Laundromat Industry: Market Statistics and Trends

This article was written by our expert who is surveying the industry and constantly updating the business plan for a laundromat.

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The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the laundromat market.

What is the current market size and growth trajectory for laundromats in 2025?

The global laundromat market reached $48 billion in 2025, with the self-service segment accounting for $18-20 billion of that total.

The U.S. market represents $6.8 billion in annual revenue, but it's growing slowly at approximately 2% CAGR over the past five years. The outlook for the U.S. through 2030 is flat to slightly negative, primarily due to increasing home appliance ownership in suburban areas.

Globally, the market is expanding at a 6-10% CAGR from 2025 to 2030, with the fastest growth occurring in APAC and LATAM regions. Self-service operations generate 65-75% of total revenue worldwide, while full-service models—including wash-dry-fold and pickup/delivery—capture 25-35% of revenue, with higher concentrations in urban U.S. and EU metros.

The coin-operated and self-service segment specifically is projected to grow at 8-10% CAGR through 2030, driven by urbanization, population density increases, and limited in-unit laundry access in rental housing.

How many laundromat stores and machines are currently operating by region?

Regional store counts show significant variation, with APAC leading in total locations while the U.S. maintains the most mature market infrastructure.

The U.S. market shows maturity with moderate net growth, while APAC represents the expansion frontier with aggressive store openings in high-density urban centers.

Which customer demographics and demand drivers predict strong laundromat performance?

Urban rental density and limited in-unit laundry access are the strongest predictors of laundromat performance.

The core customer base consists of renters, young professionals, immigrants, and students, with household incomes below $60,000 representing the primary market segment. However, premium full-service offerings in cities are successfully attracting higher-income customers who value convenience over cost.

Urban density is critical—most successful stores operate in areas exceeding 8,000 people per square mile. Performance predictors include rental share above 50% in the trade area, visible street locations with strong walkability, moderate-to-high local incomes, and neighborhoods with limited home laundry penetration.

Since 2020, vend prices have increased 20-25%, with average wash prices now ranging from $2.75 to $4.25 in U.S. cities. Basket size has been rising in urban full-service stores as customers consolidate laundry trips. Machine turns per day average 3-5 across the industry, but top-quartile locations achieve 8+ turns with optimal site selection and service mix.

You'll find detailed market insights in our laundromat business plan, updated every quarter.

What are the typical unit economics for a laundromat operation?

Average annual revenue per store ranges from $200,000 to $500,000 in urban U.S. and EU markets, while developing markets see $50,000 to $200,000.

The laundromat business model benefits from immediate cash collection and minimal accounts receivable, making working capital management straightforward compared to many retail operations.

What startup capital is required and what returns can you expect?

Total startup capital for an urban U.S. laundromat ranges from $245,000 to $500,000, including build-out, equipment, and working capital.

Build-out costs for an urban location typically run $180,000 to $350,000, covering lease improvements, plumbing, electrical upgrades, ventilation, and interior finishes. Equipment costs add another $40,000 to $100,000, with individual commercial washers and dryers priced between $1,500 and $7,500 per unit depending on capacity and features.

Working capital requirements of $25,000 to $50,000 cover initial inventory, utilities deposits, insurance, permits, and operating expenses until the store reaches positive cash flow. Utility and municipal rebates are often available, providing $3,000 to $15,000 per store in incentives for energy-efficient equipment or water conservation measures.

Under base-case assumptions, payback periods range from 34 to 50 months, with internal rates of return (IRR) of 15-30%. Bear-case scenarios—with higher costs, lower utilization, or competitive pressure—can push payback beyond 60 months. Bull-case scenarios, typically in high-density urban locations with optimized service mix and strong management, can achieve payback in under 24 months.

This is one of the strategies explained in our laundromat business plan.

What site-selection criteria correlate with top-performing laundromat locations?

Successful laundromat site selection depends on hitting specific demographic and infrastructure thresholds that drive consistent customer traffic.

• Urban density minimum: Areas with more than 8,000 people per square mile provide sufficient foot traffic and potential customers within walking distance of the store.
• Renter share threshold: A trade area where renters represent more than 50% of households ensures a customer base with limited in-unit laundry access.
• Income targeting: Median household income of $35,000 to $75,000 serves the core self-service market, while areas with incomes above $60,000 support premium full-service and pickup/delivery offerings.
• Parking availability: At least 10 parking stalls or high pedestrian walk-in traffic from nearby apartments, transit stops, or commercial areas is essential for customer convenience.
• Co-tenancy benefits: Proximity to grocery stores, convenience shops, or transit hubs increases spontaneous visits and allows customers to combine errands, improving utilization throughout the day.
• Visibility and access: Street-level visibility, easy ingress and egress, and ADA-compliant access improve customer experience and drive repeat business.
• Competition analysis: Limited direct competition within a half-mile radius, with no more than one competitor per 5,000 residents in the trade area, helps maintain pricing power and market share.

How competitive is the laundromat industry and what does the M&A landscape look like?

Independents dominate the laundromat industry, accounting for 70-80% of U.S. locations, while chains and franchises are growing faster in the pickup/delivery segment.

Regional concentration is significant, with major urban centers like New York City, Los Angeles, Tokyo, and London each containing more than 15% of their respective national store counts. Pricing dispersion remains wide: wash prices range from $2.00 to $5.00 in the U.S., $1.50 to $3.50 in EU and APAC markets, driven by local utility costs, competitive intensity, and customer income levels.

Mergers and acquisitions activity has been steady from 2022 to 2025, with private equity firms entering the sector, particularly targeting full-service and tech-enabled delivery operations. Transaction multiples range from 6 to 10 times EBITDA, with higher multiples paid for stores with diversified revenue streams, modern equipment, and technology integration.

The competitive landscape favors operators who can achieve scale efficiencies, invest in technology, and offer multiple service tiers to capture both budget-conscious and convenience-oriented customers.

Which metro areas offer the best growth opportunities versus saturated markets?

Sunbelt U.S. metros, urban China, Tokyo, London, Paris, and Sydney represent the fastest-growing markets, all characterized by tight rental markets and rising urban density.

Saturated markets include the Northeast U.S. and some Western European regions where store density per capita already exceeds sustainable levels and demographic trends favor home appliance ownership. Utility rates create significant regional variation in operating costs—water and sewer constraints are particularly acute in California and parts of the EU, where cost increases take 3 to 6 months to pass through to pricing.

Regulatory environments vary substantially by metro. Permitting timelines in the U.S. average 90 to 180 days, with stricter water and wastewater limits in California and across the EU requiring additional compliance investments. Some municipalities impose operating-hour restrictions or mandate specific wastewater treatment systems that affect both startup costs and ongoing operations.

Successful expansion strategies focus on undersupplied high-growth metros with favorable regulatory environments, manageable utility costs, and demographic trends supporting rental housing over homeownership.

We cover this exact topic in the laundromat business plan.

What is the ROI on technology investments in laundromat operations?

Technology adoption rates and returns vary significantly by system type, with cashless payments and IoT connectivity showing the strongest adoption and clearest ROI.

How are input costs trending and how sensitive are margins to cost changes?

Key input costs—electricity, gas, water/sewer, rent, and labor—have been rising 3-8% annually since 2020, with water and sewer showing the largest regional variation.

Water and sewer costs are the most significant variable expense in laundromat operations, particularly in water-constrained regions. Electricity costs impact dryer operations and HVAC, while natural gas affects hot water heating in stores with gas-fired systems. Labor costs are rising fastest in urban markets with increasing minimum wages and tight labor markets.

Pricing pass-through typically lags cost increases by 90 to 120 days, as operators assess competitive responses and test customer price sensitivity before implementing increases. This lag creates temporary margin compression during periods of rapid input cost inflation.

Margin sensitivity analysis shows that utility cost shocks impact EBITDA margins by 3-8 percentage points if pricing cannot be adjusted quickly. Rent and labor increases compress full-service margins most severely, as these services require higher staffing levels and larger physical footprints than self-service operations.

Operators who secure fixed-rate utility contracts, invest in high-efficiency equipment, and implement dynamic staffing models demonstrate better margin stability during inflationary periods.

Who are the major equipment suppliers and what are their market positions?

The commercial laundry equipment market is concentrated among a handful of major OEMs who supply the majority of machines to laundromat operators worldwide.

Alliance Laundry Systems and Speed Queen combine for 35-40% of the U.S. and EU market share, with Dexter Laundry capturing approximately 15%. Other significant players include Whirlpool Commercial and Electrolux Professional, each holding 8-12% market shares in various regions.

These manufacturers exercise moderate pricing power, with equipment costs remaining relatively stable post-pandemic as supply chain disruptions have eased. Lead times have improved to typical ranges of 3 to 6 months for standard models, though custom configurations or large orders may require longer planning horizons.

Machine reliability and total cost of ownership vary by brand and model. Commercial washers and dryers have expected lifespans of 8 to 14 years under normal use conditions. Maintenance costs typically run 2-6% of annual revenue, with preventive maintenance programs and IoT monitoring reducing unexpected repairs and extending equipment life.

Distributor networks provide installation, service, and parts support, with regional distributors offering varying levels of responsiveness and technical expertise that can significantly impact operational uptime and customer satisfaction.

What are the main risks, catalysts, and outlook for the next 12-24 months?

The laundromat industry faces a balanced mix of near-term risks and growth catalysts, with the outlook varying significantly by geography and service model.

Primary risks include utility price shocks—particularly for water and electricity—which can rapidly compress margins if pricing adjustments lag. Increasing home washer and dryer ownership in suburban markets continues to erode the customer base in lower-density areas. New entrants, particularly venture-backed delivery services with aggressive pricing, create competitive pressure in urban markets. Stricter urban wastewater regulations may require costly retrofits or limit operating hours in some municipalities.

Key catalysts driving growth include rising urban renter populations, particularly in gateway cities and growing Sunbelt metros. Pickup and delivery service adoption is accelerating, driven by convenience-oriented consumers willing to pay premium prices. Technology integration—including cashless payments, IoT monitoring, and mobile apps—improves customer experience and operational efficiency. Chain expansion and consolidation through M&A creates opportunities for scale and professional management.

The 12 to 24 month outlook points toward continued urban market growth, technology-enabled service models gaining share, and moderate margin pressure from input cost inflation. Operators who diversify revenue streams, invest in technology, and maintain disciplined site selection will outperform single-service, equipment-only competitors.

It's a key part of what we outline in the laundromat business plan.

Which monthly KPIs should you track to monitor laundromat performance?

Effective laundromat management requires tracking specific operational and financial metrics monthly to identify trends, validate assumptions, and adjust strategy quickly.

• Turns per machine: The number of cycles each washer and dryer completes daily measures utilization and identifies underperforming equipment or time slots that need promotional support.
• Average basket size: Revenue per transaction tracks customer behavior changes, price increases effectiveness, and helps optimize service offerings and promotions.
• Labor cost percentage: Labor as a percentage of sales reveals staffing efficiency, particularly for full-service operations where labor is the largest variable cost.
• Utility consumption: Gallons per load, kilowatt-hours per cycle, and therms used track efficiency and identify equipment issues or opportunities for conservation investments.
• Revenue by service line: Tracking self-service, wash-dry-fold, and pickup/delivery revenues separately reveals shifting customer preferences and informs marketing and capacity allocation decisions.
• Customer retention/churn: For loyalty program members or delivery customers, monthly retention rates indicate service quality and competitive threats.
• Promotion ROI: Measuring incremental revenue from discounts, loyalty rewards, or marketing campaigns ensures promotional spending generates positive returns.
• Delivery margin: For pickup/delivery services, tracking margin per delivery after route costs, labor, and vehicle expenses validates the profitability of this growing segment.
• Machine downtime: Hours of machine unavailability due to maintenance or repairs affects capacity and customer satisfaction, making this a critical operational metric.
• Cash to cashless ratio: Monitoring payment method mix tracks technology adoption and helps optimize cash handling procedures.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

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2. The Laundry Boss - U.S. Laundromat Industry 2025 Overview
3. IBISWorld - Laundromats Market Size
4. Press Cleaners - Laundromat Statistics 2025
5. GlobeNewswire - Coin-Operated Laundries Market Global Forecast
6. 360iResearch - Coin-Operated Laundries Intelligence
7. Yahoo Finance - Coin-Operated Laundries Market
8. IBISWorld - Laundromats Industry Report
9. Expert Market Research - Laundromat Machines Market Size
10. Yahoo Finance - Dry Cleaning and Laundry Services Market