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 7.2% over the five years through 2019-20, to $1.0 billion. This trend includes an anticipated increase of 2.9% in 2019-20.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 more.

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

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 Locations Chapter

    The industry's geographic distribution reflects the distribution of New Zealand's population. Compared with other regions, Auckland is heavily overrepresented. The region accounts for approximately one-third of the country's population and an estimated 42.1% of industry establishments. The geographic dominance of Auckland is expected to increase over the five years through 2019-20, as the number of child care centres in the region continues to rise in line with the strong population growth currently occurring there. Canterbury and Wellington are New Zealand's next two largest regions in terms of population. Together, these two regions account for approximately 20.5% of industry establishments and 23.4% of the population...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:

  • 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
  • - Just to be able to submit the report (Hayley, June 2019) -
  • 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
  • - Just to be able to submit the report (Hayley, June 2019) -
  • 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
  • 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
  • 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
    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 (Te Kawanatanga o Aotearoa), 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:
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    • Identify threats and opportunities
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    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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