Did you know the existence of elaundry services in India? While currently there are a handful of startups, these services are slowly seeing a strong traction.

The new-age companies which are catering to the laundry service market are offering a plethora of options. From pick up to options such as wash & fold or wash & iron and then drop, these companies are focusing on their robust technology as well as providing a superlative experience to the customers. Here, we take a look into the size of the market.

1. The overall laundry market will likely reach $15B by 2025, even after a dip in 2020

Addressable Market for Laundry (2020-2025F)

The addressable market which stood at $11 billion in 2019, dropped in 2020 but is expected to grow upto $15 billion by 2025. This market included both the B2B and B2C categories wherein B2C dominates the market.

This market also includes consumer spend on detergents, washing machines etc.

2. The outsourced laundry market including both B2B & B2C is $2.5 billion market

Total Outsourced Laundry Market (2019, USD Bn)

The larger market is still largely dominated by the unorganized which consists of local Dhobi or ironing shop or micro laundry establishment servicing a small locality while the organized laundry market includes laundromats, laundry chains operating multiple branches, and online laundry service. Further, the organized laundry can be divided into regional and national brands, laundry apps or websites. Our study shows that the overall outsourced laundry market is $2.5 billion wherein the unorganized market is dominant and B2C contributes the lion’s share of the market.

3. Further, urban centres dominate the B2C laundry business

Factors like work-life balance leading to convenience-first households, availability of options and quality service are more easily available in the urban centres compared to smaller towns. Apart from these, socio-economic factors also play a key role which leads to the higher demand of laundry services in the urban geographies compared to the rural ones. The below chart explains the consumer cohorts more precisely.

4. Between two key consumer cohorts, convenience-first households are expected to be early adopters of online laundry services

Note: 1. The above table Indicates core value-first personas, but is not exhaustive; 2. Represents age-group of HH member who makes the purchase decision Note 2: This study is applicable only on SEC A households in top 30 cities in India

The Indian market mainly consists of two kinds of consumer cohorts that are the value-first households and the convenience-first households. The lifestyle of both these cohorts are very different which makes it crucial for any brand to understand the right target. Their lifestyle choices make a difference as to the type of products and services they adopt which makes it a crucial parameter.