Taking care: Declining unemployment will foster greater demand from working parents

Increasing research supporting the benefits of early childhood education is boosting demand for child care services. As result, industry revenue rose despite tough economic conditions during the recession. Over the next five years, franchises will continue to benefit from rising demand, especially as more people return to work and require care for their children...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 11-16
5.1%
Forecast Growth 16-21
Profit
Employment
53,774
Businesses
2,265

Industry Threats & Opportunities

  • Rising interest in early education is growing demand for the industry’s services
  • As more parents personally cared for children, demand for child care centers slowed
  • Industry growth will be slightly mitigated by the previous decline in the birth rate during the recession
  • Industry Report - Industry Key Buyers Chapter

    The Child Education and Developmental Center Franchises industry exhibits a moderate level of market share concentration, with the top four franchise operators constituting 56.8% of the industry's revenue. Goddard Systems Inc., the industry's major player, alone captures an estimated 26.2% of the market share and currently licenses 450 franchised schools. Primrose, another large industry operator, licenses 323 franchised schools throughout the United States. Since 2011, market share has increased marginally as a result of the growing number of major companies' franchises across the United States.The industry is represented by many well-established franchises offering a variety of services, allowing the top companies to earn a significant share of revenue. How...purchase to read more.

    Additional Insights for the Child Education & Developmental Center Franchises Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Child Education & Developmental Center Franchises Industry are

  • Proximity to key markets
  • Recommendations/accreditation from authoritative source
  • Business expertise of operators
  • IBISWorld analysts also discuss how external factors such as Labor force participation rate of women and Per capita disposable income in the Child Education & Developmental Center Franchises industry impact industry performance..

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    What's in this report

    What is the Child Education & Developmental Center Franchises Industry?

    This industry provides child care that is focused on education and development, primarily for children under the age of six. Reports in the Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise data.

    Industry Products
  • Preprimary programs
  • School-age program
  • Recreational programs
  • Industry Activities
  • Providing education-oriented child care for infants
  • Providing education-oriented preschool programs
  • Providing education-oriented kindergarten programs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Labor force participation rate of women
  • Per capita disposable income
  • National unemployment rate
  • Number of children aged nine and younger
  • External competition

  • Current Performance
  • Growing interest in education grows demand
  • Strong recovery from recession
  • Rising child care costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Building up demand
  • New kid on the block
  • Shift to high-value offerings
  • Table: Child Education & Developmental Center Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Child Education & Developmental Center Franchises Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Orphanages & Group Homes
  • Family Counseling & Crisis Intervention Services
  • Community Housing & Homeless Shelters
  • Consumers

  • Key Selling Industries
  • Alarm, Horn & Traffic Control Equipment Manufacturing
  • Book Publishing
  • Computer Stores
  • Grocery Wholesaling
  • Office Stationery Manufacturing
  • Pharmacies & Drug Stores
  • Software Publishing
  • Toy, Doll & Game Manufacturing

  • Products & Services
  • School-age program
  • Preprimary programs
  • Recreational programs
  • Chart: Child Education & Developmental Center Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households with income of $54,400 and greater
  • Households with income between $36,000 and $54,399
  • Households with income between $18,000 and $35,999
  • Households with income less than $18,000
  • Chart: Major Market Segmentation for the Child Education & Developmental Center Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Child Education & Developmental Center Franchises

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Child Education & Developmental Center Franchises Industry

  • Industry Globalization
    Goddard Systems Inc., Primrose School Franchising Company, Kiddie Academy Child Care Learning Centers, The Learning Experience,
  • Table: Goddard Systems Inc. - financial performance
  • Table: Primrose School Franchising Company - financial performance
  • Table: Kiddie Academy Child Care Learning Centers - financial performance
  • Table: The Learning Experience - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Child Education & Developmental Center Franchises 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 Education & Developmental Center Franchises Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • National unemployment rate (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Employer-Based Day Care
  • A service that a company provides its workers through a contract with a local child-care center or facility.
  • Occupancy Rate
  • The rate of available spots at a child-care center that are filled
  • Staff-To-Child Ratio
  • Legal ratio mandated under state law for child-care centers for the maximum number of children per staff member.
  • What Our Customers Say

    Why buy this report?

    The Child Education & Developmental Center Franchises industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    This report on Child Education & Developmental Center Franchises:
    • 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 of 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 Education & Developmental Center Franchises 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 Education & Developmental Center Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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