The global dry-cleaning and laundry services market is highly fragmented, with a large number of small players. The top ten competitors in the market made up to 9.71% of the total share in 2018. This is mainly due to the presence of a large number of small players that are close to residential localities that cater to the local population. This fragmentation can also be attributed to the increase in the number of startups in the market due to low entry barriers. The fragmentation of the market is expected to slightly change in the near future with the adoption of acquisition strategies by the players to enter and expand into newer geographies. Cintas Corp. was the largest competitor with 3.27% of the market in 2018, followed by Elis SA with 2.41%. Other major players in the market include Aramark, UniFirst Corp., Franz Haniel & Cie. GmbH, Downer EDI Limited, Johnson Service Group, CSC ServiceWorks Holdings Inc., Rentokil Initial plc, and Spotless Group Holdings Limited.
Cintas Corp., the largest competitor in the global dry-cleaning and laundry services market, is involved in renting and servicing uniforms and other garments such as mops, towels, mats and other ancillary products. It offers different fire safety products and first aid products. It is also involved in the selling of uniforms and other fire-resistant products. The company was established in 1968 and is headquartered in Ohio, USA.
Cintas Corp’s growth strategy aims at broadening its customer base by improving its uniform rental and facility service capabilities through acquisitions. In March 2017, the company acquired G&K services, a uniform rental and facility service provider in the USA and Canada. The strategic move of Cintas improved its customer profile with enhanced service capabilities. It also enabled Cintas to expand its service portfolio.
Elis SA was the second largest competitor in the dry-cleaning and laundry services market. The company offers work wear and linen rental and laundry services, and hygiene and wellbeing services, in Central Europe, Eastern Europe, Southern Europe and Latin America. Elis SA was established in 1883 and is headquartered in Saint Cloud, France.
Similar to Cintas, Elis SA’s growth strategy also aims at expanding its laundry business in different geographies through strategic acquisitions. In March 2018, the company acquired BW Textiles, a family-owned laundry service provider in Germany, to expand its presence in the country. To expand its presence in Belgium, the company acquired Ardenne et Meuse, a Belgian family-owned laundry business, to serve hospitality customers.
Other key players in the dry-cleaning and laundry services market are also investing in similar strategies of expansion through acquisitions. Aramark, for instance, entered into a definitive agreement in October 2018, to acquire Ameripride, a leading uniform and linen rental and supplier company in the USA. This move by Aramark will enable it to improve customer experience and service efficiency.