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The Dry-cleaning and Laundry Services Market size is forecast to increase by USD 20.44 billion, at a CAGR of CAGR of 5.52% between 2023 and 2028. The growing awareness of buyers, coupled with increased penetration of the Internet, has unveiled customers to book laundry services online. The proliferation of smartphones in the market has resulted in booking customized laundry services, sharing their preferences with the vendor, and requesting online delivery of clothes. Furthermore, the laundry care market is witnessing an increased demand for eco-friendly and sustainable cleaning methods, prompting companies to adopt initiatives such as the Ecosafe Washer. With the rise in subscription-based laundry and dry-cleaning services, consumers can now enjoy hassle-free laundry solutions tailored to their needs. This trend aligns with the growing emphasis on environmental consciousness and convenience in modern laundry practices.
Additionally, the laundry division is experiencing an extension of service offerings, catering not only to everyday clothing items but also to specific uniforms or workwear, designer clothing, and outerwear. This diversification is driven by the increasing disposable income and growing demand from the hotel sector, as well as the increase in dual-income homes. However, the market growth is not without challenges. Restraints such as the risk of economic downturns pose a threat to sustained expansion. To navigate these complexities, companies must remain vigilant, leveraging company insights and monitoring market dynamics scenarios to adapt swiftly to changing conditions.
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The laundry segment is estimated to witness significant growth during the forecast period. Laundry service is the most commonly preferred service among customers. Laundry services include wash-and-fold and ironing services. Vendors collect the clothes to be washed from the homes or workplaces of consumers and return them washed and ironed clothes. Due to rising consumer preference for casual clothing and increased washing frequency, laundry services are predicted to outperform other segments.
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The laundry segment was the largest and was valued at USD 30.16 billion in 2018. Further, apart from quick service, vendors offer customers other benefits such as instant pickup, online payment, and consumer loyalty rewards. Thus, the high demand for laundry-services is expected to fuel the demand for laundry-services during the forecast period. The continuous increase in the demand for laundry-services in major sectors such as healthcare, hospitality, leisure, institutional and government sectors, and food service has played a major role in driving the demand for products related to laundry-care, such as detergents and fabric conditioners. Tourism growth has increased the demand for new hotels and resorts, which has triggered the demand for laundry services. Such factors will propel the market growth analysis of the laundry-segment, which, in turn, will contribute to the growth of the market during the forecast period.
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APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the market in APAC is mainly attributed to the increasing middle-class population and increasing incomes of people, leading to increased spending on dry-cleaning and laundry-services. Urbanization and changes in lifestyle due to dual-income households are the other factors driving the market in the region. Increased demand from the commercial sector, including hospitals, hotels, and restaurants, contributes to regional market growth and trends. Evolving fashion trends in the APAC region may result in a higher demand for professional cleaning services, especially for delicate or specialty fabrics that require specialized care.
In addition, increasing environmental consciousness has led some dry cleaners to adopt eco-friendly practices, such as using biodegradable detergents, water conservation methods, and energy-efficient equipment. The increase of on-demand services and digital platforms for scheduling, payment, and communication makes laundry and dry-cleaning services more accessible and convenient for consumers. Moreover, the introduction of subscription-based models, where customers can sign up for regular or periodic laundry-services, provides a predictable revenue stream and enhances customer loyalty. Such factors are expected to drive the regional market growth during the forecast period.
The market is primarily driven by the cost-effectiveness and convenience offered by laundry services, catering to busy lifestyles and increasing demand for outsourcing laundry practices. A notable trend shaping the market is the transition toward online laundry services, facilitated by app-based booking, digital payment options, and real-time tracking for delivery. However, the industry faces challenges regarding concerns associated with chemical use and the disposal of chemicals, raising awareness for the need of eco-friendly laundry services.
Companies like Rinse and Ecosafe Washer are pioneering online laundry services with offerings such as duvet-cleaning services and specialized care for linens, towels, uniforms, and delicate fabrics. Traditional dry cleaners are also adapting, extending their service offerings to include carpets, curtains, and delicate and high-maintenance fabrics. As changing fashion trends and lifestyles drive demand for everyday clothing items, vintage fashion, and formalwear cleaning, the market experiences high competition with considerations for seasonal variations and evolving consumer preferences. Despite the rise of DIY preferences and concerns over environmental impact, the market continues to thrive, especially with the growing demand from the hotel sector and dual-income households seeking convenience and quality in their laundry-services.
The cost-effectiveness and convenience of laundry-services are notably driving the market growth. The presence of a large number of laundry service companies in the market has resulted in a versatile range of options for consumers at affordable rates. Apart from prompt service, the businesses provide customers with additional benefits such as same-day pickup, online payment, and consumer loyalty rewards. For instance, OXXO Care Cleaners offers consumers a 24/7 ATM-style pickup system, which enables consumers to avail of these services easily. In addition, the company uses technologically advanced, gentle cleansing solvents that are environmentally friendly and do not impact cloth quality.
Furthermore, the company uses hypo-allergenic detergents, adopts advanced technologies to pre-spot stains, and thoroughly packs the garments once they are done. For dry-cleaning, the company uses minimum water and environment-friendly machines to cool the garment to prevent any contraction or expansion of the fiber. Such advanced facilities will help customers avoid the lethargic process of laundry, which, in turn, will fuel the growth of the market during the forecast period.
The transition toward online laundry services is an emerging trend influencing market growth. The introduction of new and innovative technologies has revolutionized the laundry-experience for customers. The growing awareness of buyers, coupled with increased penetration of the Internet, has unveiled customers to book laundry services online. The proliferation of smartphones in the market has resulted in booking customized laundry services, sharing their preferences with the vendor, and requesting online delivery of clothes.
Moreover, the growth in the number of vendors offering comprehensive online laundry services at affordable prices drives the market during the forecast period. In addition, the increasing growth in the e-commerce sector helps customers avail of online on-demand laundry services. Therefore, online laundry-services are expected to drive the market growth and forecasting
Concerns associated with chemical use and disposal of chemicals are significant challenges hindering the market growth. Traditional dry-cleaning methods often involve the use of solvents such as perchloroethylene (perc), which can have adverse effects on the environment. These chemicals can contaminate soil, air, and water, contributing to pollution. The use of certain chemicals in dry-cleaning processes can release volatile organic compounds (VOCs) into the air. Prolonged exposure to these compounds can pose health risks to workers in dry-cleaning facilities and may contribute to poor air quality in the surrounding areas.
Furthermore, consumers are increasingly seeking eco-friendly and sustainable services. Dry-cleaning businesses that fail to adopt environmentally friendly practices may face challenges in attracting and retaining environmentally conscious customers. Thus, the concerns associated with the use and disposal of chemicals will impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market research and growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Dry Cleaning Co - The company offers dry cleaning and laundry-services which provide same-day dry cleaning, and wash and fold dry cleaning with pickup and delivery options.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Market Analyst Overview
The market is witnessing a revolutionary transformation driven by app-based booking, digital payment options, and real-time tracking. Consumers demand convenience and efficiency, prompting the adoption of innovative technologies like smart meters for precise measurements. From linens, towels, and uniforms to carpets, curtains, and delicate fabrics, modern services cater to diverse textiles.
Eco-friendly laundry services are gaining traction, addressing concerns about environmental impact. They specialize in cleaning delicate and high-maintenance fabrics, including vintage and retro fashion and formalwear. Unique offerings such as duvet-cleaning services and leather cleaning demonstrate market adaptability.
On-demand laundry and dry-cleaning services capitalize on changing fashion trends and lifestyles, appealing to busy individuals in dual-income homes. Subscription-based models provide convenience while bridal gown preservation services offer sentimental value.
Despite opportunities, the industry faces challenges such as high competition and seasonal variations. DIY preferences and economic downturns pose risks, while environmental impact perception influences consumer choices.
Both physical stores and online platforms play pivotal roles in market expansion. Major players emphasize business expansions and product benchmarking to stay competitive. Detailed company profiles and value chain analysis provide insights into market dynamics, driving emerging regions towards sustainable growth.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.52% |
Market Growth 2024-2028 |
USD 20.44 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.07 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Dry Cleaning Co., Angelica Textile Services, CSC ServiceWorks Inc., Evans Express Laundry Center, EVI Industries Inc., Great American cleaners, Inc and Co Group Ltd., Jyothy Fabricare Services Ltd., Lapels Cleaners, Laundry Town Inc., Marberry Cleaners and Launderers Inc., Mulberrys Franchising LLC, OXXO Care Cleaners, Quickclean Pvt. Ltd., Rinse Inc., Simply Laundry Inc., The Procter and Gamble Co., Washmen Laundry LLC, Yates Dry Cleaning, and ByNext Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, market trends and analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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