30% Growth Expected in On-Premise Laundry Market

Demand for On-Premise Laundry (OPL) solutions is expected to grow by approximately 30% over the coming year as businesses increasingly invest in in-house laundry facilities, according to projections by LG Electronics (LG) East Africa and its distribution partner, Hotpoint Appliances.

The broader commercial laundry market is also gathering pace, with demand for commercial laundry solutions increasing by an estimated 15% over the last year following initiatives driving improved access to financing and greater awareness of the sector’s commercial potential, encouraging more businesses to invest in professional laundry operations.

The growth reflects a significant shift in how organisations view laundry operations. Traditionally, commercial laundry equipment was bulky, expensive and required substantial upfront capital investment, placing it beyond the reach of many businesses. More compact, energy-efficient technologies, together with flexible financing options, are now making commercial-grade laundry solutions accessible to a much wider range of organisations.

For instance, mid-range traditional commercial laundry equipment targeting hotels can cost up KES1 million a piece. In comparison, it takes approximately Ksh 1.5 million to Ksh 2 million to establish a complete laundry set-up, comprising up to three sets of LG brand washers and dryers. At the same time, many of the traditional commercial laundry equipment is bulky, comprising 30 – 40 Kg loads, making them unsuitable for when the load is small.

Demand for OPL is particularly strong across hospitality, healthcare, residential developments, student accommodation, manufacturing facilities, diplomatic missions and other institutions where reliable, high-volume laundry operations are essential. Moving away from outsourcing the function, many organisations are choosing to establish dedicated on-premise laundry facilities to improve operational efficiency and reduce long-term operating costs.

“By investing in on-premise facilities, institutions gain greater control over quality, turnaround times and operating costs while improving the overall customer experience,” said Donghun Lee, the CEO of LG East Africa.

Unlike outsourced laundry services, on-premise facilities allow businesses to process linen and garments according to their own schedules, while providing greater visibility over operating costs. Modern commercial equipment also enable businesses to optimise water and energy consumption.

“The commercial laundry market continues to present significant opportunities for both entrepreneurs and institutions,” said Hotpoint Appliances CEO, Ravi Kanani. “While investor-owned laundromats continue to grow, we are seeing even stronger interest from organisations that want greater operational control through on-premise laundry facilities. Businesses are recognising that investing in their own facilities can deliver significant long-term operational and financial benefits.”

The expansion comes as East Africa’s hospitality, healthcare and residential sectors continue to grow, increasing demand for reliable, high-capacity laundry operations. Hotels are investing in OPL facilities to improve guest experience through faster linen turnaround and hospitals are strengthening infection prevention protocols with dedicated in-house processing. Meanwhile, residential and student accommodation developments are incorporating shared commercial laundry facilities as a value-added amenity.

“From a consumer perspective, we are seeing a greater preference towards convenience . There is growing preference for homes and construction developments with on-site laundry, creating a loop that ultimately drives developers to consider such facilities in their designs. The same goes for other real estate developments, including residential rentals, and facilities as well as student accommodation,” said Jane Kariuki, the Marketing Lead at LG East Africa.

To support this growing market, LG and Hotpoint continue to expand access to advanced commercial laundry technologies designed for high-volume operations. The solutions combine high-capacity performance with energy-efficient operation, intelligent monitoring technologies and remote diagnostics that simplify facility management.

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