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Laundry and Dry-Cleaning Services in Australia - Market Research Report (2014-2029)

Ekaterina Ezhova Ekaterina Ezhova Melbourne, Australia Last Updated: February 2024 ANZSIC S9531

Revenue

$2.3bn

2024-25

$2.4bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

17,384

Businesses

5,073

Wages

$XXX.Xm

Laundry and Dry-Cleaning Services in Australia industry analysis

Laundry and dry-cleaning businesses have taken a hit in recent years as the COVID-19 pandemic has hurt the industry over the two years through 2020-21. Economic disruption and restrictions on movement, gatherings and travel have slashed demand from households and the hospitality sector. Working from home has enabled customers freedom of not having to dress up in ironed shirts and suits to go to the workplace, shrinking demand for dry-cleaning services. The popularity of synthetics and other fabrics that don't require dry cleaning has also impacted industry revenue. Revenue is expected to slump at an average of 3.4% annually over the five years through 2023-24, to $2.3 billion. This trend includes an estimated dip of 1.7% in 2023-24 owing to a push down in household discretionary income.

Trends and Insights

  • Industry players have experienced challenging operating conditions. The COVID-19 pandemic has hurt the industry over the two years through 2020-21. Economic disruption and restrictions on movement, gatherings and travel have crippled demand from households and the hospitality sector.
  • Diversified downstream markets have limited industry exposure to the COVID-19 pandemic. Market diversification has made industry businesses less sensitive to detrimental effects and provided revenue offsets from a variety of sectors.
  • States with the highest population numbers, New South Wales, Victoria and Queensland, experience the most industry demand. These states host the majority of industry businesses.
  • Most industry providers are small, independent businesses that offer services to a specialised downstream market. The specialisation reduces market share concentration.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 3.4 % over the past five years, to reach an estimated $2.3bn in 2024.

Trends and Insights

Changing consumers' preferences and their propensity for environmentally conscious services have softened industry demand

  • Shifting consumer preferences have muted demand for laundry and dry-cleaning services from households.
  • Additional trends and insights available with purchase
Laundry and Dry-Cleaning Services in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Revived demand from the hospitality sector and outsourcing is set to drive industry expansion

  • The dry-cleaning segment is on track to push down thanks to fewer clothing articles requiring dry-cleaning and lower household demand.

Biggest companies in the Laundry and Dry-Cleaning Services in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
Alsco
147.9
Adamantem Capital Group
136.9
South Pacific Laundry
114.6

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Laundry and Dry-Cleaning Services in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Laundering and rental services, Dry-cleaning services and Laundrette provision. Laundering and rental services is the largest segment of the Laundry and Dry-Cleaning Services in Australia.

Trends and Insights

Demand for laundering and rental services has flourished, bolstered by increased outsourcing from hospitality businesses

  • Laundering and rental services include laundering and renting bed linen, table linen, towels and uniforms. Many larger laundry services businesses offer additional services, like uniform rental, to provide one-stop-shop services for clients.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry establishments provide laundry and dry-cleaning services, as well as linen, uniform and nappy hire services. The services may be accessed through self-service facilities, such as coin-operated facilities, or through facilities operated by industry players.

What's included in this industry?

Laundering and rental servicesDry-cleaning servicesLaundrette provisionCarpet cleaning services

Companies

AlscoAdamantem Capital GroupSouth Pacific Laundry

Purchase this report to view all 6 major companies in this industry.

Related Terms

CONTINUOUS BATCH WASHING SYSTEMSPERCHLOROETHYLENE (PERC)WET-CLEANING

Industry Code

ANZSIC 2006

ANZSIC 9531 - Laundry and Dry-Cleaning Services in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Industry players have experienced challenging operating conditions. The COVID-19 pandemic has hurt the industry over the two years through 2020-21. Economic disruption and re...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Diversified downstream markets have limited industry exposure to the COVID-19 pandemic. Market diversification has made industry businesses less sensitive to detrimental effe...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

States with the highest population numbers, New South Wales, Victoria and Queensland, experience the most industry demand. These states host the majority of industry business...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Most industry providers are small, independent businesses that offer services to a specialised downstream market. The specialisation reduces market share concentration.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The Laundry and Dry-Cleaning Services industry's largest players hold many major contracts in the health, pharmaceutical, food processing and hospitality sectors. Beyond thes...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Alsco's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Adamantem Capital Group's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of South Pacific Laundry's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for Alsco, and factors influencing its performance in the industry
  • Description and key data for Adamantem Capital Group, and factors influencing its performance in the industry
  • Description and key data for South Pacific Laundry, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

All laundry and dry-cleaning segments must comply with strict environmental regulations. They include proper use, storage and disposal of cleaning chemicals and solvents used...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Wage costs have declined. Automation increases productivity while decreasing dependency on labour. Industry businesses that have adopted automated processes enjoy a higher pr...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Laundry and Dry-Cleaning Services industry in Australia in 2024?

The market size of the Laundry and Dry-Cleaning Services industry in Australia is $2.3bn in 2024.

How many businesses are there in the Laundry and Dry-Cleaning Services in Australia industry in 2024?

There are 5,073 businesses in the Laundry and Dry-Cleaning Services industry in Australia, which has grown at a CAGR of 3.3 % between 2019 and 2024.

Has the Laundry and Dry-Cleaning Services industry in Australia grown or declined over the past 5 years?

The market size of the Laundry and Dry-Cleaning Services industry in Australia has been declining at a CAGR of 3.4 % between 2019 and 2024.

What is the forecast growth of the Laundry and Dry-Cleaning Services industry in Australia over the next 5 years?

Over the next five years, the Laundry and Dry-Cleaning Services industry in Australia is expected to grow.

What are the biggest companies in the Laundry and Dry-Cleaning Services market in Australia?

The biggest companies operating in the Laundry and Dry-Cleaning Services market in Australia are Alsco, Adamantem Capital Group and South Pacific Laundry

What does the Laundry and Dry-Cleaning Services in Australia include?

Laundering and rental services and Dry-cleaning services are part of the Laundry and Dry-Cleaning Services industry.

Which companies have the highest market share in the Laundry and Dry-Cleaning Services in Australia?

The company holding the most market share in Australia is Alsco.

How competitive is the Laundry and Dry-Cleaning Services industry in Australia?

The level of competition is high and steady in the Laundry and Dry-Cleaning Services industry in Australia.

Related Industries

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Competitors

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.