North America Carpet and Rug Market Size

North America Carpet and Rug Market Size

North America Carpet and Rug Market was valued at USD 14.5 billion in 2023 and is anticipated to register a CAGR of 4.2% between 2024 and 2032. The market is rapidly evolving, driven by a confluence of factors such as the rising trend of home renovations in developed economies, growing urbanization, increasing aesthetic appeal, and growing environmental sustainability.

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There is a surge of home renovations in developed economies, driving the growth of carpet and rugs in North America. According to the Home Improvement Research Institute, USD 427 billion was spent on renovations and improvements in the U.S. alone in 2022. Flooring is a prime focus as renovations often target interior improvements. Carpets offer a comfortable, stylish, and relatively affordable flooring option compared to hardwood or tile. This makes them a popular choice for homeowners looking to enhance the aesthetics and functionality of their homes during renovations, thereby driving the demand for carpet and rugs.

According to the National Association of Home Builders (NAHB), single-family housing starts in the US are projected to reach 1.21 million units in 2023, a 5% increase from 2022. This surge in new home construction directly correlates with increased demand for flooring products, including carpets and rugs. The Carpet and Rug Institute (CRI) reports that carpet accounts for approximately 51% of the total US flooring market, indicating its continued popularity in new residential builds. Carpet installations are particularly popular in bedrooms, living rooms, and family rooms where comfort and aesthetics are crucial factors for homeowners.
 

Furthermore, the growing middle-class population in developing countries presents a new market for residential carpets. According to credible sources, by 2030, the global middle class will increase to 3.5 billion people. This vast population with rising disposable income is expected to invest in homeownership and improve their living spaces, potentially leading to a surge in demand for residential carpets.
 

Additionally, the growing awareness about environmental sustainability has prompted a shift toward eco-friendly flooring options, including carpets made from recycled materials or those with minimal environmental impact. The CRI states that the carpet industry has made substantial strides in sustainability, with a 52% reduction in carbon footprint since 2008 and a 35% decrease in water usage in manufacturing processes. This aligns with consumer preferences, as a survey by the American Institute of Architects (AIA) found that 79% of homeowners are interested in environmentally friendly flooring options. The shift towards sustainable carpets and rugs, often made from recycled materials or natural fibers, is expected to fuel market growth in the coming years.
 

A major concern for north America carpet and rug manufacturers is the shifting preference toward hard flooring. Hard floors, such as laminate or tiles, are generally perceived as easier to clean and maintain compared to carpets. They often require just sweeping, mopping, or vacuuming, making them ideal for busy households. Also, carpets can trap dust mites, pet dander, and other allergens. Hard floors minimize these allergens by providing a less hospitable environment for them to thrive. According to the Floor Covering Institute, hard surface flooring has been steadily gaining market share, with its share of the total flooring market increasing from 44% in 2010 to 57% in 2020. The Carpet and Rug Institute (CRI) reports that carpet's market share in the US has declined from 60.2% in 2007 to 51% in recent years. This shift is particularly pronounced in commercial settings, where hard surfaces are often preferred for their perceived ease of maintenance and modern aesthetic.
 

High-quality hard floors can be incredibly durable, especially in high-traffic areas such as kitchens or entryways. They are less susceptible to wear, and tear compared to carpets, potentially offering a longer lifespan. Carpet manufacturers are developing new fibers and technologies to address consumer concerns. For instance, stain-resistant and easy-to-clean carpets are becoming increasingly popular. Additionally, the cost of raw materials such as synthetic fibers have been increasing which contribute to increased production and distribution costs, potentially decreasing profit margins for carpet and rug manufacturers and retailers.