NAICS 8123

Drycleaning & Laundry Services

NAICS 8123 drycleaning and laundry services industry overview. Commercial laundries, drycleaners, and laundromats serving consumers and businesses.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 8123 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
257K
US Census CBP · 2023 · NAICS 2017
Establishments
29K
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$9.6B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$37,204
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$31.2B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

NAICS 8123 encompasses establishments primarily engaged in providing drycleaning and laundry services to the general public and commercial clients. This industry includes traditional drycleaning operations using chemical solvents, laundromats, commercial laundries serving hospitality and healthcare sectors, and specialized services such as alterations, pressing, and garment restoration. The drycleaning and laundry services industry serves as a critical support sector for consumer lifestyle management and business operations, with particular importance to hospitality, healthcare, and foodservice industries that require regular uniform and linen services.

Who Uses These Reports

Trusted by professionals who need verified federal data to make decisions

Investors & PE Firms

Size markets, validate deal theses, and benchmark targets with verified federal data before committing capital

Consultants & Advisors

Deliver data-backed recommendations to clients with sourced and cited industry metrics — Census, BLS, and FRED

Founders & Operators

Validate market entry, benchmark against industry averages, and present credible data to investors and boards

Corporate Strategy Teams

Support expansion planning, M&A due diligence, and executive reporting with NAICS-classified industry data

See what's inside a report

Market sizing, workforce analysis, competitive landscape, regulatory environment — all sourced from Census, BLS, FRED, and SEC EDGAR.

Industry Trends

PERC

Growing adoption of eco-friendly and sustainable drycleaning practices, including the transition from traditional perchloroethylene (PERC) solvents to liquid carbon dioxide and hydrocarbon alternatives due to environmental and health regulations.

02

Increasing integration of technology platforms including online ordering, mobile payment systems, and customer management software to compete with changing consumer preferences for convenience and digital engagement.

03

Rising demand for specialized services such as wedding gown preservation, leather and suede care, and restoration of delicate or high-value garments as consumers seek expert handling for valuable items.

04

Labor market pressures and wage increases impacting operational margins, driving some establishments toward automation in garment handling and pressing equipment to improve efficiency.

05

Shifting consumer behavior toward fast fashion and changing laundry habits, including increased at-home washing machine usage and reduced dry-clean-only garment purchases affecting traditional drycleaning volumes.

Available Reports

1 industry report available for purchase under Drycleaning & Laundry Services.

Frequently Asked Questions

What is NAICS 8123? ▾
NAICS 8123 classifies establishments providing drycleaning services using chemical solvents, coin-operated and commercial laundry operations, and related garment care services. This includes laundromats, commercial laundries serving institutions and businesses, and specialty pressing and alteration services. The classification focuses on the processing and cleaning of textiles for consumer and commercial customers.
What distinguishes commercial laundries from traditional drycleaners in this industry? ▾
Commercial laundries typically use water-based washing processes for high-volume institutional linens such as those required by hotels, hospitals, and restaurants, while traditional drycleaners use chemical solvents for delicate fabrics and garments. Commercial laundries emphasize efficiency and standardization for bulk processing, whereas drycleaners focus on specialty care and often handle garments requiring individual attention and restoration.
How are environmental regulations affecting the drycleaning industry? ▾
Many states and municipalities have implemented strict regulations restricting perchloroethylene (PERC) use, the traditional drycleaning solvent, due to health and environmental concerns. Establishments are investing in alternative solvents and dry-cleaning technologies, which increases capital expenditures but positions compliant operators competitively as regulations tighten across more jurisdictions.
What are the main cost drivers for drycleaning and laundry service businesses? ▾
Primary cost drivers include labor expenses, chemical and cleaning supply costs, utility expenses particularly water and energy, equipment maintenance and replacement, environmental compliance and waste disposal, and facility rent or lease payments. Labor typically represents 40-50% of operating costs in many establishments, making workforce productivity critical to profitability.
How is the laundromat segment performing within this industry? ▾
The laundromat segment remains relatively stable, serving price-conscious consumers without in-home washing capacity, though growth is modest. Successful laundromats increasingly differentiate through amenities such as Wi-Fi, comfortable seating, entertainment, and app-based payment systems, while facing competition from residential laundry appliances and on-demand laundry delivery services.

Questions about how we source industry data? See our data sources FAQ.

Don't see your industry?

We can generate a report for any NAICS-classified industry in the US. Professional PDF delivered in 48 hours.