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Dry-cleaning & Laundry Services Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global dry-cleaning & laundry services market was valued at USD 64.5 billion in 2022 and is projected to expand at a CAGR of 5.1% from 2023 to 2030. The market is driven by a rise in the demand for convenience and time-saving services. Furthermore, the rising trend of outsourcing laundry services is also driving the growth of the market. Moreover, the introduction of mobile applications and online platforms for booking dry-cleaning services has boosted the market growth.
On the other hand, the rising cost of water and energy is hampering the growth of the dry-cleaning & laundry services market. Furthermore, the presence of counterfeit products and the lack of awareness among consumers regarding the use of efficient cleaning solutions are also restraining the market. Moreover, the lack of skilled labor is also impeding the market growth.
The laundry services segment is projected to expand at a considerable CAGR during the forecast period. This can be attributed to the increasing demand for convenience and time-saving services. Furthermore, the rising trend of outsourcing laundry services is also driving the growth of the segment. Moreover, the introduction of mobile applications and online platforms for booking dry-cleaning services has further supported the growth of the segment.
The self-service segment is expected to witness significant growth during the forecast period. This is due to the availability of self-service machines in malls, hotels, and other public places. The introduction of technologically advanced machines is also driving the growth of this segment. Furthermore, the availability of cost-effective self-service machines is also influencing the growth of the segment.
Moreover, the commercial segment is expected to witness significant growth during the forecast period on account of the growing demand for dry-cleaning and laundry services from the hospitality sector. The increasing number of hotels and resorts is driving the growth of the segment. Furthermore, the rising number of corporate offices is also contributing to the growth of the segment. Additionally, the availability of technologically advanced services for commercial customers is also driving the growth of the segment.
Product Insights
The dry-cleaning segment accounted for the highest share in the market, with a revenue of around USD 23.2 billion in 2020. Increasing demand for dry-cleaning services owing to a growing number of working professionals who lack time to take care of their laundry needs is driving the market. According to an article published by the US News, in May 2021, nearly 70% of Americans are employed in professional or managerial roles, which has increased the demand for dry-cleaning services. In addition, growing demand for organic and eco-friendly dry-cleaning products and services is also driving the market.
The laundry services segment is expected to expand at the highest CAGR of 8.1% over the forecast period. Growing popularity of laundry services such as on-demand laundry services, increasing demand for washing machines, and rising penetration of smart home technologies are contributing to the growth of the laundry services market. According to an article published by the Statista, in April 2021, around 46% of people aged 18 to 24 years have used on-demand laundry services in the past 12 months. Moreover, rising awareness regarding laundry service apps and companies is also boosting the growth of the market.
Distribution Channel Insights
The dry-cleaning & laundry services industry is primarily served by brick and mortar stores, which captured a major share of the market in 2022. In recent years, the number of brick and mortar stores has increased significantly due to the increasing demand for dry-cleaning and laundry services from both residential and commercial customers. This is mainly due to the convenience and cost-effectiveness of brick and mortar stores. Moreover, brick and mortar stores also offer a wide range of essential products such as detergents, fabric softener, and other laundry products.
The online segment is expected to register the highest growth rate over the forecast period. In recent years, the use of online platforms to provide dry-cleaning and laundry services has increased significantly. Online businesses are expected to witness rapid growth due to the high degree of convenience and cost-effectiveness associated with them. Additionally, the rising penetration of smartphones and tablets is also expected to contribute to the growth of the online segment. Furthermore, the increasing number of players offering online dry-cleaning and laundry services is also expected to fuel the growth of the segment.
Type Insights
The full-service segment held the largest share of 56.3% in the Dry-cleaning & Laundry Services market in 2020. The full-service segment is anticipated to witness significant growth, primarily due to the increasing number of laundromats and commercial laundry services. The availability of full-service laundry service at a reasonable price has enabled consumers to opt for full-service laundry and dry-cleaning services. Moreover, the introduction of online and mobile applications that offer full-service laundry, dry-cleaning, and alteration services has further increased the demand for this segment.
The drop-off segment is expected to register the highest CAGR over the forecast period. The availability of convenient drop-off and pick-up services, especially in the form of portable laundry bags, is expected to increase the demand for the drop-off segment. Moreover, the convenience of scheduling pick-up and drop-off services provided by vendors has further increased the demand for the drop-off segment.
Regional Insights
North America is expected to account for the largest revenue share in the dry-cleaning & laundry services market in 2022. The region is home to prominent players, such as Coin Laundry Association and Procter & Gamble, who have a strong presence in the market. Furthermore, the presence of a large number of students and working professionals who prefer to use such services is expected to drive the market in the region. Moreover, the region has witnessed an increase in the number of on-demand laundry services, where customers can place orders through apps. For instance, in May 2021, Washio, an on-demand laundry service, launched its laundry and dry-cleaning services in Los Angeles.
Asia Pacific is anticipated to register the fastest growth over the forecast period. This can be attributed to the increasing urbanization, rising disposable income, and the presence of a large number of small- and medium-sized businesses in the region. Moreover, the presence of a large number of students and working professionals who prefer to use such services is expected to drive the market growth in the region. For instance, in April 2021, Laundryheap launched its services in Singapore, offering doorstep laundry and dry-cleaning services.
Financial Projections
Dry cleaning and laundry services business plans must include detailed financial projections to provide an accurate picture of the company’s financial performance and future prospects. This section of the plan should include a comprehensive income statement, balance sheet, cash flow statement, and financial ratios.
Revenue Assumptions
The main source of revenue for a dry cleaning and laundry services business will come from the sale of services. This includes the sale of dry cleaning, wash and fold services, pick up and delivery services, repair and alteration services, and any other services offered. Additionally, the business may offer additional services such as cleaning supplies, laundry detergent, and other related products.
Projecting Expenses
The dry cleaning and laundry services business must anticipate ongoing expenses such as rent, utilities, payroll, advertising and marketing, maintenance, and other overhead costs. Other expenses may include the cost of equipment, supplies, insurance, and taxes. Additionally, the business should include long-term investments such as the purchase of new machines and other capital investments.
Key companies & market share insights
Some of the key companies operating in the dry-cleaning & laundry services market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, The Laundress launched a new line of eco-friendly cleaning products with plant-based ingredients.
– In August 2022, Tide Cleaners launched the Tide Cleaners App, allowing customers to order and pay for laundry services online.
– In October 2022, Drybar launched a new line of laundry services for luxury items such as silk, cashmere, and leather.
Some of the prominent players in the dry-cleaning & laundry services market include:
– Tide Cleaners
– The Laundress
– Drybar
– EcoClean
– Spotless Dry Cleaners
– 5 Star Cleaners
– Washio
– Snap Cleaners
– Laundry Care
– Laundryheap
Global Dry-cleaning & Laundry Services Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global dry-cleaning & laundry services products market based on service, product, customer, and region:
1. Service Outlook (Revenue, USD Million, 2017 – 2030)
– Dry-Cleaning
– Washing & Ironing
– Others
2. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Garments
– Household Items
– Bedding & Upholstery
– Others
3. Customer Outlook (Revenue, USD Million, 2017 – 2030)
– Residential
– Commercial
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Drivers of the Dry-cleaning & Laundry Services Market?
[A]: The major drivers of the dry-cleaning & laundry services market include the growing demand for convenience and the increasing number of households with two working adults. Additionally, the advent of technology, such as the introduction of mobile apps, is allowing customers to access dry-cleaning and laundry services packages at their convenience. Furthermore, the increasing number of nuclear families is driving the demand for such services.
[Q]: Who are the Key Players in the Dry-cleaning & Laundry Services Market?
[A]: Some of the key players in the dry-cleaning & laundry services market are Coinmach Corporation, The Simply Group, Spotless Group, Jeeves, UniFirst Corporation, and CleanCiti.
[Q]: What are the Factors Limiting the Growth of the Dry-cleaning & Laundry Services Market?
[A]: The factors that are limiting the growth of the dry-cleaning & laundry services market include the high cost of services, the availability of low-cost substitutes, and the limited availability of skilled workers.
[Q]: What are the Opportunities available in the Dry-cleaning & Laundry Services Market?
[A]: The opportunities available in the dry-cleaning & laundry services market include the development of new and innovative products and services, the expansion of the customer base, and the use of technology to improve the efficiency of the services. Additionally, collaborations with local manufacturers and suppliers could open up new opportunities for growth.
[Q]: What Region Offers the Largest Opportunity for Sales of Dry-cleaning & Laundry Services?
[A]: North America is expected to be the most lucrative region for the dry-cleaning & laundry services market, with an absolute dollar opportunity of $35 B (USD). This is attributed to the increasing demand for convenience, the growing urbanization, and the increasing disposable income of the population in the region.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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