The online home decor market allows consumers to purchase products like furniture, kitchenware, bedding and bath products, lighting, home furnishings and more through online channels from the comfort of their homes. Online home decor shopping offers benefits like huge product variety, competitive pricing, fast delivery and easy returns.
The online home decor market size is expected to reach US$ 206.05 billion by 2030, from US$ 97.39 billion in 2023, growing at a CAGR of 11.3% during the forecast period

Key Takeaways

Key players operating in the Online Home Decor are Amazon, Bed Bath and Beyond, Walmart, Wayfair, IKEA, Overstock.com, Target, Home Depot, Williams-Sonoma, Lowe's, Etsy, eBay, HomeGoods, JCPenney, Kohl's, Macy's, Pier 1 Imports, Crate and Barrel, At Home Stores, and Restoration Hardware. Online retailers offer thousands of product choices at competitive prices and convenient shopping experiences like live chat, virtual reality tours and augmented reality features. Rapid growth of e-commerce sector and preference for online shopping among Gen Z and millennials are fueling demand in the online home decor market.

The Online Home Decor Market Growth is witnessing strong growth in developing regions of Asia Pacific and Latin America. Countries like India, China, Brazil and Mexico are expected to emerge as high growth markets driven by rising disposable incomes, growing middle class demographics and increasing internet and smartphone penetration. The market is also expanding in developed regions of North America and Europe with more retailers launching direct-to-consumer online stores and focus on omnichannel retail strategies.

Market key trends

One of the major trends in the online home decor market is rapid adoption of e-commerce. According to statistics, global e-commerce sales grew by over 27% in 2020. The COVID-19 pandemic hugely accelerated online shopping behaviors as people stayed indoors for long periods. Online Home Decor Companies benefited categories like home decor which found more demand as people focused on home renovation, remodeling and making homes comfortable workspaces. E-commerce is likely to remain a major trend driving the online home decor sector over the forecast period with continued digital transformation of retail industry.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the online home decor market is moderate. Starting an online business requires significant capital investments in online marketing, shipping and warehousing infrastructure. However, existing retailers and startups have easier options to enter the market through e-commerce platforms.

Bargaining power of buyers: The bargaining power of buyers is high in the online home decor market. Buyers have a large number of options available from various online retailers, brands and third party sellers. This gives them significant influence in negotiating lower prices.

Bargaining power of suppliers: Suppliers in this market have moderate bargaining power. While there are many raw material and finished product suppliers, retailers have options to source from alternative suppliers in case of higher quotes.

Threat of new substitutes: The threat of substitutes is high for certain product categories like furniture. Buyers have options to purchase furniture and furnishings from brick and mortar stores as well as rent/lease options for certain large items.

Competitive rivalry: The competitive rivalry in the online home decor market is intense. Established retailers compete aggressively on various factors like pricing, product range, brand promotions, customer experience and delivery speed.

Geographical regions: North America accounts for the largest share of the global online home decor market, valued at US$ 50Bn in 2024. The strong presence of major retailers like Amazon, Walmart, Target and others drive significant sales in the United States.

Asia Pacific is poised to be the fastest growing regional market between 2024-2031, projected to expand at a CAGR of 15%. China, India, Japan and other Southeast Asian countries are witnessing rising internet and smartphone penetration. This provides a fertile growth environment for e-commerce in home furnishings.
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Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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