The UK carpet industry is facing a complex period of transformation, with manufacturers and retailers grappling with changing consumer preferences, economic pressures, and fierce competition from alternative flooring solutions. Recent analysis from the online carpet and rug store Designer Carpet reveals a mixed picture for the sector, with some segments showing resilience against significant headwinds.
Market Performance Under Pressure
In 2022, manufacturers’ sales of carpets and rugs had an estimated value of £780 million, according to Office for National Statistics data. However, the broader market tells a more challenging story. Over the five years through 2024-25, industry revenue is expected to decrease at a compound annual rate of 2.6% to just over £1 billion.
The retail sector has been particularly affected, with industry revenue declining at a CAGR of 3.3% over the past five years, to reach an estimated £2.3bn in 2024 for carpet, rug and curtain retailers. This decline reflects broader market pressures, including the growing number of single-adult households cutting the size of the average UK home, meaning people have less space to kit out with flooring and curtains.
“The industry has certainly faced some challenging conditions,” says Ben Herbert, Director at Designer Carpet. “We’re seeing customers being more selective about their purchases, but there’s still strong demand for quality carpets at the right price point. The key is offering exceptional value and service.”
Consumer Spending Shifts
Recent data from Barclays highlights the economic pressures facing the sector. Spending on home improvements and DIY dropped by 7.3% year-on-year, while furniture stores also saw a decline of 2.2%. This trend was exemplified by the high-profile difficulties faced by major retailers. Carpetright fell into administration in July 2024, citing challenging trading conditions predominantly due to “changing consumer preferences and a drop in home improvement spending post-pandemic”.
The challenges extend beyond individual retailers. Total expenditure on carpets has been restricted by falling store prices in recent years and there’s also some speculation that because property prices have gone up so much, new house buyers are putting all their money into the purchase and don’t have any left over for improvements.
Herbert notes: “The market dynamics have definitely shifted since the pandemic. People are being more thoughtful about their home investments, but when they do decide to upgrade, they want something that will last and add real value to their space.”
Bright Spots and Future Trends
Despite the challenges, there are positive indicators for the sector. The U.K. carpet and rug market was valued at USD 945.6 million in 2023 and is estimated to grow at a CAGR of over 4.3% from 2024 to 2032, driven by increasing home renovation trends and rising disposable incomes.
The data shows consumer preferences are evolving in interesting ways. The tufted segment accounted for revenue of around USD 589.9 million in the year 2023 and is estimated to grow at a CAGR of around 4.2% from 2024 to 2032, with affordable and multifunctional tufted carpets proving popular among younger consumers and families.
Sustainability is becoming a key differentiator. With increasing awareness among consumers towards sustainability, wool carpets are becoming increasingly sought after because they are easily renewable and biodegradable. The wool segment held around 49% of the total market share in 2023 and is anticipated to grow at a CAGR of 4.2% during the forecast period.
2025’s Carpet Renaissance
Interestingly, industry experts are predicting a carpet comeback for 2025. Carpets are making a comeback in 2025, transforming homes with their versatility, warmth, and design potential. The trends point to plush, high-pile carpets in warm shades making a significant comeback, helping transform interiors into havens of comfort and relaxation.
Color trends are particularly noteworthy. Dark grey carpet was absolutely huge in 2023, and it’s still the number one carpet colour choice, but natural stone and cream tones is a trend you’ll be seeing a lot of in 2025 with earthy neutrals like beige having seen a 22% increase in 2024 and showing no signs of stopping for 2025.
