India’s laundry market is expected to grow upto $15 billion by 2025
According to the latest report ‘India Laundry Services Market’ released by homegrown consulting firm RedSeer, India’s overall addressable market is expected to grow upto $15 billion by 2025, from $11.3 billion in 2019.
This laundry market includes both B2C and B2B categories wherein B2C contributes the major share with 88%. The B2C market includes laundry activities like washing and ironing clothes done at household level or with the help of a laundry service provider (unorganized or organized). On the other hand, the B2B market includes laundry activities like washing and ironing bed sheets, towels etc. done by businesses from Hospitality industry, Healthcare industry etc. in the inhouse laundry or by outsourcing it to a laundry service provider (unorganized or organized).
Notably, <10% of the B2C and B2B laundry services is delivered by online players which is expected to grow upto a $150 million market by 2025. Currently, “eLaundry” has only a handful of serious players. While 100+ startups have come up in this space in the last 5 years, <20 startups are currently seed-funded.
As per the report, three important factors will drive the growth of eLaundry penetration in the near future: (1) increasing base of online transacting users, (2) consistent growth in investments in the space, and (3) customer mindspace for a laundry brand.
Further, as seen after Covid, there is a significant adoption of online services with more users transacting online, which is favouring the overall growth of online services.
Commenting on the launch of the report, Kanishka Mohan, associate partner at RedSeer Consulting, said, “Laundry is a daily & never-ending chore in almost every household. While there is immense scope for easing up the customer’s life through outsourcing, there is a critical mindset shift required to capture market share. Internationally, Laundry services are innovating across various customer touch-points to simplify laundry.”