Peace of mind: Rising enrolments and greater government funding have nurtured revenue growth

Approximately 1.3 million children aged 12 and under are expected to attend some form of government-approved or government-funded child care service in 2019-20. Federal Government assistance has increased for parents who want to put their children in formal care arrangements as they return to the workforce, which has aided the industry over the past five years. The rising maternal workforce participation rate has further supported the demand for child care services over the period. Furthermore, the government has relaxed regulations to allow child care centres to register as kindergarten providers. This regulatory change has given long day care centres the ability to compete directly with the Preschool Education more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • The rising maternal workforce participation rate has strengthened demand for child care
  • Higher staff-to-child ratio requirements have caused industry employment to rise
  • Parents’ changing work patterns are forecast to affect child care centres’ operating hours
  • Industry Report - Starting a New Business Chapter

    The Child Care Services industry has moderate barriers to entry, and these barriers are increasing. Despite the industry's low concentration, new entrants face several hurdles. Following the introduction of the National Quality Framework, which establishes national benchmarks for child care services, industry regulation has become more stringent. Industry players must meet new national standards for staff ratios and qualification requirements, which contributes to significant compliance costs. In addition, child care providers must meet other federal, state and local government regulations. For example, the cost and time required to obtain local council approval and a state government licence for a centre can be a significant strain on new businesses. New...purchase to read more.

    Additional Insights for the Child Care Services Industry

    IBISWorld has determined the most important Key Success Factors for the Child Care Services are:

  • Effective cost controls
  • Ability to take advantage of government subsidies and other grants
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Level of social assistance and Females in the labour force in the Child Care Services industry impact industry performance..

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    What's in this report

    What is the Child Care Services Industry?

    Industry organisations provide child care services, mostly to children under 12 years of age. These services include long day care, family day care, occasional care, outside school hours care and vacation care. Long day care centres that provide early childhood education services as part of the Federal Government’s preschool program are included in the industry, but separate preschools are excluded.

    Industry Products
  • Long day care
  • Family day care
  • Outside school hours care
  • Occasional care
  • Industry Activities
  • Child care service provision
  • Childminding centre operation (except home or school)
  • Children's nursery operation (except preschool)
  • Early learning centre operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of social assistance
  • Females in the labour force
  • Population aged 14 and younger
  • Labour force participation rate
  • Real household discretionary income

  • Current Performance
  • Funding changes
  • National Quality Framework
  • Profitability constraints
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry challenges
  • Demand drivers
  • Sustainable child care
  • Table: Child Care Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Child Care Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Catering Services
  • Electricity, Gas, Water and Waste Services
  • Newsagents and Book Retailers
  • Preschool Education
  • Toy and Game Retailing

  • Products & Services
  • Outside school hours care
  • Long day care
  • Family day care
  • Occasional care
  • Chart: Child Care Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Children aged six to 12
  • Children aged three to four
  • Children aged zero to two
  • Children aged five
  • Chart: Major Market Segmentation for the Child Care Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Child Care Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Child Care Services Industry

  • Industry Globalization
    Goodstart Early Learning Ltd, G8 Education Limited,
  • Table: Goodstart Early Learning Ltd - financial performance
  • Table: G8 Education Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Child Care Services 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 Care Services Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Child Care Benefit (Ccb)
  • An annual lump sum payment or a reduction in child care fees throughout the year paid by the Australian Government to reduce the cost of child care to parents.
  • Child Care Rebate (Ccr)
  • An additional government payment (supplementing the CCB) to help with out-of-pocket child care expenses.
  • Child Care Subsidy (Ccs)
  • A new government payment that came into effect on 2 July 2018 and replaces the CCB and the CCR. The CCS is paid directly to child care operators.
  • Community-Based Centre
  • A non-profit child care centre funded by the government designed to meet demand in particular communities.
  • Long Day Care Centre
  • A child care centre that specialises in providing care for children during work hours.
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    Why buy this report?

    IBISWorld’s Child Care Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Care Services:
    • 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 Care Services 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 Care Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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