Dry Cleaning & Laundry Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 14,700 dry cleaners in the US provide services to clean and maintain clothing and home furnishings, such as drapes and bedspreads. Services are provided to both individual consumers and commercial accounts and include cleaning, alterations, and repairs. Most firms are independently owned, but may operate as franchisees of national chains.
Changing Regulations
Industry regulation of Perc (perchloroethylene) is continuing to become more stringent.
Green Cleaners as Market Opportunity
Some dry cleaners are using growing opposition to Perc as an opportunity to operate in a more environmentally-friendly way, and advertise their “green” status.
Industry size & Structure
An average dry cleaner has fewer than 10 employees and generates $440,000 in annual revenue.
- The US has about 14,700 firms with about $7.8 billion in annual revenue.
- The average establishment has over $100,000 worth of equipment, and spends around $7,000 a year on advertising.
- Dry cleaning establishments may be independently owned or operate as a franchise of a national chain.
- Segments include cleaning services for individuals and businesses, reselling, and alterations.
- Large companies include DryClean USA, Tide Cleaners, Comet Cleaners, and Martinizing Dry Cleaners.
Industry Forecast
Dry Cleaning & Laundry Services Industry Growth
Recent Developments
Apr 14, 2025 - Slower Growth Forecast
- The US dry cleaning and laundry services industry is projected to grow at a CAGR of 2.38% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. Dry cleaning and laundry services 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 other services sector industries. Factors that may limit consumer spending are higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation.
- New Trump administration tariffs on steel and aluminum imports are expected to impact hangers and other essential supplies used in dry cleaner operations, according to American Drycleaner. Sam Monempour, a VP at national dry cleaning supplier 3Hanger Supply, said the first areas he expects to be affected by the tariff cost increases are hangers and poly bags, which are loss leaders for distributors, followed by garment covers. He noted, “End users should expect an increase of 25% to 30% on these items, possibly more if shipping costs go up as well. Unfortunately, the distribution model is extremely low margin in the drycleaning industry, especially on loss leaders. We have to pass on the entirety of the cost increase we get from our manufacturers.” Dry cleaners may navigate the uncertain landscape by temporarily increasing inventory to avoid any future supply issues, exploring domestic vendor alternatives, and making pricing adjustments as needed.
- Dry cleaners may be affected by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.
- Dry cleaners may find opportunities with younger consumers by appealing to their desire to support a more sustainable fashion ecosystem, according to a recent report in American Drycleaner. Industry experts say the formal approach to dressing that was the bread and butter of the industry is likely not returning to style, and dry cleaners need to clean what people are actually wearing. According to Christopher White, executive director of America’s Best Cleaners, a promising area for dry cleaners is promoting their business as a part of the circular fashion economy, helping consumers with extending clothing lifespans and eliminating waste. He said if even 5% of those people participating in the re-commerce market used a dry cleaner once a year, it would make a huge difference in the industry. Another growth opportunity is higher-end specialty care for expensive pieces such as Louis Vuitton bags or Balenciaga sneakers, per White. Dry cleaners may want to distance themselves from the traditional marketing used by the industry and connect with potential customer by emphasizing “caring” for garments to prolong their lifespan and promoting the industry’s role as a “sustainability solution.”
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