Early days: The recently introduced Tax-Free Childcare scheme is expected to propel demand

Industry operators provide childcare services, primarily to children aged 12 and under. The industry is fragmented, and no players have a market share of over 5%. The industry is expected to have grown strongly over the past five years. Although relatively high levels of unemployment at the start of the period negatively influenced demand for industry services, the rise in childcare prices supported revenue growth during each of the past five years. An increasing number of children aged 12 and under and government schemes to support parents' ability to pay for childcare also contributed positively. As a result, revenue is projected to increase at a compound annual rate of 3.4% over the five years through 2017-18.In 2017-18, revenue is anticipated to expand by 2.2% to £3.8...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Revenue is expected to grow, but demand may be limited by falling disposable income
  • The Tax-Free Childcare scheme is expected to significantly boost demand
  • Rising female participation in the labour force is anticipated to support demand for childcare
  • Industry Report - Industry SWOT Analysis Chapter

    With the exception of some shocks, the industry has exhibited steady growth for the best part of a decade. The public and private sectors agree that childcare is an important economic and social investment and have spent accordingly. As a result, industry value added is expected to grow at a compound annual rate of 4.1% over the 10 years through 2022-23. This outstrips the forecast GDP growth over the same period, which is expected to increase at a compound annual rate of 2%. This indicates that the industry's contribution to the economy is growing.The available market for providers, the number of children aged 12 or younger, has been growing over the past five years and is expected to continue to rise in the future, based on current birth rates. Thi...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
  • Employment and birth rates
  • Government schemes
  • Margins narrow
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand grows
  • Teething problems
  • Brighter horizons
  • 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
  • Families in the third income quartile
  • Families in the fourth income quartile
  • Government
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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?

    The Child Day-Care Centres market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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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