Australia Carpets & Rugs Market 2026: Stylish Interiors, Comfort Living & the Future of Home Decor

Australia carpets and rugs market continues to grow steadily as homeowners, developers and commercial spaces place increasing emphasis on interior aesthetics, comfort and functional design. According to IMARC Group, the market reached a value of USD 1,633.2 million in 2025. Looking ahead, it is expected to expand to USD 2,633.7 million by 2034, registering a CAGR of 5.45% during 2026–2034. This upward trend reflects rising residential construction, renovation activity, and consumer demand for premium, stylish flooring solutions.

Carpets and rugs significantly influence indoor spaces, providing comfort, sound absorption, and aesthetic charm. In Australia, the demand covers residential properties, workplaces, hotels, retail locations, and hospitality establishments. Urban growth, increasing disposable income, and evolving lifestyle choices are prompting consumers to purchase items that improve comfort and align with contemporary interior design styles.

Moreover, sustainability factors are impacting purchasing choices. Customers are progressively attracted to sustainable materials, recyclable textiles, and low-pollution production methods. This transition is motivating manufacturers to explore new materials, textures, and production methods.

Market Segmentation

According to IMARC Group, the Australia carpets and rugs market is segmented as follows:

By Product Type

• Woven Carpets

• Needle-Punched Carpets

• Knotted Rugs

• Tufted Rugs

• Others

Tufted carpets and rugs dominate the market due to their cost efficiency, wide design variety and ease of installation. Knotted rugs, often viewed as premium décor items, continue to gain traction among high-income households and boutique commercial spaces.

By Material

• Nylon

• Wool

• Polyester

• Polypropylene

• Others

Wool remains popular for its durability, natural feel and insulation properties, while synthetic fibers such as nylon and polyester are preferred for affordability, stain resistance and low maintenance.

By End Use

• Residential

• Commercial

Residential applications lead the market, driven by home renovation trends and rising interest in interior personalization. Commercial demand, particularly from hotels, offices and retail outlets, continues to support consistent growth.

Key Market Drivers

Several factors are contributing to the expansion of Australia’s carpets and rugs market:

• Home Renovation Activity: Australians are investing more in interior upgrades, particularly flooring and décor enhancements.

• Design Awareness: Exposure to global interior design trends through digital platforms is influencing purchasing decisions.

• E-commerce Growth: Online retail channels are making carpets and rugs more accessible, offering customization and broader product choices.

• Sustainability Focus: Growing preference for natural fibers and eco-friendly manufacturing supports premium product demand.

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What the Opportunities Are?

1. Premium and Custom Designs

Consumers are increasingly willing to pay more for unique patterns, textures and customized sizing. This opens opportunities for brands offering bespoke or design-forward collections.

2. Sustainable Product Innovation

There is rising demand for carpets and rugs made from recycled materials, organic fibers and low-VOC components. Companies that prioritize sustainability can strengthen brand loyalty and market differentiation.

3. Commercial Interior Expansion

Hospitality, retail and office spaces continue to invest in aesthetic upgrades. Carpets and rugs that balance durability with design appeal are well-positioned for commercial growth.

4. Digital Retail and Visualization Tools

Virtual room previews, online sampling and digital customization tools are improving customer confidence in online purchases, expanding market reach.

5. Smart Manufacturing and Logistics

Improved production efficiency and faster delivery cycles can help suppliers meet growing demand while managing costs effectively.

Recent News and Developments in Australia Carpets & Rugs Market

• January 2025: A major Australian flooring retailer expanded its eco-friendly carpet range, introducing recycled fiber products that reduced material waste by over 25% compared to conventional offerings.

• June 2025: Several home décor brands launched digitally enabled customization platforms, allowing customers to select rug sizes, colors and textures online, increasing conversion rates by nearly 30%.

• October 2025: Residential renovation spending in Australia recorded an estimated 18% annual increase, directly boosting demand for carpets and rugs across urban housing markets.

Why Should You Know About Australia Carpets & Rugs Market?

You need to be aware of this market as it demonstrates the connection between lifestyle, design, and consumer choices in daily living environments. Carpets and rugs have transformed from mere functional items into style elements that influence the way individuals perceive their homes and workplaces. Grasping this market provides a glimpse into wider patterns in interior design, eco-friendly consumption, and retail advancements

As Australians continue to invest in comfort-driven and design-focused living environments, the carpets and rugs market stands out as a sector combining creativity, lifestyle expression and consistent demand. For businesses, designers and retailers alike, this market highlights where consumer taste is heading — toward quality, sustainability and personalized living spaces.