Duty of care: Rising maternal workforce participation has boosted industry demand

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 the Child Care Services industry in 2017-18. Government assistance has increased for parents wanting to put their children in formal care arrangements as they return to the workforce, which has aided the industry over the past five years. This assistance has helped drive industry revenue growth, with revenue expected to increase at an annualised 8.0% over the five years through 2017-18, to reach $12.0 billion. Industry revenue is expected to grow by 3.9% over the current year, constrained by industry overcapacity.A rising maternal workforce participation rate has strengthened demand for child care over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • A rising maternal workforce participation rate has strengthened demand for child care
  • The higher staff-to-child ratio requirement has been challenging for industry operators
  • Changing work patterns of families are forecast to affect day care centres’ operating hours
  • Industry Report - Industry Analysis Chapter

    Revenue for the Child Care Services industry is expected to grow at an annualised 8.0% over the five years through 2017-18, to total $12.0 billion. Higher government expenditure on the child care sector has largely driven this revenue growth, while increased fees and enrolment numbers (in line with rising maternal workforce participation rates and household discretionary incomes) have also supported the industry. Most of the industry’s government funding has come from the Child Care Benefit (CCB) and the Child Care Rebate (CCR), which subsidise the cost of child care for eligible families. Federal Government CCB and CCR funding has substantially increased over the past five years and is expected to exceed $7.5 billion in 2017-18. Industry revenue is anticipated to grow at 3.9% i...purchase to read more.

    Additional Insights for the Child Care Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Child Care Services Industry 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. Child care services are mainly provided for children under 12 years of age, and include long day care centres, family day care, occasional care, outside school-hours care and vacation care. Long day care centres providing early childhood education services as part of the 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
  • Childcare 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
  • Industry changes
  • National Quality Framework
  • Profitability constraints
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing demand
  • 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
  • Newspaper and Book Retailing
  • 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
  • Profit
  • Wages
  • Rent
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Child Care Services

  • Basis of 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Approved Care Services
  • Those long day care, family day care, outside school-hours care and occasional care services approved by the government for the purposes of CCB.
  • Child Care Benefit (Ccb)
  • This is either an annual lump sum payment or a reduction in childcare fees throughout the year paid by the Australian Government to reduce the cost of childcare to parents.
  • Child Care Rebate (Ccr)
  • This is an additional payment to the CCB to help with out-of-pocket expenses.
  • Community-Based Centre
  • A non-profit childcare centre funded by the government that is designed to meet demand in particular communities.
  • Long Day Care Centre
  • A childcare centre that specialises in providing care for children during work hours.
  • Occupancy Rate
  • The number of possible places in a given childcare centre that is filled by children requiring care.
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    Why buy this report?

    IBISWorld’s Child Care Services 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.

    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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