Dry Cleaning & Laundry Services NAICS 812320

May 13, 2025 - Opportunity with Younger Consumers: Report

• According to a report in American Drycleaner, dry cleaners have an opportunity to tailor their message to attract younger consumers. Dry cleaners can develop messaging around thrifted finds popular with younger consumers, such as getting a “start fresh” with a secondhand purchase by dry cleaning it before wearing. Dry cleaning may also preserve an item’s future resale value, which is important to young people who often resell their clothes. Convenience is also expected by younger consumers, so offering self-service 24/7 drop boxes, delivery services, and wash-and-fold laundry services may help the business stand out. Using technology that a younger audience is comfortable with is key, including offering payment options such as Apple Pay, incorporating text notifications for communications, and using apps that have delivery integration with DoorDash. Younger consumers may also need an introduction to dry cleaning services since they have not had as much exposure as older generations.
• According to a report in CFO Dive, consumer sentiment, an indicator of discretionary spending, fell in large part due to tariff uncertainty and an expectation of higher prices. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month. 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.”

• 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.
• 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.