Online Laundry Service Market (By Service: Laundry Care, Dry Clean, Duvet Clean; By Application: Residential, Commercial) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032.

The global online laundry service market size was estimated at around USD 23.58 billion in 2022 and it is projected to hit around USD 388.56 billion by 2032, growing at a CAGR of 32.34% from 2023 to 2032. The online laundry service market in the United States was accounted for USD 6.6 billion in 2022.

Key Pointers

• North America accounted for the largest revenue share of about 37% in 2022.
• Europe is expected to grow at a CAGR of about 31.21%.
• Residential was the largest application segment in 2022 and accounted for a share of over 64% of the global revenue. 
• The commercial application segment is projected to expand at a CAGR of 33.12% from 2023 to 2032.
• Laundry care was the largest service segment and accounted for a revenue share of around 48% in 2022. 
• The dry clean segment is expected to expand at a CAGR of 31.21% from 2023 to 2032.

Report Scope of the Online Laundry Service Market

The rising demand for convenient laundry with less investment will boost demand in the market. The service demand is fueled by shifting consumer preferences and improving living standards on a global level. During the COVID-19 outbreak, every industry, including the online laundry services industry, across the world remained closed to control the spread of the virus. Stay-at-home orders across various nations impacted the market as most of the laundry clothes come from residential sectors. This resulted in a decline in the overall growth of the market. Moreover, hotels & parlors also remained closed for a certain period, which has caused a negative impact on the market growth.

Laundry is a time-taking task and has become a problem for people, especially the working population. The working-class population has significantly increased over the last few years, thereby contributing to the demand for online laundry services due to their convenience. Time constraints due to increasing work pressure & hours restrict people from doing their laundry, which has given rise to on-demand laundry service. This business is mainly driven by the increasing number of working women worldwide. Clean and fresh laundry is an important part of making a hygienic and healthy lifestyle. Cleaning dirty and used clothes and other laundry items daily requires a huge amount of clean water, washing appliances, detergents & soaps, and a proper washing area.

For instance, according to the Environmental Protection Agency (EPA) Water Sense 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. 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 these 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.

The growing consumer consciousness about a hygienic & healthy lifestyle has led to a high demand for laundry services. On-demand laundry service provides doorstep services and uses high-quality laundry care products to clean delicate fabrics and extend the life of fabrics while maintaining hygiene. Moreover, the increasing prevalence of skin diseases, including rashes and allergies, is likely to create significant growth opportunities for laundry service providers during the forecast period. Market players have been steadily entering this industry through strategies, such as mergers & acquisitions. In April 2022, Laundry headp Ltd. acquired its competitor, Laundry app to become a strong player in the on-demand laundry service market. Through this acquisition, Laundry heap widened its logistics and transport network, broadened its client base, and extended its regional reach across the UK.

Application Insights

Residential was the largest application segment in 2022 and accounted for a share of over 64% of the global revenue. Shifting consumer inclination towards professional cleaning on account of the rising health concerns about 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. In addition, the elderly population who are not able to do their basic chores generally opt for laundry services, which is further boosting the residential segment growth.

Also, the busy lifestyles among the younger generations are pushing them to opt for online laundry services. The commercial application segment is projected to expand at a CAGR of 33.12% from 2023 to 2032 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 the increased demand for online laundry services. Furthermore, companies are striving to maintain robust technology while introducing new products in the market.

Service Insights

Laundry care was the largest service segment and accounted for a revenue share of around 48% in 2022. 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 clothes, which requires low temperature and high-performance detergents. This, in turn, encourages consumers to opt for online laundry services for daily wear clothes.

The dry clean segment is expected to expand at a CAGR of 31.21% from 2023 to 2032. Modern-day clothes & garments are made with fashionable clothes and accessories, which cannot be washed at home. This may accelerate the market growth. Moreover, vendors are increasingly using eco-friendly solvents and are employing professional washmen as well as using advanced technology, which is also increasing the adoption of these services, aiding the market growth.

Regional Insights

North America accounted for the largest revenue share of about 37% in 2022. The growing population of health-conscious consumers in the region has resulted in a surge in the utility of laundry services. The U.S. market is expected to be driven by increased consumer spending on laundry care. Asia Pacific is estimated to be the fastest-growing region with a CAGR of 35.9% during the forecast period owing to the presence of a huge population, especially in countries, such as China and India. Busy working schedules of individuals and an increasing number of working individuals are driving the adoption of convenient laundry care services, thereby fueling the India online laundry services market.

Moreover, the increase in disposable income and nuclear families is expected to contribute to market growth. A high concentration of laundry product manufacturers and washing machine manufacturers in the country will further boost market growth. Europe is expected to grow at a CAGR of about 31.21% and is projected to retain its position as the second-largest demand-producing region for such services. This region presents significant prospects for entry and growth, where there are already several well-established competitors. The UKs one of the top economies in Europe, which offers significant growth opportunities in this industry.

The UK market size was estimated at around USD 1.68 billion in 2022. A rise in the millennial population and the number of nuclear families is expected to propel its growth. Moreover, companies are focusing on the convenience factor of consumers and investing in new product development and outlets for convenient laundry services. For instance, in February 2019, Procter & Gamble brand Tide planned to open 24-hour cleaning stores at 2000 locations. Moreover, it aims to introduce drop-off boxes in apartment buildings and retailers. The company also has a Tide Cleaners App for those using the drop-off boxes.

Online Laundry Service Market Segmentations:

By Service 

• Laundry Care
• Dry Clean
• Duvet Clean

By Application 

• Residential
• Commercial

By Regional 

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Central & South America
  • Brazil
• Middle East & Africa
  • UAE
  • South Africa