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Commercial FlooringResidential FlooringCarpet and Rugs

2023: A Big Year for Area Rugs

By Tanja Kern
Cali’s Huntington area rug

Cali’s Huntington rug.

Photo: Cali.

December 1, 2022

In November, the team that launched fitness phenomenon Peloton reported it is launching a direct-to-consumer custom rug company, Ernesta Inc., in spring 2023. Peloton co-founders John Foley, Hisao Kushi and Yony Feng have raised $25 million in a Series A funding round, led by Addition with participation from True Ventures, along with other investors.

"I've always had a passion for design, and when I noticed how confusing and overwhelming the process can be for consumers who want great style at an accessible price point, particularly in the rug category, I saw a white space in the market," said Ernesta CEO John Foley.

With the current market fragmented across specialty retailers, mass retailers, designers and distributors, Ernesta plans to expand the custom category of the multibillion-dollar domestic rug market by offering residential and commercial buyers the option to purchase from a thoughtfully curated selection of rugs cut to fit their exact space. The company said consumers will enjoy a quick fulfillment experience through an on-demand manufacturing process. Once live, the site plans to offer a wide variety of materials and options for custom rugs at an accessible price range, as well as bespoke delivery in certain key markets. 

Home decor, and rugs specifically, are not winner-take-all markets. Research estimates that more than 100 million rugs are sold in the U.S. each year, and the U.S. residential rug market should reach $18 billion this year—and $25 billion by 2030, according to Custom Market Insights. 

They are not alone in a push for the area rug market. In recent interviews with Mohawk leadership, executives hinted at new rug launches that will launch at this month’s Edge convention. The company acquired Foss Floors in July of this year and used innovative technologies for indoor-outdoor rugs, peel-and-stick carpet tile, carpet, mats and artificial turf.  

The Dixie Group continues to make big investments in sourcing high-end, luxury rugs and mid-range indoor-outdoor rugs. Cali also launched its area rug and artificial turf business, teaming up with retailers to offer an area rug to coordinate with sales of their hard-surface flooring. 

“With the rollout of Cali Rugs, we’re helping [our customer] achieve a more finished living space that feels elevated but still authentic to who they are.”

– Doug Jackson, President, Cali Rugs

“We’re all about giving our customer the best experience possible and infusing CALI style and attitude in every collection,” said company President Doug Jackson. “With the rollout of Cali Rugs, we’re helping them achieve a more finished living space that feels elevated but still authentic to who they are.”

And at High Point Market, crowds gathered for new area rug launches. Some of note included Karastan's meet and greet with Stacy Garcia for the launch of her latest rug collection and an intimate conversation with designers Drew and Jonathan Scott. Nourison hosted a meet and greet with HGTV's Nicole Curtis for the launch of most recent area rug collection. Jaipur Living also launched a new rug collection Harman Hold with interior designer Kate Lester.

This month on floortrendsmag.com and in the eMagazine: See more from what Mohawk is dreaming up for independent retailers at Edge conference, and we’re covering the luxury flooring market. Lastly, some of the Top 10 stories, videos and podcasts came as a surprise to our team. How about you?

See more articles from our December issue!

KEYWORDS: area rugs digital marketing flooring retailers luxury flooring technology

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Tanja kern headshot 2023

Tanja Kern is the associate publisher and editorial director of FLOOR Trends & Installation. She is also the host of the FLOORtalk podcast, where she explores the changes and challenges facing the flooring community's thought leaders and creatives. Tanja has been writing about business, design, and lifestyle for two decades, and her work has appeared in publications such as American Way, Better Homes & Gardens, Fine Interiors, Fodor's, Food Channel, CA Modern, Chicago, Fine Interiors, and Los Angeles.

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