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In recent years, the car wash category has experienced remarkable growth in visits, surpassing the levels seen before the pandemic. The year 2021 witnessed a surge in visits as consumers emerged from COVID restrictions, fueled by stimulus funds and a desire to hit the open road. And in 2022, foot traffic to car washes reached unprecedented levels as the return to office and the pent-up demand for outings led to a significant increase in visits to the category.
To gain deeper insights into the trends behind the recent car wash surge, we analyzed visit metrics within the car wash category with the aim of examining the current landscape and forecasting the trajectory of the industry as we move further into 2023.
An examination of monthly visits to the car wash industry, compared to a baseline set in January 2019, reveals significant surges in 2021 and 2022. As pandemic restrictions gradually lifted, drivers seemed eager to once again take their cars out for a drive, leading to a surge in car wash visits. The increase in foot traffic can also be attributed to the skyrocketing prices of new cars in 2022, prompting individuals to invest in maintaining the appearance of their existing vehicles instead of purchasing new ones.
Although there was a slight dip in car wash visits at the beginning of 2023, potentially influenced by rising inflation rates, the industry quickly regained momentum in the spring. In May 2023, visits peaked at an impressive 109.3% increase relative to January 2019, indicating a strong recovery and continued growth in the car wash sector.
In 2023, the car wash industry, like many other sectors, faces the challenge of competing for the spending of budget-conscious consumers within an inflationary economic environment. However, an analysis of market trade area data across various car wash chains reveals that this sector is well-positioned to continue its success.
Leveraging STI: Popstats 2022 data to Examine the disposable income rates of households that visit car wash venues, reveals an interesting trend. Despite ongoing economic challenges, visitors from households with lower disposable income rates continued to frequent car wash venues at a significantly higher rate compared to visitors from households with higher disposable income. This observation strongly suggests that, even during financially difficult times, car wash services are regarded as an affordable luxury accessible to individuals from all socioeconomic backgrounds.
Even though car wash visits have increased throughout the year, diving further into the data reveals significant seasonal fluctuations in visit patterns. Comparing monthly visits between January 2019 and May 2023 to the respective average monthly visits in each year shows that the car wash industry consistently experiences visit peaks in March. During this time, many drivers may be seizing the opportunity to wash their car and keep it clean after the rain and snow taper off. Throughout the warmer months, visits tend to remain relatively steady as drivers seek to maintain their vehicles' appearance amidst sun-filled days. However, come November, consumer visits generally decline as consumers may perceive that the frequent rainfall helps keep cars cleaner throughout the winter.
Consistent visitation patterns are not only evident throughout the season, but also across different days of the week. A detailed analysis of visit distribution across selected car wash chains reveals a distinct pattern. Weekly visits peaked on Saturday, with 19.4% of all weekly visits taking place on that day. Friday and Sunday, followed by Monday also witnessed a relatively substantial share of visits. This trend could be because people have more time on the weekend to wash their car, or because car wash visitors choose to clean their vehicles in preparation for the upcoming weekend or for the upcoming week. In contrast, the mid-week days, Tuesday through Thursday – typically the busiest for visitors from working households – observe the lowest proportion of visits.
Analyzing visitor loyalty is a crucial metric in the car wash industry. Car wash chains invest significant effort in promoting their loyalty programs and expanding their customer base – and the data seems to indicate that these investments are paying off. Four out of six car wash chains analyzed experienced a rise in the share of returning visitors between Q1 2021 and Q1 2023. This indicates a positive trend in customer retention and underscores the effectiveness of loyalty initiatives implemented by these chains.
Location analytics indicates that car washes have managed to thrive in a challenging macroeconomic environment – and the category appears poised to continue its success in the second half of 2023. Since 2021, visits have remained significantly higher than they were pre-pandemic and data from previous years indicates that the upcoming summer months are likely to give the category an additional boost. As consumers continue to hunt for affordable luxuries, car washes are likely to continue benefiting from increased demand and sustained growth.
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