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Adoption & Child Welfare Services in the US Industry Data and Analysis
Government funding drives over half of the revenue of adoption and child welfare service providers, creating unique competitive dynamics. As the near-exclusive purchaser through Title IV-E foster care, Title IV-B prevention services, TANF and SSBG funding streams, the government creates a monopsony structure in which providers face revenue volatility from policy changes rather than market forces. Service providers face negligible buyer power from families because the separation between service recipients and funding sources eliminates price-based competition—families select among foster care agencies or adoption services without financial consequences since government contracts predetermine reimbursement rates. Tax-exempt entities dominate the industry, generating $22.0 billion in revenue in 2022 compared to only $2.1 billion from taxable operators, reflecting substantial advantages from federal corporate income tax exemptions, tax-deductible donations and access to foundation grants. Along with strong growth in corporate profit that generates revenue from grants and contributions, industry-wide revenue is expected to climb at a CAGR of 1.6% to $31.4 billion through 2026. However, growth is likely to stall in 2026.
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What's included in this industry analysis
IBISWorld's research coverage on the Adoption & Child Welfare Services industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.
About this industry
What's this industry report about?
The Adoption & Child Welfare Services industry in the United States operates under the NAICS industry code 62411. This industry includes nonresidential social assistance services for children and young adults. Private sector and nonprofit establishments in this industry offer services in adoption, foster care placement, drug prevention, guidance and self-help, life skills training and positive social development. Related terms covered in the Adoption & Child Welfare Services industry in the United States include private adoption agency, public adoption agency and adoption facilitator.
What's included in this industry?
Products and services covered in Adoption & Child Welfare Services industry in the United States include Foster and guardianship placement services, Counseling, information, basic education and skills services and Adoption services.
What companies are included in this industry?
The Adoption & Child Welfare Services industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Adoption & Child Welfare Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Adoption & Child Welfare Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Adoption & Child Welfare Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Adoption & Child Welfare Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Adoption & Child Welfare Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Adoption & Child Welfare Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Adoption & Child Welfare Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Adoption & Child Welfare Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Adoption & Child Welfare Services industry in the United States in 2026?
The market size of the Adoption & Child Welfare Services industry in the United States is $31.4bn in 2026.
How many businesses are there in the Adoption & Child Welfare Services industry in the United States in 2026?
There are 45,104 businesses in the Adoption & Child Welfare Services industry in the United States, which has grown at a CAGR of 3.3 % between 2021 and 2026.
How may import tariffs affect the Adoption & Child Welfare Services industry in the United States?
The Adoption & Child Welfare Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Adoption & Child Welfare Services industry in the United States?
The Adoption & Child Welfare Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Adoption & Child Welfare Services industry in the United States grown or declined over the past 5 years?
The market size of the Adoption & Child Welfare Services industry in the United States has been growing at a CAGR of 1.6 % between 2021 and 2026.
What is the forecast growth of the Adoption & Child Welfare Services industry in the United States over the next 5 years?
Over the next five years, the Adoption & Child Welfare Services industry in the United States is expected to grow.
What does the Adoption & Child Welfare Services industry in the United States include?
Foster care and guardianship placement services and Counseling, information, basic education and skill services are part of the Adoption & Child Welfare Services industry in the United States.
How competitive is the Adoption & Child Welfare Services industry in the United States?
The level of competition is low and increasing in the Adoption & Child Welfare Services industry in the United States.
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