Australia Home Decor Market | Size, Share, Trends, Growth & Opportunity Analysis 2025-2033

Market Overview

The Australia home decor market reached a size of USD 15.6 Million in 2024 and is projected to grow to USD 21.0 Million by 2033. The Australia home decor market is expected to expand at a CAGR of 3.36% during the forecast period of 2025 to 2033. This growth is driven by rising disposable incomes and the increasing consumer focus on creating personalized and aesthetically appealing living spaces.

How AI Is Reshaping the Future of the Australian Home Decor Market:

• AI-powered design tools enable consumers to visualize personalized home decor arrangements, increasing purchasing confidence and customization options.
• Integration of AI with smart home systems, like voice-activated assistants (Amazon Alexa, Google Assistant, and Apple Siri), enhances user convenience and control over decor products.
• AI-driven energy optimization in smart lighting solutions helps reduce electricity usage, aligning with consumer trends toward sustainability.
• AI facilitates rapid innovation in product design, as seen with companies investing in smart tech like Google's Nest Thermostat, priced competitively at US$ 129.99.
• Government initiatives promoting sustainable living encourage AI-enabled eco-friendly home decor products made from natural materials such as bamboo and organic cotton.
• E-commerce platforms leverage AI for personalized marketing and customer service, boosting online sales channels' pivotal role in market expansion.

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Market Growth Factors

The elevating levels of lifestyle and disposable income in Australia primarily drive the home decor market. Consumers increasingly focus on creating aesthetically pleasing living spaces, enhancing demand for diverse elements like furniture, lighting, and textiles. The growing population and a rise in home ownership, demonstrated by a December quarter peak of 11.13 million residential dwellings, contribute to this surge. In 2022, the construction industry’s gross value added (GVA) was approximately AUD$156 billion, highlighting ongoing infrastructure growth that supports market expansion.

There is a growing focus on health and wellness in home decor preferences. Consumers are opting for items crafted from natural and sustainable materials like bamboo, reclaimed wood, and organic cotton to promote healthier indoor environments. The popularity of biophilic design, incorporating plants and natural textures, is rising. Corporations such as The Render Shed offer environmentally friendly paints, which are non-toxic and low in volatile organic compounds (VOCs), aligning with the eco-conscious consumer trend.

The integration of smart technology into home decor products is transforming the market by enhancing user experience and convenience. Voice-activated assistants and smart security features like connected cameras and smart locks are increasingly popular. Companies continually innovate, exemplified by Google’s affordable Nest Thermostat launch at US$ 129.99. Additionally, smart lighting solutions enable energy monitoring and optimization, reflecting consumer preferences for efficient, sustainable home environments.

Market Segmentation

Product Type:

• Home Furniture
• Home Textiles
• Flooring
• Wall Decor
• Lighting
• Others

Distribution Channel:

• Home Decor Stores
• Supermarkets and Hypermarkets
• Online Store
• Gift Shops
• Others

Region:

• Australian Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Key Players

• Ikea
• Brilliant Lighting

Recent Development & News

• October 2025: Ikea announced new store locations in Australia as part of its strategy to make products more accessible to customers, signaling a commitment to market expansion and enhanced consumer access.
• August 2025: Government and educational bodies partnered to promote eco-friendly building initiatives, encouraging consumers to choose sustainable and health-conscious home decor options, which is expected to increase demand for related products.
• July 2025: Brilliant Lighting launched innovative DIY smart light kits in Australia, allowing easy installation without an electrician, enhancing product accessibility, and driving smart lighting adoption in the home decor market.

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