Mind the children: The population aged 10 and under is forecast to grow, supporting demand

Operators in the Child Day-Care Centres industry provide childcare services, primarily to children aged 12 and under, in a non-domestic setting. The unemployment rate has fallen significantly over the past five years, which has positively influenced demand for industry services. A rising number of children aged 10 and under has also added to childcare requirements in recent years, which has caused strong growth in enterprise and establishment numbers in the industry, including a boost of 11.3% in the number of establishments in 2016-17. Over the five years through 2018-19, industry revenue is projected to grow at a compound annual rate of 3.1%, including a forecast 3.8% rise in the current year, to reach £4.1 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Low unemployment and rising disposable incomes enabled parents to afford childcare
  • Revenue has benefited from the launch of government schemes such as tax-free childcare
  • The population of children under four is forecast to grow, maintaining demand for services
  • Industry Report - Industry Analysis Chapter

    The United Kingdom has some of the highest childcare costs in the world, and they are continuing to rise. According to Coram Family and Childcare’s 2018 Childcare Survey, the cost for all types of childcare has risen at double the rate of inflation since 2010. Although price rises stimulate revenue and support profit margins, they also hamper demand as childcare becomes unaffordable, restricting industry growth. However, since its introduction in 2017, the tax-free childcare scheme has made childcare more affordable for parents, which has spurred demand in the industry. Add...purchase to read more.

    Additional Insights for the Child Day-Care Centres Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Child Day-Care Centres Industry are

  • Proximity to key markets
  • Ability to attract local support/patronage
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Female participation rate in the labour force and National unemployment rate in the Child Day-Care Centres industry impact industry performance..

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    What's in this report

    What is the Child Day-Care Centres Industry?

    Companies in this industry provide childcare, mostly to children under the age of 12. This can come in the form of full-day care, occasional care, after-school care or holiday care. Childcare is increasingly supplementing education and holiday care as parents work longer hours. The industry does not cover early-years education or welfare-based social care for children.

    Industry Products
  • Full-day care centres
  • Sessional day-care centres
  • Full-day care in children's centres
  • After-school clubs
  • Holiday clubs
  • Industry Activities
  • Providing full-day childcare
  • Caring for children during school holidays
  • Operating nurseries
  • Caring for children before and after school
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Female participation rate in the labour force
  • National unemployment rate
  • Population aged 10 years and under
  • Real household disposable income

  • Current Performance
  • Rising demand
  • Government schemes
  • Shrinking margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Resilient demand
  • Stumbling schemes
  • Rising margins
  • Table: Child Day-Care Centres Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Child Day-Care Centres Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book Retailers
  • Food-Service Contractors
  • Pre-Primary Education
  • Toy Retailing

  • Products & Services
  • Full-day care centres
  • After-school clubs
  • Holiday clubs
  • Sessional day-care centres
  • Full-day care in children's centres
  • Chart: Child Day-Care Centres Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Families in the top income quartile
  • Families in the second income quartile
  • Government
  • Families in the third income quartile
  • Families in the fourth income quartile
  • Chart: Major Market Segmentation for the Child Day-Care Centres Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Child Day-Care Centres

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Child Day-Care Centres Industry

  • Industry Globalization
    Eagle Superco Ltd,
  • Table: Eagle Superco Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Child Day-Care Centres Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Child Day-Care Centres Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Nurseries provide childcare for children under the age of four.
  • Occupancy Rate
  • The percentage of places in a given childcare centre that are filled. A rate of between 70% and 80% is considered necessary for a centre to be profitable.
  • Ofsted
  • The Office for Standards in Education, Children's Services and Skills.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Child Day-Care Centres market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Child Day-Care Centres:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Child Day-Care Centres market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Child Day-Care Centres, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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