work | 2026 home decor trends with AOW Handmade

It’s become a bit of a tradition for Annie O. Waterman of AOW Handmade and me to sit down each year and reflect on where the artisan and handmade home decor market is headed.

In this year’s conversation, I talk candidly about the shifting landscape of 2026, a year defined by contrast and clarity. We’re seeing a growing rebuttal to AI alongside its rapid adoption, with consumers placing more value on proof of humanity: visible craftsmanship, tactile materials, and thoughtfully curated experiences. At the same time, the mid-market continues to struggle while luxury interiors remain active, pushing artisan brands to rethink how they produce, sell, and connect.

We also explore what’s resonating now and what’s building momentum, from smaller, curated markets and vintage influence to confident color, natural materials, and the importance of strong curation. These themes reflect what I’m seeing through my client work and ongoing conversations with brands, retailers, and makers navigating what comes next.

I’m grateful to Annie for continuing this dialogue each year, and I hope this conversation offers a useful perspective for brands, retailers, and anyone thinking deeply about the future of craft-led design.

A brief preview of the conversation appears below, with the full interview available on Annie’s site at members.aowhandmade.com. For those who aren’t members, the code AOW1MNTH offers access to read along.

"Annie O. Waterman: To start, from a macro level, what are you seeing in store for ’26?"

Haley Seidel: I think this year we’ll see a growing rebuttal to AI, alongside its rapid adoption.

There’s a desire for human connection, and consumers increasingly want proof that something is truly handmade. At Shoppe Object in August, buyers were especially drawn to pieces with visible handwork, pieces where you could immediately sense the maker behind them.

In 2026, I expect consumers to place more value on what I think of as “proof of humanity” in the things they spend meaningful money on. That shows up through tactile materials, visible craftsmanship, and in-person experiences that feel curated rather than transactional.

At the same time, we’re seeing a clear economic divide in the U.S. The luxury interior design world remains active, while the “accessible luxury” mid-market is under pressure, as reflected in recent brand closures.

Where do you see the most opportunities for artisan brands this year?

There’s a clear rise in smaller, highly curated shopping markets such as Craft Feast at Stissing House and The Ticking Tent. Craft Feast, held over the holidays in Pine Plains, New York, was beautifully executed and attracted an extremely qualified customer; many attendees traveled from across the Northeast specifically to shop. Field + Supply’s first New York City show also generated a lot of buzz. These types of events offer artisan brands a meaningful opportunity to connect directly with their customers.

Since much of the mid-market is struggling, I think artisans will have to think differently about how they produce. Before, an artisan brand could go to a show like NY NOW or Shoppe Object, get a larger order with a big retailer such as Anthropologie or West Elm, and those relationships could sustain their business. Today, buyers are shifting to models like drop shipping, and their requirements are changing.

Successful artisan brands today are often the ones that can fulfill smaller orders, dropship, or keep lead times shorter.

What’s especially challenging now is that it takes more capital for an artisan brand to get started. They need product in stock, they need to meet buyers at shows, and their designs need to be immediately saleable. With the luxury interior design market continuing to grow, artisan brands should also cater to the trade.

In terms of design, customers still have a love and demand for vintage. At these shoppable markets, they intentionally place vintage sellers alongside handmade brands. Be inspired by this demand and use it as inspiration for crafted details, one-of-a-kind products, or the use of vintage deadstock fabrics and materials in your designs.

While consumers are craving more connection, I’d also love to see more artisan brands sharing their process through social channels like TikTok and through in-person events.

What is driving sales of a product these days?

It ultimately comes down to design. Customers are excited by strong design, and the pieces that catch the eye now are those where you can actually see the hand, whether that’s conscious to the buyer or not.

Perceived value is equally critical. The product has to make sense at its price point.

The story matters, but I see it as an added layer that deepens the connection once the product has already earned attention.

What color palettes are you seeing for ’26?

Last year’s color direction felt moodier; this year feels more saturated. Lean into WGSN’s transformative teal and their selection for 2027, cobalt blue. I don’t place much emphasis on Pantone’s color of the year selection. I understand the sentiment and the reasoning, but what people are actually drawn to right now is color.

For my clients, I worked with deep reds, deep teals, silver, and brighter greens for 2026. Less olive and more chartreuse and lime. Brown remains strong and will continue. I love seeing lighter blues and cool tones mixed with brown instead of rooms being entirely warm-toned. Purple is also starting to trend upward.

What is the direction for textures and materials in 2026?

I’m seeing more whimsical embellishments: trimming, fringe, and, in hard goods, hand-painted details. These are the elements that are difficult to mass-produce and feel custom.

I’m also seeing unexpected patterns and print placement continue to grow. This year, it’s becoming more accessible, including unexpected patterns across an entire sofa, for example, which no longer needs to be custom-made and can be purchased directly at retail.

More prints, including heavy use of animal and animal-inspired prints.

For materials, consumers want natural fibers. Even mass-market fashion brands are switching to natural fibers, and I think that interest will continue to translate into the home, even if it takes longer because performance and price weigh differently.

Read the full interview here for further perspective on 2026 trends, retail shifts, and how artisan brands can adapt to what’s next.