Under Pressure: Germany’s Laundry Market

Germany’s linen, uniform and facility services industry is navigating a difficult mix of sluggish economic growth, rising operating costs and political uncertainty. These issues have prompted many laundry operators to temper their investment plans and expectations for the remainder of 2026.

That view comes through clearly in an upcoming article on the German market planned for an upcoming issue of Textile Services magazine. Highlights of that piece, titled “German Launderers Confront Critical Challenges,” appear below.

The challenges noted above stem in part from the loss of inexpensive Russian natural gas following the outbreak of war in Ukraine in 2022. This move hurt German economic growth. Although energy supplies have stabilized, businesses continue to contend with high energy costs. For linen, uniform and facility services providers, whose operations are energy-intensive and closely tied to manufacturing, healthcare and hospitality, those pressures are particularly severe.

Daniel Dalkowski, deputy managing director of the German Textile Cleaning Association (DTV), says business confidence continues to deteriorate. A DTV survey of 75 companies representing major industry segments found that only 28% rated first-half 2026 sales as good or very good. Another 40% called results satisfactory, while 32% reported negative results. Only 24% expected sales to improve during the second half, compared with 42% at the beginning of 2025. Even companies maintaining relatively stable revenues are struggling to protect margins from rising costs.

DTV’s Cost Index reached a record 135.8 points in March, more than 35% above its 2021 base year. Compared with the end of 2025, heating-oil costs rose 66.2%, fuel increased 36.2% and natural gas rose 8.3%. Labor, meanwhile, represents 45%-60% of operating expenses, depending on the business.

Additional pressure is coming from textiles, chemicals and other supplies. DTV reported that 43% of survey respondents faced higher gas prices, 40% saw increased textile purchasing costs and 86% experienced higher detergent and cleaning-chemical prices.

Weakness in Germany’s industrial sector is also affecting demand. Slower manufacturing activity has reduced demand for workwear rental and laundering services, while challenges in hospitality and tourism are adding uncertainty.

Wolfram Rees, chief sales officer of Bardusch GmbH & Co. KG, Ettlingen, Germany, said the weak economy, difficulties in key industrial sectors and customers’ reluctance to invest are constraining growth. Bardusch is emphasizing replacement investments and sustainability initiatives instead of major expansion. While inflation-related pricing has kept sales stable, Rees said wash volumes are declining as fewer people use textiles and demographics shift.

Healthcare offers a brighter picture. Stefan Michaelis, managing director of the Berlin-based JonnyFresh GmbH, said tighter enforcement of hygiene regulations is creating opportunities among smaller medical practices. JonnyFresh serves more than 500 medical practices and says that customer segment is expanding at an annual rate exceeding 30%.

However, the company continues to face rising energy and labor costs. Another challenge centers on recruiting skilled employees. Meanwhile, JonnyFresh is limiting its exposure to hospitality due to late payments and rising insolvencies, while investing in technology, including artificial intelligence (AI) for customer service, order intake, and rescheduling.

Political uncertainty represents a third dimension of Germany’s sluggish growth, along with energy costs and labor issues. Recent state election setbacks for Chancellor Friedrich Merz’s Christian Democratic Union have raised questions about the government’s ability to advance economic reforms, contributing to caution among businesses considering major investments. In a recent poll, the chancellor’s approval rating was 10%, the lowest ever recorded in the ARD-DeutschlandTrend poll, which dates to 1997. By comparison, President Donald Trump’s approval rating – amid significant challenges associated with inflation and the war in the Middle East – stands at roughly 39%, according to Economist/YouGov, CBS News and other current polling reports.

Industry leaders expect conditions in Germany to remain challenging in the near term. DTV identifies rising costs and increasing bureaucracy as operators’ top concerns, while greater competition and pricing pressure make it more difficult to protect profit margins.

Despite these obstacles, the linen, uniform and facility services industry in Germany sees reasons for long-term optimism. An aging population could increase healthcare demand, while growing interest in sustainability and the circular economy could generate new opportunities for textile services. For operators, the key question is how quickly Germany’s economic and political climate will improve enough for them to capitalize on those trends.

Watch for more in an upcoming issue of Textile Services. Click here for more information on TRSA’s magazine.