Industrial and rustic decor can often be difficult to discern between because both styles incorporate natural elements. However, they are very different entities in interior design.
Industrial living is all about displaying the raw building materials many try to conceal and embracing a raw, unfinished look. Pieces are often selected based on function as well as style. You'll want your living spaces to have a factory or warehouse appeal to them while still promoting comfort and creativity. Expose your home's basic framework, such as its ceiling beams, air ducts, cement floors, pipework, and brick walls.
When thinking about industrial decor, you're going to want to look for pieces that have that raw, factory style to them, such as hard-wood dining tables and steel chairs, metal lockers, stainless steel appliances, leather seats, pipework bookcases, open fireplaces, and more. Your furniture and decor should look imperfect, asymmetrical, and stripped down to their main components, such as with exposed screws, wiring, pipes, knotted wood, clunky wheels, etc. Get creative and take some sandpaper to some of your more traditional pieces or roughen up your metal surfaces. Use your space to its full potential by turning conventional places like staircases into exposed shelving units.
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Rustic decor is the ultimate combination of all things natural, rough, and aged. Similarly to industrial design, you'll want to include weatherworn woods, distressed materials, and mix-match hardware. However, rustic differs in that it is less harsh and often considered more of a "feminine" industrial vibe without the dark metals, heavy hardware, and exposed frameworks.
Most rustic furniture and decor is casual, handcrafted, and comfortable with an worn or distressed appearance. It's less dark and heavy than industrial decor, but more raw than farmhouse or boho designs. Consider using antique woods, soft fabric cushions, leather couches, clay pottery, wicker chairs, handcrafted shelves, glass storage jars, suede poofs, natural or faux fur carpets, etc. You want to go for the "chic meets log cabin" vibe that is both cozy and elegant.