India’s laundry market will grow up to $15 billion by 2025

18 August 2021 Consultancy.in 2 min. read
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A new report published by RedSeer Consulting anticipates that India’s laundry services market will grow up to $15 billion in value by 2025.

According to the report by the Indian market research and consulting firm, the laundry services market in India is currently worth around $11.3 billion, and is primarily made up of B2C companies, which account for 88% of the market. The B2C segment includes services such as washing and ironing of clothes at household level or with the help of a laundry service provider.

Lured into the domain by the growth potential, the market is seeing an increasing number of B2B firms enter the space. Most of these new players focus on services such as washing and ironing bed sheets and towels for the hospitality and healthcare industry, either inhouse or through outsourcing to laundry service providers.

Addressable Market for Laundry

As it stands, the online channel still is in its infancy in the laundry services market, with India’s e-businesses currently generating less than 10% of the B2C and B2B market combined. And while India’s “e-laundry” has seen more than 100 start-ups enter the market over the past five years, less than 20 of these business ventures have so far managed to obtain seed funding – their first official investment.

But this is about to change, according to RedSeer Consulting, as businesses tap into the country’s rapidly expanding consumer market. The authors identify several factors that will make this online segment of the Indian laundry services market shoot up over the next four years.

Firstly, more and more people across India are getting access to the internet, which in turn is driving up the number of online shoppers across the country. At the same time, investments in the online laundry services market have been growing steadily and laundry brands are increasingly looking for ways to increase their visibility.

Kanishka Mohan, associate partner at RedSeer Consulting said: “Laundry is a daily and 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.”

The Covid-19 pandemic has only supported the adoption – and consequently the overall growth – of online services across the world. PwC estimates that in India alone, the overall value of digital transactions will reach INR 238 trillion by 2025 up from INR 69 trillion in 2019.