Growth In The Hospitality Sector Will Increase The Demand For Dry-Cleaning And Laundry Services
The global dry-cleaning and laundry services market is expected to grow from around $132 billion in 2019 to $180 billion in 2022 at a compound annual growth rate (CAGR) of 10.9%. The gradual shift in customer spending towards tourism is expected to positively impact the hospitality sector, thus driving the market for dry-cleaning and laundry services. In order to cater to increasing tourists’ demands, hotels are coming up with new business models where the rooms are available for multiple bookings on a single day. This in turn is expected to increase the number of times linen is changed in a hotel room on a daily basis, increasing the amount of linen to be washed after every change. This business model is expected to drive the demand for dry-cleaning and laundry services in the hospitality industry, where hotels prefer using a professional launderette to optimize operations, time, and keep quality services. So, the growth of the hospitality industry is expected to drive the dry-cleaning and laundry services market.
There has been an increase in the expansion of dry-cleaning businesses through the franchising model, which also supports the global dry-cleaning and laundry services market. Big laundry service providers are offering franchise opportunities, while providing required equipment and software to efficiently manage the whole process of dry-cleaning and washing. The offering of such franchise model is expected to increase the number of entrepreneurs to establish laundry businesses nationally and globally. The 24×7 operation of franchises equipped with coin-vending laundry machines in combination with hectic lifestyles of the working-class population will improve the availability of laundry services to a large number of consumers. Increasing work pressure and hectic lifestyles lead to a limited time available to carry out household chores including laundry. Due to a shortage of personal time, people prefer to unload their schedules by hiring professionals to preform general activities such as cleaning the house and laundry. This encourages an increased number of consumers to opt for commercial laundry services.
A franchising model of business allows dry cleaning companies to grow fast and expand geographically. Dryclean USA, Martinizing Dry Cleaning, and Comet Cleaners, for instance, are the dry-cleaning services providers that apply franchise business models. A dry-cleaning franchise can attract loyal customers in different regions due to established business processes. Franchises following an eco-friendly business model of the parent company attract environmentally-conscious customers as they provide an established eco-friendly business model. For instance, Lapels, a leading dry-cleaning service provider in the USA, uses eco-friendly processes across all its dry-cleaning franchise outlets.
Laundry firms are offering sustainable laundry services by adopting green cleaning practices and are implementing technologies/methods to reduce their carbon footprint. Some dry-cleaning firms have stopped using regular dry-cleaning chemicals such as perchloroethylene, which are harmful to humans when exposed, and are promoting sustainable practices to entice environmentally-conscious customers.