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Day Care in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Day Care Market Research Report | NAICS 62441 | Nov 2016

Take care: High costs and budgetary concerns will limit industry growth

IBISWorld’s Day Care market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Market Share of Companies
There are no companies with a dominant market share
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Annual Growth
Industry Threats & Opportunities
  • High costs have justified high profit, but reduced demand for industry services
  • Spending on private day care has been slow to pick up, due in part to high industry prices
  • Proposals to inject massive federal funds into early child care are likely to run into political obstacles
  • ... purchase to read more

Industry Analysis & Industry Trends

Although the Day Care industry grew rapidly in the 1990s, growth slowed in light of the economic downturn as costs exceeded what many families can bear. While high costs generated high profit margins for operators, tight state budgets combined with slow disposable income growth limited demand for industry services during the first half of the current five-year period. More recently, as per capita disposable income and government funding have been on the rise, the industry has once more returned to more rapid growth. Low accessibility to day care centers and preschools has prompted renewed attention to the subject, with the White House and Department of Education proposing new ways to expand funding to make day care services accessible to all US households... ... purchase to read more

Industry Report - Industry Analysis Chapter

The Day Care industry provides essential services to working families. It provides day care for children under age five, while also offering preschool instruction that prepares them for kindergarten. In the 1990s and early 2000s, demand for private day care centers was strong due to more parents entering the workforce. However, demand was tempered during the first half of the current five-year period, as the recession undermined demand and the slow recovery in disposable income limited the industry’s growth. During this period, government funds also dried up as state budgets tightened, while day care costs continued to rise. How.. ... purchase to read more

Additional Insights for the Day Care Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Day Care Industry are

  • Ability to take advantage of government subsidies and other grants
  • Ability to vary services to suit different needs
  • Ability to alter mix of inputs in line with cost
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Government consumption and investment in the Day Care industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Day Care Industry?

    Industry operators provide day care services for children, primarily those under the age of five. Industry operators may also run preschool programs that prepare three and four year olds for kindergarten. However, kindergarten education is excluded from industry services, as are in-home nanny services.

    Industry Products
    Child day-care servicesPreschool programsGovernment contributionsOther services and receipts
    Industry Activities
    Providing child and infant day careProviding preschool programs

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Government consumption and investment
  • Labor force participation rate of women
  • Number of children aged nine and younger
  • Current Performance
  • Day care landscape
  • Prices and participation
  • Recovery takes hold
  • Chart: Revenue Growth
  • Industry Outlook
  • Private spending
  • Public spending
  • Table: Day Care Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Day Care Industry Lifecycle vs The Economy
  • Products & Markets
    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
  • Book Publishing
  • Computer Stores
  • Food Service Contractors
  • Household Furniture Manufacturing
  • Janitorial Services
  • Toy, Doll & Game Manufacturing
  • Products & Services
  • Child day-care services
  • Preschool programs
  • Other services and receipts
  • Government contributions
  • Chart: Day Care Industry Products and Services Segmentation
  • Demand Determinants
  • Family trends
  • Government assistance
  • Major Markets
  • Households with income between $40,000 and $100,000
  • Households with income greater than $100,000
  • Households with income under $40,000
  • Chart: Major Market Segmentation for the Day Care Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Day Care
  • Basis of Competition
  • Price of service
  • Brands and marketing
  • Location of service
  • Reputation of the company
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Day Care Industry
  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Day Care Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Day Care Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Per capita disposable income (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    Child-To-Staff Ratio
  • Legal ratio mandated under state law for child care centers for the maximum number of children per staff member.
  • Employer-Sponsored
  • A day-care service that a company provides its workers through a contract with a local day-care center or facility.
  • Occupancy Rate
  • The rate of available spots at a day-care center that are filled. A rate of at least 70.0% is necessary for a center to be profitable.

  • Why Buy this Report?
    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 Day Care:
    • 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 Day Care 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 Day Care, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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