Child's play: Increased government funding has boosted industry revenue growth

The Child Care Services industry has performed strongly over the past five years. Increasing female participation in the labour force and rising household incomes have benefited the industry over the period. The largest driver of revenue growth has been increased government expenditure on early childhood education (ECE). Industry revenue is expected to grow at an annualised 12.3% over the five years through 2018-19, to $1.1 billion. This includes an anticipated increase of 10.1% in 2018-19.The industry provides child care services for children from birth to school age. The industry includes licensed early childhood centres, casual child care centres, and creches, all of which are loosely grouped under the official title of education and care centres...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
12.3%
Forecast Growth 19-24
Profit
Employment
15,407
Businesses
1,367

Industry Threats & Opportunities

  • Increased government expenditure on early childhood education has driven revenue growth
  • Higher government expenditure on the ECE sector has been the main driver of industry revenue growth
  • Higher maternal work participation rates are likely to support demand for industry services
  • Industry Report - Industry Analysis Chapter

    The Child Care Services industry has performed strongly over the past five years. Industry revenue is expected to grow at an annualised 12.3% over the five years through 2018-19, to $1.1 billion. Higher government expenditure on the early childhood education (ECE) sector has been the main driver of this revenue growth. Rising enrolment numbers, in line with higher maternal workforce participation rates, and growth in household discretionary incomes have also supported the industry. Much of the industry’s government funding has come from the 20 Hours ECE program. The industry’s robust growth path is anticipated to continue in the current year, with expected growth of 10.1%...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

  • Easy access for clients
  • Optimum capacity utilisation
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Public funding for early childhood education and Real household discretionary income in the Child Care Services industry impact industry performance..

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    What's in this report

    What is the Child Care Services in New Zealand Industry?

    Industry organisations provide formal day care services for infants and children. Child care services are mainly provided for children under six years of age. Education and child care centres that provide early childhood education are included in the industry. Preschools, play centres and play groups are not part of the industry.

    Industry Products
  • Community-based centres
  • Private centres
  • Industry Activities
  • Early childhood education and care centre operation
  • Child care centre and creche operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Public funding for early childhood education
  • Real household discretionary income
  • Population aged 14 and younger
  • Total employees in the labour force

  • Current Performance
  • Government policies
  • Industry changes
  • New entrants
  • Profit pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand variables
  • Supply changes
  • 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 in New Zealand

  • Key Selling Industries
  • Catering Services in New Zealand
  • Department Stores in New Zealand
  • Electricity Retailing in New Zealand
  • Newspaper and Book Retailing in New Zealand
  • Preschool Education in New Zealand

  • Products & Services
  • Private centres
  • Community-based centres
  • Chart: Child Care Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Children aged three and over
  • Children aged two
  • Children aged less than two
  • 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
  • Purchases
  • Rent
  • Other
  • 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
    Best Start Educare Limited, Evolve Education Group Limited,
  • Table: Best Start Educare Limited - financial performance
  • Table: Evolve Education Group 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Community-Based Centre
  • A non-profit childcare centre that predominantly relies on government funding. These centres may not charge any fees at all.
  • Ece
  • Stands for Early Childhood Education. As a key priority of the New Zealand Government, many centres receive ECE funding.
  • Occupancy Rate
  • The number of licensed places in a given childcare centre that is filled by children requiring care.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Child Care Services in New Zealand 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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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