Online Laundry Services Market Size, Share, and Industry Analysis, By Type (Laundry Care, Dry Clean, and Duvet Clean), By End User (Residential and Commercial), and Regional Forecast till 2032

The global online laundry services market is surging with the expansion of the hospitality industry. These services refer to digital platforms and mobile applications that provide laundry and dry-cleaning solutions for consumers to schedule, track, and manage their laundry needs. The services usually include pickup, washing, drying, ironing, and delivery catering to residential and commercial consumers.

The COVID-19 pandemic significantly impacted the global market. Governments across various countries imposed lockdowns, leading to the closure of all hotels, restaurants, colleges, and gyms, reducing the demand for laundry services. Moreover, the lockdown imposed in 2020 led to work-from-home policies across countries, making working individuals stay home, reducing the demand from professional sectors, especially dry cleaning.  

Online Laundry Services Market Driver

Growing Demand from Hotels & Hospitals and Rising Busy Lifestyle to Propel the Market Growth

The growing hospitality sector worldwide, owing to rising tourism, boosts the demand for online laundry services. The increasing number of hospitals across countries boosts demand for laundry services, propelling market growth. According to data presented by the American Hospital Association, the number of hospitals in the U.S. increased from 6,093 in 2022 to 6,129 in 2023.

Furthermore, rapid urbanization and an increasing number of dual-income households have led to busier lifestyles, leaving less time for household chores, including laundry. In addition, working professionals and students usually seek convenient, time-saving solutions, driving the demand for online laundry services.

Online Laundry Services Market Restraint

High Operational Costs to Limit Market Growth

The operational costs of online laundry services limit the market growth. Maintaining a reliable pickup and delivery network is usually expensive, especially in less densely populated areas. Fuel costs, vehicle maintenance, and labor can add to operational costs, impacting profit margins. Moreover, maintaining modern laundry facilities with advanced washing machines, dryers, and eco-friendly equipment requires considerable capital. Furthermore, offering competitive pricing while maintaining profit margins can be difficult due to rising costs in utilities, detergents, and employee wages.  

Online Laundry Services Market Opportunity

Rising Popularity of Subscription Models to Offer Lucrative Growth Opportunities

The popularity of subscription models is growing significantly across various countries. Subscription models streamline the laundry process for time-strapped consumers by offering consistent service without the need for frequent bookings. Moreover, regular subscribers often receive discounted rates compared to on-off services, boosting the demand for subscription models. Furthermore, several prominent market players focus on acquiring to diversify their offerings and expand their reach across countries. For instance, in November 2022, Rinse, a U.S.-based laundry company, acquired Room Service Laundry, a New York, U.S.-based on-demand laundry service. According to the company, the acquisition would expand the company’s presence in New York.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Global Laundry Market
• Supply Chain & Regulatory Analysis
• SWOT Analysis
• Porter's Five Forces Analysis
• Recent Industry Advancement

Analysis by Type

Based on type, the online laundry services market is segmented into laundry care, dry clean, and duvet clean.

The laundry care segment holds the largest market share owing to increasing health awareness among individuals and growing demand for regular laundry from the residential sector. Several key industry participants are launching their new laundry services. For instance, in February 2023, Rinse, a U.S.-based laundry company, launched its laundry services in Texas, U.S.

Furthermore, the dry clean segment is expected to grow considerably throughout the forecast period. This is owing to the increasing number of working women and growing hygiene awareness among working individuals coupled with the growing emphasis on self-appearance and maintaining a professional look.

Analysis by End User

Based on end user, the online laundry services market is bifurcated into residential and commercial.

The residential segment dominated the market in 2023 owing to the growing population, increasing disposable income, and rising personal consumption, which has led to increased construction of residential units, driving the market growth. According to the U.S. Census Bureau and the Department of Housing and Urban Development, the total number of housing units in the U.S. increased from 140.80 million in 2020 to 142.15 million in 2021 and to 143.79 million in 2022.

The commercial segment is expected to grow significantly over the coming years due to the growing number of hotels & resorts and rising demand from hospitals & clinics.

Regional Analysis

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Based on region, the global market is classified into North America, Europe, South America, and Middle East & Africa.

North America led the market in 2023 due to the wide availability of online laundry services and growing busy lifestyles among the working population. Moreover, the presence of several prominent players across the U.S. and increasing disposable incomes propels market growth. Various key market participants are focusing on expanding their presence in the U.S. For instance, in April 2024, Lapels Cleaners, a laundry brand of Clean Brands, announced the launch of its laundry store and dry cleaning plant in Louisiana, U.S.

Furthermore, the Asia Pacific region is expected to grow considerably over the coming years. This is owing to the increasing number of hotels and rising working population seeking convenient laundry & dry cleaning solutions across India, China, Japan, and South Korea.

Key Players Covered

• Laundry Heap (U.K.)
• UClean (India)
• Clean Brands (U.S.)
• Tumbledry (India)
• Oxwash (U.K.)
• FlyCleaners (U.S.)
• Rinse (U.S.)

Key Industry Developments

• In June 2023, Laundry Heap, a U.K.-based laundry company, acquired Wast, a France-based laundry services company. According to the company, the acquisition would expand the company’s operation across 11 countries, including Singapore, UAE, U.K., and France.
• In May 2023, Lapels Cleaners, a laundry brand of Clean Brands, launched its laundry services, Lapels Cleaners of Cary, in Cary, North Carolina.