U.S. Area Rug Industry Eyes Rebound In 2026 - meetcofurniture

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U.S. Area Rug Industry Eyes Rebound In 2026

By Meet&Co

After navigating several turbulent years, the U.S. area rug industry showed signs of resilience, with a modest 1.2% sales growth in 2025. According to Home Accents Today’s 2025 Universe Report, sales are projected at $6.95 billion, a slight increase from $6.85 billion in 2024. However, 2025 was less about rapid expansion and more about stabilizing and rebuilding, with companies focusing on endurance amidst economic challenges.

David Litner, principal of Natco Home Group, highlighted that rugs managed to hold their ground better than many home categories due to their affordability, functional appeal, and design versatility, especially compared to larger-ticket items like furniture. Natco Home, which became the last remaining woven-rug manufacturer in the U.S. after acquiring Orian Rugs, noted that the focus has been on recalibrating operations for more efficient production and distribution.

A number of industry leaders, including Natco, Maples Rugs, Mohawk Home, and Oriental Weavers, described 2025 as a year for resetting strategies, adjusting assortments, and prioritizing design and operational efficiency. While the approaches varied—domestic companies like Maples emphasized speed to market and supply chain stability, while global firms like Nourison leaned on scale and data-driven innovation—one consensus remained clear: the key to long-term stability lies in adaptability.

Rug Display Jennifer Marks

Source: https://www.furnituretoday.com/

For Maples Rugs, which prides itself on its vertically integrated model, speed to market and flexibility are key strengths. Christa Archual-Nie, an accounts executive, pointed out that the company’s ability to replenish stock within days, not months, made it particularly effective in navigating the lean inventory practices of retailers. This agility has kept Maples competitive in a market where innovation is just as crucial as consistency.

Mohawk Home, with its balance of domestic and international sourcing, is cautiously optimistic about a modest 2% to 3% growth in 2026. Executive Vice President Bart Hill remarked that while the growth isn’t expected to reach pre-pandemic levels, it represents a steady recovery in the midst of uncertainty. Mohawk’s continued emphasis on high-quality U.S.-made products and the strategic use of global resources is helping the company remain competitive.

At Oriental Weavers, growth is driven by performance-oriented design and operational efficiency. Andy Brumlow, president, noted that synthetic, machine-made collections that blend fashion with practicality have been successful in 2025. With its vertically integrated operations in Egypt, the company leverages scale to meet demand efficiently. Brumlow also cited the increasing reliance on trend analytics and retailer feedback to tailor collections and shorten product development cycles, which is expected to fuel future growth.

Nourison Home, meanwhile, has invested strategically in its domestic operations, enhancing its finishing and warehousing capabilities to improve service and fulfillment. Co-founder Alex Peykar emphasized that while steady growth is anticipated for 2026, the company’s commitment to craftsmanship and design remains central to its success.

Faze Three, with its aggressive investments in technology and market development, forecasts a substantial 28% to 38% growth in 2026. President Vishnu Ajay Anand pointed out that the company’s unique speed-to-market advantage, backed by a new ERP system, positions it for accelerated growth. This rapid adaptability is seen as crucial for success as the industry faces ongoing changes in demand and supply chain dynamics.

While companies like Harounian Rugs International maintain a focus on custom-made and traditional rug offerings, there is a broader sense of cautious optimism for 2026. Lee Harounian, principal, emphasized the strength of the custom rug segment, even amid the unpredictable economic landscape.

As the rug industry looks toward 2026, companies are betting on flexibility, innovation, and operational efficiency to weather uncertainty. Rug manufacturers have learned to balance creativity with control, and those who can respond swiftly to market shifts are best positioned for success in the coming year.

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