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Day Care in the US - Industry Market Research Report

  • June 2017
  • 35 pages
  • Ibisworld
Report ID: 499819

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Take care: Rising per capita disposable income with drive industry growth

Day Care in the US

Operators in the Day Care industry are private and rely primarily on tuition paid by parents, but companies may also receive funding from the government, which attempts to alleviate the cost on households. Although the industry grew rapidly in the 1990s due to rising awareness of the benefits of early learning to cognitive development in children, growth slowed due to the economic downturn as costs exceeded what many families could bear. Over the first half of the five years to 2017, though high costs generated high profit margins for operators, tight state budgets combined with slow disposable income growth limited demand for industry services. Over the five years to 2022, revenue growth will improve but still be limited due to high day care costs. However, a combination of higher per capita disposable income and improved government funding is expected to drive demand for center-based day care.

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-old children for kindergarten. However, kindergarten education and in-home nanny services are excluded from industry services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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