Unfavorable shifts in consumer preferences and increasing competition have led to this industry's decline
New York, NY (PRWEB) April 20, 2015
The Dry Cleaners industry comprises dry cleaning and full-service laundry establishments that cater to household consumers and commercial clients such as hotels and restaurants. Falling demand for dry cleaning services, unfavorable shifts in consumer preferences and increasing competition from coin-operated laundromats and household washing machines have led to this industry's decline in the past decade. Consequently, industry revenue is expected to fall over the five years to 2015, with a projected decline in 2015.
During the first half of the five-year period, low disposable income and poor consumer sentiment led many households to reduce their spending on discretionary services such as dry cleaning. Instead, consumers chose to use coin-operated laundromats or wash their clothes at home. Furthermore, consumers purchased more low-maintenance garments and casual wear that do not require professional dry cleaning, further reducing demand for services provided by the Dry Cleaners industry. Declining demand forced many operators to exit the industry, causing the total number of companies to decrease during the five-year period.
Despite rising operating and utility expenses, intensifying competition pressured dry cleaners to keep their prices low, thereby hurting industry profit margins. Overall, the average profit margin is expected to drop from 2010 to 2015. Dry cleaners have also been burdened by increasingly stringent environmental regulation over the use of perchloroethylene (perc), a hazardous solvent still used by most industry operators.
IBISWorld expects industry revenue to continue declining over the next five years, albeit at a faster rate. Despite positive outlooks on economic factors such as disposable income and consumer sentiment, unfavorable shifts in consumer preferences will continue to diminish demand for dry cleaning and full-service laundry. Steadier demand from commercial clients is expected to lead more operators to focus on this segment, while the household market for dry cleaning is expected to continue drying up. Expected changes to environmental regulations, particularly those that govern the use of perc in residential dry cleaning establishments, will continue to force many conventional dry cleaners out of the market.
For more information, visit IBISWorld’s Dry Cleaners in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Establishments in this industry provide dry cleaning and laundering services. Companies may also provide drop-off and pick-up sites for customers. In addition, establishments may also offer specialty cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows. This industry does not include coin-operated laundromats, nor does it include companies that generate most of their revenue from linen and uniform rentals.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.