Dry-Cleaning And Laundry Services Market Definition
The dry-cleaning and laundry services market consists of the sales of dry-cleaning and laundry services and related goods by entities that operate coin-operated or similar self-service laundries and drycleaners; provide dry-cleaning and laundry services (except coin-operated); and/or supply, on a rental or contract basis, laundered items such as uniforms, gowns, and shop towels. Establishments in the dry-cleaning and laundry services industry are mainly involved in washing and/or cleaning clothes and linen and include coin-operated laundries and drycleaners, dry-cleaning and laundry services, linen suppliers and industrial launderers.
Dry-Cleaning And Laundry Services Market Size
The global dry-cleaning and laundry services market size reached a value of nearly $118.9 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.7% since 2014, and is expected to grow at a CAGR of 10.9% to nearly $180.0 billion by 2022.
Growth in the historic period resulted from strong economic growth in emerging markets, rapid urbanization, a rise in the number of single person households, and growth in the healthcare services sector. Factors that negatively affected growth in the historic period were growth in consumers’ preference for at-home washing, the emergence of automatic all-in-one household washing machines, a rise in real estate rental prices, and low profit margins.
Going forward, growth in hospitality sector, increasing internet penetration, rising franchising opportunity, faster economic growth, busy lifestyles of people and technological advances in the laundry industry will drive growth. Factors that could hinder the growth of the dry-cleaning and laundry services market in the future include changing clothing trends, rising minimum wages, shortages of skilled human resources, low penetration of organized laundry services in developing economies, and changing industry regulations.
Dry-Cleaning And Laundry Services Market Drivers
The key drivers of the dry-cleaning and laundry services market include:
Growth In The Healthcare Services Sector — The growth of the healthcare services industry during 2014-2018 drove the market for dry-cleaning and laundry services. For example, during 2014-2017, the number of hospital beds in Ireland, China, Australia and South Korea grew at a CAGR of 5.8%, 4.37%, 4.15% and 4.00% respectively. The number of hospital beds in Australia increased by 2.2 thousand and China showed an increase of 678 thousand, showing the increase in the demand for laundry services used for washing hospital bedsheets . Healthcare employees are another major end-user of the laundry services market. During 2014-2017, the number of healthcare employees in Vietnam, Canada, Turkey and Portugal grew on average 7.34%, 4.73%, 4.61% and 4.40% a year respectively , indicating an increasing demand for laundry services. So, the growth of the healthcare services industry in the historic period drove the demand for dry-cleaning and laundry services.
Dry-Cleaning And Laundry Services Market Restraints
The key restraints on the dry-cleaning and laundry services market include:
Preference For At-Home Washing – The dry-cleaning and laundry services market was restrained by consumers’ preference for at-home washing. People in majority of countries mainly carry out laundry activities at home either hand wash or using a washing machine. Due to the unavailability and low affordability of laundry services in emerging markets, people considered commercial laundry services as a cost to their household income. So, the population with relatively low disposable income preferred self-washing of clothes and bed sheets, while the population with higher disposable income employed a maid or a cleaner (this is more common in emerging economies) instead of using services of dry-cleaning and laundry service providers. The consumer’s preference for the traditional home washing was a major restraint on the dry-cleaning and laundry services market.
Dry-Cleaning And Laundry Services Market Trends
Major trends influencing the dry-cleaning and laundry services market include:
On-Demand Laundry Services
The demand for on-demand laundry services is growing rapidly owing to the convenience such services offer. On-demand services are mainly offered through mobile applications that allow customers to remotely order dry-cleaning or laundry services, share preferences and request delivery. On-demand laundry services providers then pick up clothes and linen from customers, and clean and deliver them back to the customers at a preferred time. The customers automatically receive notifications about the pickup, estimated date and time of drop off, and total cost of the service. On-demand laundry services are particularly popular in metro cities of the USA, for instance, including New York, San Francisco and Chicago, where laundry businesses are using mobile apps to provide their services. Gata Hub, WashClub, Starchup and Washio are some of the mobile apps offering on-demand laundry services in the USA.
Cashless Self-Service Laundries
The use of cashless self-service laundries or coin-operated laundries and drycleaner machines is growing across the world. This growth is primarily due to the emergence of cards and other alternative electronic payment methods such as RFID contactless credit cards, and NFC enabled mobile wallets that provide a cost-effective alternative to handle cash and are also easy to use. In addition, cashless laundry machines also provide relief from painstaking cash management in laundries, and secure solutions over cash operated machines, which have to be carefully monitored for thefts. Companies such as Texas Coin And Commercial Laundry and Lone Star Laundromat Services based in Texas, USA are laundry services providers that offer cashless laundry services.
Opportunities And Recommendations In The Dry-Cleaning And Laundry Services Market
Opportunities – The top opportunities in the global dry-cleaning and laundry services market will arise in the linen and uniform supply segment, which will gain $37.4 billion of global annual sales by 2022. The dry-cleaning and laundry services market size will gain the most in China at $17.32 billion. Market-trend-based strategies for the dry-cleaning and laundry services market include investing in digital technologies such as mobile apps to offer on-demand laundry services, offering cashless self-service options such as contactless payments and digital wallets to ease cash management and attract customers, and installing smart laundromats to cut down labor costs, save time and improve operational efficiencies. Player-adopted strategies in the dry-cleaning and laundry services industry include strategic acquisitions, expansion into new geographies and partnerships.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the dry-cleaning and laundry companies to consider offering on-demand dry-cleaning and laundry services, installing laundromats at dry-cleaning facilities, adopting sustainable laundry practices, focusing on tier 1 and tier 2 cities, and targeting millennials.
Dry-Cleaning And Laundry Services Market Segmentation
The dry-cleaning and laundry services market is segmented by type of service, by end-use, by distribution channel and by geography.
By Type Of Service-
The dry-cleaning and laundry services market can be segmented by type of service
- a) Coin-Operated Laundries And Drycleaners
- i. Coin-Operated Laundry Routes
- ii. Coin-Operated Laundry And Dry-Cleaning Stores
- b) Dry-Cleaning And Laundry Services (Except Coin-Operated)
- i. Household And Commercial Laundries
- ii. Dry-Cleaning Plants
- iii. Garment Pressing And Agents For Laundries
- iv. All Other Laundry And Garment Services
- c) Linen And Uniform Supply
- i. Linen Supply
- ii. Industrial Launderers
The linen and uniform supply segment was the largest segment of the dry-cleaning and laundry services market in 2018 at 54.2% or $64.5 billion. The linen and uniform supply segment is expected to be the fastest-growing segment going forward at a CAGR of 12.1%.
The industrial launderers segment was the largest segment of the linen and uniform supply market in 2018 at 54.9% or $35.4 billion. The linen supply segment is expected to be the fastest-growing segment going forward at a CAGR of 13.3%.
The coin-operated laundries and dry-cleaning stores segment was the largest segment of the coin-operated laundries and drycleaners market in 2018 at 53.2% or $9.4 billion. The coin-operated laundry routes segment is expected to be the fastest-growing segment going forward at a CAGR of 11.4%.
The dry-cleaning plants segment was the largest segment of the dry-cleaning and laundry services (except coin-operated) market in 2018 at 65.7% or $24.4 billion. The all other laundry and garment services segment is expected to be the fastest-growing segment going forward at a CAGR of 20.0%.
By End-Use –
The dry-cleaning and laundry services market are segmented at global level type of end-use into
- a) Commercial dry-cleaning and laundry services
- b) Residential dry-cleaning and laundry services
- c) Coin-operated laundries and drycleaners
The commercial dry-cleaning and laundry services segment was the largest segment of the dry-cleaning and laundry services market in 2018 at 66.7% or $79.7 billion. The commercial dry-cleaning and laundry services segment is expected to be the fastest-growing segment going forward at a CAGR of 11.7%.
By Distribution Channel –
The dry-cleaning and laundry services market are segmented at global level type of distribution channel into
The offline dry-cleaning and laundry services segment was the largest segment of the dry-cleaning and laundry services market in 2018 at 87.1% or $103.6 billion. The online dry-cleaning and laundry services segment is expected to be the fastest-growing segment going forward at a CAGR of 34.0%.
By Geography - The dry-cleaning and laundry services market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- Netherlands
- Switzerland
- Belgium
- Sweden
- Denmark
- Ireland
- Austria
- Norway
- Portugal
- Finland
- o Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Indonesia
- Hong Kong
- Thailand
- Philippines
- Singapore
- Malaysia
- New Zealand
- Vietnam
- o Eastern Europe
- Russia
- Poland
- Romania
- Czech Republic
- o South America
- Brazil
- Argentina
- Colombia
- Chile
- Venezuela
- Peru
- o Middle East
- Turkey
- Saudi Arabia
- Israel
- UAE
- o Africa
- Nigeria
- South Africa
- Egypt
Asia-Pacific was the largest market for dry-cleaning and laundry services, accounting for 34.9% of the global market in 2018. It was followed by North America, Western Europe and then the other regions. Going forward, Eastern Europe and the Middle East will be the fastest growing regions in the dry-cleaning and laundry services market.
Dry-Cleaning And Laundry Services Competitive Landscape
Major Competitors are:
- • Cintas Corp.
- • Elis SA
- • Aramark
- • UniFirst Corp.
- • Franz Haniel & Cie. GmbH
Other Competitors Include:
- • Downer EDI Limited
- • Johnson Service Group
- • CSC ServiceWorks Holdings Inc.
- • Rentokil Initial plc
- • Spotless Group Holdings Limited
- • 5àsec
- • Alsco Pty Limited
- • Arbela
- • Bel & Blanc
- • Bendor Laundrette
- • Boni
- • Brite Star Cleaners
- • Cadet Cleaners
- • Champion Cleaners
- • Comet Cleaners
- • Crisp & Clean
- • DryClyn Express
- • Easy Life Laundry
- • Easy Wash Laundromat
- • Eco Dry Cleaners
- • Edaixi
- • Elephat King Laundry
- • Elis SA
- • Fabricspa
- • Force Laundry
- • Fornet
- • Franz Haniel & Cie GMBH
- • Golden Hanger Cleaners
- • Harringtons Dry Cleaners And Launderers
- • Hi-tech Dry-cleaning
- • Immaculate
- • Impressed Laundry
- • Jeeves
- • JustLaundry
- • Karl Chehade Dry-Cleaning
- • Lapels
- • Laundrapp
- • Laundry Day
- • Laundry Drnovec
- • Laundry Solution
- • LaundryMart Fetch
- • Lavanderia
- • Martinizing Dry-Cleaning
- • Martinizing Dry-Cleaning
- • Mr Jeff
- • MWD Group
- • New China Laundry
- • Nordic Care
- • North Park Cleaners
- • OXXO Care Cleaners
- • Pacific Dry Cleaners
- • Pralnia kolor
- • Pralnia Samoobslugowa Blanc Lys
- • Pressed In Time
- • Pressto
- • Quick-Press
- • Sunshine Laundry
- • The Eco Laundry Company
- • The Eco Laundry Company
- • the Laundry House
- • the Mat on Carrington
- • the Swiss Laundry
- • Tide Dry Cleaners
- • UClean
- • Vogue Laundry Service Ltd.
- • Wah Mei Dry-Cleaning & Laundry Company
- • Washescu
- • Washie and Tai Pan Laundry
- • WashPro Poland
- • White Knight Laundry Services
- • WonderWash
- • ZIPS Dry Cleaners
- • Al Rafidain Laundry
- • Connoisseur Dry Cleaners
- • Dryclean USA
- • Hollywood S.A
- • Johnson Service Group
- • Kisafi
- • One Hour Cleaners
- • Pressto
- • Pressto Laundry & Dry Cleaners
- • The Diana company
- • Washmen
- • White Tiger
