U.S. Market for Coin Laundries, Drycleaners Expected to Grow

By PlanetLaundry staff | Aug 20, 2010

Global Industry Analysts has released a comprehensive report on the self-service laundry and drycleaning market in the United States.

And the news is encouraging:

“Despite witnessing a temporary erosion in growth in recent years, primarily due to the recent economic recession, the U.S. market for coin-operated laundries and drycleaners is expected to recover poise in the short to medium term period, to reach $3.5 billion by 2015,” the report states. “After encouraging growth between 2005 and 2007, the coin laundry industry took a major hit during 2008 and 2009. Given that the fortunes of coin-operated laundries and drycleaners in the United States are closely tied to apartment and condominium occupancy rate, laundromats, especially those serving specific ethnic composition such as Hispanics, have suffered greatly due to the exodus of customers to their home countries. Recession-induced trends such as rising levels of unemployment, reducing disposable incomes and reduction in household wealth are all expected to hurt the market in the immediate short term. In frugal economic conditions, most Americans have curtailed on their laundry bills, by utilizing home washers of relatives or friends. Factors such as rising energy costs, and pressure from environmental agencies are additionally straining growth.

“Despite the erosion in revenues over the last two years, the U.S. market for coin-operated laundries and drycleaners is expected to recover poise and gain steady momentum in the next few years,” the report continues. “As economic conditions revive and rental occupancy rate improves, the market will gain traction and register considerable growth in its revenue. The market will also receive a boost from service innovations. Gradual advances in technology have spurred a number of product launches by key players in recent years claiming specific extra benefits, such as energy-saving, water-conserving and improved turnover times. Laundry equipment manufacturers are boosting R&D spending to better identify and leverage customer insights and quickly transform those insights into innovative solutions that will drive both growth and profitability. Soft market conditions have drawn increased attention toward the need for utilizing energy more efficiently and conserving energy by way of utilization of energy-efficient washers and dryers.”

The report, entitled “Coin-Operated Laundries & Drycleaners: A U.S. Market Report,” provides a comprehensive review of the self-service laundry and drycleaning industries, key market trends, issues, commentaries on the impact of recession, product overview, recent product launches, strategic corporate initiatives and profiles of key market participants. The single segment report provides market estimates and projections for coin-operated laundries and drycleaners in terms of annual dollar sales.

Global Industry Analysts, Inc. is a publisher of off-the-shelf market research. The company produces more than 1,200 research reports encompassing all major industries worldwide each year.