Archive · 18 Dec 2025
Tier-2 Households Shift Spending to Home Decor
A recent study shows that people in smaller cities in India are spending more money on making their homes look nice instead of buying new gadgets like TVs or smartphones.
This change started after the pandemic when people began working from home and spending more time there.
They want their homes to look good because they are seen more often on video calls and because it makes them feel happy and proud.
The study found that these smaller cities are now buying a lot more wall art and custom furniture, and big stores are changing their products to fit what these people want.
It's like they are choosing to spend money on things that make their homes feel special and personal.
Households in India's Tier-2 cities are spending more on home decor and less on consumer electronics post-pandemic.
Disposable incomes in Tier-2 cities grew at 7.2% annually from 2020 to 2025, compared to 5.8% in metropolitan areas.
For every rupee spent by metro households on electronics, Tier-2 households spend nearly three rupees on home decor.
Tier-2 cities accounted for 68% of wall art sales in 2025, up from 41% in 2022.
The organised home decor market was valued at ₹47,000 crore in 2024, with Tier-2 cities contributing 38% of the market value.
- Who
- Households in India's Tier-2 cities
- What
- Shift in spending from consumer electronics to home decor
- When
- Post-pandemic, with data up to 2025
- Where
- Tier-2 cities including Mysuru, Nashik, Coimbatore, and Jodhpur
- Why
- Increased disposable income, structural changes in home use, and the desire for long-term emotional and lifestyle value
- Study Conducted By
- Moolwan Decor Insights
- Disposable Income Growth (Tier-2 Cities)
- 7.2% annually (2020-2025)
- Disposable Income Growth (Metropolitan Areas)
- 5.8% annually (2020-2025)
- Spending Ratio (Home Decor vs. Electronics)
- 3:1 (Tier-2 vs. Metro)
- Wall Art Sales (Tier-2 Cities)
- 68% in 2025, up from 41% in 2022
- Organised Home Decor Market Value (2024)
- ₹47,000 crore
- Tier-2 Contribution to Market Value (2024)
- 38%
- Furniture Customisation Increase (2025)
- 34%
- Premium Home Fragrance Sales (Tier-2)
- 40% in 2025, up from 18% in 2023