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The Growth of Commercial Laundry: Trends to Know About in 2025

 

Increasingly, consumers are gravitating towards brands that prioritize environmental responsibility. As a result, commercial laundries servicing these establishments are adopting eco-friendly practices.

 

Filed under
Laundry
 
February 13, 2025
 
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The Growth of Commercial Laundry: Trends to Know About in 2025
 

It’s startling to witness the rapid change in commercial laundries in terms of evolving consumer expectations since technology boomed and AI came into effect. The customers of 2025 are extremely aware and cautious about sustainability and demand efficient and eco-friendly laundry services. As we look ahead to 2025, several trends are set to redefine the sector.

A significant shift is the rise of wet cleaning techniques, offering an eco-conscious alternative to traditional dry cleaning. Using biodegradable detergents and water, wet cleaning reduces environmental impact while maintaining garment quality—a priority for eco-aware consumers. Similarly, advanced technologies like IoT-enabled machines and AI-driven analytics are streamlining operations by providing real-time data on energy use, maintenance needs, and cleaning efficiency.

Sustainability remains at the forefront, with commercial laundries integrating energy-efficient machinery, water recycling systems, and biodegradable products into their processes. These innovations not only align with global environmental goals but also cater to the growing demand for greener business practices.

In the Middle East, rapid urbanization and a booming hospitality industry, particularly in cities like Dubai and Abu Dhabi, are driving the need for premium laundry solutions. With an annual growth rate of 10% in the luxury segment, the focus is increasingly on delivering high-quality, customizable services to meet the expectations of a discerning clientele.

The future of commercial laundry lies in its ability to blend innovation with sustainability, creating smarter, greener operations that prioritize both efficiency and customer satisfaction.

Ferenc Daniel Lucza, Laundry Operations at CATRION, Saudi Arabia, shares his insights, “The landscape of the commercial laundry industry is undergoing a significant transformation, particularly within the hospitality sector. As we look ahead to 2025, several key trends are emerging that will shape the way hotels, resorts, and other hospitality services manage their laundry needs.”  These trends are driven not only by advancements in technology but also by a growing emphasis on sustainability, efficiency, and customer satisfaction.

  1. Rise of Wet Cleaning Techniques

Wet cleaning has emerged as a popular alternative to traditional dry cleaning in the hospitality sector. This method employs water and biodegradable detergents to clean garments and textiles, significantly reducing the reliance on harsh chemicals that can be harmful to both the environment and human health. As hotels and resorts continue to prioritize eco-friendly practices, wet cleaning presents an effective solution to meet this demand. Lucza explains that in 2025, we expect to see a broader adoption of wet cleaning technologies and best practices, ultimately leading to cleaner linens and garments without compromising on quality or sustainability.

  1. Emphasis on Eco-Friendly Solutions

Lucza firmly believes that sustainability is no longer a buzzword but a crucial commitment for businesses within the hospitality industry. Increasingly, consumers are gravitating towards brands that prioritize environmental responsibility. As a result, commercial laundries servicing these establishments are adopting eco-friendly practices. This includes using energy-efficient machines, sourcing biodegradable detergents, and implementing water-saving technology. By 2025, we can anticipate that many commercial laundry providers will achieve significant reductions in their carbon footprints, thus aligning themselves with the growing expectations of environmentally conscious guests.

  1. Advanced Technology Integration

Technology is fascinating, isn’t it?
The integration of technology into the commercial laundry process is revolutionizing operations. Cloud-based platforms, IoT-enabled machines, and AI-driven analytics are enhancing efficiency and transparency. 

“By 2025, we will likely see widespread adoption of smart laundry systems that communicate data regarding wash times, energy usage, and maintenance needs. Such advancements will not only streamline operations but will also reduce costs associated with labor and utilities. Additionally, predictive maintenance will help minimize downtime, ensuring that hotels can maintain high standards of cleanliness without interruption,” adds Lucza.

  1. Increased Demand for Health and Safety Standards

The COVID-19 pandemic elevated the importance of health and safety in the hospitality sector, leading to a renewed focus on laundry practices that ensure maximum hygiene. In 2025, we can expect to see stricter industry standards, with commercial laundries adopting protocols that exceed basic cleaning requirements. This includes the use of higher temperatures during washing cycles, extended cleaning time, and the implementation of antiviral detergents. Establishments will prioritize partnerships with laundries that can guarantee the highest levels of cleanliness—helping to rebuild trust with their guests in a post-pandemic world.

  1. Customization and Quick Turnaround Times

To meet the diverse needs of guests, hotels are increasingly seeking customizable laundry solutions. Rapid turnaround times for laundry services will become a primary consideration for hospitality providers in 2025. Commercial laundries that offer flexible service options, such as express cleaning or specialized treatments for specific fabrics, are likely to gain a competitive edge. This trend towards customization reflects a broader shift in consumer expectations—where convenience and personalized experiences are paramount.

Lucza concludes, “The commercial laundry industry, especially in the context of hospitality services, is set for exciting developments in 2025. With an emphasis on wet cleaning, eco-friendly practices, advanced technology, stringent health standards, and increasing demands for customization, the future looks promising. As hotels and resorts adapt to these trends, they will not only enhance their operational efficiency but also cater to the evolving needs of consumers who prioritize sustainability and quality. The journey towards a greener, more efficient commercial laundry ecosystem is well underway, and it promises to redefine hospitality services for years to come.”

Jorge Damasceno, CEO, Bubble Laundry adds interesting insights to witnessing this transformative phase fueled by various factors, including technological advancements, increasing demand in key sectors, and demographic shifts. Here are some key points summarized from your insights:

Market Trends and Growth Drivers

1. Expanding Population and Tourism

The rapid population growth in cities like Dubai and Abu Dhabi, primarily driven by expansive tourism and a rising expat community, is leading to heightened demand for laundry services, particularly in hospitality and healthcare. The city is home to 3.8 million now, and that’s expected to surge to 5.8 million by 2040.

Since 2020, about 600,000 people have arrived in Dubai and Abu Dhabi, drawn by low taxes, safety and proximity to major markets. 

2.Technological Adoption.

Innovations such as energy-efficient machinery, water recycling systems, and automated laundry operations are becoming prominent. The integration of IoT in laundry management is also on the rise, enhancing operational efficiency and customer service.

Restraints.

High Initial Investments:
The substantial initial capital required for advanced laundry equipment can deter small businesses from entering the market.

Regulatory Compliance:
Navigating environmental regulations concerning water and energy use presents challenges for operators in the commercial laundry sector.

Labor Costs:
Increasing labor costs and availability issues can further impact operational efficiency and profitability.

Drivers:

Demand:
Growing demand for laundry services in hospitality, healthcare, leisure and fitness industries, increasing the need for efficient commercial laundry solutions.

Technology:
Technological advancements in laundry equipment, such as energy- efficient machines and automated systems, enhancing operational efficiency and reducing costs.

World Insights

North America:
A focus on sustainability is shaping the market, with a significant adoption rate of eco-friendly practices among commercial laundries.

Europe:
Automation is a key trend, with many facilities investing in robotic technologies to improve efficiency and labor cost management.

Asia Pacific:
Rapid expansion is noted here, particularly in countries like China and India, driven by urbanization and rising consumer demand.

UAE:
In the Middle East, the focus has shifted towards high-quality service provision. An increasing number of hotels and resorts are prioritizing premium laundry services, fostering an environment where quality over quantity dominates. The region is seeing a steady growth of 10% annually in the luxury laundry segment, highlighting the market’s unique demand.

Competitive Landscape

The market consists of 5 to 6 major players controlling about 50% of the market share, while other operators, including OPLs and smaller laundries, make up the rest.

Companies are concentrating on:

- Differentiating through pricing strategies and product development.

- Leveraging data-driven insights and innovative technologies.

- Forming alliances and partnerships to enhance market presence.

Future Outlook

The commercial laundry market is poised for growth, particularly in regions like Ras Al Khaimah and Dubai, where the influx of new properties presents opportunities. For sustained success, companies will need to control operational costs, navigate regulatory landscapes, and focus on innovative and sustainable practices. As competition intensifies, a clear emphasis on quality service provision will be essential to thrive in this dynamic market.

In conclusion, the commercial laundry industry is entering a promising phase of growth and innovation, setting the stage for long-term development and competitiveness.