. gut remodel) to average basket sizes. Tie revenue goals to project cadence and sourcing margins.

You’ll find detailed market insights in our interior designer business plan, updated every quarter.

2) What is the projected growth over the next 5–10 years?

The market is forecast to grow at ~4.4% to 9.4% CAGR through 2030–2033.

Base-case scenarios cluster around 4.5–6.5% CAGR, with upside tied to APAC urbanization, digital adoption, and sustainability-led premiumization. Bull cases nearing ~9% CAGR assume faster housing turnover, strong disposable income growth, and low supply-chain friction.

For interior design businesses, this implies steady demand expansion and room to upsell higher-margin, eco-conscious, and modular solutions. It also supports investment in visualization, procurement systems, and post-project care plans.

Build a 3-scenario plan (base, bear, bull) for capacity and cash flow, then align staffing and vendor MOQs to the base case to protect margins.

Get expert guidance and actionable steps inside our interior designer business plan.

3) Which regions drive growth today, and which will expand the fastest?

North America holds the largest share today, while Asia–Pacific expands the fastest.

North America commands roughly 36–43% share due to mature housing stock, high incomes, and strong remodeling culture. APAC (China, India, Southeast Asia) posts the highest growth rates (~8.5–11% CAGR) on urbanization, middle-class formation, and e-commerce leapfrogging.

Europe remains sizable and innovation-led in sustainability, though near-term growth is moderated by macro uncertainty. Middle East growth tracks premium hospitality and residential development; Latin America’s growth is uneven but opportunity-rich in metros.

Interior designers should localize sourcing and logistics for APAC projects and target North American remodeling waves with premium packages.

4) Which product categories generate the most revenue, and how will they evolve?

Furniture leads revenue (≈28–51%), with indoor décor >60% of total spend.

Textiles (rugs, curtains, linens), decorative accessories, and lighting follow as critical attachment categories with high margin potential. Premium, modular, and artisanal goods grow faster than mass-market lines.

Expect demand to shift toward space-saving, multifunctional pieces, wellness-oriented materials, and connected lighting. Bespoke and small-batch items command pricing power when origin and craftsmanship are transparent.

Interior designers should negotiate tiered discounts across furniture, textiles, and lighting, bundling them into fixed-fee or cost-plus project packages.

This is one of the strategies explained in our interior designer business plan.

5) How are consumer spending habits changing (average household expenditure)?

Households continue to allocate meaningful budgets, with the US averaging around USD ~2,500 annually on furnishings in recent years.

New homeowners and relocators spend disproportionately more in the first 12–18 months, while renters increasingly refresh with textiles, lighting, and small furniture to avoid high-move costs. Social media influence and “room-by-room” budgeting drive frequent, smaller baskets.

For interior designers, phased scopes (entry, core, upgrade) and curated add-on lists increase lifetime value. Transparent procurement fees and price-anchored mood boards help clients commit earlier.

Tie your pricing to clear deliverables (concepts, revisions, procurement, installation) and show savings from trade discounts to build trust.

We cover this exact topic in the interior designer business plan.

6) Which demographics most influence demand (age, income, lifestyle)?

Three groups anchor demand: young adults (18–34), middle-aged households, and affluent 45+ renovators.

Young adults prioritize modularity, trend-forward looks, and budget control; middle-aged households emphasize durability and customization; older buyers value ergonomic comfort and timelessness. Remote work and wellness lifestyles reinforce spending on home offices and restorative spaces.

Designers should offer tiered concept packages (starter, family, premium) and ergonomic/wellness add-ons. Use demographic-aligned channels: Instagram/TikTok for young adults, Pinterest/YouTube for family planners, and referrals/real estate partners for 45+ clients.

Income segmentation remains decisive; position premium sustainable lines to higher-income ZIP codes, while offering value-curated edits for rental-dense neighborhoods.

It’s a key part of what we outline in the interior designer business plan.

7) Which distribution channels are strongest, and how will they shift?

Specialty retailers remain strong, but e-commerce and omnichannel models are gaining share quickly.

DIY/mass merchants capture traffic with price and availability, while pure-play online leaders deploy AR and rapid delivery to reduce returns. Social commerce and DTC brands intensify competition at the mid-price tiers.

Interior designers win by integrating trade-only vendors, boutique makers, and select retail SKUs into one managed cart with installation. Client experience improves via digital boards, AR previews, and consolidated delivery windows.

Expect more hybrid showrooms (physical studios + digital visualization) and tighter last-mile logistics tying designer, vendor, and client together.

8) How is digital transformation (marketplaces, social commerce, AR) shaping the future?

Digital tools now influence every stage—from discovery to decision to delivery.

Online marketplaces compress sourcing time; AR and virtual showrooms lift confidence and reduce post-install adjustments; AI personalization speeds options while respecting constraints (budget, size, lead time). Social commerce fuels trend diffusion and immediate purchase intent.

For interior designers, standardized digital mood boards, AR scale checks, and live procurement trackers shorten timelines and justify fees. Client portals that show status, ETAs, and cost deltas improve satisfaction.

Invest early in visualization workflows and vendor integrations to protect margins and reduce errors.

This is one of the many elements we break down in the interior designer business plan.

9) What major design and style trends drive purchases, and how long will they last?

Multifunctional, space-saving, wellness-centric, and nature-inspired aesthetics lead today’s demand.

Calming neutrals with textured layers, biophilic elements, and tactile textiles anchor longevity; smart/connected lighting and flexible layouts reflect remote/hybrid living. Artisanal and handcrafted finishes continue to differentiate premium spaces.

Most of these trends sustain medium term (3–5 years), with palettes and accents rotating seasonally. Designers should refresh accessories while keeping foundational investments timeless.

Package “timeless bones + seasonal accents” to protect client budgets and accelerate approvals.

Get expert guidance and actionable steps inside our interior designer business plan.

10) How do sustainability and eco-friendly materials affect purchasing and forecasts?

Sustainability materially influences selection and pricing power.

Clients increasingly request recycled, responsibly sourced, and low-VOC materials with documented provenance. Brands with circular practices (refurbish, repair, take-back) gain share, and regulations in the EU accelerate adoption globally.

Interior designers who present clear eco-options with lifecycle cost explanations close projects faster and at healthier margins. Carbon-labeled options and repairability plans reduce buyer hesitation.

Embed sustainability checklists into every specification and present two eco alternatives per key line item.

This is one of the strategies explained in our interior designer business plan.

11) Who are the leading global and regional players, and how might shares change?

Global leaders include IKEA, Home Depot, Williams-Sonoma, and Wayfair, with strong omnichannel presence.

Regional specialists and DTC brands grow via niche craftsmanship, sustainability leadership, and agile supply. Market share shifts favor companies with resilient logistics, AR-enabled selling, and reliable after-sales service.

For interior designers, preferred vendor rosters should mix scale players (availability, price tiers) with boutique makers (uniqueness, customization). Annual vendor reviews protect margins and lead times.

Negotiate exclusives or early access on lines that fit your signature style to differentiate proposals.

12) Which external factors will most impact growth (housing, income, cycles)?

Housing turnover, renovation activity, disposable income, and credit conditions are the primary growth levers.

Rising mortgage rates can defer moves but often shift spending into renovations; material inflation compresses budgets unless scoped early; labor availability affects timelines. Policy changes (tariffs, sustainability rules) alter sourcing costs and compliance work.

Interior designers should monitor local permits, builder sentiment, and lead indicators (housing starts, existing home sales) to time campaigns. Flexible scopes and price locks reduce client friction during volatility.

Maintain a rolling 90-day procurement plan and a contingency vendor list for critical SKUs.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Mordor Intelligence — Home Décor Market
2. Grand View Research — Home Décor Market
3. Persistence Market Research — Home Décor Market
4. Fortune Business Insights — Home Décor Market
5. Future Market Insights — Home Décor Market
6. Statista — U.S. Expenditure on Household Furnishings
7. NAHB — Housing & Remodeling Indicators
8. CBI — HDHT Market Channels & Segments
9. InsightAce Analytic — Sustainable Home Décor