Damon Mcknight
The cleaning industry in Australia is a rapidly growing sector, encompassing a diverse range of services across residential, commercial, and industrial domains. With over 32,000 commercial cleaning businesses and an estimated workforce of around 150,000 people, the industry is projected to become a major employer in the coming years. The Australian commercial cleaning business is currently valued at approximately $12 billion, with expectations of significant growth, fuelled by increasing demand for sanitation, sustainability, and employee well-being.
| Characteristics | Values |
|---|---|
| Market size in 2024 | USD 13.1bn-13.52bn |
| Market size in 2025 | USD 13.4bn |
| Projected market size in 2034 | USD 20.60bn |
| Projected CAGR 2025-2034 | 4.30% |
| Number of businesses | 32,421-38,565 |
| Number of employees | 151,300 |
| Major industry players | ISS Group, ISS Facility Services Australia, Sodexo, Compass Group PLC, AMC Cleaning Pty Ltd, Downer |
| Services | Floor cleaning, housekeeping services, window cleaning, carpet and upholstery cleaning, oven and barbecue cleaning, end of lease cleaning |
| Industry trends | High competition, green trends, increasing demand for eco-friendly products, rising disposable income, increasing investment in real estate, growing awareness about benefits of cleanliness, increasing construction activities |
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What You'll Learn
The Australian cleaning industry is worth $12 billion
One of the key factors contributing to the growth of the Australian cleaning industry is the increasing number of households seeking professional cleaning services to save time and maintain a clean and healthy living environment. This trend is particularly noticeable among dual-income middle-class families, who prioritize their free time over household chores. As a result, residential cleaning services have become increasingly popular, with more people in their 30s to 50s opting for these services.
The Australian cleaning industry is also witnessing a shift towards eco-friendly and sustainable practices. The demand for green cleaning products and techniques is on the rise, with 46% of customers preferring eco-friendly services. Companies are embracing natural cleaning solutions, avoiding harsh chemicals, and adopting water-based cleaning systems to improve the health and well-being of their clients and employees.
The industry is highly fragmented, with thousands of small businesses and over 35,000 commercial cleaning enterprises employing approximately 150,000 to 160,000 people. The large number of small businesses and the low barriers to entry limit the market share concentration, creating a highly competitive environment. Despite the competition, the industry is expected to become a major employer, with a projected 6% year-on-year rise in new jobs.
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Eco-friendly products are in high demand
The cleaning industry in Australia is huge, with the commercial cleaning business alone worth around $12 billion to $13 billion. The industry is expected to grow and become a major employer in the coming years. With over 35,639 commercial cleaning enterprises in Australia, the industry provides a wide range of services, including residential, commercial, and industrial cleaning. The biggest companies operating in the commercial cleaning market in Australia include Downer, ISS Facility Services Australia, and AMC Cleaning Pty Ltd.
Koala Eco, for example, offers plant-based products scented with Australian botanicals and essential oils. Their products are septic and greywater-safe, and their packaging is made from 100% recycled (and recyclable) plastic. The brand also supports environmental conservation efforts by partnering with organizations like #NaturePact (People and Parks Foundation) and 1% for the Planet.
Another popular brand, SimplyClean, uses locally sourced essential oils in their plant-based formulas, creating cleaners that are non-toxic, biodegradable, vegan, and greywater-safe. They focus on sustainability in their packaging, reusing over 95% of empty returned containers and using recycled plastic for their bottles. SimplyClean also donates 5 cents from every product purchased to Friends of the Koala, supporting rescued koalas in New South Wales.
Pleasant State offers an innovative cleaning approach with their concentrated cleaning bars. Customers fill a bottle with hot water and drop in the bar, creating an all-surface cleaner. The company donates a portion of its sales to Take 3 For The Sea, contributing to ocean conservation.
The rise in demand for eco-friendly cleaning products is driven by consumers' desire for sustainable and safe options. By choosing these products, Australians are not only keeping their homes clean but also contributing to a healthier planet and supporting local communities. This trend is likely to continue, with the Household Cleaners market in Australia projected to experience an annual growth rate of 4.98% from 2024 to 2029.
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Commercial cleaning is the most profitable sector
The Australian cleaning industry is a large and growing market, with a predicted size of $46 billion in 2020. The industry currently employs over 1.7 million people and is expected to grow by 6% year-on-year. Within this industry, commercial cleaning is the most profitable sector.
Commercial cleaning businesses in Australia are currently worth around $12-$13 billion and are expected to become major employers in the coming years. There are over 35,000 commercial cleaning enterprises in Australia, employing approximately 160,300 people. The commercial cleaning sector includes a wide range of services, such as upholstery, floor, carpet, and window cleaning, as well as specialised industrial cleaning.
There are several reasons why commercial cleaning is the most profitable sector in the Australian cleaning industry:
- High demand: Commercial cleaning services are in high demand as businesses prioritise workplace cleanliness, sustainability, and employee well-being.
- Diverse services: Commercial cleaning companies can offer a wide range of services, from general office cleaning to specialised industrial cleaning. This allows them to cater to a diverse range of clients and charge premium rates for specialised services.
- Low overhead costs: Cleaning businesses have relatively low overhead costs compared to other industries, which contributes to their profitability.
- Expansion opportunities: Commercial cleaning companies have a lot of room for expansion. They can easily add more services and expand their client base as they grow.
- Bond cleaning: Bond cleaning, or end-of-lease cleaning, is a service that is growing in popularity among Australian tenants and can be a lucrative opportunity for commercial cleaning businesses.
- Eco-friendly focus: The demand for eco-friendly and sustainable cleaning products and services is increasing in Australia. Commercial cleaning companies that offer eco-friendly options can attract more customers and charge a premium for these services.
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Outsourcing cleaning services is a key growth factor
The Australian commercial cleaning business is presently worth around $12 billion to $13 billion and is expected to become a major employer in the next few years. The cleaning industry in Australia includes a wide range of services required by commercial and residential sectors. It is divided into three main categories: residential, commercial, and industrial cleaning.
In addition, the growth of the cleaning industry in Australia is driven by the increasing number of households seeking support for domestic cleaning services. Due to busy schedules and limited free time, dual-income middle-class families choose to hire professional cleaners. Residential cleaning services enable individuals and families to spend more time on other activities and with their families rather than on housework.
The adoption of green and eco-friendly practices is also contributing to the growth of the cleaning industry in Australia. Quality cleaning companies are adopting sustainable practices, avoiding harsh chemicals, and using water-based cleaning systems. This not only improves the health and well-being of clients and workers but also reduces repair and maintenance expenses for buildings. The demand for eco-friendly household cleaners and cleaning services that use environmentally friendly products and techniques is on the rise in Australia.
Overall, the cleaning industry in Australia has high growth potential due to various factors, including the outsourcing of cleaning services by organizations and households, the increasing demand for cleanliness and sanitation, and the adoption of eco-friendly practices.
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The industry is highly fragmented
The Australian commercial cleaning business is currently worth around $12 billion, with some estimates placing it at $13 billion. It is expected to become a major employer in the coming years, with over 1.7 million people already working in the cleaning sector. The industry is highly fragmented, with thousands of small owner-operated businesses and a high level of competition. This is due to the low barriers to entry, which limits market share concentration.
The commercial cleaning services market in Australia is diverse, with three main categories: residential, commercial, and industrial cleaning. Within these broad segments, there are many niche services, including domestic oven and barbecue cleaning, end-of-lease cleaning, and commercial window cleaning. The biggest companies operating in the market include Downer, ISS Facility Services Australia, and AMC Cleaning Pty Ltd, with Downer holding the most market share.
The growth of the cleaning industry in Australia is driven by several factors. Firstly, there is an increasing trend of organizations outsourcing cleaning services to focus on their core activities. Secondly, the rise in dual-income middle-class families has led to more households seeking professional cleaning support to save time and maintain a clean and healthy living environment. Additionally, the rapid growth of construction activities and investment in real estate has contributed to the demand for cleaning services.
The cleaning industry in Australia is also witnessing a shift towards green practices. The use of microfiber cloths, steam cleaning systems, and natural cleaning solutions is becoming more prevalent due to their environmental benefits and positive impact on the health and well-being of clients and workers. Companies that adopt these sustainable practices and offer a wide range of quality cleaning solutions to both residential and commercial clients can generate significant income and high-profit margins.
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Frequently asked questions
The Australian commercial cleaning industry is currently worth around $12 billion to $13 billion and is expected to grow in the next few years.
The cleaning industry in Australia is growing due to an increasing number of businesses in the field, the rise in the number of households seeking professional support for domestic services, and the preference of organisations to outsource cleaning services.
The cleaning industry in Australia is divided into three main categories: residential, commercial, and industrial cleaning.
Niche services in the Australian cleaning industry include oven and barbecue cleaning, end-of-lease cleaning, commercial window cleaning, and industrial equipment and vehicle cleaning.
There is a growing demand for eco-friendly and sustainable cleaning products and services in Australia. Companies are adopting green practices, such as microfiber cloths, steam cleaning systems, and natural cleaning solutions, to improve health, reduce maintenance expenses, and address environmental concerns.
