Every year, the global dry cleaning industry gathers data on trends in the industry to see how the previous year progressed and how the different stakeholders in it can move forward. In a new market report, two five-year periods (2014-2018, 2018-2022) describe the state of the global dry cleaning and laundry services market, outlining a look at how things have changed and how things are projected to go in the next few years.
The industry is in a healthy state at the moment, seeing continued growth with realistic hindrances in its overall performance. Dry cleaners, while sometimes overlooked, fall into a thriving industry that’s connected globally and is segmented in many different sub-markets. Dry cleaners can expect to see continued success in their operations, offering them the opportunity to potentially expand operations, invest in more comprehensive dry cleaners insurance coverage, and plan for continued success.
Here’s a broken-down look at what the global dry cleaning market looks like and the factors driving success heading into the next decade.
By The Numbers
Looking back on 2018, the industry saw an 8.7-percent growth rate since 2014, reaching a value of nearly $118.9 billion. This number represents a good foundation as the market is expected to continue its progressive pace heading into 2022 with a 10.9-percent growth rate, estimated at $180 billion in value.
What Fueled Growth
From 2014-2018, the growth was a result of strong economic movement in emerging markets, robust and fast-growing urbanization of cities, a rise in healthcare services, and an uptick in the number of single-person households in the U.S.
However, not all data was positive for the industry as certain factors went against growth, such as the emergence of automatic household washing machines, a boost in real estate rental prices, low profit margins, and a general preference from consumers to take care of their washing at home.
The Future of Laundry and Dry Cleaning
The report also looked at the areas that represent the most potential continued growth for the industry, showing that the linen and uniform supply segment will gain nearly $38 billion of global annual sales by 2022.
But a major push for growth can be connected to the digitization of the market, such as contactless payments and digital wallets to help cash management. Smart laundromats are seen as a major player in the modern laundry services space, cutting down on labor costs while saving time and helping out operational efficiencies.
However, factors such as changing clothing trends, shortages of skilled human resources, developing economies, and changing industry regulations are all projected to hinder that growth.
Sector by Sector
The personal services market, which the dry-cleaning and laundry services market is a segment of, reaches a value of almost $1.18 trillion in 2018, having grown at a rate of 9.6 percent since 2014. It’s expected to keep growing at an 11.8-percent rate and get to $1.84 trillion by 2022.
This segment is broken down by type of service, such as linen and uniform supply, dry-cleaning and laundry services, and coin-operated laundries. The linen and uniform segment was the largest of them all in 2018 with a valuation of $64.5 billion and is expected to have a growth rate of 12.1 percent through 2022.
The coin-operated laundries and drycleaners market is broken down into coin-operated laundry and coin-operated laundry routes, and dry-cleaning stores. The coin-operated laundries and dry-cleaning stores segment came in at the largest segment in 2018 at a $9.4 billion valuation, and it’s expected to grow at an 11.4-percent clip moving forward.
The commercial dry-cleaning and laundry services portion is the largest segment of the dry-cleaning and laundry services market coming out of 2018 at $79.7 billion and is expected to grow at an 11.7-percent rate over the next few years.
About Irving Weber Associates
At Irving Weber Associates, Inc., we understand what it takes to run a successful Dry Cleaner, Coin Operated Laundromat, Textile/Linen Supply business, Restoration, or Commercial Launderer, including investing in a comprehensive Insurance Program to ensure that they are financially protected against claims. Our program, Fabricare Advantage™, offers overall business insurance coverages including, Bailee, General Liability, Property, Site Pollution Liability, Boiler & Machinery Equipment Breakdown, Workers’ Compensation, Business Auto, and many more. For a detailed look at how we can help you safeguard your business with a custom-tailored package, please contact our experts today at (800) 243-1811.