Which way forward? – A report on the US rug market 

Rachel Fasciani seeks guidance on essential informed strategies from significant figures within the rug industry during an increasing complex market

Growth drivers, soft spots and the road to 2026 

The rug market is not so much slowing as sorting itself out. As economic pressures, shifting consumer priorities and evolving design sensibilities converge, clear patterns are emerging regarding where growth is evolving, where softness is taking hold, and how brands are positioning for the next steps. To better understand these shifts, I spoke with leaders across the industry—spanning small and large, high-end, mid-market and custom—to identify the signals shaping demand today and informing the road through 2026. 

Market momentum: growth categories vs softening segments 

Across the industry, I’ve had the privilege of learning and being a part of conversations about the more successful segments—designer, higher-end, and custom. The focus in all cases has been on inflation insulation of high-end consumers, increased emphasis on quality over quantity, and the value of sustainability presented through higher-quality product.  

Respondents shared mixed feedback. Georgia Couri, director of business development at Couristan, explained, ‘Custom continues to be our strongest area of growth, particularly custom-sized rugs cut from broadloom.’ Renata Stredl-Fishman, head of sales at the New England Collection, concurred, saying, ‘Our strongest growth has always been with the residential projects, and custom orders specifically.’

And Adnan Nasim, creative director of Ölker Rugs, stated, ‘We are seeing our strongest growth in custom, particularly within high-end residential projects. Many of these projects historically relied on in-stock offerings, but designers are increasingly prioritising individuality, material integrity and scale over speed alone. Custom has evolved into a tool for precision rather than excess.’ Nasim’s response has special resonance here as he also points to scale and individuality—two additional drivers of the high-end market.   

But what about mid-market success stories? To present a broader picture, I reached out to Ruggable CEO Nicole Otto. Otto told me that the brand’s new ‘All-in-One’ product line, notably featuring products through a collaboration with luxury brand Scalamandré, is one of its most exciting launches this year. She said, ‘We are a residential-focused brand focused on families and consumers that want both design and functionality … it brings washability and durability … and reflects what today’s consumers value most.’ Otto’s approach is backed by data illustrating that mid-market consumers are looking for and purchasing products with functionality, versatile design and durability.  

On the softening side, respondents were less aligned. Tamarian principal Ryan Higgins noted that ‘Lower to mid-range, hand-knotted product’ was softening and said that it is ‘Likely inflationary pressures on the upper-middle class.’ Nasim and Couri seemed to be on the same page, with Nasim saying, ‘More commoditised, price-driven constructions are under pressure. As the market matures, there is less tolerance for products that lack a clear point of view or material distinction.’

Couri added, ‘We’re seeing some softness in highly trend-driven, overly specific constructions. Consumers are being more intentional with their purchases and gravitating toward products that feel versatile, long-lasting and adaptable, rather than overly niche.’   

Discipline over reaction: how brands are managing cost pressure 

The overall market is presenting positive signs for the industry, but tariffs remain an ever-changing and consistent consideration, particularly as we await a decision from the US Supreme Court. Economists say that, the longer it takes for a decision to be issued (now expected in June), the less impact and urgency is assigned to tariffs. They have also stated that, even if the court rules against President Trump, workarounds established by the administration will be instituted through legal channels.  

Considering this information, I wanted to know how companies are shaping their pricing strategies amid the pressures of evolving tariffs, raw material costs and freight costs. Again, answers varied across respondents. Nourison’s VP of marketing, Feryal Rehman, stated that the company position supports the reduction of tariffs on India, ‘and reinforces the value of long-term manufacturing partnerships.’ She also said that the company has ‘stayed agile—absorbing past cost pressures where possible and focusing on efficiency, scale and collaboration rather than reactive pricing, which positions us well, heading into 2026.’

In contrast, Higgins stated that Tamarian is ‘focusing and controlling our inventory tightly’. Interestingly, both Ölker Rugs and Ruggable shared a sentiment that values the long game. Otto stated that Ruggable views cost pressures as ‘part of the picture, but our focus stays on long-term value.’

 Nasim at Ölker told me, ‘our focus remains on long-term value rather than short-term reaction. Pricing today requires discipline, transparency and a thoughtful examination of internal efficiencies without compromising craftsmanship or material standards.’ 

These are similar approaches by two very different brands.  

The India effect 

As the time of writing, American president Trump and Indian prime minister Narendra Modi have reportedly begun a framework to reduce American tariffs on Indian goods, including textiles, to 18%. This is a marked decrease from the previous 25% tariff plus an additional 25% in ‘reciprocal tariffs’, a move utilised by the Trump administration to pressure India to discontinue purchasing oil from Russia. According to the Government of India Press Information Bureau, the framework and tariff structure will position India for enhanced price competitiveness and expand its export opportunities across labour-intensive industries, with textiles identified as obtaining key sectoral gain.  

How will this immediately affect the US market? 

Supply chain stability and lowered procurement costs are essential, as well as rebalanced landed costs. The final and perhaps most important effect is improved positioning to reinvest in product development and maintain long-term viability. For comparison, other countries importing rugs to the US have tariff rates varying from 10% on Nepalese rugs to 15% in the European Union and Turkey to varying rates of 45–47% on Chinese rugs.  

When texture leads and colour deepens 

Of the six companies that responded to my request for input on the colours, textures and patterns they’re seeing as drivers, four responded similarly. Their feedback was that of continued warmth, natural tones, and a deeper focus on texture.  

The outliers, Nourison and The New England Collection, had similar takes that differed greatly from the other four. New England’s Stredl-Fishman responded, ‘We have seen a shift from our standard and loved blues toward greens. We are also seeing interest in some more traditional Americana patterns, which is a shift from more geometric, contemporary patterns.’ On colour, Nourison is aligned with Stredl-Fishman, noting that, ‘2026 is the year of ‘designing your space for your soul.’

Organic, neutrals, soft mineral tones have reigned for a decade, but now we see more nature-inspired shades—paired with richer moments of colour like deep greens, moody blues and earthy clays.’ These responses were reflective of the trends being called out by designers and experts who have shared nature-inspired hues—in greens and blue-greens—as well as jewel tones and earthy reds, which will see the most use throughout 2026.  

As the rug market moves through 2026, the throughline has shifted from uncertainty to discernment. Growth is consolidating around brands and categories that lead with intention—custom, quality and long-term value—while commoditised and overly trend-driven offerings continue to lose ground. Tariff shifts, particularly with India, offer relief; but the more lasting advantage will belong to companies that reinvest thoughtfully, protect craftsmanship and align design with evolving consumer values.

The market isn’t retreating, it’s recalibrating—and those who understand that distinction are best positioned for what comes next. 

Words by Rachel Fasciani