North America Carpet and Rug Market Analysis

North America Carpet and Rug Market Analysis

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Based on product type, the market is segmented into woven, tufted, knotted, needle-punched, flat-weave and others. The tufted carpets and rugs dominated the market in 2023, generating a revenue exceeding USD 9 billion, and is expected to reach more than USD 13.5 billion by 2032. This dominance can be attributed to the efficiency of tufting machines, which can produce up to 1,400 square yards of carpet per hour. The popularity of tufted carpets is further driven by their cost-effectiveness, according to the North American Association of Floor Covering Distributors (NAFCD). tufted carpets and rugs are 20-30% less expensive to produce as compared to woven carpets.
 

Additionally, tufted carpets can be produced with recycled materials thereby aligning with the sustainability trends, as the Carpet America Recovery Effort (CARE) reported that over 400 million pounds of post-consumer carpet recycled in 2020, out of which was used in new tufted carpet production. This combination of efficiency, cost-effectiveness, design versatility, and sustainability has solidified tufted carpets' dominant position in the North American market.
 

Based on material, the North America carpet and rug market is classified into nylon, wool, silk, polyester, acrylic and others. The woolen carpet and rugs dominated the market in 2023, with revenue exceeding USD 7 billion and is expected to reach USD 10.5 billion by 2032. Wool fibers are naturally strong and elastic. This translates to carpets that can withstand wear and tear better than some synthetic options. They tend to bounce back from foot traffic and furniture impressions, maintaining their shape for a longer time.
 

According to the Wool Carpet Institute, wool carpets outperform synthetic carpets in terms of pile recovery. Wool fibers exhibit a 90% recovery rate compared to 60% for some synthetic fibers, signifying better resilience. Wool fibers have a natural springiness that provides a luxurious feel underfoot. They are naturally soft and comfortable, making them ideal for bedrooms, living rooms, and other areas where comfort is a priority. According to the National Floor Covering Association (NFCA), 27% of consumers prioritize comfort as the most important factor when choosing a carpet. Wool's inherent softness caters to this preference.
 

U.S. emerged as the dominant region, generating a substantial revenue of USD 10.5 billion, and is expected to reach USD 16 billion by 2032. The region has a higher proportion of single-family homes. According to the Organisation for Economic Co-operation and Development (OECD), in 2021, the owner-occupation rate for detached houses (single-family homes) in the U.S. was 65.1% compared to an average of 44.4% across OECD member countries. This suggests a significantly higher prevalence of single-family homes in North America, potentially contributing to higher carpet use. Carpets are more commonly used in single-family homes for comfort and sound insulation between floors. It is particularly beneficial in single-family homes where sound can travel more easily between floors. Reduced noise from footsteps and activities on upper floors improves overall living comfort.
 

Additionally, the U.S. boosts robust manufacturing sector and economic strength which has a major role in the propelling of the market. The U.S. GDP far exceeds that of its North American neighbors. The World Bank reports the U.S. GDP at USD 21 trillion in 2020, compared to Canada's USD 1.6 trillion and Mexico's USD 1.1 trillion. This economic strength supports a robust manufacturing sector and higher consumer spending on home goods like carpets and rugs.
 

U.S. dominated the North America carpet and rug market with a revenue of around USD 10.5 billion in 2023 and is expected to reach around USD 16 billion by 2032. The carpets are a widely accepted and preferred flooring option in most U.S. homes. Factors, such as comfort, sound insulation, and affordability, contribute to this preference. The U.S. has a higher proportion of single-family homes compared to Canada and Mexico. Carpets are more commonly used in single-family homes for comfort and sound insulation between floors thereby propelling the market.
 

On the other hand, Canada has shown a notable growth of 4% CAGR. This growth can be attributed to evolving home improvement trends, The Canada Mortgage and Housing Corporation (CMHC) noted a 7% increase in home renovation spending in 2020, reaching USD 80 billion. This trend continued into 2021, boosting demand for home improvement products such as carpets and rugs. Additionally, there is growing consumer interest in sustainable products. This has led to increased demand for eco-friendly carpets and rugs, often made from recycled materials or natural fibers.