Tier-2 Households Redirect Discretionary Spending Toward Home Decor, Consumer Study Shows

VMPL

New Delhi [India], December 18: Households in India's Tier-2 cities are increasingly prioritising spending on home decor and interior aesthetics over consumer electronics, indicating a shift in discretionary consumption patterns following the pandemic, according to a recent consumer study.

The study, conducted by Moolwan Decor Insights, the research and analytics division of Moolwan, a home and wall decor brand, examined post-pandemic purchasing behaviour across multiple Tier-2 cities and found that disposable incomes in these markets grew at an average annual rate of 7.2 per cent between 2020 and 2025, compared to 5.8 per cent growth in metropolitan areas.

Lower costs of living in Tier-2 cities have created higher discretionary headroom, enabling households to redirect spending toward categories associated with long-term emotional and lifestyle value. Industry estimates indicate that for every rupee spent by metro households on upgrading personal electronic devices, Tier-2 households are spending nearly three rupees on home decor and wall art enhancements.

Consumer behaviour analysts attribute this trend to structural changes triggered during the pandemic, when residential spaces began functioning simultaneously as workplaces, social environments and professional backdrops. Increased visibility of home interiors through video conferencing and remote work arrangements has heightened the perceived importance of interior aesthetics.

"Home environments have become a visible extension of personal and professional identity," said a consumer behaviour analyst tracking middle-income household spending across Indian cities. "Unlike personal devices, the appearance of one's home is continuously on display."

The trend has been observed across Tier-2 cities including Mysuru, Nashik, Coimbatore and Jodhpur, where households are opting for customised or statement decor pieces in place of frequent upgrades to televisions or smartphones. Analysts note that these purchases are driven less by functional necessity and more by long-term identity and emotional relevance.

Market data indicates that Tier-2 cities accounted for approximately 68 per cent of wall art sales in 2025, up from 41 per cent in 2022. India's organised home decor market was valued at about ₹47,000 crore in 2024, with Tier-2 cities contributing nearly 38 per cent of overall market value, compared to 24 per cent in 2020.

Executives at several established home retail chains have acknowledged that product assortments historically designed around metropolitan preferences are proving less effective in Tier-2 markets, prompting revisions in design themes, sizing and cultural alignment.

Supporting indicators include a reported 34 per cent increase in furniture customisation requests from Tier-2 cities during 2025, while premium home fragrance brands have reported that Tier-2 markets now contribute close to 40 per cent of total sales, up from 18 per cent in 2023.

Analysts describe the shift as confidence-driven consumption, reflecting a growing preference among Tier-2 households for purchases that align with personal values and long-term lifestyle priorities rather than aspirational imitation.

Moolwan Decor Insights, the research and analytics division of Moolwan, a home and wall decor brand, analyses consumer behaviour and cultural trends across India's home and lifestyle sectors.

(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL.will not be responsible in any way for the content of the same.)

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor