Child Care Services in Australia Industry Market Research Report Now Updated by IBISWorld

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Increasing government assistance for parents looking to put their children in day care has aided the Child Care Services industry. Besides an increase in government support, the rise in female labour participation rate over the past five years has further reinforced demand for childcare. For these reasons, industry research firm IBISWorld has updated its report on the Child Care Services industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Following the collapse of ABC Learning, non-profit operators have gained dominance in the Child Care Services industry

Increasing government assistance for parents looking to put their children in day care has aided the Child Care Services industry. Under the Howard Government, an effort to increase the nation's birth rate resulted in initiatives such as the baby bonus. Meanwhile, several family payments to help families afford childcare, principally the Child Care Rebate and Child Care Benefit were paid out to encourage parents back into the workforce. According to IBISWorld industry analyst Ee Jen Lee, “the industry has exhibited strong growth over the past decade, even taking into account the recent shakeup of consumer confidence during the global financial crisis”. In fact, the increase of the Child Care Rebate from 30% to 50% in 2008-09 induced a 13% growth for that year. As a result, the annualised growth for the five years ending 2012-13 has been skewed upwards to 5.3%.

Lee adds, “besides an increase in government support, the rise in female labour participation rate over the past five years has further reinforced demand for childcare”. Furthermore, relaxation of government regulation allowing childcare centres to register as kindergarten providers have bolstered the appeal of long day care centres, allowing it to compete directly with preschool industry participants. Market share concentration in the Child Care Services industry is low. However, prior to the collapse of former industry powerhouse ABC Learning, the industry was highly concentrated. Goodstart Childcare Limited is the only major player in the industry.

Over the five years through 2017-18, continued government support and a mini-baby boom will contribute revenue. Government regulation mandating higher staff-to-child ratios and higher standards of staff qualifications following the National Quality Standards are likely to increase wage costs for operators. This is a key factor leading to the dominance of non-profit operators, which promises to be the defining story of the industry in the long term.

For more information, visit IBISWorld’s Child Care Services report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry provide childcare. Childcare services are principally provided for children under 12 and include long day care centres, family day care, occasional care, after-school hours care and vacation care. Increasingly, childcare is being incorporated with education and vacation care, as parents work longer hours and rely more on care services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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 every Australian industry. 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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