Laundry Services Procurement Intelligence

The global laundry services category is anticipated to grow at a CAGR of 7.0% from 2023 to 2030. 

Growth of the category can be attributed to rising demand from the hospitality & healthcare sector, consumer prioritization for well-maintained and clean garments, rapid urbanization, rise in disposable income, and emergence of online and on-demand laundry services. Moreover, the category is witnessing an increase in end-usage among restaurants, educational establishments such as schools and colleges, and salons. For instance, in hotels and hospitals, it is crucial to maintain immaculate uniforms and linens, due to stringent hygiene and quality standards. Outsourcing laundry services provides several benefits to end-users such as cost savings, time efficiency, and compliance to safety regulations (e.g., using authorized cleaning agents). Few of the key challenges in this category include equipment management (e.g., replacing ageing equipment and maintaining new equipment), rising operational costs, meeting customer preferences that vary according to end-use, staff shortages, and technology integration. For instance, in Q4 2023, the laundry cost index increased by 9.3% due to a rise in global energy prices. Moreover, in 2023, regional laundry service providers in Australia and New Zealand faced labor shortages due to a rise in labor costs. In another instance, in 2021, certain key laundry service providers in the UK struggled to meet demand from hotels and National Health Service (NHS) facilities due to staff shortages.

Order your copy of the Laundry Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis 

Laundry Services Procurement Intelligence Report Scope

The Laundry Services category is expected to have pricing growth outlook of 5% - 10% increase (Annually) from 2023 to 2030, with below pricing models. 

• Unit pricing
• Weight-based pricing
• Subscription-based pricing
• Tiered pricing

Supplier Selection Scope of Report

• Cost and pricing
• Past engagements
• Productivity
• Geographical presence

Supplier selection criteria of Report

• Industries served
• years in service
• revenue generated
• geographic service provision
• employee strength
• certifications
• type of laundry service
• technological capabilities
• minimum order volume
• pickup and delivery options
• lead time
• others

Laundry Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape
• Market estimates and forecasts from 2022 to 2030
• Growth opportunities, trends, and driver analysis
• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
• Porter’s 5 forces
• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
• Engagement and operating models, KPI, and SLA elements
• LCC/BCC analysis and negotiation strategies
• Peer benchmarking and product analysis
• Market report in PDF, Excel, and PPT and online dashboard versions 

Laundry Services Procurement Cost and Supplier Intelligence

Labor, equipment, detergents and chemicals, maintenance and repair, energy, and other costs such as rent and utilities, transportation and logistics, sales and marketing, compliance, insurance, and taxes are the key components of this category. Labor and equipment account for the largest share of the cost structure. A prominent pricing structure used in this category is unit pricing or per-piece pricing, in which rates are charged based on the number of items being laundered. Another key pricing structure is weight-based pricing, wherein the prices are determined by the weight of the laundry load. Periodic pricing or subscription-based pricing is also used, wherein customers pay a pre-determined fee on a weekly or monthly basis in exchange for services. Few key service providers have a tiered pricing that varies by volume, frequency, and type of item. Few of the key factors affecting the prices are fluctuations in labor costs, rise in industrial electricity prices, and high cost of equipment replacement and upgradation. 

Additionally, the pricing may vary based on the length of contracts. Buyers and service providers prefer longer-term contracts for added security and stability, steady pricing structure, and stronger partnerships. According to data published by FRED, the Producer Price Index (PPI) for commercial laundry and dry-cleaning machinery and equipment in the U.S. increased from 333 in December 2022 to 348 in May 2023, which contributed to a rise in the total costs of commercial laundry services in the U.S. during this period.

List of Key Suppliers

• Alliance Laundry Systems LLC
• Alsco, Inc.
• Aramark Corporation
• Cintas Corporation
• Lapels Dry Cleaning
• Laundryheap Limited
• Marberry Cleaners & Launderers, Inc.
• PRESSTO ENTERPRISES
• S.L.U.
• Rinse, Inc.
• The Huntington Company
• Tide Cleaners
• UniFirst Corporation

Add-on Services provided by Grand View Research Pipeline: 

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process 

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier 

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house. 

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc. 

Browse through Grand View Research’s collection of procurement intelligence studies: 

Vaccines Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Lab Supplies Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Cyber Security Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape) 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions