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
Mar 17, 2025 - Dry Cleaners Expect Tariff Impacts
- 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.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- 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.”
- Dry cleaners could benefit from a continued push by companies to bring their employees back into the office full time, according to a report in Entrepreneur. The most recent company implementing a strict return-to-office (RTO) policy is the US's largest bank JPMorgan, which will require its over 300,000 global employees to work in the office five days a week from a three day a week hybrid schedule, as reported by Bloomberg. The move follows other large firms making RTO mandatory, such as Amazon and AT&T. Demand for dry cleaning services may increase as more workers return to their offices, and more professional clothes are needed.
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