Market Overview

Linen supply refers to the services that provide linen products on lease, and its application ranges widely from hotels to hospitals, service outlets (restaurants, amusement facilities, etc.,) and others (offices, factories, etc.). The linen supply market in FY2023 grew to 108.5% of the previous fiscal year to 455,100 million yen (based on the sales of linen supply companies), indicating an upturn for three consecutive years.

As the pandemic subsides globally, Japanese government eased activity restrictions in FY2022 and downgraded COVID-19 to Class 5 infectious disease in May 2023. The change boosted inbound tourism, which led to a dramatic recovery of tourism industry. Consequently, linen supply industry saw demand increase, particularly for hotel beddings and linens. The growth of the linen supply market largely attributable to the demand recovery for linen products at lodging accommodations like hotels and Japanese inns.  

Noteworthy Topics

Trends of Linen Supply Industry Amidst Economic Recovery

Easing of activity restrictions to prevent the spread of COVID-19 began in FY2022, and people’s flow increased accordingly. Consumer spending increased in many regions, and inbound tourism bounced back.

As the economic bounces back, the demand for linen supply is rising for hotels. Although the level of recovery varies by area, guests are returning to hotels and tourist facilities across the country. People that were held back from travelling during COVID period are back, not only inbound tourists but also domestic tourists, including those taking short excursions (such as visiting neighboring prefectures). While some hotels and Japanese inns run at a lower occupancy intentionally to ensure high service quality, it is important for linen supply industry to make sure they do not miss out on opportunities brought about by the surge in inbound tourists.

Similarly, a sign of recovery is also observed for the demand for linen supply in foodservice (various types of restaurants), and transportation (bullet trains, express trains, passenger ships, and passenger airplanes). Nevertheless, against the backdrop of labor shortages, price hikes, and the weak yen, the demand is not recovering as much as in lodging industry.

Future Outlook

The linen supply market in FY2024 is projected to rise to 476,000 million yen, 104.6% of the previous fiscal year. The hotel linen market is expected to remain robust for FY2024, exceeding pre-pandemic FY2019 levels. This is largely due to the increase of inbound tourists and the rise of contract price at linen suppliers, which is stemming from the soaring room rates at hotels and other lodging accommodations.



For other segments, the market trends will divide into those that grow marginally and those that diminish. Cloth diapers, hand towels, and cleaning supplies are expected to wane in particular for the lack of demand drivers.

Even so, with strong sales in hotel applications that can offset the decline in other applications, the overall linen supply market is expected to sustain growth. That being said, the growth will slow down hereafter. It is forecasted to attain 490,000 million yen for FY2025, up by 2.9% of the previous fiscal year.

Research Outline