The Booming Handmade Rug Market in 2025: A Deep Dive Into Data, Trends, and Science

Market Size and Growth Projections

• The global carpets and rugs market was valued at $94.91 billion in 2025 with an expected compound annual growth rate (CAGR) of 6.9% through 2034, reaching over $153 billion.

• Within this, the global handmade rug market stood at approximately $3.5 billion in 2024, projected to grow steadily to around $5.2 billion by 2033 at a CAGR of 4.5%.

• India's handmade carpet and rug segment is particularly strong, valued at approximately $56.4 million in 2024, expected to grow at an impressive CAGR of 8%, reaching nearly $89.2 million by 2030.

• India accounts for 40% of the world’s handmade carpet exports, with Bhadohi alone contributing 50% of India’s handmade carpet exports, affirming its title as the "Carpet Capital of India".

Export Performance & Global Demand

• India’s handmade carpet exports rose to nearly $1.5 billion at the end of FY2025, marking substantial growth in global demand, with strong markets including the US (largest importer), Germany, UK, Australia, and emerging European markets like Sweden.

• Indian handmade carpets have gained international acclaim for their craftsmanship, ethical sourcing, and durability, which resonate with a growing global eco-conscious consumer base.

Sustainability & Material Science

• Handmade rugs are predominantly crafted from natural fibers like wool, cotton, jute, silk, and recycled materials, which are biodegradable, renewable, and eco-friendly.

• Wool alone contributes to over 50% of the Indian handmade rug revenue, prized for its durability and natural insulation properties.

• Scientific studies show wool rugs:

  • Regulate indoor moisture and temperature, absorbing up to 30% of their weight in moisture without feeling wet and slowly releasing it, which helps prevent mold and mildew.

  • Purify indoor air by absorbing volatile organic compounds (VOCs) for up to 30 years, making homes healthier and reducing allergens.

  • Are hypoallergenic and antibacterial, resisting dust mites and allergens better than synthetics, providing safer living environments especially for allergy sufferers and children.

  • Demonstrate remarkable durability with fibers that bend thousands of times without breaking and naturally resist crushing and staining.

Economic and Social Impact

• Buying handmade rugs supports artisan livelihoods and preserves centuries-old weaving traditions in India, primarily in clusters like Bhadohi, Jaipur, and Srinagar which possess Geographical Indication (GI) labels protecting these crafts.

• The growth of the handmade rug sector aligns with rising disposable incomes, urbanization, and lifestyle changes that emphasize personalized, timeless home decor investments.