Car Washes NAICS 811192

May 29, 2025 - Average Growth Forecast

• Sales for the US car washes industry are projected to grow at a CAGR of 4.38% between 2025 and 2029, comparable to the overall economy‘s anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Car washes are part of the “other services sector,” which is driven by consumer spending, along with expenditure by businesses. Consumer sentiment is expected to improve in the forecast period, which bodes well for the various services industries, including car wash services. Many segments of the other services sector are recovering from a downturn during the pandemic. Remote work practices created lower demand for mass transit, parking lots and garages, office space, food services, and other personal and business needs related to commuting and working in corporate environments. A factor that may limit consumer spending during the forecast period is higher tariffs on consumer goods.
• The car wash industry posted 12.4% growth year over year in Q1 2025, according to the latest quarterly report from Rinsed in Carwash.com. The results show a continuing shift toward subscription-based models, with member revenue growing 15.7% compared to nearly 7% growth in retail revenue. Per the report, the retail segment had its second consecutive quarter of positive retail growth, driven by volume and pricing. Membership plans showed continuing strength with increases in the family plan and multi-car segments.

• According to the International Carwash Association (ICA), new tariffs on goods imported from China imposed by the Trump administration in 2025 are expected to increase operating costs in the car wash industry. Many chemicals used in car washes, including basic cleaning agents like detergents and surfactants, are sourced from China. As a result, car washes may want to adjust their sourcing to keep input costs under control. Additionally, according to a Car Wash Insight report by Raymond James, tariffs on imported car wash equipment could further raise operating costs. Car washes may absorb the additional costs or pass them on to customers. Also, customer traffic at car washes could be affected if inflation continues or worsens, leading consumers to reduce spending amid uncertainty surrounding tariffs.
• Consumer confidence levels, an indicator of discretionary spending, fell in April 2025 month over month, dropping by 7.9 points, according to the Consumer Confidence Index from the Conference Board. Consumer confidence levels have fallen for five consecutive months, reaching levels not seen since the beginning of the COVID pandemic, according to The Conference Board, which publishes the monthly index. In addition, the final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month, according to CFO Dive. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”