Dry Cleaning & Laundry Services NAICS 812320

Dec 27, 2025 - Slower Growth Forecast

• The US dry cleaning industry is projected to grow at a CAGR of 2.5% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The anticipated growth rate is slower than the overall economy's projected growth. Dry cleaning and laundry services are part of the “other services” sector, which is driven by consumer spending, along with business expenditures. According to the report, laundry and dry cleaning saw inflation-adjusted consumer spending fall sharply, and expenditure remain 3.4% lower in Q2 2025. Remote work rose from 7.2% to 61.5% during the pandemic period, but it has faded to some extent post-shutdown. An average of about 28% of workdays were spent at remote locations in the 12 months ending in June 2025. Remote working demand suggests lower demand for mass transit, office space, and other personal and business needs related to commuting and working in corporate environments.
• Consumer sentiment in December 2025 reflected a cautious economic environment with implications for the dry cleaning sector. The University of Michigan Index rose 3.7% month over month to 52.9, though confidence remains 30% below December 2024, and 63% of consumers expect rising unemployment. Inflation expectations eased to 4.2% (1 year) and 3.2% (long run). Meanwhile, the Conference Board Consumer Confidence Index declined to 89.1, with the Present Situation Index down 9.5 points and expectations holding at a recession associated 70.7. Consumers continue shifting spending toward essential, lower cost services.For dry cleaning, these trends signal potential demand pressure. Dry cleaning is more discretionary than general laundry, and economic caution—combined with hybrid work patterns—may reduce frequency of professional garment care. Easing inflation expectations may help stabilize operating costs, but volume growth is likely to remain constrained.

• While 11 services industries reported business activity growth in November, five industries reported a contraction, including the "Other Services" category which includes providers of laundry services, according to the latest ISM Services PMI Report. Overall economic activity in the services sector was in expansion territory in November, registering 52.6%. According to the Consumer Price Index released by the US Bureau of Labor Statistics, the cost of laundry and dry cleaning services increased 4.3% in November 2025 compared to a year ago and rose 0.3% from the previous month. Total revenue for dry cleaning and laundry services was 2.2% higher in Q2 2025 compared to a year ago and was 2.3% higher than the previous quarter, according to the US Census Bureau. Dry cleaning and laundry services industry employment was flat in August 2025 compared to a year ago, while wages were up 7% year over year.
• The drycleaning industry is undergoing structural shifts driven by labor shortages, automation, and changing demographics, according to a report in American DryCleaner. Economist Chris Kuehl at the 2025 Clean Show forecasted that non-residential construction, which is key for commercial dry cleaners with its hotel, restaurant, and commercial clients, will rebound in 2026, fueled by transportation and energy infrastructure projects. With AI expected to require 44 additional terawatts of power, energy-efficient equipment will be vital for cost control. Migration to affordable cities presents growth opportunities in underserved markets. Labor constraints are pushing even small operators toward automation; Kuehl notes that 10-person shops are now adopting robotics to offset aging workforces. Domestic robots may shift laundry habits, but demand for professional garment care is likely to persist among affluent consumers. For dry cleaners, investing in automation and targeting emerging markets will be essential to remain competitive.