The Chinese home decoration industry is at a critical juncture of transformation and opportunity in 2025. This white paper, based on authoritative data and in-depth research, provides a comprehensive analysis of the industry’s current status, challenges, future trends, and development strategies.
Data shows that the size of my country’s home decoration market exceeded 3 trillion yuan for the first time in 2022, and continued its recovery momentum in 2023, and is expected to reach approximately 3.8 trillion yuan in 2025. Although the industry’s growth rate has slowed down, it is still higher than the GDP growth rate. In the next three years, it is expected to maintain steady growth driven by demand for existing housing renovation, consumption upgrades among young people, the empowerment of digital and AI technologies, and favorable policies.
The current home decoration market is characterized by fragmented competition, high customer acquisition costs, declining gross profit, talent loss, and decreased customer trust.
Meanwhile, while the integrated home decoration service is booming, pain points such as long delivery cycles, difficulty in standardizing construction, and strong reliance on platforms urgently need to be addressed.
With an optimistic tone, this report forecasts industry trends for the next three years: rapid increase in integrated home decoration penetration, the rise of young consumers, the integration of digitalization and AI into the entire design and construction chain, policy encouragement for green and intelligent solutions, and the mainstreaming of old house renovation. We emphasize that the Chinese people’s pursuit of a better life is the core driving force for the continued development of the home decoration industry.
The report offers strategic recommendations to decoration companies, focusing on “improving the delivery experience” and “building digital management capabilities.” It uses measures such as supply chain collaboration, standardized construction, the introduction of AI-enabled management and marketing systems, and the construction of a delivery data platform as leverage to help decoration companies achieve high-quality growth and enhanced competitiveness in the new era.
In terms of industry data overview, in terms of market size and growth rate, the size of my country’s home decoration market exceeded 3 trillion yuan for the first time in 2022, with a year-on-year growth of 7.8%.
The market gradually recovered in 2023, and the market size is expected to reach approximately 3.78 trillion yuan in 2025 and exceed 5.2 trillion yuan in 2030, with an average annual compound growth rate of approximately 5-6%. Significant changes have occurred in consumption structure and demand characteristics. The proportion of existing home renovations has increased substantially. The regional market landscape has shifted, with lower-tier cities becoming the main driver of growth. The consumer demographic has evolved significantly, with the younger generation becoming the main force in home decoration consumption. Consumer preferences are trending towards higher quality, environmental friendliness, and smart technology, and online shopping is becoming increasingly prevalent. Regarding price and cost indicators, the average price per renovation unit has been on the rise in recent years. In terms of delivery cycle and efficiency, the industry generally suffers from long construction periods and low efficiency. While customer satisfaction and reputation have improved in recent years, overall trust still needs to be strengthened.
Industry pain points include high customer acquisition costs, declining gross profit, talent loss, decreased customer trust, severe homogenization of competition, difficulty in standardizing construction, difficulty in controlling the delivery process, and high dependence on platforms.
Looking ahead to the next three years, the penetration of integrated home decoration is accelerating, the younger consumer group is reshaping demand, digitalization and AI are empowering the entire chain, favorable policies and a positive market environment, strong core driving forces, and an optimistic industry outlook.
In terms of strategic recommendations, decoration companies should focus on the delivery experience and build an excellent reputation, including standardized construction management, strengthening project cycle control, improving supply chain collaboration efficiency, full-process transparency and communication, and improving after-sales service; building digital management capabilities to drive lean operations, such as introducing ERP systems, building CRM systems, building a delivery data platform, promoting digital collaboration in the industry chain, and applying AI technology.
In conclusion, China’s home decoration industry in 2025 stands at a new starting point for transformation and upgrading, and is expected to move towards a more standardized, efficient, and customer-centric new ecosystem. While future industry competition will be fierce, the fundamental demand of Chinese residents for improved living quality will continue to drive the industry’s growth.
