The global laundry facilities and dry-cleaning services market is expected to grow at a CAGR of around 4.5% from 2021 to 2028 and expected to reach the market value of around US$ 177.2 Bn by 2028.
Space-constrained homes and hectic work schedules can make it difficult to set aside time for laundry once a week. The demand for laundry facilities and dry-cleaning services is increasing because it provides the option of separating the types of clothes to be put for dry cleaning and laundry services. As a result of consumer demand, there has been tremendous growth in laundry and dry cleaning services, freeing up time for personal lives.
Sales and use tax is imposed on dry cleaning services and laundry services
When a customer picks up dry cleaned or laundered items, they are subject to sales and use tax. According to a report issued by the STATE OF CONNECTICUT DEPARTMENT OF REVENUE SERVICES, sales of dry cleaning and laundry services will be subject to sales and use taxes at the standard rate of 6.35% beginning in January 2020. For all dry cleaning services performed, a dry cleaning establishment surcharge of 1% of gross receipts from dry cleaning services performed at each dry cleaning establishment must be paid to the Department of Revenue Services (DRS). Furthermore, funds received by the state from the surcharge are deposited in the Dry Cleaning Establishment Remediation Account within the general fund. The money in the account is used by the State, through the Department of Economic and Community Development (DECD), to provide grants to dry cleaning establishments in order to clean up or prevent pollution caused by the discharge, spillage, uncontrolled loss, seepage, or filtration of chemicals or hazardous waste on or near the site of the dry cleaning establishment.
Technological advancements in laundry facilities and dry cleaning services is one of the key factors that foster the growth of global market
According to a JSTOR report, developments in laundry facilities and dry cleaning services are characterized by high mechanization and automation. This contributes to increased productivity in the services sector of the private economy as a whole. Firms in the significant service industry are currently introducing new manufacturing technology, which results in increased productivity and a better physical environment at the workplace. Apart from that, rising laundry and dry cleaning service related startups are a huge step forward for any country, as working couples with hectic schedules are on the rise more than ever before. According to Euromonitor International, the laundry service market is expected to grow to US$76.5 Bn by 2018. This also predicts that by the end of 2020, more than three million households will require weekly laundry services. This is well executed because smart phone penetration is increasing, with an average of 32 downloads on mobile phones. These factors have a positive impact on the overall growth of the laundry facilities and dry cleaning services market.
Stringent regulations imposed by the government for laundry facilities and dry cleaning services market propel the growth of overall market
According to Atom Content Marketing Ltd's report, under the Environmental Permitting Regulations, all dry cleaning premises must be registered with the local authority's environmental health department, which will issue an operator's permit if the equipment used meets the required standards. In Scotland, for example, permits are issued by the Scottish Environment Protection Agency (SEPA). Furthermore, according to the clause of legislation and the related Environmental Permitting Regulations, anyone who uses dry cleaning solvents must be competent and qualified, as well as have a permit from the local authority. The Guild of Cleaners and Launderers (GCL), for example, provide a wealth of information to its members about the Directive and obtaining a permit by offering qualification in the Safe Handling of Dry Cleaning Solvents. Such factors indicate astronomical growth for the overall market for laundry facilities and dry cleaning services.
The global laundry facilities and dry cleaning services market is segmented based on service and application. Based on services, the market segmented as laundry, dry cleaning, and duvet clean. Further, application is classified based on residential and commercial.
The laundry segment accounted for a significant share of the global laundry facilities and dry cleaning services market in terms of services. According to the Federal Reserve Bank of St. Louis, consumer personal consumption expenditure for laundry and dry cleaning services in 2019 was estimated to be around US$12.1 Bn according to the US Bureau of Economic Analysis. Couples' adoption of a hectic lifestyle schedule and a once-a-week washing lifestyle has gained significant importance for the global market to grow, ultimately contributing to overall growth.
According to application, the residential segment accounts for the dominant share of the overall dry cleaning & laundry service market. According to a report released by the Government of Canada, laundry facilities and dry cleaning services are widely used in residential care facilities, as there is a trend toward outsourcing as a cost-cutting measure in the coming years. According to the estimates released by the Government of Canada report, laundry facilities and dry cleaning services contribute approximately 16% of the residential segment. These factors have a positive impact on the overall market growth for laundry facilities and dry cleaning services.
Asia Pacific registered dominant share in 2020; Europe will record stupendous growth for laundry facilities and dry cleaning services market
Asia Pacific has held a dominant share in the past and is expected to do so again during the forecast period. The prevalent rise in working population, combined with an increase in annual spending on clothing and cleaning services, is one of the key factors having a long-term impact on regional growth.
Europe, on the other hand, is expected to have the fastest growing CAGR during the analysis period for the laundry facilities and dry cleaning services market. A stringent regulatory framework designed for businesses operating laundry facilities and dry cleaning services is one of the major factors influencing regional growth, ultimately contributing to overall market growth.
The prominent players of the global laundry facilities and dry cleaning services market involve DE COON SERVICES LIMITED, Cintas Corporation, BUBBLE BOX, Aramark Corporation, Elite DhobiLite, TLH (The Laundry House), The Laundry Bag., UniFirst Corporation, and among others
Market By Services
Market By Application
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Laundry facilities and dry-cleaning services market is expected to reach a market value of around US$ 177.2 Bn by 2028.
The laundry facilities and dry-cleaning services market is expected to grow at a CAGR of around 4.5% from 2021 to 2028.
Based on services, laundry segment is the leading segment in the overall market.
Technological advancement is one of the prominent factors that drive the demand for laundry facilities and dry-cleaning services market.
DE COON SERVICES LIMITED, Cintas Corporation, BUBBLE BOX, Aramark Corporation, Elite DhobiLite, TLH (The Laundry House), The Laundry Bag., UniFirst Corporation, and among others.
Asia Pacific is anticipated to grab the highest market share in the regional market
Europe is expected to be the fastest growing market in the forthcoming years