Why are so many carpet executives crowing about single-digit or even double-digit growth in 2026? It’s because they all reside in the luxury/high-end space—a segment that has thrived in recent years while the rest of the residential category has slumped.
For the likes of Couristan, Nourison, Fabrica, Kaleen, Mohawk/Karastan, Stanton, Shaw/Anderson Tuftex and a handful of others, there is reason for optimism. “Homeowners and designers are increasingly seeking distinctive textures, richer visuals and elevated constructions that add character and comfort to the home,” said Len Andolino, president of Couristan, which is celebrating its 100th birthday in 2026.
Like Couristan, Nourison continues to find success in the upscale/designer segment where consumers are less price-sensitive compared to mainstream shoppers. “Our sales in 2025 reflected solid growth, and with interest rates trending downward and positive financial results to date, we anticipate continued growth into 2026,” said Don Karlin, director of broadloom sales for Nourison.
Mill executives say the luxury/decorative market has always been about trends, fashion, style and color. It has maintained its strength even as the slumping housing market has negatively impacted other segments of the residential market. In fact, the growth of higher-end carpet is consistent with broader consumer trends showing that the top 10% of income earners, with annual incomes of $250,000 or more, are driving the market, accounting for nearly half of all consumer spending. What they seek are often luxury goods.
“The wealthy consumer segment is less impacted by interest rates, inflation and economic downturns, which is why the higher end will continue to outperform the rest of the market,” said T.M. Nuckols, president of the residential division of The Dixie Group, which counts Fabrica and Masland as its high-end brands. “We will continue to focus on our high-end brands and differentiating ourselves through unique constructions, beautiful visuals and the best color lines in the industry.”
Couristan’s Andolino agreed the luxury market is poised for a strong year, thanks in part to what he hopes will be an improving economy. “Many economists see a 10%-15% increase in housing sales, and more interest rate cuts forthcoming. I foresee a tight (flat) first six months of 2026, but the third and fourth quarters in 2026 could bring a high single-digit, possibly low double-digit growth industry-wide if all the stars align. There is a pent-up demand in this segment. Consumers have sat on the sidelines and are waiting for things to ease. Once they do, the luxury market can see some historical growth in 2026 and beyond.”
Growth drivers
Over the past couple of years, the luxury segment has been inspired by hand-loomed offerings; these styles are typically produced in countries with lower labor costs, allowing for exceptional value to the consumer. In fact, many hand-loomed products compete directly with U.S.-made nylons, offering not only significant value but also outstanding design appeal. As a result, more mainstream flooring retailers are embracing upscale products which signals strong potential for growth. “As these stores upgrade their assortments, we all stand to benefit from increased business,” Nourison’s Karlin said.
The growth in the luxury segment spans both broadloom carpet and area rugs. To that end, mills are looking to benefit from either or both subsegments. “As the wall-to-wall soft surface market continues to see increases in market share, consumers are increasingly inclined to choose higher-end products, responsible fibers and durable products—and special items such as custom rugs,” said Monty Rathi, COO and co-owner of Kaleen. “We believe we are positioned well within the high-end segment.”
Specifically, Kaleen is introducing more wide-width custom carpets up to 22 feet wide in its Kaleen Broadloom and PureLife collections. Additionally, its premium hand-knotted brand, Luxe by Kaleen, offers custom sizes up to 15 feet wide and 50 feet long, with delivery within 30 days for custom size or 90 days via sea freight for custom-sized rugs,” Rathi said. “For broadloom backed Luxe by products, those are custom made and shipped via sea freight in 90-120 days.”
For Stanton Design, growth is likely to be mix driven with consumers trading into better-end, design-forward and performance soft surface rather than broad unit growth across all price points.
The segments and product types with the most momentum include design-driven and better goods, and solution-dyed and performance fibers. “Consumers want visual interest and a designer look, not just a beige background,” said Jonathan Cohen, Stanton CEO. “Stain resistance, fade resistance and easy cleanability are now must-haves, especially for kids and pet households. Solution dyed and advanced performance yarn systems will remain strong drivers as consumers equate soft surface with comfort and practicality, not compromise.”
Joe Semaan, president of residential carpet for Mohawk, said the ability to meet rising consumer expectations is a challenge for mills these says. “[Consumers] are increasingly looking for better performance, greater softness, richer colorations and products that fit their lifestyle needs,” Semaan said. “Staying ahead of those expectations requires continuous innovation in construction, design and technology.”
In 2025, the company hit a home run with Karastan Black Label, a refined collection of carefully curated designs that evoke low-key luxury. Each handwoven wool style in the Black Label portfolio merges traditional craftsmanship with contemporary elegance, a combination that drew raves from flooring dealers in 2025.
As the industry’s largest carpet mill, soft surface remains an important and viable category for Shaw, according to Tim Baucom, CEO. “Even in a challenging market, carpet continues to play a vital role in how people live and work,” he said. “Our recent product introductions across our carpet portfolio have been well received.”
A case in point was Anderson Tuftex’s Autograph, an FCNnovation Award winner as a high-end patterned carpet.
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