Insight Brief: Home Renovation and Interior Design Industry in South Africa

The home renovation and interior design industry in South Africa plays a significant role in improving the aesthetic and functional appeal of residential spaces. This industry encompasses a range of services, including structural renovations, space planning, decorating, and furnishing. Home renovation involves making improvements to an existing home to better suit the owner’s preferences or to increase the property’s market value. This usually entails small-scale projects like painting and flooring as well as large-scale renovations such as kitchen remodels, bathroom renovations, or adding new rooms. Interior design focuses on enhancing the interior spaces of a home to create a visually appealing, functional, and cohesive environment. Interior designers work with clients to choose colour schemes, furniture, lighting, and decorative items that reflect the homeowner’s style and meet their needs.

The value chain includes suppliers of raw materials (e.g., building materials, furniture, décor), service providers (e.g., architects, interior designers, contractors), distribution channels (e.g., retail stores, online platforms), and end customers (homeowners, property developers).

Market Size & Industry Revenue

According to Stats SA, there are approximately 19 million households in South Africa indicating there is a huge opportunity for aspiring entrepreneurs who want to enter the market. Furthermore, the interior design sector is characterised by relatively low barriers to entry.

We estimate that the value of the global interior design services market was $174.9 Billion in 2023, highlighting the growth potential of the industry. In South Africa, annual revenue for the home decor sector of the industry was $543.35 million in 2023 according to Statista.

Competitor Overview

The industry consists of well-established firms and emerging businesses, with trends such as sustainable design and smart home integrations gaining traction. Here’s an overview of some of the key competitors in South Africa:

• ARRCC: ARRCC, based in the vibrant city of Cape Town, is a reputable interior design and décor studio known for its innovative and luxurious design solutions. With a reputation for excellence, ARRCC combines artistic creativity with functional elegance to transform spaces into breathtaking environments. ARRCC specialises in high-end residential, commercial and hospitality projects, their skilled designers and decorators bring a unique vision to each project.

• KB Interiors: Established in 2008, Kirsty Badenhorst Interior creates, develops, and transforms spaces through interior design. They bring clients' ideas and dreams to life, achieving their primary objective over the past decade. By addressing all aspects of interior design, the firm has grown into an established and respected name within the industry. The company provides services to residential, commercial and hospitality clients. Although based in Durban, KB Interiors also has international clients in their portfolio.

• Blacksmith: Based in Johannesburg & Cape Town, Blacksmith has made a significant impact in the retail, hospitality, and leisure markets both locally and internationally. With over 30 years of experience, the company prides itself on delivering impeccable design solutions.

Consumer Overview

Although individual homeowners are the main target audience, the industry is segmented into various areas based on the scope and nature of projects:

• Residential: Individual homes and apartments. The primary customers in this segment are middle to high-income homeowners or real estate companies.

• Commercial: Commercial properties like offices, retail spaces, lodges, and hotels.

• DIY (Do-It-Yourself) Market: Products and materials for homeowners who prefer to undertake renovation projects themselves. These are usually homeowners with low budgets.

Consumers are influenced by trends showcased in design magazines, social media platforms, and home improvement TV shows. There is a growing inclination towards DIY projects, albeit professional services remain in demand for complex tasks.

Advantages of Starting a Home Renovation and Interior Design Business

• Growth Potential: The industry offers substantial growth opportunities, driven by urban expansion and a rising demand for home improvement services.

• Market Demand: High demand for both renovation and interior design services, especially in urban areas and new residential developments.

• Support Systems: Availability of support from industry associations like the African Institute of the Interior Design Professions (IID) and potential funding from government programs aimed at promoting small businesses.

Disadvantages of Starting a Home Renovation and Interior Design Business

• Costs and Talent Barriers: High initial costs, the need for specialized skills and knowledge, and the necessity to keep up with rapidly changing design trends.

• Competition: Intense competition from both established firms and new entrants, requiring continuous innovation and differentiation.

• Strict Regulatory Requirements: Compliance with building regulations, zoning laws, and obtaining necessary permits can be time-consuming and costly.

Order Your Personalised Home Renovation and Interior Design Industry Report.

Get a personalised Home Renovation and Interior Design Industry report based on your business idea and unique needs. A personalised industry report includes:

1. Supplier Analysis & Database: Detailed analysis of suppliers in the ecosystem and a database of 50+ key suppliers in the industry.

2. Competitor Analysis: Detailed SWOT analysis of 20+ home renovation and interior design companies in South Africa.

3. Consumer Analysis: Latest trends of local and international consumers

4. Historical Industry Revenue Data (2018-2023) and Forecasts (2024-2029)

5. Innovation Trends: Trend report about the latest sustainability, design, and technology trends shaping the industry.

6. Strategy Consultation: A one-hour strategy consultation to help you formulate strategies based on our recommendations.

Personalised reports start from ZAR 4,000.00. Place your order by filling out an order form here or schedule a free discovery call to discuss your needs.

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