Car Washes NAICS 811192

Jul 30, 2025 - Membership Revenues Up

• The car wash industry posted 5.6% growth in same-store total sales revenue year over year in Q2 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 15.2% compared to an 11% decline in retail revenue. While retail prices grew 3% per wash, volume declined due to fewer overall customers and less frequent washing. The retail wash volume decline cut across many categories, including former members, loyal retail customers, and new visitors. Bad weather contributed to the decline, with a 10% increase in days with precipitation in Q2 2025 compared to Q2 2024. The report analyzes performances across 3,500 carwash locations nationwide.
• Consumer confidence levels, an indicator of discretionary spending, increased in July 2025 month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s levels, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan increased in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• 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.
• 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.