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 Partou (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. According to Statista, about 770 million pupils in 2023 Enrolment rates are high in France, Ireland, Israel, and the UK, according to the National Center for Education Statistics (NCES).

The US child care services industry includes about 80,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $40 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 effectively in local markets by owning convenient locations. The US industry is highly fragmented: the top 50 companies generate about 15% of revenue.

The number ...