India’s home decor market gets a festive glow-up as consumers splurge on design and gifting

The demand boom is not limited to metros. Tier-2 and tier-3 cities are also rapidly catching up
| Photo Credit:
RAMAKRISHNA G

India’s home decor market is getting its biggest festive glow-up yet. With consumers spending more on home makeovers and gifting, brands like Nestasia and Vaaree are clocking 100–120 per cent year-on-year (y-o-y) growth in Diwali sales.

Dining and kitchen categories are leading the surge as urban consumers trade utility for design and experience. Industry players say festive gifting, which contributes 10–15% of annual sales in off-season months, spikes to as high as 40% during Diwali, reflecting how India’s rising disposable incomes and lifestyle aspirations are turning décor into a mainstream consumption category.

Vaaree, for instance, has seen its festive sales nearly double compared to last year. The brand’s co-founder, Garima Luthra says consumers are moving beyond functional home upgrades toward design-led, aesthetic purchases. Premium and luxury collections are driving the steepest growth, pushing the brand’s average order value higher and attracting returning customers who are styling new corners of their homes.

Beyond metros: smaller cities join the decor wave

The demand boom is not limited to metros. Tier-2 and tier-3 cities are rapidly catching up, contributing over 38 per cent of Vaaree’s festive sales this year, up from 28 per cent last year. Consumers in smaller cities are increasingly digital-first and design-aware, investing in cohesive décor rather than one-off items. “It’s a clear sign that India’s aesthetic awareness is growing,” Luthra says.
At Nestasia too, the contribution from non-metro markets remains strong, with tier-2 and tier-3 cities together accounting for about half of total festive sales. The company’s co-founder, Aditi Murarka Agrawal notes that the average order value typically rises 20 per cent during the festive season, with customers adding an average of four items per cart. Festive décor and gifting categories are key drivers of this increase.

Festive quarter does the heavy lifting

For both brands, the October–December festive quarter has become a crucial sales window. Nearly 30 per cent of Vaaree’s annual revenue comes from this period, a figure the company expects to rise to 35–40 per cent in the coming years.

At Nestasia, gifting during non-festive months contributes around 10–15 per cent of sales, but jumps to about 40 per cent during Diwali, spanning both retail and corporate gifting. The OND quarter alone accounts for roughly one-third of Nestasia’s annual revenue, highlighting the season’s growing importance for the segment.

Published on October 19, 2025