Wednesday, December 17, 2025

Executive forecast 2026: Minor soft-surface rebound ahead

It’s carpet’s turn to make hay in 2026. That’s according to some carpet executives who suggest that after several years of inflation, high interest rates, a stagnant housing market, shifting consumer spending and tariff challenges, the soft surface segment will be back in the black with a small percentage increase in dollars predicted.

soft surfaceLen Andolino
president, Couristan

What is your projection for the carpet industry for 2026?

Optimistically, I see 2026 as the bounce back year for the soft surface segment of our industry. I foresee a tight (flat) first six months of 2026, but the third and fourth quarters in 2026 could bring high-single-digit, possibly low double-digit growth industry wide, if all the stars align.

What segments/products will fuel industry growth?

The luxury housing market has not seen the same drop in sales as other segments of the housing market; as a matter of fact the luxury housing market is strong and should continue that path into 2026.

Where do you see opportunities/challenges for next year?

The luxury market does well when we can attract and convert aspirational consumers. If the economy picks up, affordability concerns ease, the ability to borrow improves, then we should have many opportunities in 2026. There is pent-up demand in this segment. Challenges will persist if the tariff uncertainty continues, the interest rates stay high and if the U.S. dollar weakens further against other foreign currencies.

What are some of your company’s biggest initiatives for 2026?

We are celebrating our 100th anniversary in 2026, so we have some exciting initiatives for 2026. Our company was founded in the handmade, hand-knotted area rug segment and 2026 will see the continuation of the transition we started a few years ago to move back into the better-end handmade rug segment. We are committed to bring affordable luxury handmade area rugs back to our brick-and-mortar retail partners.


Joe Semaan
president of residential carpet, Mohawk

What is your projection for the carpet industry for 2026?

We expect modest growth, though the outlook varies by segment. The commodity and value-oriented categories should remain steady as replacement cycles continue and affordability pressures drive consumers toward practical, price-conscious solutions. The mid-market is likely to see the most competitive environment as consumers balance budget sensitivity with a desire for better performance and desgin.

What segments/products will fuel industry growth?

Several factors will shape performance in 2026: the strength of the housing market, particularly remodel activity, ongoing cost inflation and supply chain normalization, consumer sentiment and increasing interest in sustainable materials.

Where do you see opportunities/challenges for next year?

One of the biggest opportunities lies in helping consumers better understand the advantages of carpet: its comfort, quietness, warmth and ability to create inviting spaces. Retailers who effectively demonstrate these benefits can drive higher conversion. The premium and luxury categories continue to offer strong potential as well. The primary challenge is uneven demand across different price tiers. The value and mid-market segments continue to be influenced by broader economic factors: interest rates, consumer confidence and the pace of housing turnover.

What are some of your company’s biggest initiatives for 2026?

Our focus is on strengthening the entire carpet portfolio—from opening price points through premium offerings—to ensure we’re meeting the full spectrum of consumer and retailer needs. That includes simplifying our lineup, sharpening our value propositions and introducing constructions and colorations that better align with what today’s shoppers are looking for.


soft surfaceJamie Welborn
vice president of carpet product, Shaw

What is your projection for the carpet industry for 2026?

The residential carpet industry has struggled to grow since the post-COVID-19 boom in 2022. Inflation, slow housing starts, lower apartment vacancy rates and continued hard-surface growth have impacted sales. We are hoping for a rebound in 2026, but it most likely won’t come until the back half of the year; therefore, I see a flat market at best, with a slight chance it will be slightly down.

What segments/products will fuel industry growth?

Growth in soft surface flooring will be driven mainly by the residential remodel segment and eventually supported by steady builder activity and stability within multifamily. Consumers are prioritizing premium products with design-forward styles, patterns and performance features such as solution-dyed nylon and PET fibers for durability and stain resistance.

Where do you see opportunities/challenges for next year?

Opportunities will be within the residential remodel demand. Challenges include affordability pressures from high living costs, tariff-driven inflation, labor shortages and ongoing competition from hard surfaces, requiring strong differentiation to maintain market share.

What are some of your company’s biggest initiatives for 2026?

Shaw’s carpet strategy will focus on driving growth through design and performance innovation, including innovations like LifeGuard, R2X stain and soil resistance, PetPerfect, our PET programs and promoting new product launches such as ColorWall and patterned styles.


Drew Hash
president/CEO, Southwind

What is your projection for the carpet industry for 2026?

From an industry-wide standpoint, I expect the residential carpet category to grow modestly in 2026—up roughly 2% to 3%. After several years of elevated interest rates and slowed turnover, we’re finally starting to see stabilizing economic indicators and improving consumer sentiment. Carpet continues to benefit from its strong value proposition, softness story and the comfort-driven trend that remains relevant for Southwind customers.

What segments/products will fuel industry growth?

Growth is likely to come from remodel and replacement, which continue to outpace new construction. Within soft surface, solution-dyed PET will remain the workhorse—delivering stain resistance, colorfastness and affordability that resonates with today’s consumer. At the same time, better-end goods, especially differentiated textures and patterned styles, should gain traction.

Where do you see opportunities/challenges for next year?

Opportunities lie in capturing pent-up demand as housing activity gradually improves and homeowners return to discretionary renovation projects. Southwind retailers will be able to lean into design-forward PET solution-dyed carpet, simplified selling systems and strong in-stock positions. Challenges include ongoing margin pressure from freight, labor constraints in installation and continued competition from hard surface. Also, many economists predict new home construction headwinds in 2026.

What are some of your company’s biggest initiatives for 2026?

In 2026, Southwind will focus on broadening our soft surface portfolio, including enhancements across our solution-dyed PET offering and continued momentum in better-goods and patterned styles. On the hard surface side, we’re expanding our IntelliCore rigid core offering and adding new design-forward waterproof LVT collections. We’ll also help retailers tell a clearer “Southwind Story” on the showroom floor.


soft surfaceJonathan Cohen
CEO, Stanton

What is your projection for the carpet industry for 2026?

We expect the overall residential carpet industry to be modestly up in 2026, in the range of low single digits, roughly 2%-4% in dollars, with units relatively flat to slightly positive. After several years of headwinds driven by inflation, interest rates, stagnant housing market, shifting consumer spend and more recent tariff challenges, we view 2026 as a stabilization and rebalancing year.

What segments/products will fuel industry growth?

In 2026, we believe remodel and replacement will continue to be the primary engine of soft surface growth, more so than new construction. Homeowners who delayed projects over the last couple of years are starting to re-engage in targeted, “feel-better-at-home” updates and soft surface is a natural part of that story.

Where do you see opportunities/challenges for next year?

There is a big opportunity to reposition carpet and rugs as intentional design elements—pattern, texture and color that soften all the hard surfaces that have dominated the last decade. Noise reduction, underfoot comfort and a sense of warmth are increasingly tied to wellness at home. Soft surface can own this story when it’s communicated clearly.

What are some of your company’s biggest initiatives for 2026?

In 2026, our focus is on deepening our leadership in fashion-driven performance-oriented soft surface while making it easier for consumers, designers and retailers to bring those products to life. We’re focused on great design, education, merchandising and marketing support so our partners can confidently tell the soft surface story. We’re continuing to invest in high-style patterns, textures and performance products across broadloom, custom rugs and stair runners.


Jason Surratt
president, Tarkett Home

What is your projection for the carpet industry for 2026?

We are optimistic that 2026 will mark a period of steady improvement in residential carpet sales, likely with single-digit growth. We anticipate that as interest rates continue to fall, consumer confidence will start to rebound, new construction will stabilize and residential remodel activity start to pick back up. Throughout 2026, we expect residential carpet sales to begin to recover from the last few years; homeowners that have been putting off projects will start moving ahead.

What segments/products will fuel industry growth?

Patterned, higher-end goods and multifamily will continue to be bright spots with carpet in 2026. When consumers see today’s modern patterns, they realize that they can now get the designer look without having to pay a designer price tag. While homeowners are investing in more premium, stylish options, we also see multifamily starting to gradually trade up.

Where do you see opportunities/challenges for next year?

We see residential carpet showing promising signs as consumers continue to recognize the benefits that carpet offers that hard surface flooring simply can’t compete with. Carpet that blends softness, performance and fits the lifestyle of today’s busy families—especially homes with pets and kids—will be a huge opportunity. From a headwinds perspective, we anticipate that consumers will continue to be more cautious with large purchases.

What are some of your company’s biggest initiatives for 2026?

We are going to continue to expand Tarkett Home’s carpet portfolio in 2026. Our newest carpet collection offers a balance of durability, comfort and softness for all members of the family. From tailored patterns that add subtle sophistication to plush textures, each style was designed to add a layer of warmth and quiet luxury into bedrooms, living rooms and family gathering spaces.


soft surfaceT.M. Nuckols
president, residential division, The Dixie Group

What is your projection for the carpet industry for 2026?

I am projecting the residential carpet segment to be slightly up in 2026—low single digits on a percentage basis. I believe this will be back-end loaded with challenging conditions continuing in early 2026, followed by more consistent growth trends beginning midyear into the second half.

What segments/products will fuel industry growth?

The higher end will continue to outperform the rest of the market. Also, I am looking for improvements in new home and existing home sales, which will lead to a long-awaited turnaround in the residential replacement segment. How quickly this happens is dependent on what happens with interest rates and consumer sentiment through 2026.

Where do you see opportunities/challenges for next year?

With the tariffs from 2025 continuing into the foreseeable future, there should be good opportunities for domestic production. This should work in carpet’s favor, both in the synthetic and wool/decorative segments. But consumer sentiment and confidence are hard to predict. Do lower interest rates and pent-up demand outweigh the political noise and global unrest we are still seeing? How all these factors come together will ultimately determine the success of residential carpet and flooring.

What are some of your company’s biggest initiatives for 2026?

We will continue to focus on our high-end brands and differentiate ourselves through unique constructions, beautiful visuals and the best color lines in the industry. Our Step into Color campaign will highlight how we set ourselves apart with color, including custom color on our piece dyed nylon products.

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