Laundry Services Category Intelligence
Report Coverage
- Supply Market Outlook
- COVID19 -Impact on Laundry Services
- Key Regional Supplier Profile
- Pricing Models
Market Size
Global Market Size
$115.32 Billion
North America
$27.20 Billion
Laundry Services Market Trends
Category Intelligence on Laundry Services covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
Global laundry Services Industry Outlook
- In 2020, the laundry services market was valued at $115.32 billion with a CAGR of (-2.1 percent) in 2020, due to COVID-19. The market is forecasted to grow at a CAGR of 7% percent to $180 billion by 2026. With the recent COVID-19 outbreak/challenge, the demand might shoot up in all the countries due to the urge the industries feel to keep up the work place and workwear clean and safe for their employees
- APAC holds the 34-36% of the laundry market, North America, Europe have high market maturity
- MENA and LATAM are expected to be the future growth-driving markets for laundry services
Impact of COVID-19 on Laundry Services
Laundry services was slightly in more demand during the pandemic due to the health concerns of organisations as well as more focus on COVID-19 treatments at the hospitals. Supply demand gap was not huge but shortage of staff and increased turnaround time at places. The economic outlook is as uncertain as it could be at present, however from a cleanroom laundry perspective it seems unlikely that there will be major downturns in their key markets. While certain parts of the economy have been devastated others have been left unscathedorhave prospered. The key markets for cleanroom laundries at present fall into the latter category.
- As businesses faced unexpected closures and are slowly opening across the globe post lockdown, demand has raised and the supply demand gap would eventually increase hampering the ongoing clinical researches
- Laundry companies are overloaded by ongoing pandemic–leading to increasing supply demand gap of supplies, man power and equipment
Laundry Services Market Global Drivers and Constraints
- Macroeconomic Background:High inflation rates in developing countries have a direct impact on the rising demand for wages. Rises in labor costs are crucial for the laundry services industry, as they drive costs in a direct proportion
- Outsourcing versus Insourcing:Despite the difficult global economic conditions, outsourcing of laundry services is the preferred model, compared to performing such services in-house.
Drivers
- The global laundry industry continues to be profitable, mainly riding upon the growth of the healthcare industry and the recent COVID-19 pandemic has raised the need to create a safer work environment propelling the growth rate
- Vacancy rates have a direct impact on procuring laundry services for commercial spaces. Vacancy rates are on the decline, providing the impetus for the laundry services industry•In a short period, new technologies, more interoperability among different laundry equipment and more suppliers in the market have resulted in higher growth. This evolution of laundry equipment's has become an advantage for laundry service in the retail industry, which helps them to complete the task in a short time with limited resources
- Green laundry products (chemicals) and procedures will have a higher impact in the future. Hence, businesses should focus on going green and realizing the benefits therein
Constraints
- Labor costs generally represent 50-60 percent of total operational costs. In addition to the native workers, most of the labor are immigrants and the Regulations associated with such workers can play a major role in managing laundry services effectively in a particular country
- Britain leaving the EU may have negative consequences on the labor supply and thereby poses a threat of increasing labor costs
Laundry Services Frequently Asked Questions
- What is driving the global laundry services market?
- The global laundry services market is receiving major impetus from the healthcare sector, where the COVID-19 pandemic has underscored the need to ensure a safer and hygienic work ecosystem. Moreover, the vacancy rates have directly impacted the procurement of laundry services in the commercial realms. As such, declining vacancy rates are setting high hopes for laundry service providers.
- What strategies are market players focusing on?
- Considering the presence of several suppliers in the laundry services market, industry heavyweights are increasingly turning to innovative technologies to ensure greater interoperability among different laundry equipment and complete the tasks faster with limited resources. Furthermore, market players are going green with eco-friendly laundry chemicals and processes to remain compliant with the stringent regulatory framework and maintain their competitive edge.
- What is the impact of the COVID-19 pandemic on the global laundry services market?
- The demand for laundry services increased marginally despite the COVID-19 wrath, given rising health concerns among several companies and a greater focus on COVID-19 treatments at healthcare institutes. While the demand-supply gap was insignificant, the workforce shortage increased the turnaround time (TAT). Nevertheless, market players are unlikely to witness considerable slumps in their key markets.
- How big is the global laundry services market?
- The global laundry services market revenue pegged $115.32 Bn in 2020, down by a 2.1% CAGR due to the COVID-19-induced stressors. By 2026, the global revenue pool will expand at a 7% CAGR, reaching $180 Bn.
- Which regions are market players targeting for lucrative returns?
- Beroe’s category intelligence report suggests laundry service providers continue to eye Asia Pacific (APAC), which holds about a third of the overall revenue, for lucrative growth prospects. While markets in Europe and North America have attained maturity, LATAM and MENA will remain the potential growth engines for laundry service vendors.
