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Economic Impact: Dry-cleaning and Laundry Services Market Forecasted to Transcend to US$ 147 Billion by 2033

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The size of the global market for laundry and dry cleaning services was estimated to be US$ 69.3 billion in 2022. In 2023, the revenue from laundry and dry cleaning services is expected to reach US$ 74.8 billion. Sales are expected to rise at a 7.0% annual rate of growth between 2023 and 2033. By 2033, demand is expected to surpass US$ 147 billion.

Hotels and resorts might offer laundry services as an amenity to guests. This can drive demand for outsourcing laundry operations to professional dry cleaners, as it provides convenience for both guests and the establishment. Large hotel chains and hospitality groups often establish long-term contracts with laundry service providers to ensure a consistent supply of clean textiles across their properties.

Regular and thorough cleaning of linens and uniforms is crucial for maintaining a safe environment, further boosting demand for laundry services. Tourism growth in a region directly correlates with the demand for laundry services. Destinations experiencing an uptick in tourism will likely see an increased need for laundry services to support the industry.

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The competitive nature of the hospitality sector drives innovation and high service standards. Dry cleaners may need to invest in advanced equipment and technology to meet the evolving needs of their hospitality clients.

The rising e-commerce and delivery services drive the market during the forecast period. E-commerce and delivery services often require employees to wear uniforms or company-branded clothing. This can lead to a high volume of work wear that needs regular cleaning, boosting demand for laundry services.

E-commerce companies might enter into partnerships or offer promotions with local laundry services to provide added value to their customers, further driving demand for these services. E-commerce often experiences seasonal peaks, such as during holiday seasons. This can result in surges in demand for laundry and dry-cleaning services to prepare for increased shipping and fulfillment operations.

In the wake of the COVID-19 pandemic, hygiene and safety standards have become paramount. E-commerce and delivery services might prioritize clean and sanitized uniforms and linens, increasing the need for laundry services. As e-commerce companies expand into new regions or cities, they might seek local laundry partners, creating opportunities for laundry services to expand their customer base.

Clean Drivers of Growth:

  • Urbanization and Busier Lifestyles: Rising urbanization leads to smaller living spaces and less time for household chores, driving demand for laundry services.
  • Increased Disposable Income: Growing disposable income allows consumers to spend more on convenience services like laundry and dry cleaning.
  • Sustainability Focus: Eco-friendly cleaning solutions and water-saving technologies are attracting environmentally conscious consumers.
  • On-Demand Services Boom: Mobile apps and subscription models are making laundry services more accessible and convenient than ever.
  • Specialized Care: Consumers are increasingly seeking specialized services for delicate items like wedding dresses or sports gear.

Investing in a Brighter Future:

  • Emerging Markets: Asia Pacific and Latin America are expected to see the fastest growth, presenting exciting opportunities for laundry businesses.
  • Technological Advancements: Automated sorting, eco-friendly cleaning processes, and AI-powered stain removal are revolutionizing the industry.
  • Personalized Services: Laundry services are becoming more customized, offering options like same-day delivery and fabric-specific care.

“Growth of tourism and hospitality industry is likely to drive demand for dry-cleaning and laundry service market. Key manufacturers are working on providing laundry services with eco-friendly washes. Sustainability is a key concern affecting this market, and this trend is likely to influence consumer behaviour through 2033.” Says, FMI Analyst

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Competitive Landscape:

Key companies are embracing eco-friendly practices, such as using eco-friendly detergents, recycling water, and reducing energy consumption to appeal to eco-conscious consumers. To increase customer retention, they also offer a broad range of services beyond traditional dry cleaning and laundry, such as tailoring, shoe repair, and garment alterations.

Key Companies in the Dry-cleaning and Laundry Services Market

  • ZIPS Dry Cleaners: ZIPS provides dry cleaning services for various clothing items, including suits, dresses, and shirts. ZIPS is known for its turnaround time, often offering same-day dry cleaning services for items dropped off early.
  • Alsco Pty Limited, the company offers a variety of linen and towel rental services for hotels, restaurants, and other businesses in the hospitality industry. The company offers rental and laundering services for mats, including entrance mats, anti-fatigue mats, and logo mats.
  • Alliance Laundry Systems LLC
  • The Huntington Company
  • ZIPS Dry Cleaners
  • Alsco Pty Limited
  • Rinse, Inc.

 

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