The dry cleaning market - Italy

The global laundry and dry cleaning market has been experiencing growth, with an estimated value increase from $104.23 billion in 2021 to a projected $141.50 billion by 2026, at a compound annual growth rate (CAGR) of 6.0%. The market's expansion is driven by several factors, including increasingly competitive prices, time-poor consumers, and demographic shifts such as the rise in single-person households. Italy's market reflects this trend, with a higher number of laundries concentrated in the northern regions.

Moreover, digitalization and automation are shaping industry dynamics, with service providers investing in technologies that offer end-to-end digital customer experiences, including order tracking via apps and home delivery options. Despite a dip in average monthly expenditure on laundry services from €1.12 to €0.9 per household between 2017 and 2021—aggravated by the 2020 pandemic—the sector has seen a gradual recovery. Furthermore, the market is experiencing a consolidation phase, with fewer but larger enterprises emerging. In terms of supply, companies are increasingly turning to digitization to improve efficiency and customer convenience.

Evolving Dynamics of Laundry Services in Italy

Italy's laundry market has witnessed significant transformation in recent years, prompted by various socio-economic and demographic shifts.This surge is attributed to competitive pricing, the growing trend of outsourcing household chores due to time constraints, and the advent of digitalization in laundry services. The proliferation of laundries in Italy, particularly in the Northern regions, points to a consolidation trend. Out of approximately between 7,500 and 8,000 traditional laundries reported in 2020, there were also nearly the same number of industrial laundries, which are primarily found in Lombardy and Lazio. Digitalization is revolutionizing the industry, with many laundries adopting end-to-end digital services, reducing the necessity of physical interaction with staff, and providing customers with digital tracking and home delivery options. In terms of demand, laundries in Italy cater mainly to the segment of the population that lacks access to home appliances, specifically dryers, as around 97.3% of Italian households possess a washing machine, but only between 15 and 20% have a dryer.

Additionally, the presence of single-person households, which is on the rise, coupled with demographic shifts like the influx of foreign students and workers, have bolstered the demand for convenient and affordable laundry solutions. The average monthly expenditure on laundry services exhibits a slight decline, with Italian households spending around €0.90, down from €1.12. Women remain the primary demographic responsible for doing the laundry, accounting for household washing in 69% of cases, suggesting they are a crucial target audience for laundry businesses. In terms of market structure, the sector is in a state of flux, with a trend toward fewer but larger enterprises. Among traditional laundries, approximately 81% operate as sole proprietorships or self-employed entities, while around 70% of industrial laundries also share this legal form. Geographically, the highest concentration of both traditional and industrial laundries lies in the North, particularly in Lombardy and Latium. Digitalization in supply trends is notable for its emphasis on operational efficiency and customer service enhancements. Automation in the production process and management systems is gaining momentum as businesses strive to reduce turnaround times and enhance goods tracking. In conclusion.

Key Market Players in the Global Laundry and Dry Cleaning Industry

The laundry and dry cleaning market, while diverse and fragmented with numerous small operators across the globe, also features some key players who have made significant strides in the industry. Their widespread presence, innovation, and robust franchise models have allowed them to stand out amidst a sea of individual businesses. Below are brief overviews of several major companies that have had a notable impact on the global laundry and dry cleaning services market.

• Cintas Corp Cintas Corporation, known for delivering highly specialized services to businesses of all types, has grown into a leader within the industry. Cintas provides a range of products and services including uniforms, mats, mops, restroom supplies, and of course, laundry services. Their success can be attributed to their strong customer focus and dedication to providing comprehensive solutions, beyond just laundry, for their clients’ operational needs.
• Elis SA Elis is a European multi-service leader offering textile, hygiene, and facility services across the continent. With solutions ranging from bed and table linen to workwear and washroom hygiene, Elis has carved a niche by being a one-stop provider for a range of business services, including industrial laundry services which cater to various sectors such as hospitality, healthcare, and food and beverage industries.
• Aramark Aramark stands as a giant in the service industry, delivering food, facilities, and uniform services to institutions, businesses, and hospitals. The company has established itself as a key provider of professional laundry services, especially well-regarded within sectors that require high-volume laundry services done with utmost professionalism and efficiency.
• UniFirst Corp UniFirst Corporation is a North American leader in providing customized work uniform programs, corporate attire, and facility service products. Their commitment to service excellence and customer satisfaction has driven their success in the market. UniFirst has built a reputation for reliability and quality in garment cleaning and maintenance.
• Franz Haniel & Cie. GmbH Franz Haniel & Cie. GmbH, a German conglomerate, holds a unique position in the market, having possession of numerous businesses across a spectrum of industries. They are active in the laundry and dry cleaning industry through their investments and ownership of companies that provide these services.

Their diversified portfolio allows them to benefit from cross-industry synergies and market insights. While each of these companies operates in distinct ways and may focus on different facets of the laundry and dry cleaning business, they have each strengthened their market presence through strategic business practices.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 14/11/2022

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