Following a surge and consolidation in the last couple of years, the ever-expanding consumer base in the laundry and dry-cleaning industry is witnessing a market preference pattern and opening newer opportunities. What are these changes? What are the market preferences? Where is the market heading to? Clean India Journal deduces some key pointers explores the brand preferences, product dynamics, and the evolving consumer segments that will shape the industry in 2024.
The last two years have been crucial with changes being adopted globally, especially after the COP26, which raked up a wave of environmental consciousness and conservation at every industry level. A spate of innovations, better processes, improved machine efficiency, resource conservation, green solutions and more have entered the market.
Parallelly, the Indian landscape is witnessing a rapid industrial, institutional, commercial, and corporate growth propelling fresh investments and igniting the demand for laundry services. This is vital as India takes the lead on the COP26 resolutions. The combination of this confluence has had its impact on the market trends.
Indian Market Scenario
The future of the Indian laundry market looks promising, particularly in the institutional sector. The Healthcare and Hospitality Industry is experiencing significant growth with fresh investments pouring into new projects.
The prioritization by the Government of India at the Ministry of Health and Ministry of Tourism levels is leading to substantial investments to support and expand these sectors. Private players are quick to follow suit, contributing to the economic growth of the country. This surge in investment is driving substantial growth in On-Premises Laundries (OPLs) and Centralized laundries.
On the retail front, especially in dry-cleaning and laundry services, there is a notable increase in business activity. The laundry industry is witnessing consolidation, with an expanding consumer base. Notably, new laundromat chains are emerging in urban and rural India, fuelled by the growing economic prosperity translating into higher disposable income. It is pertinent to keep an eye out for the incubation of some of the largest laundry chains in India.
Brand Preferences
The Indian laundry industry boasts a strong presence of both domestic manufacturers and Original Equipment Manufacturers (OEMs) from China, Thailand, European Nations, and the USA. Virtually every brand has some presence in India, either directly or through distributors, agents, or resellers.
Notable brands include Girbau, Electrolux, SpeedQueen, Unimac, Jensen, Milnor, Stefab, Fabcare, Ramsons, Fagor, Domus, LG, Forenta, Sidi, Pony, Union, Maestrelli, Fibrimatic, Renzacci, Thermopatch, and DressCode.
Preference varies across equipment types, with Washer Extractors favoured by domestic brands in commercial laundries, American brands in the hospitality sector, and European brands leading in the retail segment.
Dryers see a preference for American and European brands in hospitality, while domestic brands dominate elsewhere.
Opportunities arise for European brands to showcase their efficiency and educate clients on their operational benefits.
For Ironers, Europe and China are preferred by Healthcare and Hospitality, while India and China dominate in other sectors.
Tunnel Washers of European make is preferred for efficiency, but China-origin Continuous Batch Washers (CBWs) gain traction due to their competitive pricing, especially in centralized laundries serving healthcare and hospitality segments.
CONSUMER SEGMENTS SNAPSHOT
HEALTHCARE
HOSPITALITY
INDIAN RAILWAYS
COMMERCIAL LAUNDRIES
RETAIL LAUNDRY SERVICES
Laundry Detergents And Chemicals
Major suppliers such as Diversey, Ecolab, Seitz, Rossari Biotech, and Christeyns are already making their presence in the laundry detergents and chemicals market. In the healthcare and hospitality segment, consumer preferences lean toward Diversey and Ecolab due to their comprehensive product range, quality, consistent supply, and technical support. Commercial and retail launderers, however, tend to favour domestic suppliers owing to price competitiveness.
Future Trends
Some of the pointers that will influence the trends are here below:
- Healthcare OPL
- Centralised laundries with linen rental for hospitality and healthcare
- Government moves to operate bigger hospitals and medical colleges
- Indian Railways plans on laundry set up replacing BOOT laundry
- Flourishing Retail laundry franchisee model
- Government support to Start-Ups
- Demand for energy and water efficient products
- Technology-driven concepts making inroads
- Wet cleaning concepts taking off