Rising interest in early education is growing demand for the industry's services.
New York, NY (PRWEB) February 04, 2014
The Child Education and Developmental Center Franchises industry has posted strong growth over the past decade. An increasing body of research supporting the benefits of early childhood education has fostered rising parental interest in education-based child care. Industry franchises provide center-based child care for children under the age of six, with a primary focus on promoting mathematics, literacy and language-based skills. According to IBISWorld Industry Analyst David Yang, “Increasing interest in early education combined with strong marketing has led the industry to outperform the wider Day Care industry (IBISWorld report 62441) over the past five years, even following the economic downturn.” Steadily rising child care costs and an expansion in the industry's target market resulted in overall growth during the period. Over the five years to 2014, industry revenue is expected to grow at an average annual rate of 3.1%, topping $1.8 billion; this includes a 1.3% jump during 2014 as a result of slowly improving per capita disposable income.
According to the latest information from the US Census Bureau, there are currently 24.1 million children under the age of six, of which 10.9 million require child care. Demand for industry operators has been fueled by the long-term shift in women's workforce participation and support for early childhood development. Consequently, over the past five years, the number of franchise centers grew at an average annual rate of 3.8% to an estimated 2,371 locations. The industry's largest players include The Goddard School and Primrose School, both of which have a national presence. Industry profitability has also improved, as disposable income increased following the recession. Parents became more willing to pay high child education fees, which bolstered industry margins.
Over the five years to 2019, industry revenue is forecast to rise. “The Child Education and Developmental Center Franchises industry will benefit from a decline in the unemployment rate, which will foster greater demand for child care from working parents and accelerate per capita disposable income growth,” says Yang. Over the next five years, industry franchises are expected to increasingly expand their array of technology-oriented activities for children, including using cameras, computers and the internet as interactive learning tools.
For more information, visit IBISWorld’s Child Education and Developmental Center Franchises in the US industry report page.
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IBISWorld industry Report Key Topics
Child education and development center franchises provide educationally and developmentally focused child care, primarily for children under the age of six. Reports in the Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise data.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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