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    Child Care Services Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 4/26/2021
    SIC Codes: 8351
    NAICS Codes: 6244
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Child Care Services Industry Profile

    Companies in this industry provide supervision and educational programs for pre-school and school-age children. Major US companies include Bright Horizons, KinderCare Education, and Learning Care Group; major companies based outside the US include Elbkinder (Germany), G8 Education (Australia), and Smallsteps (The Netherlands).

    Global demand for child care services and early childhood education is growing as a result of increases in the number of women in the workforce and the number of single-parent families, as well as reduced poverty and improved health services. Nearly 90% of 4-year-olds are enrolled in preschool in countries that belong to the Organization for Economic Co-operation and Development (OECD). Growth in demand for child care services may come from countries such as China, India, and Mexico, which have ambitious goals to increase preschool enrollments.

    The US child care services industry includes about 56,000 commercial facilities with combined annual revenue of $25 billion, plus about 21,000 facilities run by nonprofit organizations with combined annual revenue of about $15 billion.

    COMPETITIVE LANDSCAPE

    Demand is driven primarily by growth in the youth population, and secondarily by employment and income. Recognition of the importance of early education is also driving demand for high-quality care. The profitability of individual child care facilities depends on good marketing, reputation, and efficient operations, as well as how saturated the local market is. Large companies have economies of scale in advertising and administration. Smaller companies can compete ...

     
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