Taking care: Increasing interest in early education and strong marketing support industry growth

Industry franchises provide center-based child care primarily for children under the age of six, typically with a focus on promoting mathematics, literacy and language-based skills. Increasing interest in early education combined with strong marketing has led the industry to outperform the wider Day Care industry over the past five years. Over the five years to 2018, industry revenue is expected to grow at an annualized rate of 3.7% to reach $2.7 billion, including a robust 5.4% increase in 2018 alone. Moving forward, legislation aimed at increasing the affordability of child care for parents is expected to grow and will likely benefit industry operators by increasing the amount of people who can afford services, thus growing revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
Profit
Employment
58,778
Businesses
2,155

Industry Threats & Opportunities

  • Rising interest in early education is growing demand for the industry’s services
  • Operators differentiate themselves through their approach to early childhood education
  • The rising cost of child care is anticipated to continue driving revenue growth
  • Industry Report - Industry Locations Chapter

    The location of child education and developmental center franchises generally follows the distribution of the population in the United States. As a result, more heavily populated regions constitute larger shares of industry establishments. The Southeast region holds an estimated 25.7% share of the total population and holds an estimated 23.7% share of establishments in the Child Education and Developmental Center Franchises industry. Likewise, the Mid-Atlantic region accounts for 15.2% of the population and a similar share of industry establishments at 18.8%. Other notable regions by share of industry establishments include the West (16.5%), the Great Lakes region (13.7%) and the Southwest (10.1%); all of which hold shares consistent with their share of the population...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 Per capita disposable income and Labor force participation rate of women in the Child Education & Developmental Center Franchises industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    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
  • Child day care services, in-center only
  • Pre-primary grade instructional programs
  • Children and youth recreational programs
  • Other services
  • 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
  • Per capita disposable income
  • Labor force participation rate of women
  • National unemployment rate
  • Number of children aged nine and younger
  • External competition

  • Current Performance
  • Increased demand for quality early education
  • Rising child care costs
  • Industry landscape and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth drivers
  • Affordability issues spur legislation
  • 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
  • Child day care services, in-center only
  • Pre-primary grade instructional programs
  • Other services
  • Children and youth recreational programs
  • Chart: Child Education & Developmental Center Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Children aged 3 to 4 years
  • Children aged 1 to 2 years
  • Children less than 1 years old
  • Children aged 5 to 8 years
  • Children aged 9 to 11 years
  • Children aged 12 to 14 years
  • 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
    ProfitWagesRent and utilitiesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Child Education & Developmental Center Franchises

  • Basis of Competition
  • Internal competition
  • External 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • 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?

    IBISWorld’s Child Education & Developmental Center Franchises Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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 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.

    Contact Us

    Want to speak to a representative? Call us.

    clear