Handwoven Persian carpets, long regarded as one of the most important cultural and artistic symbols of Iran and once holding a prominent position in global markets, are now facing an unprecedented crisis.
Exports that brought Iran more than $2 billion in the 1990s have now dropped to around $40 million; a figure that, according to Agence France-Presse (AFP), represents a decline of more than 95%. Many experts see this not only as a direct consequence of international sanctions but also as the result of a combination of economic and managerial problems inside Iran.
Market collapse after sanctions
The return of U.S. sanctions in 2018 marked a turning point in the decline of Iran’s carpet industry. These sanctions cut off access to Iran’s largest carpet market—the United States—which, according to government officials, accounted for more than 70% of handwoven carpet exports.
Official statistics from Iran’s customs indicate that carpet exports amounted to only $41.7 million in the last Persian calendar year. These exports went to 55 countries, with Germany, the United Arab Emirates, Japan, and China topping the list of buyers. However, these numbers are a far cry from the golden days of carpet exports, when the industry, alongside oil, was considered one of Iran’s main pillars of export revenue.
Competitors filled Iran’s gap
The decline of Iran’s carpet industry created an opportunity for competitors such as India, China, Nepal, and Pakistan to expand their share of the global market. By producing cheaper carpets, these countries captured a large portion of Iran’s traditional markets. Some of these products have even entered Iran’s domestic market, leading Iranian carpet sellers to complain about falling sales at home.
Tourism and shifting tastes
According to AFP, the decline in foreign tourism has also dealt a heavy blow to the industry. For decades, Western tourists visiting Iran would buy handwoven carpets as souvenirs or gifts. But with travel advisories and the continued tense relations between Iran’s regime and the world, the number of tourists has dropped sharply.
Structural and economic problems
Experts argue that the reasons for the decline go beyond sanctions. Faulty currency policies, restrictions on repatriating export earnings, high production costs, and lack of effective government support have all pushed this historic industry to the brink of collapse. The fall of the rial against the dollar has also endangered the domestic market for handwoven carpets. Iranian families, who once considered carpets an inseparable part of their homes, are now turning to machine-made rugs.
Hope for revival or the end of an era?
Government officials still speak of the possibility of reviving the industry. Mohammad Atabak, the Iranian regime’s minister of commerce, said this past summer: “We have lost important international markets, but we hope to revive this industry by reforming trade and currency regulations.” He also pointed to new agreements aimed at facilitating carpet exports.
However, many carpet industry professionals believe the only path to survival is adapting to the needs and tastes of today’s markets.
A heritage at risk of being forgotten
The Persian carpet, whose origins date back to ancient times, is today more at risk than ever before. With shrinking domestic and international demand and low-cost competitors dominating the global market, there is a real danger that handwoven carpets will be reduced to the status of a historical relic—a priceless heritage that was once a source of national pride but now hangs by a thread from complete extinction.
