The global coin-operated laundries market size to be valued at USD 30.1 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% during the forecast period. 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 and 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 coin-operated laundries due to their convenience. The market is mainly driven by the increasing number of working women worldwide.
According to statistics provided by the World Bank, the female labor force has been substantially increasing since 2012. In 2016, females accounted for a share of about 38.9% of the total labor force worldwide; the percentage increased to 39.1% in 2017. These factors are opening new avenues for coin-operated laundries and are likely to fuel the market growth during the forecast period.
Key consumers of these services include millennials, college graduates, and working professionals, boarding schools, colleges, and hostels are some of the potential customers for online service providers. Laundry services in developing countries, such as India and South Africa, are primarily catered by the unorganized sector. Improving the standard of living, coupled with rising disposable income, is expected to drive the market during the forecast period.
Moreover, increasing Internet penetration in developing countries, such as India and China, has driven the market for online services. In 2017, China had the highest internet penetration rate, followed by India and the U.S. In addition, with the rising number of double-income households, the purchase of expensive and delicate fabric apparel has increased. Thus, the abovementioned factors are expected to drive the market.
With improving living standards across the globe, millennials and the working-class are becoming more health-conscious. Choosiness for apparel, household linen, and furniture has increased. Customers prefer buying and wearing more expensive, clean, and well-ironed apparel. Over the past few years, spending on clothes has significantly increased, which in turn has raised the demand for laundry. Although conventional coin-operated laundries are available across the globe, they have limited applications. This has created new avenues for coin-operated laundries across the globe.
The young population, millennials, and working-class are attracted to these coin-operated laundries owing to a high degree of conveniences, such as round-the-clock-service, doorstep pickup and delivery, and complete service within 24 hrs. Moreover, service providers offer heavy discounts to customers, especially during the first service. These benefits are increasing the adoption of coin-operated laundries.
Coin-operated Laundries Market Trends
The economic stability for the middle-income groups in emerging markets is boosting demand for clothing has fueled the demand for coin-operated laundries market. In addition, population expansion and tourism-related activities have augmented the demand for laundries. In addition, the increasing number of hospitals, hotels, restaurants and other commercial establishments have incurred huge demand for coin-operated laundries.
Laundry is a time-consuming task particularly in the urban areas. Other commitments like job, meetings, and other professional areas where time is of huge significance, cloth hygiene plays an important role. For instance, a lot of the young population residing in urban areas juggles between jobs and personal errands resulting in time limitations. Owing to its convenience, the coin-operated laundries have grown in popularity among the millennial in the recent years. Moreover, the increase in the number of working women is expected to fuel the market growth.
On contrary, the coin-operated laundries incur maintenance wherein the chances of equipment failing is high thereby making it difficult for employees or business owners to deal with. Therefore, alternatives such as card-operations have enabled ease and convenience making it simpler to track and record the revenue. Therefore, the emergence of card-operated laundries is anticipated to disrupt the market growth.
Increased awareness for personal hygiene generates chances for market growth in the coming years. Furthermore, as broadband internet smartphone usage has increased, the coin-operated laundries industry is expected to undergo digitalization.
Source: Grandview Research