Industrial Laundry Detergent Market Size, Share & Trends Analysis Report By Product (Powder, Liquid, Fabric Softener, Others), By Applications (Hospitality, Hospitals, Manufacturing Industries, Others), By Distribution Channel (Offline, Online) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global industrial laundry detergent market size was valued at USD 66.91 billion in 2022. It is estimated to reach USD 125.15 billion by 2031, growing at a CAGR of 7.19% during the forecast period (2023–2031).

Laundry detergents, or washing powders, are cleaning agents used to wash soiled clothes. The most common laundry detergents are available in powder and liquid forms. Commercial or industrial laundries mostly use industrial laundry detergents that provide professional laundering services to several industrial and institutional customers. Several commercial laundries use automated laundry systems and commercial laundry equipment to launder textiles and linen used in hotels and hospitals. These industrial laundries also handle other aspects of laundry processes, such as storing and transporting soiled and clean linen, quality control, and client satisfaction.

An industrial laundry might be an on-premises laundry (OPL) or a service-based independent laundry carrying out laundering activities for commercial establishments. Similarly, large commercial establishments, such as restaurants, hotels, hospitals, garment finishing units, and manufacturing enterprises, generate a high demand for industrial laundry detergents to ensure a steady supply of clean and well-maintained linen, industrial workwear, or uniforms. For instance, hotels regularly require clean bed linen, bathrobes, bath towels, and staff uniforms.

Highlights

• Powder laundry detergent dominates the product segment
• Hospitality dominates the application segment
• Offline channel dominates the distribution channel segment
• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Global industrial laundry detergent market drivers

Increasing penetration of the internet

Several vendors actively use online platforms to generate consumer awareness for their products. Internet penetration worldwide has allowed laundry detergent vendors to provide online fabric care tips to industrial entities. Furthermore, end-users leverage different online platforms to compare many product options before making the final purchase decision. Using e-commerce platforms for business activities offers tremendous opportunities for vendors to increase their profitability.

Several websites now cater to retailers in various end-use industries and other consumers looking for quick and simple access to industrial laundry detergents, thanks to the ever-increasing prevalence of the Internet. Many consumers prefer to shop online due to convenience and price discounts. Moreover, the online retail format requires lower operating costs and improves the profitability of vendors. Further, end-users of industrial laundry detergent also get the opportunity to compare prices from different vendors and choose from a wide array of products. Thus, the increasing Internet penetration and growth of the e-commerce sector are driving the global industrial laundry detergent market.

Long-term growth in travel and tourism industry

Even though the travel industry suffered sizeable losses and setbacks due to the COVID-19 outbreak, the industry is anticipated to pick up pace due to the declining caseload. The increase in global tourism is anticipated to propel the use of linen such as bedsheets, pillow covers, curtains, napkins, table covers, and towels, accelerating the demand for industrial laundry detergents. Moreover, the increase in international tourism is expected to result in the expansion of the workforce in the hospitality industry, which will accelerate the demand for detergents used to wash uniforms.

Additionally, tourism worldwide has grown significantly in recent decades due to globalization and technological development. The global tourism industry is experiencing steady growth over the last few decades. In 2016, the industry witnessed around 1.2 billion arrivals, which is expected to exceed 1.8 billion arrivals by 2030. Therefore, all these factors will accelerate the growth of the global industrial laundry detergents market during the forecast period.

Global industrial laundry detergent market restraint

Slow economic growth in 2020

The COVID-19 pandemic induced an economic slowdown in most countries worldwide. Various restrictions imposed by several national governments to control the spread of the virus have alleviated the pressure on strained and vulnerable health systems worldwide. However, such measures have adversely affected the economic growth in several countries. This global health crisis has also led to the deepest global recession in many countries.

In 2020, the recession led to a decline in industrial and commercial activities, impacting the industrial laundry detergent market. According to estimates, the global economy and per capita incomes are expected to shrink in the coming years, impacting the global market. In addition, the major sectors of the industrial laundry detergent, i.e., restaurants, hotels, resorts, transport, and manufacturing industries, witnessed strict lockdowns to cut down the spread of COVID-19. Several travel bans in many countries have reduced the use of linen across several end-use industries, negatively impacting the demand for laundry detergent and restricting market growth.

Global industrial laundry detergent market opportunities

Increasing demand for liquid laundry detergents from emerging economies 

Powder and liquid laundry detergents are two more general categories for industrial laundry detergents. Although the powder laundry detergent segment dominates the market, the liquid laundry detergent segment has also gained a significant share recently. In addition, liquid industrial laundry detergents can be manufactured using less energy-intensive processes. The growing preference for liquid industrial laundry detergent variants is attributable to their compact nature and sustainability savings.

Furthermore, the gradual shift in consumer demand from powder laundry detergents to liquid laundry detergents is also due to the convenience of liquid formats and fewer after-wash issues. The liquid laundry detergent segment has immense potential for future growth. Several developed regions, such as Europe and North America, are witnessing a higher penetration of liquid laundry detergents. However, the demand for liquid laundry detergents is expected to grow significantly in developing regions such as Asia-Pacific and Latin America. Therefore, the growing penetration of liquid laundry detergents in developing economies is expected to create opportunities for market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global industrial laundry detergent market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa

Asia-Pacific is the most significant global industrial laundry detergent market shareholder and is anticipated to exhibit a CAGR of 7.40% during the forecast period. With a population of 4.6 billion, Asia-Pacific accounts for about 60% of the world's population. In recent years, the region has emerged as a growth engine for the global markets. Asia-Pacific has some of the most robust manufacturing industries, including automotive, construction, chemicals, and food and beverages. All these industries generate a high demand for workwear and uniforms throughout the year. Therefore, the need to launder workwear and uniforms in these industries will accelerate the demand for industrial laundry detergents in the region. Additionally, Asia-Pacific is witnessing the fastest rate of urbanization among all other geographies. The urbanization of developing countries in the region is expected to trigger the demand for foods and beverages, increasing restaurant footfalls. Likewise, the prevalence of several health conditions in the region will increase hospital admissions, driving the demand for laundry services and industrial laundry detergents during the forecast period.

Europe is estimated to exhibit a CAGR of 6.92% over the forecast period. The favorable retail environment has contributed to the high sales growth in Europe's industrial laundry detergent market. Heavy discounts characterize the retail environment in European countries. In addition, the end users in these countries are known to have a high annual savings ratio. For example, an average individual in Western Europe saves over 10% of their annual income, three times more than an average U.S. national. All such factors have contributed to the demand for industrial laundry detergent in Europe. The e-commerce market in Europe is also witnessing considerable growth as consumers spend more time searching for products online and reading product reviews to make the final purchasing decision. Therefore, vendors must devise an effective strategy to increase their brand presence in online marketplaces.

The North American market is highly developed and has many large multinational manufacturing companies operating across several industries, such as food and beverages and automotive. Currently, the region accounts for high consumer spending on goods and dining out at restaurants. Thus, this change in consumer behavior is accelerating the demand for industrial laundry detergents. Moreover, the impressive growth of the e-commerce industry in the last few years has accelerated the growth of the online retail industry. Since most industrial laundry detergent products are sold online, factors such as high Internet penetration and the significant presence of online channels are propelling market growth.

Latin America accounted for the lowest share globally in the market. The sluggish growth of the regional market is attributable to the economic downturn in several countries, lack of awareness regarding health, and tough competition from other developed countries. However, the region is expected to grow substantially during the forecast period. In addition, rapid industrialization, significant penetration of travel and tourism activities, and increasing awareness of health conditions and hygiene are expected to drive the market's growth. Several developing economies in the market, including Brazil and Mexico, offer tremendous growth potential to industrial laundry detergent manufacturers.

The Middle East and Africa is the second-lowest contributor to the global industrial laundry detergent market. Although the Middle East has an established hospitality sector, the presence of several countries in the African region offsets the demand for industrial laundry detergents. The presence of some of the largest luxury hotels in the region is boosting the demand for high-end industrial laundry detergent products. However, low awareness regarding hygienic practices and poor affordability in the region's low-income countries are expected to restrict market growth throughout the forecast period.

Segmental Analysis

The global industrial laundry detergent market is segmented by product, application and distribution channels.

Based on product, the global industrial laundry detergent market is divided into powder, liquid, fabric softener, and others. 

The powder liquid detergent segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.22% over the forecast period. Spray-drying, agglomeration, and dry mixing are some of the most common industrial powder laundry detergents manufacturing processes. Several vendors have shifted their focus toward developing concentrated powdered laundry detergents to reduce their environmental impact. The demand for concentrated powder laundry detergents is predicted to rise further during the projected period due to the growing focus on using sustainable laundry detergents in the industrial sector. Such factors will also minimize the consumption of packaging materials and water wastage during washing.

Although the powder laundry detergent segment dominates the industrial sector, liquid laundry formulas are becoming increasingly popular. The popularity of these goods is largely attributable to the simplicity with which the end user may transport them. Furthermore, liquid laundry detergent bottles come with lids and carry detailed instructions for customers on how much detergent to use. As a result, there is less detergent waste, which is used more sustainably. With the improvement of emerging countries' industrial and commercial sectors, the sale of liquid laundry detergents is expected to grow.

Based on application, the global industrial laundry detergent market is bifurcated into hospitality, hospitals, manufacturing industries, and others. 

The hospitality segment dominates the global market and is projected to exhibit a CAGR of 5.35% over the forecast period. Hotels, spas, and resorts are the major contributors to the hospitality segment of the global industrial laundry detergent market. Laundry detergents are regularly used in the hospitality sector to clean a wide array of linen, staff uniforms, and guest clothing. With a vast population of people using rooms, towels, napkins, and other linen, the laundering of fabrics plays an important role in maintaining cleanliness and hygiene standards in hotels, spas, and resorts. Moreover, due to the COVID-19 outbreak, restaurants worldwide have become more cautious, with employees strictly instructed to follow hygiene guidelines. Thus, such guidelines will accelerate the demand for laundry detergents across the hospitality sector.

Hospitals place a high priority on frequently laundering all of their used linen due to the significant danger of infection. Although some healthcare facilities have in-house laundry services, most hospitals outsource their laundering requirements to professional laundry services. Patients admitted to medical institutions want their linen to be changed daily. Therefore, daily clean linen is required to ensure the patient's comfort and safety. These issues are driving the use of industrial laundry detergent in hospitals.

Based on the distribution channels, the global industrial laundry detergent market is segmented into offline and online channels. 

The offline channel segment owns the highest market share and is estimated to exhibit a CAGR of 6.49% during the forecast period. Regarding offline distribution channels, industrial laundry detergent is majorly distributed through B2B brick-and-mortar stores such as hypermarkets, supermarkets, and more. Moreover, some vendors sell their products selling directly through dealers or distributors. The retailers act as the face of the company and are the point of purchase for customers in the market. These retailers are also equally important for vendors due to their direct interaction with end users.

Online sales channels are another critical aspect of the value chain in the global industrial laundry detergent market. The digitalization trend has enabled many vendors to focus on capitalizing on this possibility and reaching out to consumers directly through proprietary websites and other digital channels. Online sales options provide buyers with a wide variety of convenient options to purchase the preferred products from any place and at any particular point in time.

Recent Developments

• June 2022- Univar B.V., a subsidiary of Univar Solutions Inc., expanded its distribution agreement with BOAI NKY Pharmaceuticals Ltd. to distribute polymer products in Europe. The partnership will develop laundry detergent technologies. The deal covers specialized polymers (dye transfer inhibitors) for liquid and powder detergent formulations, including Nokesho 55L30W, 55 Powder, and 55 Granules.
• December 2022- In collaboration with BASF, Inditex's Zara Home brand launched The Laundry, a detergent designed to reduce microfiber discharge during cold-water laundering. In an era of fast fashion and rising sea levels, the initiative seeks to reduce carbon emissions and increase the durability of the clothing.