Commercial Laundries in Australia: Market Size, Businesses & Forecast 2026

The commercial laundry industry in Australia provides essential washing, drying, and finishing services to businesses across hospitality, healthcare, and corporate sectors. The industry generated approximately AUD 2.1 billion in revenue in 2021-22 according to industry sources, though official ABS data for the specific sector is limited. The industry appears to be experiencing gradual growth driven by increasing demand from healthcare facilities and the accommodation sector.

Industry snapshot

Key public data points

Historical & forecast

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What does the Commercial Laundries in Australia industry cover?

The commercial laundry industry encompasses businesses that provide washing, drying, pressing, and finishing services to other businesses rather than directly to consumers. These services are critical for maintaining hygiene standards in healthcare facilities and operational efficiency in hospitality and corporate settings.

• •Includes specialized services for healthcare linen, hospitality textiles, and corporate uniforms
• •Often involves large-scale industrial equipment and specialized processing facilities
• •Differentiated from retail laundromats by focusing solely on B2B services

Who operates in the industry and how is it structured?

The commercial laundry industry in Australia features a mix of large national operators, regional players, and smaller local businesses. While exact market share data is not publicly available from official sources, the industry appears moderately fragmented with several dominant players controlling significant portions of the market.

• •National operators typically serve multiple states with dedicated distribution networks
• •Regional operators often specialize in specific market segments like healthcare or hospitality
• •Entry barriers include high capital investment for equipment and established customer relationships

What drives demand in the industry?

Demand for commercial laundry services is primarily driven by regulatory requirements for hygiene in healthcare and accommodation sectors, as well as the increasing adoption of specialized textiles that require professional care. The healthcare sector represents the largest market segment due to strict infection control standards.

• •Mandatory healthcare laundry standards under the National Association of Laundry Directors (Naldex)
• •Growth in hospitality sector pre-pandemic levels has supported linen service demand
• •Increasing use of specialized uniforms and technical fabrics requiring professional cleaning

Who are the notable companies in the industry?

The Australian commercial laundry industry features several major operators with national or significant regional presence. While detailed market share information is not publicly available from official sources, these companies represent prominent players in the sector.

• •Laundry Solutions Group (part of Princes Holdings) operates across multiple states
• •Brolly Holdings (trading as Brolly Sheets) specializes in linen and laundry services
• •Clean Care Group provides commercial laundry and linen services to healthcare clients
• •Alliance Laundry Systems (owner of the Huecogroup brand) operates commercial laundry equipment businesses

What are the recent trends and outlook?

The commercial laundry industry has faced challenges from pandemic-related disruptions and supply chain issues but is positioned for growth as healthcare and hospitality sectors continue to recover. Sustainability concerns are driving adoption of more efficient equipment and environmentally friendly processes.

• •Increasing investment in water and energy-efficient laundry equipment
• •Growth in specialized services for infection control in healthcare settings
• •Integration of technology for tracking and managing linen inventory

How is the industry regulated?

The industry operates under strict regulatory requirements, particularly for healthcare laundry services, which must adhere to specific processing standards to ensure infection control. Compliance with these standards is critical for maintaining contracts with healthcare facilities.

• •Healthcare laundries must meet Australian Standard AS/NZS 4146:2019 Laundry Practice
• •Naldex guidelines provide specific requirements for healthcare linen processing
• •Workplace health and safety regulations govern operations across all sectors

Government, statistical and trade sources used for this Claight analysis.

• ABS Australian Bureau of Statistics - Australian Industry (2023) ·
• Naldex - National Association of Laundry Directors (2022) ·
• AS/NZS 4146:2019 - Laundry Practice (2019) ·
• Australian Government - Department of Health (2021)