Pre-Primary Education in the UK Industry Market Research Report now updated by IBISWorld

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Pre-primary education centres have found themselves under increasing pressure over the past few years as demand for nursery places has slowed due to rising unemployment and government funding for under-fives education has stagnated. Over the five years through 2012-13, industry revenue is expected to increase by an annualised 0.4%, to £4.34 billion. The industry faces significant challenges over the next five years with unfavourable demographic trends over the medium term, increasing competition from child day-care centres and weak public finances suggesting that funding to the industry will be constrained over the next few years. The forecast for industry revenue is flat growth over the next five years. For these reasons, industry research firm IBISWorld has updated its report on the Pre-Primary Education in the UK industry.

IBISWorld Market Research

IBISWorld Market Research

Rising unemployment has eroded families’ ability to pay for pre-primary education

Pre-primary education centres have found themselves under increasing pressure over the past few years as demand for nursery places has slowed and government funding for under-fives education has stagnated. According to IBISWorld industry analyst Ee Jen Lee, “rising unemployment has eroded the ability of families to pay for pre-primary education and reduced the need to outsource care”. Parents who have lost their jobs or are working reduced hours now have more time to care for young children. Over the five years through 2012-13, industry revenue is expected to increase by an annualised 0.4%, to £4.34 billion. In 2012-13, the industry revenue growth is forecast to be relatively stronger at 2.9%.

The industry faces significant challenges over the next five years. Lee adds, “demographic trends over the medium term are unfavourable and nurseries are expected to experience increasing competition from child day-care centres, which are able to offer more flexible hours of operation to parents”. Weak public finances suggest that funding to the industry will be constrained over the next few years. The forecast for industry revenue is flat growth over the next five years.

The Pre-Primary Education industry has a low level of concentration with no single player accounting for more than 2.0% of revenue. Pre-primary education centres serve the needs of the local area, and it is very rare for any single establishment to enroll more than 200 children. This is due to the nature of education, and particularly early childhood education, which involves a high level of supervision and care. Consequently, there are limits to the benefits of economies of scale. Government statistics show that 36.4% of UK pre-primary education centres enroll 50 or fewer pupils. Another 45% take between 51 and 100 pupils, but just 200, or 0.1%, take between 200 and 300 children (the upper limit for all centres).

For more information on the Pre-Primary Education industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Pre-primary education provision is offered to children aged three or four years in the year prior to commencing primary school at age five. Nursery education, as it is commonly known, is provided by each of the governments of the United Kingdom and systems vary between England, Scotland, Wales and Northern Ireland. The industry includes organised instruction delivered through nursery schools and nursery classes. Programmes offered by child day-care centres are excluded.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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