Global Carpets and Rugs Market 2025 – 2034

Reports Description

As per the Carpets and Rugs Market analysis conducted by the CMI Team, the global Carpets and Rugs Market is expected to record a CAGR of 6.9% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 94.91 Billion. By 2034, the valuation is anticipated to reach USD 153.39 Billion.

Carpets and Rugs Market Overview

North America will be the regional leader in the global carpet and rugs market in 2025, commanding a share of 43.1%. Such a position is attributable to the strong demand in this region for high-quality products and its considerable production capabilities. The region with the most significant growth potential is Asia-Pacific, owing to rapid urbanization, rising incomes, and a growing middle class, especially in countries like China and India.

Woven carpets and rugs form a large bulk of the market due to their durability and appeal. All these properties make these carpets widely used in both residential areas and commercial places, as they last long and have several varieties of appearance.

Nylon is by far the most preferred material for carpets and rugs. Which is why this synthetic fiber continues to remain quite popular with the general public. Being a highly durable material, highly resistant to staining, and able to maintain its good looks for a long time, it became a great favorite for households and businesses alike.

The segment remains the largest, catering for residential use, as consumers continue to idolize their homes in determining comfort and style. Rising disposable incomes, along with the current unrelenting trend towards home improvements, are the main drivers for this growth.

Carpets and Rugs Market Significant Growth Factors                                              

The Carpets and Rugs Market Trends present significant growth opportunities due to several factors:

• Urbanization and Middle Class Growth in Asia Pacific: The carpet and rug market today is gaining from the rapid growth of cities and an emerging middle class in the Asia Pacific. As more people flock to cities, there is a greater requirement for new homes and commercial space, which increases demand for interior decoration products like carpets and rugs. Income levels are rising, particularly in countries like China and India. With the improvement in people’s economic status, more and more are inclined to devote higher amounts to home furnishing. Because of the increased concentration on improving living environments, the demand for stylish, durable, yet affordable carpets has been rising at an extremely fast pace in this region.

• Rising Demand for Eco-friendly Products: Consumers are becoming more eco-friendly, auguring well for eco-friendly carpets and rugs. Manufacturers are adopting new sustainable materials, like recycled fibers and natural fibers like wool and jute, for making carpets and rugs in response. Companies are also now strategically putting greener options in a way that attracts the environmentally friendly customers, thus driving market growth. Eco-friendly product companies enjoy good consumer sentiments; hence, sustainability is a potent growth factor moving the carpet industry.

• Increased Home Renovations and Interior Defects: Increasing home improvements and interest in interior decoration influence carpet and rug demand. Many homes now opt for having their interiors remodeled to enhance the aesthetics and comfort levels, especially in the living space and bedrooms of the house. Carpets and rugs are among the selling points of any home design by giving it effective creativity, a combination of functionality with style. With growing experience in catching trends through social media and home improvement shows, the growth continues to hold great promise in terms of the spending power on increased household flooring products.

• Novel Innovations and Technological Advancements in Carpet Manufacturing: Technological innovations in carpet making have also aided in further boosting the market. By these newly developed technologies, carpets can now be produced by manufacturers with more durable and stain-resistant features and also made easier to maintain. This way, consumer prospects invest in such long-lasting, low-cost maintenance carpets. Furthermore, the newer designs and customizations like digital printing have widened the varieties and creativity in carpets and rugs, thus giving consumers a wider choice that encourages maximum consumption and market expansion.

• Growing Demand in Commercial Spaces: The growing incorporation of carpets into commercial spaces such as offices, hotels, and retail stores is another critical factor driving the market for carpets and rugs. For commercial spaces, strong and elegant floors are destined to face heavy foot traffic. Among the attributes, carpets are selected mostly for their aesthetics, along with the ability to absorb noise in a highly occupied environment. Growth in the hospitality and commercial real estate sectors is expected to fuel demand for carpets and rugs in these industries.

Carpets and Rugs Market Significant Threats

The Carpets and Rugs Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Foreign Exchange Fluctuations: Carpet and rug markets heavily depend on raw materials such as wool, nylon, polyester, and natural fibers. Any fluctuations in raw material prices would directly affect the pricing of carpets. For instance, if raw wool or synthetic fibers become more expensive, production costs would rise, and manufacturers would pass on these higher prices to consumers. In price-sensitive markets, this would reduce demand and adversely affect profit margins. Corrugation of the supply chain, be it because of natural disasters or political instability, could also result in shortages or delays in acquiring necessary materials, making it more difficult for manufacturers to deliver on the demand.

• Intensely Competitive Environment: The global carpet and rugs market is extremely competitive, with established international brands and local competitors fighting for market space. In this competition, price reduction among low-end market segments has been adversely impacting profit. New players from low-cost countries also add more competition to existing players. Therefore, companies need to be on their toes in terms of development, product quality, and the management of costs to keep their competitive edge. Failure on any of these parts might result in companies losing market share to competitors with a stronger appetite for success.

• Environmental and Sustainability Regulations: With mounting environmental concerns, regulations governing the manufacturing process have stiffened, including banning toxic chemicals, waste disposal, and recycling. With costs that can strain manufacturers, however, it also raises production costs for those not yet cleaned up. Eco-friendly products are being demanded more than ever; therefore, companies must quickly adjust to satisfy the requirements of consumers. Any failure to comply with regulatory requirements and unwillingness to adapt to sustainable practices may result in fines, damaged reputations, and loss of customers who are increasingly environmentally conscious.

Carpets and Rugs Market Opportunities

• Rising Demand for Eco-friendly Products: With an increasing awareness towards sustainability, the market for carpets and rugs manufactured out of recycled materials or sustainable fibers such as wool, jute, and cotton has become larger. Consumers are becoming increasingly aware of the environmental consequences of their purchases. Oftentimes, such customers are willing to pay a little more for goods that reflect their values. By offering sustainable, natural, or recycled products, a company can attract the attention of environment-minded consumers and increase its market base. Furthermore, eco-friendly products are usually accompanied by a higher profit margin because of their perceived value.

• Growing Demand From Emerging Economies: The emerging economies, such as India and China, are seeing increasing demand for carpets and rugs, with the increase in urbanization and rising disposable incomes fuelling the need for home decor items. This is due to increasing migratory patterns in countries like India and China, where urban centers are becoming more developed. Such markets will experience extreme growth in the demand for carpets and rugs due to the growing middle-class population, which is seeking quality home furnishings as well. The markets can thus be explored by providing a product that is affordable yet high-end to local tastes and preferences, thereby opening new revenue generation avenues.
• Technological Advances in Production: Most recent developments in manufacturing technology, such as digitization of printing, automation, and improved weaving methods, give major opportunities for efficiency in production and cost savings. Digital printing, for example, offers facilities for more complex patterns and further customization that is becoming so popular with consumers today. These technologies could also mean faster manufacturing times as such, lead times will be reduced from the period of production through to availability on the market, making companies more responsive to market demand. Automation, on the other hand, would also mean utilizing lower manpower costs as well as improved consistency of quality in products. All these offer manufacturers a competitive edge in the market, besides diversification into consumer-oriented production of unique and high-quality products.

Carpets and Rugs Market Segmentation Analysis

By Type

• Tufted Carpets: Tufted carpet constitutes one of the largest segments on the market, buoyed by affordability, ease of production, and design versatility. The segment is forecast to grow steadily and gain a considerable market share. Tufted carpets find much use in the residential sector, especially living rooms and bedrooms, owing to the comfort factor, along with a wide variety of styles and textures. They are also common in commercial spaces such as offices and hotels. Their very popularity stems from the less costly manufacturing process compared to other types like woven carpets; thus, tufted carpets fill the demand from cost-conscious consumers quite well. The segment shall keep growing on strong demand from the residential and commercial sectors.

• Woven Carpets: Woven carpets have amassed a significant market share primarily within the luxury segment. Such products are renowned for their durable, high-grade material, making them ideal for long-term application in high-traffic commercial environments such as hotels and offices. The woven sector is propelled by consumer preference for quality and long-lasting products. Demand and market for woven carpets have zoomed up thanks to rising demand in the residential sector, where consumers look for flooring that is expensive and durable. Given the world shift to premium-quality and aesthetic products, woven carpets are anticipated to maintain steady demand chiefly within the upscale market.

• Needle-Punched Carpets: Strength, resilience, and heavy-traffic-place ability have made needle-punched carpets an increasingly popular floor covering. Needled carpets find application in industries, automotive interiors, and commercial purposes in places such as airports and retail stores. Their low-cost manufacturing and durability make these carpets extremely appealing in sectors where durability is in great demand. With increasing demand for high-performance, low-maintenance flooring, needle-punched carpets are expected to boom in terms of demand. The market share of this segment is expanding as more industries look for cheap, tough carpeting solutions that offer both utility and durability.

• Knotted Carpets: Knotted carpets, especially hand-woven ones, hold a niche yet quite vibrant market in the luxury and high-end residential sectors. Known for their craftsmanship and unique patterns, they are produced mainly in wool, silk, and carpets made from high-quality materials. These are usually high in price due to the laborious and stringent process of weaving, as well as the high-standard raw materials employed. Knotted carpets mainly find buyers due to their artisanal touch, high-value designs, and statement usage in interior design. It is a growing sector, albeit at a slower rate compared to tufted carpets, yet it continues to flourish in the upscale residential sector.

• Others: While most carpet types will fit into their respective segments, the “Others” section will cover the nooks: printed carpets and flatwoven carpets, as well as those that are produced through non-conventional means or materials. Despite the small part of the pie it currently has, this segment is growing fast with the introduction of new technologies and materials. In this segment, custom-designed carpets and products made from nature-friendly materials such as jute or hemp can now be considered. As the eco-sensitive consumer preferences grow, the “Others” category is likely going to emerge on the innovation front and gain an extensive presence in the market.

By Material

• Nylon: Nylon, due to its durability, resilience, and stain resistance, far exceeds other fibers in terms of usage within the carpet and rugs market. In residential and commercial settings alike, nylon carpets are well favored. They are extensively utilized in high-traffic areas where aesthetics must be maintained for more extended periods, and due to their ability to take on bright colors and intricate patterns, they remain a top choice. The advancements in nylon processing have made it a more straightforward production material and made it economically viable, thereby increasing its presence in the lower-to-mid-price market. Therefore, nylon is expected to continue holding a primary position in the market within the next few years, especially in North America and Europe.

• Polyester: Polyester carpets are among the most emerging carpet types in the market, boasting low cost, soft touch, and excellent color retention. This type of manufacturing is also considered to be a little bit green compared to other types because it is used in making polyester from recycled plastic bottles. Although polyester carpets cannot provide the same extent of durability as found with nylon carpets, they still find an excellent source of market in residences since they provide a soft feel underfoot and are not expensive. The above defines polyester carpets; however, with the increasing trends in sustainable awareness, such carpets will soon witness impressive customer demands in green and environmentally friendly markets. Growing preference for clean-label and sustainable products further propels polyester popularity.

• Polypropylene: Due to its water repellency and stain-resistant properties, polypropylene has been recognized as a good option for use in those areas of the house, such as kitchens and bathrooms, that are prone to moisture and dirt. Moreover, it is among the cheapest materials to use for carpets, thereby appealing to a very wide consumer segment that is cost-conscious. Again, it is a very cheap material and is not close in durability to nylon or polyester, and because of this shortcoming, it is restricted from use in heavily trafficked areas. Affordability and stain resistance, however, assure its continued use in a residential market primarily for low-end carpeting. The segment is anticipated to mature moderately because it will be made available to price-sensitive consumers.

• Others: The “Others” class comprises carpets made of wool, cotton, jute, and eco-friendly fibers. Wool is a luxury material due to its softness and long-lasting characteristics as well as its natural insulating properties, making it one that the luxury markets could highly seek after. Jute and cotton, too, though not as popularly used, are increasingly used because of greater interest in using sustainable and biodegradable materials. It also keeps carpets from recycled materials in consideration of the increasing acceptability of environment-friendly products. Increasing the sustainability approach across all demographics of consumers will boost the category “Others,” especially in the affluent and eco-friendly segments.

By End-User

• Residential: Residential remains the largest segment in the overall market for carpets and rugs, representing comfort, aesthetics, and functional flooring for consumers. Carpets are generally used in living rooms as well as bedrooms and hallways, as they create warmth and style within a home. The home improvement tendencies, coupled with higher disposable incomes, yield continuous growth in the place. Consumers are looking for affordable yet stylish carpets; there is also a rising trend toward eco-friendly materials entering the residential market. As personalization becomes more prominent in all market trends, increasing demand in the residential area is expected for customization.

• Non-Residential: The non-residential segment is also growing steadily; the segment now includes offices, hotels, and retail spaces. These spaces are all very heavy in footfall to make an area durable and stylish in terms of a flooring solution. Commercial areas, especially in the hospitality and retail industries, are often inclined to use high-cost carpets because they create a luxurious ambience. The requirement for carpets for non-residential spaces is going to increase as businesses keep improving their establishments to satisfy customers and keep their employees comfortable. In addition to this, the trend towards sustainability presently in commercial spaces has also increased the interest in eco-friendly carpets, causing an increase in this segment.

• Automotive & Transportation: The segment of automotive and transportation carpets is tiny but growing. These carpets are used in vehicles and consist of floor mats, upholstery, and trunk liners. They provide comfort and reduce noise while traveling. Both factors for boosting growth are the increasing demand for luxury vehicles and the fact that every mid-range model is now focusing more on interior comfort. The automotive carpets market will be much more considerable in the future as the global automobile market expands, especially into the emerging markets of the world. This segment would also benefit from most innovations in materials, such as antimicrobials and water-resistant coatings, coming to make automotive carpets much more durable and functional.

Carpets and Rugs Market Impact of Recent Tariff Policies

The recent tariff policies have greatly influenced the global carpet and rug market, particularly in India and the United States. In April 2025, the United States imposed a 26% tariff on imports from India, affecting industries from carpet making to textiles. Trademark data shows that in 2025, the carpet exports of India to the U.S. will fall by around $5.76 billion. This is mainly due to increased pricing on carpets and low demand from American consumers.

The Kashmiri hand-knotted carpet industry in India has also suffered due to higher tariffs on such traditional carpets, leading to an increase in price and order cancellations, thus low income for the artists. While India exports carpets to the U.S. to the tune of about $1.2 billion, an increase in price due to tariffs never benefits the artisan because higher U.S. costs do not translate into higher wages for the workers.

Report Scope

Carpets and Rugs Market Regional Analysis

The Carpets and Rugs Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North America, and particularly the United States, is a dominant force in the carpet and rugs market, mainly because of its stringent demand for high-quality, durable products. There are several major manufacturers in the region, such as Mohawk Industries and Shaw Industries, that cater to the residential or commercial segment. The U.S. market is characterized by a strong economy, rising consumer spending, and a shift toward premium, eco-friendly carpets. Government promotion of sustainability practices has also affected the market growth, influencing manufacturers to adopt green production methods. This interest continues in renovating homes and improving office space, further stimulating demand in the commercial and residential sectors.

• Europe: Europe is the largest consumer and producer of carpets and rugs in terms of output, with specific countries like the UK, Germany, and France in the leading position. Premium and high-quality products manufactured from wool and other natural materials are preferred by European manufacturers. The European Carpet and Rug Association (ECRA) has representation of most of the best-known brands within that area. The sustainability trend is rising, as many customers are coming to demand eco-friendly carpets made from recycled materials. Government regulations regarding waste management and sustainability have been a catalyst in promoting innovative solutions in the industry. Disposable income and the interest of the region in home décor will thus contribute to a healthy demand throughout the residential and commercial spheres.

• Asia-Pacific: The Asia-Pacific is the best-performing region in terms of growth for carpets and rugs, where key countries such as China, India, and Japan experience greater demand. Rapid urbanization among these countries is coupled with rising disposable income due to an expanding middle class, driving growth at residential and commercial levels. India has a long history when it comes to carpet production, and it occupies a key position in the market as a leading exporter of hand-knotted carpets. Affordable and quality carpets are becoming more in demand, as their population tends to increase homeownership and home décor interests. Many governments promote manufacturing and exports in countries such as India, thus boosting market growth. The other side of the stimulating factor is the wide shift by Asia-Pacific, as compared to other regions, toward eco-friendliness, encouraging manufacturers to consume sustainable materials and practices.

• LAMEA: Latin America, the Middle East, and Africa are increasingly expanding in the carpets and rugs market due to growing urbanization and a consequent increase in demand for furnishing homes and offices. The luxury carpet market in the Middle East region hence thrives, with the UAE and Saudi Arabia being among the nations These nations invest significantly in producing carpets suitable for both residential and commercial spaces. Additionally, the growing middle class across Africa increases demand for affordable yet stylish home carpets. These initiatives by various governments in the Middle East and Africa, aimed at growing and diversifying the economies while boosting the non-oil sectors, are indirect contributors to the carpets and rugs market in LAMEA. Increasing tourism and the expected increase in disposable income among middle-income individuals would also have positive effects on the market.

Carpets and Rugs Market Key Developments

In recent years, the Carpets and Rugs Market has experienced several crucial changes as the players in the market strive to grow their geographical footprint and improve their product line and profits by using synergies.

• In April 2025, the U.S. imposed a 28% tariff on imported carpets, significantly affecting the Kashmiri hand-knotted carpet industry. Artisans in Srinagar reported canceled orders and declining incomes as American buyers shifted to cheaper, machine-made alternatives. Despite the high export value of Indian carpets—$1.2 billion to the U.S. alone—the artisans rarely benefit, as rising consumer costs in the U.S. do not translate into better wages. ​

• In February 2025, the North American carpet and rug market was valued at $13.3 billion in 2024 and is projected to grow to $20.4 billion by 2034, with a 4.4% annual growth rate. This growth is driven by increased home renovation activities and rising demand for eco-friendly and sustainable products. ​

• In January 2025, design experts highlighted a resurgence in carpet popularity, driven by a shift from minimalism to maximalism. Consumers are seeking warmth, comfort, and nostalgic charm in their interiors, leading to increased interest in plush, patterned carpets. ​

• In January 2025, the Shoppe Object trade show in New York concluded its Winter edition with record-breaking success. The event featured over 800 hand-selected brands, showcasing a diverse range of carpets and rugs and reflecting a strong market demand for innovative designs. ​

These important changes facilitated the companies’ ability to widen their portfolios, to bolster their competitiveness, and to exploit the possibilities for growth available in the Carpets and Rugs Market. This phenomenon is likely to persist since most companies are struggling to outperform their rivals in the market.

Carpets and Rugs Market Competitive Landscape

The Carpets and Rugs Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• Mohawk Industries Inc.
• Shaw Industries Group Inc.
• Beaulieu International Group
• Balta Industries NV
• Tarkett Group
• Victoria PLC
• Tai Ping Carpets International Ltd.
• Oriental Weavers Company
• Godfrey Hirst Carpets
• La Manufacture Cogolin
• Mannington Mills
• Forbo Holding AG
• Rugs USA
• Ruggable LLC
• Kaleen
• The Natural Carpet Company
• Dixie Group Inc.
• Interface Inc.
• Carpet Planet
• Jaipur Rugs
• Others

These companies implement a series of techniques to penetrate the market, such as innovations, mergers and acquisitions, and collaboration.

The carpets and rugs market has a highly competitive atmosphere marked by continuous changes, with many global giants and regional players in existence. Such companies as Mohawk Industries, Shaw Industries, Beaulieu International Group, and Tarkett Group dominate the market with large production levels, strong brand positioning, and diversified products.

These key players utilize innovative strategies to maintain their leadership by offering a wide range of carpets, from tufted to woven, and through modern material applications with nylon, polyester, and wool. Their supplies are a mixture of residential and commercial markets, with the right focus on high-end, durable, and aesthetically pleasing carpets.

FTC and low-cost companies and regional players are making a move into the niche markets, offering carpets that are cheaper, more eco-friendly, and customizable. For instance, Rugs USA and Ruggable LLC, emerging out of the boom of e-commerce, offer an inventory full of designs and options from the comfort of being online. Their trend of going deep into niche segments like sustainable rugs and machine-washable rugs is giving them some serious competition.

With increasing consumer demand for sustainability, downstream players are shifting towards eco-sustainable production processes, recycled materials, and compliance with regulations. Players’ investments are increasingly focused on technological advancements like digital printing and automation to meet the fast-growing market of customizable designs and quicker delivery.

As consumer preferences become ever more directed towards personalization and sustainability, competition is again expected to increase, thus propelling greater levels of innovation and provisioning of options for consumers. E-commerce is also advancing competition by allowing market access to both incumbents and start-up firms on a global scale.

The Carpets and Rugs Market is segmented as follows:

By Type

• Tufted
• Woven
• Needle-punched
• Knotted
• Others

By Material

• Nylon
• Polyester
• Polypropylene
• Others

By End-User

• Residential
• Non-residential
• Automotive & Transportation

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America