GVR Report cover Online Laundry Service Market Size, Share & Trends Report

Online Laundry Service Market Size, Share & Trends Analysis Report By Service (Laundry Care, Dry Clean, Duvet Clean), By Application, By Region, And Segment Forecasts, 2019 - 2025

  • Report ID: GVR-2-68038-965-4
  • Number of Pages: 80
  • Format: Electronic (PDF)

Industry Insights

The global online laundry service market size was valued at USD 13.3 billion in 2018. Rising demand for convenient laundry with less investment will boost the product demand in the market. The product demand is fueled by shifting consumer preferences and improving living standards on a global level. Furthermore, consumer inclination towards a fragrance lifestyle has increased the demand for clean and fragrance-based clothes. This, in turn, will promote the scope of online services over the forecast period.

Rising awareness regarding healthy and hygienic lifestyles has led to strong demand for laundry products. These new laundry items are primarily used for increasing the fabric life and hygiene through washing and cleaning dirt. Moreover, the increasing prevalence of skin diseases such as allergies is anticipated to promote the scope of natural laundry products in the forecast period.

U.S. online laundry service market

Demand for environment-friendly laundry products is significantly rising owing to growing awareness about water pollution and other related environmental issues. Moreover, consumers are increasingly reducing the water consumption for laundry washing and cleaning with the help of advanced laundry items and equipment.

Increasing health consciousness among consumers has increased the demand for laundry services in North America. Furthermore, increasing focus on the convenience factor of consumers and investment in new product development by companies are anticipated to boost the market growth in the region. The online laundry service market in the Asia Pacific is likely to witness significant growth in the coming years owing to the concentration of laundry product manufacturers and washing machine manufacturers.

Online Laundry Service Market Trends

Laundry is a time-consuming task and has become a burden for people, especially the working-class population. Time constraints due to increasing work pressure & hours restrict people from doing their laundry. The working-class population has significantly increased over the past few years, thereby contributing to the rising demand for online laundry services due to their convenience. According to the “World Employment and Social Outlook – Trends 2018” report by the International Labour Office, the global unemployment rate was estimated to reduce to 4.9 % in 2019 from 5.6% in 2017.

The online laundry services market is mainly driven by increasing number of working women worldwide. According to statistics provided by the World Bank, female labor force has been substantially increasing since 2012. In 2016, females accounted for a share of about 38.92% of the total labor force worldwide; the percentage increased to 39.09% in 2017. These factors are opening new avenues for online laundry services and are likely to fuel market growth during the forecast period.

Clean laundry is essential for a healthy & hygienic lifestyle. Washing dirty daily use clothes and other laundry items require adequate amount of clean water, detergents & soaps, washing appliances, as well as a proper washing area. Instead of spending on expensive appliances & other related products, millennials and working-class population are adopting online laundry services, which offer convenience & flexibility and save time. These online laundry services are available round the clock, making laundry more convenient and easier for young & working population.

The hospitality sector is also opting for online laundry services to maintain hygiene in rooms. Hotels, as part of their service improvement process, are adopting online laundry services for better laundry management & hygiene. Online service providers offer laundry services for all types of linens, including room linen, food & beverage linen, staff uniform, and other miscellaneous items. In addition to washing and dry cleaning, they offer ironing, folding, and delivery of all linen products. These extended services are attracting more customers from the hotel industry.

Changing lifestyle, increasing spending on smart appliances, and improving electricity infrastructure in rural and urban areas across several developing countries, such as India, China, Indonesia, and Sri Lanka, are boosting the demand for household washing machines. Moreover, introduction of innovative technologies has changed the perception of consumers about home appliances, as these are now more than just utility products. These smart appliances have become a necessity for millennials & working population. Thus, the abovementioned factors have boosted the demand for washing machines and opened new growth avenues for the manufacturers and providers of these appliances.

Service Insights

Laundry care was the largest service segment, accounting for more than 50.0% share of the total revenue in 2018. The shifting trend towards clean homes and clothes and the growing importance of good health among consumers are driving the segment. Increasing environmental awareness has given rise to the trend of cold washing the clothes, which requires low temperature and high performance detergents. This, in turn, encourages consumers to opt for online laundry services for daily wear clothes.

In addition, rising environmental concerns regarding laundry services have indulged the companies to strive for sustainability. Due to the introduction of green certificates, the industry is lowering the exploitation of water and energy resources. For instance, according to the Environmental Protection Agency(EPA) WaterSense label, laundry product or service uses 20% less water as compared to the average prototype, which is expected to be a key factor driving the market.

Duvet Clean is expected to expand at a CAGR of 35.8% from 2019 to 2025. Consumer inclination towards a healthy living environment and adoption of a healthy lifestyle is paving the way for increased expenses on duvet cleaning. Modern-day application of duvet clean services makes a flexible and convenient lifestyle, which allows regular cleaning of duvets, sheets, and pillowcases. The advent of smart laundry minimizes the chaos and helps the companies to use tagging process connected by the cloud and track the status of clothes being washed. These smart washes are increasingly gaining the trust of consumers for laundering and are expected to boom in their sales in the near future.

Application Insights

Residential was the largest application segment, accounting for more than 60.0% share of the global revenue in 2018. Shifting consumer inclination towards professional cleaning on account of rising health concerns over personal hygiene and cleanliness has paved the way for online laundry services. Moreover, companies are entering the industry as startups to explore the unorganized market. For instance, in April 2018, UClean, a tech-enabled startup specializing in laundry and home cleaning services, claims to be the first organized chain of laundry and home cleaning stores. It has a customer base of over 40,000 people and it receives approximately 1500 orders per day.

Global online laundry service market

The commercial application segment is projected to expand at a CAGR of 35.4% from 2019 to 2025 owing to the growing hospitality business across the globe. A wide range of laundry services by hotels, hospitals, restaurants, and other such businesses has resulted in increased demand for online laundry services. Furthermore, companies are striving to maintain robust technology while introducing new products in the market. For instance, in April 2019, Girbau, S.A. launched a washing machine with an 85 kg capacity. The product has a capacity to reach high extract speeds up to 405 G-force, which allows moisture removal and shortens drying time by 50%.

Regional Insights

North America was the largest regional online laundry service market, accounting for a 31.8% share of global revenue in 2018. The growing population of health-conscious consumers in the region has resulted in a surge in the utility of laundry services. The shifting trend towards a fragrance lifestyle among consumers, particularly in developed countries, has increased the demand for cleaning products.

Moreover, companies are stressing the convenience factor of consumers and investing in new product development and outlets for convenient laundry for consumers. For instance, in February 2019, Procter & Gamble brand Tide planned to open 2000 number of 24-hour cleaning stores. Moreover, it aims to introduce drop-off boxes in apartment buildings and retailers. The company also has an app in the name of Tide Cleaners App for those using the drop-off boxes.

The U.S. is the largest online laundry service market in North America. In 2018, the U.S. online laundry service market was valued at USD 32.5 million and is expected to grow at a CAGR of over 34% during the forecast period. The U.S. online laundry service market is expected to be driven by increased consumer spending on laundry care. Increasing spending on laundry care and supportive government initiatives have increased the number of online laundry service providers in the country. In addition, laundry detergent manufacturers are introducing online services.

Asia Pacific is the fastest-growing consumer market owing to the presence of a large scale population. Moreover, the region has several other trends including the concentration of laundry product manufacturers and washing machine manufacturers including Midea, Haier, Siemens, Little Swan, Panasonic, Samsung, Sanyo, and TCL Corporation. According to the research, China produced more than 73 million units of washing machines in 2016, making it the largest producer in the world.

Busy working schedules and the increasing female participation in labor and the national workforce is driving the adoption of convenient laundry care, thereby fueling demand for online services in India. Moreover, increase in disposable income and nuclear families is expected to contribute to market growth. Furthermore, the online laundry service market in the country is likely to witness significant growth over the coming years, owing to a high concentration of laundry product manufacturers and washing machine manufacturers.

Online Laundry Service Market Share Insights

Key online laundry service suppliers include CLEANLY, DhobiLite, FlyCleaners, Laundrapp Ltd., ZIP JET, Wassup-On-Demand, Mulberrys Garment Care, PML Solutions Pvt. Ltd., and The Laundrywalla. The leading players in the market are stressing product innovation as a result of new product development, which helped gain a greater market share at a global level. The new product launches in the market help keep the interest alive of the consumers on account of increasing inclination towards hygiene and cleanliness in the majority of the regions.

Some of the industry participants are introducing innovation in their products as their key strategy to increase their market share. For instance, in August 2016, Whirlpool Corporation in collaboration with IBM Watson Services introduced sensors on washing machines, which collect data about the devices being used and accessed through the IBM Cloud. This allows the company to monitor and improve its products even after selling.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., U.K., Germany, China, India, Brazil, and South Africa

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global online laundry service market report on the basis of service, application, and region:

  • Service Outlook (Revenue, USD Million, 2015 - 2025)

    • Laundry Care

    • Dry Clean

    • Duvet Clean

  • Application Outlook (Revenue, USD Million, 2015 - 2025)

    • Residential

    • Commercial

  • Regional Outlook (Revenue, USD Million, 2015 - 2025)

    • North America

      • The U.S.

    • Europe

      • The U.K.

      • Germany

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa (MEA)

      • South Africa

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