Carpets and Rugs Market Report 2026

The carpets and rugs market size has grown strongly in recent years. It will grow from $9.5 billion in 2025 to $10.03 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to growth of residential construction activities, rising demand for interior decoration products, expansion of commercial infrastructure, availability of diverse textile materials, increasing use of carpets in home décor.

The carpets and rugs market size is expected to see strong growth in the next few years. It will grow to $12.8 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to rising demand for eco-friendly floor coverings, expansion of hospitality and commercial renovation projects, growing adoption of digital visualization tools, increasing consumer preference for customized interiors, innovation in stain-resistant and durable carpet designs. Major trends in the forecast period include increasing demand for sustainable carpet materials, rising popularity of custom and designer rugs, growing adoption of online carpet sales channels, expansion of modular and easy-to-install carpets, enhanced focus on indoor aesthetic customization.

The increasing construction activities are expected to drive the growth of the carpets and rugs market going forward. Construction activities refer to the organized processes and operations undertaken to build, modify, or maintain buildings, infrastructure, or other physical structures. The rise in construction activities is attributed to rapid urbanization, which fuels demand for residential, commercial, and infrastructure developments to support growing populations. Carpets and rugs support construction activities by protecting newly installed floors and surfaces from damage, dust, and debris, ensuring cleanliness and operational efficiency on-site. For instance, in September 2025, according to the Census Bureau, a US-based government agency, residential construction reached a seasonally adjusted annual rate of 886.5 billion dollars in July, reflecting a 0.1 percent (±1.3 percent) increase from the revised June estimate of 885.9 billion dollars. Therefore, the increasing construction activities are driving the growth of the carpets and rugs market.

Key companies operating in the carpets and rugs market are focusing on developing innovative products such as hand-knotted carpets to enhance the aesthetic appeal of interiors. Hand-knotted carpets are handcrafted floor coverings created by meticulously tying individual knots on a loom, resulting in durable and intricate designs that showcase superior artistry. For instance, in October 2024, Hands Carpets, an India-based luxury carpet brand, introduced KNOTION, a carpet collection defined by its dynamic blend of flowing lines and curves highlighted through a vivid and colorful palette. Each of the ten designs draws inspiration from the complex pathways and turns of roads, symbolizing life’s continuous journey. The carpets exhibit a modern and pop-art-inspired aesthetic, giving each piece a distinctive character. During the launch event, architects, designers, journalists, and celebrities praised the collection for its rich textures and bold contemporary expression.

In January 2025, Jaipur Rugs, an India-based provider of handmade carpets and artisanal home décor products, acquired Shyam Ahuja for an undisclosed amount. Through this acquisition, Jaipur Rugs seeks to preserve and enhance Shyam Ahuja’s legacy while strengthening its position in the global luxury rug market. Shyam Ahuja is an India-based manufacturer of carpets and rugs.

Major companies operating in the carpets and rugs market are Mohawk Industries Inc., Milliken & Company, Tarkett S.A., Victoria PLC, Engineered Floors LLC, Forbo Holding AG, Interface Inc., Mannington Mills Inc., Oriental Weavers Carpet Co., Shaw Industries Group Inc., The Dixie Group Inc., Surya Carpets Pvt. Ltd., Nourison Co., Obeetee Pvt. Ltd., Couristan Inc., Belgotex, Jaipur Rugs Co., Kaleen Inc., Saraswati Global Pvt. Ltd., Yak Carpet Pvt. Ltd., Kapotex Industries Pvt. Ltd., Shree Sai International, The Rug Republic, Welspun India Ltd.

North America was the largest region in the carpets and rugs market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the carpets and rugs market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carpets and rugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The carpets and rugs market consists of sales of area rugs, wall-to-wall carpets, runner rugs, oriental rugs, and shag rugs. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.