This article was written by our expert who is surveying the industry and constantly updating the business plan for a home goods store.
This guide gives you the essential home décor retail statistics and growth forecasts you need to open and scale a home goods store in 2025.
It translates market data into plain, practical points so you can plan product mix, channels, and budgets with confidence. All numbers are current to October 2025 and focused on what a home goods store operator must know.
If you want to dig deeper and learn more, you can download our business plan for a home goods store. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our home goods store financial plan.
The home décor retail market is valued at roughly $750–$960 billion in 2025, led by Asia-Pacific and North America, and is on track to top $1.1–$1.6 trillion by 2032–2035. Growth is fueled by e-commerce (now ~40–48% of sales), younger urban buyers, sustainability preferences, and tech-enabled shopping.
For a home goods store, the winning playbook is an omnichannel model, curated mid-to-premium assortment (furniture, textiles, lighting), and data-driven personalization supported by AR tools and fast fulfillment.
| Metric | 2025 Status / Recent Trend | What it means for a home goods store |
|---|---|---|
| Global market size | $750–$960B; APAC ~45%, NA ~30% | Prioritize suppliers and SKUs that resonate in APAC/NA styles; plan regional sourcing. |
| 5-year CAGR (2019–2024) | ~4.1–5.3% | Stable growth; room for niche expansion with focused positioning. |
| Forward CAGR (2025–2030) | ~5.7–9.4% (by segment/region) | Expect faster lift in textiles, lighting, and smart décor; expand these lines. |
| Online sales mix | ~40–48% and rising | Build an ecommerce engine; offer BOPIS/ship-from-store for speed. |
| Fastest-growing categories | Textiles, lighting, wall art; smart/eco items | Lean into sustainable fabrics, connected lighting, modular storage. |
| Demand drivers | Millennials/Gen Z; urban renters/owners | Merchandise for smaller spaces; emphasize value, design, and sustainability. |
| Macro impacts | Inflation shifts spend to “refresh” vs. move | Promote room makeovers, bundles, and financing for mid-ticket items. |
What is the current global market size and regional split?
The global home décor retail market in 2025 is estimated at $750–$960 billion, with strong regional differences that matter for a home goods store.
Asia-Pacific contributes roughly 45% of revenue thanks to urbanization and housing growth, while North America accounts for ~30% with higher premium adoption. Europe ranks third, and the Middle East & Africa plus Latin America show faster percentage growth from smaller bases.
You’ll find detailed market insights in our home goods store business plan, updated every quarter.
Below is a clear regional breakdown to size your opportunity.
| Region | Share of 2025 Market | Drivers and notes |
|---|---|---|
| Asia-Pacific | ~45% | Rapid urbanization, rising middle class, expanding housing stock; strong demand for textiles, modular furniture, and value-design. |
| North America | ~30% | Higher premium penetration, strong online adoption, renovation and “refresh” spend; omnichannel leaders perform best. |
| Europe | High-teens to low-20s% | Design-led tastes, sustainability premium, mature retail; steady growth with eco and smart home segments. |
| Middle East & Africa | Low-single-digit share | Double-digit growth in select GCC markets; new housing and mall-centric retail formats drive uptake. |
| Latin America | Mid-single-digit share | Growing urban demand; currency cycles matter; marketplaces and value assortments win. |
| Global total | $750–$960B | Assortment, price tiers, and channel mix determine outperformance in each region. |
| 2032–2035 outlook | $1.1–$1.6T | Expansion led by APAC and digital share gains; sustainability and AI personalization lift conversion. |
What has been the 5-year CAGR for the market?
The home décor retail market grew at about 4.1–5.3% CAGR from 2019 to 2024, then began accelerating in 2025.
Segments tied to textiles, lighting, and décor accessories outpaced furniture in growth rate even as furniture remained the largest revenue category. Markets with strong ecommerce logistics and housing turnover showed the best momentum.
This is one of the strategies explained in our home goods store business plan.
Plan inventory and cash flow around a 5–9% forward CAGR depending on your region and mix.
Align working capital to seasonal peaks and promotional events to protect margins.
Which product categories are growing the fastest?
Textiles, lighting, and wall art are growing fastest, while furniture stays the largest share of spend.
Smart/connected lighting, sustainable fabrics (bedding, curtains, rugs), and customizable storage show strong double-digit sub-segment momentum in many markets. Eco-friendly materials and smaller-space solutions earn higher repeat purchase rates.
We cover this exact topic in the home goods store business plan.
Use the table below to plan your home goods store assortment.
| Category | Role in basket | Growth drivers and actions |
|---|---|---|
| Furniture | Largest revenue anchor | Modular, multi-functional pieces; financing options; lightweight shipping for flat-pack SKUs. |
| Textiles (bedding, curtains, rugs) | High repeat, margin | Sustainable fibers, size variety, seasonal color drops; private-label to lift margin. |
| Lighting | Ticket builder | Connected/IoT fixtures, energy-efficient bulbs, design-led pendants; bundle with room kits. |
| Wall art & décor | Impulse add-on | Local artists, limited runs, personalization; gallery-wall bundles improve AOV. |
| Storage & organization | Space saver | Small-space solutions; stackable systems; content with before/after visuals. |
| Outdoor & patio | Seasonal lift | Weather-resistant materials, modular seating; pre-season promos. |
| Smart home décor | Emerging high-growth | App-controlled lighting/shades; educate with AR previews; cross-sell with voice hubs. |
What share is online vs. physical—and how is it shifting?
Online now represents ~40–48% of global home décor retail sales and continues to take share from store-only models.
Ecommerce grew ~8.6% annually—well above physical retail’s ~3–4%—with clear advantages for omnichannel (BOPIS, curbside, ship-from-store). Stores remain critical for tactile categories and design consultations.
It’s a key part of what we outline in the home goods store business plan.
Use this channel split table to design your home goods store’s go-to-market.
| Channel | 2025 share | Notes and tactics |
|---|---|---|
| Online (own site) | ~18–22% | Highest control over brand and margin; invest in merchandising, search, and PDP UX. |
| Online (marketplaces) | ~20–26% | Rapid reach and traffic; manage fees, differentiation, and reviews. |
| Physical stores (brand) | ~35–42% | Experience and consultation; enable BOPIS and design appointments. |
| Physical (wholesale/specialty) | ~12–15% | Trade and regional exposure; curate for local tastes. |
| Omnichannel uplift | +10–30% AOV | Unified inventory, easy returns, and consistent pricing drive conversion. |
| Mobile share of online | 50%+ of traffic | Optimize checkout, AR try-on, and one-tap payments. |
| 2027 outlook | Online >50% | Faster in urban markets with quick-ship logistics and virtual design services. |
Which consumer demographics drive demand—and how do they buy?
Millennials and Gen Z drive the strongest growth, while Boomers remain critical for premium and whole-home projects.
Young urban renters and first-time owners value design, sustainability, and fast delivery, often researching on mobile and purchasing online or via BOPIS. Boomers favor quality, service, and warranties, with higher in-store consultation usage.
This is one of the many elements we break down in the home goods store business plan.
Targeted content, financing options, and room-bundle merchandising raise AOV across age groups.
Use loyalty and triggered emails to convert repeat purchases in textiles and accessories.
What are consumers spending on sustainable and ethical décor?
Roughly 35–40% of consumers prefer eco-friendly décor, and that preference is translating into higher sales and repeat rates.
Products using recycled/upcycled materials, FSC wood, organic cotton, bamboo, cork, and low-VOC finishes are outperforming. Circular strategies—repairs, resale, and take-back—strengthen brand equity.
Get expert guidance and actionable steps inside our home goods store business plan.
Label sustainability attributes on PDPs, and bundle “eco room kits” to simplify choices.
Show lifecycle impact and care instructions to reduce returns and increase trust.
Which regions will grow fastest over the next five years?
Asia-Pacific remains the fastest-growing region, followed by select Middle Eastern and African markets from smaller bases.
High urbanization rates, new housing supply, and digitally savvy consumers support above-average growth. Latin America’s growth improves with marketplace penetration and logistics upgrades.
This is one of the strategies explained in our home goods store business plan.
Use the table to prioritize your home goods store’s expansion or sourcing focus.
| Region | 2025–2030 outlook | Implications for a home goods store |
|---|---|---|
| Asia-Pacific | Fastest CAGR | Localize styles; mix value and premium; invest in mobile UX and quick-ship. |
| Middle East (GCC) | High growth | High spend per household; mall-based experiential retail and premium assortments. |
| Africa (selected) | Emerging | Growth via marketplaces; focus on durable, climate-resilient materials. |
| North America | Steady-strong | Omnichannel excellence, design services, and financing drive share wins. |
| Europe | Steady | Sustainability premium and design curation; trade programs for pros. |
| Latin America | Improving | Marketplace reach; value tiers; localized payments and delivery windows. |
| Global | 5.7–9.4% CAGR | Category mix and logistics execution create outsized gains. |
How will AR and AI shape the future of home décor retail?
AR, 3D visualization, and AI-driven personalization are becoming standard conversion tools in home goods store ecommerce.
AR “place in room” reduces returns and improves confidence for size, color, and style; AI engines tailor recommendations and auto-create cohesive room bundles. Mobile-optimized WebAR expands access without app downloads.
You’ll find detailed market insights in our home goods store business plan, updated every quarter.
Integrate AR on key SKUs and use AI to power email triggers and on-site merchandising.
Track return rates and AOV to quantify ROI and iterate.
How do inflation, housing, and income affect demand?
Higher prices and tight housing have slowed big moves but boosted “refresh” spending—beneficial for a home goods store with mid-ticket items.
As housing transactions rebound, furniture and lighting demand improves, while textiles and décor remain resilient. Consumers trade up for durable, sustainable pieces when value is clear.
This is one of the strategies explained in our home goods store business plan.
Offer bundles, payment plans, and price-lock promotions to maintain conversion.
Market room makeovers that deliver visible impact under a set budget.
Who are the leading companies and how concentrated is share?
The top 10 players capture roughly a quarter of the global market, with the rest fragmented among regional and niche brands.
Names frequently cited include IKEA, Wayfair, The Home Depot, Ashley, and strong regional specialists. Digital-first innovators and DTC brands continue to win share with speed and personalization.
Below is a high-level landscape to benchmark your home goods store positioning.
Use this to identify where your assortment or service can differentiate.
| Company / Type | Scale | Positioning and notes |
|---|---|---|
| IKEA (global) | Top-tier | Flat-pack value design; massive private-label; strong AR and planning tools. |
| Wayfair (marketplace/DTC) | Top-tier | Large online assortment; logistics network; visualization tools for furniture. |
| The Home Depot (NA) | Top-tier | Home improvement plus décor; omnichannel excellence; pro programs. |
| Ashley (global/NA) | Large | Furniture focus; branded stores plus wholesale; financing options. |
| Regional leaders | Large | Strong localization; mall/store networks in EU, APAC, GCC; specialty depth. |
| DTC/digital-first brands | Scaling | Speed to market, niche design, sustainability storytelling; high online mix. |
| Market concentration | ~25% (top 10) | Fragmentation creates room for curated, service-led challengers. |
Which distribution strategies are driving growth?
Omnichannel strategies—unifying ecommerce with physical stores—deliver the strongest revenue and retention for home goods stores.
Direct-to-consumer protects margin and brand, marketplaces provide reach and discovery, and specialty stores build credibility and service experiences. Pop-ups and flexible urban footprints add visibility and content.
This is one of the strategies explained in our home goods store business plan.
Adopt unified inventory, fast last-mile, and free, easy returns to unlock omnichannel uplift.
Track AOV and repeat rate by channel to optimize spend.
What is the 5- to 10-year forecast?
The market is projected to exceed $1.1–$1.6 trillion by 2032–2035, with online expected to surpass half of total sales by the late 2020s.
Expect a global CAGR in the 4–6% range overall, with online segments growing ~11–12% CAGR and outpacing stores. Assortment depth in textiles/lighting and AR-enabled journeys will separate leaders from laggards.
This is one of the many elements we break down in the home goods store business plan.
Plan capex for site speed, 3D assets, and OMS/WMS that support ship-from-store.
Tie marketing to housing cycles and seasonal refresh events.
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.
Want more help launching your home goods store?
Explore our in-depth guides on budgets, revenue models, and seasonality to plan with confidence.
Sources
- Fortune Business Insights – Home Décor Market
- Grand View Research – Home Décor Market Size, Share & Trends
- Mordor Intelligence – Home Décor Market Report
- Future Market Insights – Home Décor Market
- Coherent Market Insights – Online Home Décor Market
- The Business Research Company – Home Furnishings Stores
- Digital Commerce 360 – Ecommerce Trends in Housewares
- Hilco Global – Home Furnishings Outlook
- Statista – Home Décor Outlook (Worldwide)
- Grand View Research – Home Furnishings Market
-Home goods store: budget checklist and tools
-Home goods store: seasonal revenue patterns