Clean sweep: Industry revenue grows as businesses outsource laundering activities

The Laundry and Dry-Cleaning Services industry has performed strongly over the past five years, with steady demand growth and greater outsourcing from hospitals and the hospitality sector benefiting the industry. The industry comprises companies that provide dry-cleaning, laundering, linen and uniform hire (in conjunction with laundering services), carpet cleaning and laundrette services to a range of sectors. Key markets include hospitality, health, government and other service businesses. Bulk products such as sheets and towels are generally collected from client sites by industry firms, processed and then returned within an agreed time period. Households account for a large, but declining, proportion of industry demand...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
17,115
Businesses
3,912
Market Share of Companies

Industry Threats & Opportunities

  • The healthcare and household sectors are the main markets for the industry
  • Carpet cleaning has remained weak, as other flooring has become popular over carpet
  • Ongoing outsourcing of laundry and uniform rental services is projected to boost industry revenue

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    Industry Report - Industry Key Buyers Chapter

    The Laundry and Dry-Cleaning Services industry has low market share concentration, with the top four players estimated to account for more than 27% of industry revenue in 2017-18. The industry's concentration level has increased over the past five years, with franchises and chains emerging and the dominant players making acquisitions. Market share concentration is expected to increase over the next five years, as major operators undertake more acquisitions to accelerate revenue growth, increase economies of scale, and improve profit margins.Two major companies, Spotless Group and Alsco, operate in the industry. Larger companies tend to have plants and laundry facilities close to major clients to service their needs, for ease of access, and to minimise transport costs. Mos...purchase to read more.

    Additional Insights for the Laundry and Dry-Cleaning Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Laundry and Dry-Cleaning Services Industry are

  • Having a good technical knowledge of the product
  • Proximity to key markets
  • Having an extensive distribution/collection network

    • IBISWorld analysts also discuss how external factors such as Demand from health care and social assistance and Demand from accommodation and food services in the Laundry and Dry-Cleaning Services industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Laundry and Dry-Cleaning Services Industry?

    Industry establishments provide laundry and dry-cleaning services, as well as linen, uniform and nappy hire services. The services may be accessed through self-service facilities, such as coin-operated facilities, or through facilities operated by industry players.

    Industry Products
  • Laundering and rental services
  • Dry-cleaning services
  • Laundrette provision
  • Carpet cleaning services
    • Industry Activities
  • Automatic, self-service laundry operations (coin-operated)
  • Baby nappy hire services
  • Carpet, upholstery and rug cleaning
  • Clothing, hat or garment cleaning services
  • Curtain and drapery cleaning services
  • Dry-cleaning services
  • Laundry operations and services
  • Linen hire and rental services
  • Linen sterilisation services
  • Uniform and workwear hire services
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Demand from health care and social assistance
  • Demand from accommodation and food services
  • Population
  • Real household discretionary income
  • Road freight service price

    • Current Performance
  • Revenue and profit
  • Laundry services
  • Competition and efficiency
  • Chart: Revenue Growth

    • Industry Outlook
  • Segment trends
  • Laundry services
  • Changing structure
  • Table: Laundry and Dry-Cleaning Services Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Laundry and Dry-Cleaning Services Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Pubs, Bars and Nightclubs
  • General Hospitals
  • Nursing Homes
  • Hotels and Resorts
  • Motels
  • Restaurants
  • Consumers

    • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Mining and Industrial Machinery Wholesaling
  • Power Automation Products and Other Electrical Equipment Manufacturing

    • Products & Services
  • Laundering and rental services
  • Dry-cleaning services
  • Carpet cleaning services
  • Laundrette provision
  • Chart: Laundry and Dry-Cleaning Services Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Households
  • Private healthcare sector
  • Government institutions
  • Hospitality sector
  • Other sectors
  • Chart: Major Market Segmentation for the Laundry and Dry-Cleaning Services Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Laundry and Dry-Cleaning Services

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Laundry and Dry-Cleaning Services Industry

    • Industry Globalization

    Major Companies

    Downer EDI Limited, Alsco Pty Limited,
  • Table: Downer EDI Limited - financial performance
  • Table: Alsco Pty Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Laundry and Dry-Cleaning Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Laundry and Dry-Cleaning Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Continuous Batch Washing Systems
  • Require less space and a shorter wash cycle time than conventional systems and can be linked to pass through dryers.
    • Perchloroethylene (Perc)
  • A cleaning chemical used extensively in dry-cleaning.
    • Wet-Cleaning
  • A non-toxic cleaning system that does not use perchloroethylene.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Laundry and Dry-Cleaning Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Laundry and Dry-Cleaning Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Laundry and Dry-Cleaning Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Laundry and Dry-Cleaning Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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