Dry Cleaning and Laundry Services Market Trends

Growth Drivers

• Rising tourism sector globally - The increased demand from the hotel and tourist industries is driving the global market. To service customers, hotels, restaurants, and resorts need a lot of towels, linens, and uniforms. As a result, there is a constant need for laundry services to guarantee a supply of clean, well-kept textiles.
  
  In line with the World Travel and Tourism Council, the travel and tourism industry's 9.1% GDP contribution in 2023 was up 23.2% from 2022 and just 4.1% less than in 2019. Technological advancements have the power to upend established market, open up new avenues for business, and alter customer behavior. Companies must keep up with technological growth if they wish to remain valid in competition.
• The extension of working professionals - It is projected that as a large number of people are now becoming professionals, they get little to no time to clean their own clothes in-house. People emphasize having clean, well-maintained clothes as their lives get busier, which increases the need for professional laundry services.
  
  In 2020, professionals made up 88.4 million workers in a wide range of occupations, accounting for 59.8% of the workforce. All employees falling under the category of "management, professional, and related occupations" are considered to be part of the professional workforce, according to the U.S. Bureau of Labor Statistics (BLS).
• Cost-effective and innovative laundry services - Furthermore, the laundry department is expanding its range of services to include not only standard pieces of clothing but also workwear, designer apparel, and outerwear, as well as customized uniforms. The increased demand from the hotel industry, rising disposable income, and rise in dual-income housing are the main drivers of this diversification.
  
  The trend in recent years has been toward non-competitive mergers or the joining of businesses that provide complementary services. By combining knowledge in various laundry sector specialties, these mergers hope to improve service delivery and broaden their dry-cleaning and laundry services market reach without going up against one another.

Challenges

• Awareness in people related to chemical use in laundry - The implementation of harsh chemicals and toxic components is harshly affecting the environment. People are becoming more and more concerned about these cleaning agents.
  
  Solvents like perchloroethylene, or perc, are frequently used in traditional dry-cleaning techniques, although they can be harmful to the environment. These substances have the ability to pollute water, air, and soil.
• Strict government rules to protect the environment - Strict environmental restrictions may limit the kind of cleaning solvents and chemicals that may be used, increasing the expense of compliance and perhaps reducing the variety of services that a company can provide.
  
  Intense rivalry within the sector may result in diminished profit margins and price wars. It might be difficult for smaller, independent companies to compete with bigger chains or franchises.