Early Childhood Education Market

Delivered January 3rd, 2018. Contributors: Alexis Z., Alexandra Y., Annie S., Lu J., Caitlin T., Shannon L. and

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Early Childhood Education Market Size

In 2015, the most recent year for which data was available, the market size for early childhood education in the United States was estimated to be around $70 billion. While a definitive market size for 2017 could not be found, the total annual revenue of the early childhood learning centers industry in the United States was $12 billion, according to IBISWorld. Below you will find an overview of the industry, outlining some key players and industry trends. 
Key PlayersIBISWorld reports an estimated 19,461 businesses involved directly in early childhood learning centers market, with over 230,000 separate early education facilities (including state-funded public education facilities) in the United States employing between 200,000-400,000 workers. The industry shows low market share concentration, with key players capturing most of the industry revenue. Three key players are: Bright Horizons Family Solutions, KinderCare Education, and Learning Care Group. The early childhood education market includes three main facility types: daycare centers, home care centers, and school-based programs. 
Market TrendsIn the last few decades, the early childhood education market has seen growth, due to the increased number of families where both parents work outside the home and increased understanding of the benefits of early childhood education. Research has shown that the early childhood education market is influenced by maternal labor force participation rate and per capita disposable income. 

In recent years, the industry saw a slight dip in performance due to high unemployment in 2012 following the recession and low per capita income, with an annual growth rate from 2012-2017 at 2.9%. As the effects of the recession subside and unemployment decreases, the industry should see continued growth. Increased state funding should also lead to growth. 

The IBISWorld report identified the following three factors as most important for success in the early childhood education market: 
— Ability to attract local support/patronage
— Ability to take advantage of government subsidies and other grants
— Having a good reputation
OTHER FINDINGSAdditionally, it has been found that approximately half of Americans (across the 22 states studies) live in "childcare deserts", where there is little access to quality childcare. This includes 61% of the state of New York, and 62% of the state of California. This signals opportunities for industry growth in these untapped markets. 

A 2015 Washington Post poll found that "more than three-quarters of mothers and half of fathers had passed up work opportunities, switched jobs, or quit their job due to a lack of paid leave or child care."  A 2016 study by NPR, Harvard, and the Robert Wood Johnson foundation also found that "roughly two-thirds of parents said they had 'only one' or 'just a few' realistic child care options." 

A 2017 study from the Center for American Progress found that while affluent areas have seen an increase in childcare centers due to demand, "many neighborhoods, small towns, and rural communities across the country have inadequate child care options." Yet the divide around income is not all that great - 54% of below average income earners and 47% of above average income earners live in childcare deserts, according to the Center. 

Minorities, including Hispanic/Latino and American Indian and Alaska Natives (AIAN) "are disproportionately represented in child care deserts, with roughly 60 percent of their combined populations living in areas with a low supply of child care. More than 75 percent of the rural AIAN population lives in a child care desert." The Center also found that "according to research published by the U.S. Census Bureau, one-third of children under age 5 are regularly in nonrelative care [and in underserved communities] there may be child care waiting lists, unlicensed child care arrangements, or effects on parents’ employment decisions." 
ConclusionIn conclusion, the US market size for early childhood education was estimated to be $70 billion in 2015, but an IBISWorld report offers a much more conservative 2017 estimate of $12 billion. With roughly half the country living in childcare deserts, including 61% of New York and 62% of California, there appears to be a tremendous opportunity for growth in this industry.

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Early Childhood Education Major Companies - National

Seven major early childhood education companies in the United States, based on the number of locations, are KinderCare, La Petite Academy, Bright Horizons, Tutor Time, Goddard Schools, Primrose Schools, and The Learning Experience. Details for each company have been entered into the provided spreadsheet, which can be found here.
FINDINGSIt was found that major early childhood education companies in the United States tended to have over 100 locations around the country. An exhaustive search was done to find the largest early childhood education companies. The top seven were selected because they had more than 100 locations. Please note that there was a large gap between these seven major companies and the next largest companies (which each had less than 30 centers in the United States).
KINDERCARE
KinderCare is headquartered in Portland, Oregon and has over 1400 NAECY accredited early childhood centers across the country and have over 300,000 students enrolled. They are a private company with an estimated revenue of $1,089 million. Their profits are not available to the public.
LA PETITE ACADEMY
LaPetite Academy is headquartered in Novi, MI and has over 590 early childhood centers across the country. They are a private company with an estimated revenue of $3 million. Their profits are not available, and they have not published any recent enrollment reports that are available to the public.
BRIGHT HORIZONS
Bright Horizons is a global company that has headquarters in Watertown, Massachusetts and has many locations in the United States. The company has over 750 total early childhood education centers. They have not made their enrollment numbers publicly available. Bright Horizons has an estimated revenue of $1,569 million, but their profits are not available to the public.
TUTOR TIME
Tutor Time is headquartered in Boca Raton, Florida and has over 200 early childhood centers across the country. The company has not published their enrollment numbers publicly, nor their profits. They have an estimated revenue of $132 million.
GODDARD SCHOOLS
Goddard Schools is headquartered in King of Prussia, Pennsylvania and has over 470 early childhood centers across the country that serve over 65,000 children. The company is privately held and is made up of franchises and their revenue information is not publicly available. 
PRIMROSE SCHOOLS
Primrose Schools, headquartered in Marietta, Georgia, has 472 current early childhood centers across the nation. They have no recent enrollment information available to the public, but a report from 2014 shows that they had 60,000 enrolled children that year, and since the company has grown steadily we can assume that they have more than that number today. The company is privately held and is made up of franchises and their revenue information is not publicly available. 
THE LEARNING EXPERIENCE
The Learning Experience, headquartered in Boca Raton, Florida, has 281 early childhood centers across the nation. They do not have any public information regarding the total number of enrollments. They are a privately held franchise company and the revenue for the company as a whole is not publicly available.
CONCLUSIONThe top seven early childhood education companies in the United States have between 200 to over 14,000 locations across the country. Details for each company can be found in this spreadsheet.

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Early Childhood Education Major Companies - Northeast

The 10 biggest childhood education providers in the Northeast region of the US based on the number of students are the United Talmudical Academy of Kiryas Joel, Central UTA School, Bais Rochel School, North Star Academy Charter Schools of Newark, United Talmudical Academy, TEAM Academy Charter School, Sheri Torah — V'Yoel Moshe, Yeshivah of Flatbush — Elementary School, P.S. 19 — Marino Jeantet, Bnos Yisroel Girls' School of Viznitz. All the data including annual revenue, profitability, number of locations, number of students/families served, HQ location, and ownership (e.g. PE, public, independent) has been compiled in the attached spreadsheet.
METHODOLOGYWe used the following guidelines to compile our research. To begin, the Northeast of the U.S. is defined by the U.S. Census Bureau as the following nine states: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, and Pennsylvania. 

Then, we used the following definition of early childhood to determine the ages we should include in the research: Early childhood is the period from birth to eight years old. Additionally, early childhood education is "a set of educational strategies specifically designed for students up to eight years old". Therefore, our research includes preschools and elementary schools which are defined in the U.S. as "the main point of delivery of primary education in the United States, for children between the ages of 4–14". 

Finally, we used a pre-compiled list of the biggest primary schools in the U.S., based on the number of students in attendance, to match the schools to the according region, and populate the attached spreadsheet. 
CONCLUSIONThe 10 biggest childhood education providers in the Northeast region of the US based on the number of students are: United Talmudical Academy of Kiryas Joel, Central UTA School, Bais Rochel School, North Star Academy Charter Schools of Newark, United Talmudical Academy, TEAM Academy Charter School, Sheri Torah — V'Yoel Moshe, Yeshivah of Flatbush — Elementary School, P.S. 19 — Marino Jeantet, Bnos Yisroel Girls' School of Viznitz. All the data requested for each of the ten schools has been compiled in the attached spreadsheet. 

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Early Childhood Education Major Companies - South

The 10 biggest childhood education providers in the South region of the US based on the number of students are Georgia Connections Academy, Liberty University Online Academy, Woodward Academy, K12 International Academy, Nesbit Elementary School, Liberty Christian Academy, Hopkins Elementary School, Westminster Schools, Montgomery Academy and Peachtree Elementary School. All the data including annual revenue, profitability, number of locations, number of students/families served, HQ location, and ownership (e.g. PE, public, independent) has been compiled in the attached spreadsheet.
METHODOLOGYWe used the following guidelines to compile our research. To begin, the South region of the U.S. is defined as the following eleven states: Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia.

Then, we used the following definition of early childhood to determine the ages we should include in the research: Early childhood is the period from birth to eight years old. Additionally, early childhood education is "a set of educational strategies specifically designed for students up to eight years old". Therefore, our research includes preschools and elementary schools which are defined in the U.S. as "the main point of delivery of primary education in the United States, for children between the ages of 4–14". 

Finally, we used a pre-compiled list of the biggest primary schools in the U.S., based on the number of students in attendance, to match the schools to the requested region. 
CONCLUSIONAll the data requested for each of the major schools in the southern region of the U.S. has been compiled in the attached spreadsheet. 

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Early Childhood Education Major Companies - Midwest

In the Midwest, major players in the early childhood education space include Goddard School, Primrose School, Kiddie Academy, and Bright Horizons, among others. I've identified nine companies in total that qualify as major players in the space, based on prominence in the Midwest specifically as well as their number of locations, enrollment, or revenue. You'll find all the details on the spreadsheet, and I've included some highlights below.
EDUCATION PROVIDERS, MIDWESTGoddard School - $2.3 million revenue, 470 locations 
Primrose School - $43 million revenue, 350 locations 
Kumon - $806 million revenue, 1,500 locations 
Kiddie Acadamy - $12.2 million revenue, 180 locations 
The Learning Experience - $42.6 million revenue, 200 locations 
Le Petite Academy  - $3 million, 590 locations 
Rainbow Child Care Center - $4.5 million revenue, 135 locations 
Bright Horizons - $1.7 billion revenue, 1,035 locations 
Kindercare - $1 billion revenue, 1,700 locations 

conclusionTo wrap up, major providers of early childhood education in the Midwestern USA include Kindercare, Bright Horizons, Primrose School, and Rainbow Child Care Center. 

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Early Childhood Education Major Companies - West

Seven major providers of early childhood education in the West region of the United States according to the number of centers they have in the West are Kindercare, Bright Horizons, La Petite Academy, Primrose, Safari Kid, The Learning Experience, and The Goddard School. All requested details for these seven operators have been listed on the "West" tab of the attached spreadsheet.
MethodologyFor the purposes of this research, the states in the West region of the United States are: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Most information was pre-compiled, except for the number of students attending centers in the West. For all companies except La Petite Academy, the triangulation for the approximate number of students attending West centers is as follows:

Total number of students attending all schools divided by the total number of all schools = the average number of students attending each school.

The average number of students attending each school multiplied by the number of schools in the West = approximate total number of students in schools located in the West.

For La Petite Academy, the triangulation was different because the total number of students attending La Petite Academy schools was not available. However, I was able to find the number of students enrolled in seven West locations to obtain a rough average of how many students attend each school in the West. The calculation is as follows:

 Concord, California: 38 students enrolled
 Pleasanton, California: 50 students enrolled
 Richmond, California: 42 students enrolled
 Riverside, California: 34 students enrolled
 Avondale, Arizona: 42 students enrolled
 Las Vegas, Nevada: 110 students enrolled
 Fairview, Oregon: 130 students enrolled

Total enrollment for seven West region schools: 446

446 / 7 = 64 (average number of students per school)

Total West region La Petite Academy schools: 90

90 x 64 = 5,760 approximate total enrollment in West region La Petite Academy schools.

 Safari Kid did not provide any enrollment numbers for any of its centers and as such, I was unable to provide an approximate number of students enrolled in the company's 22 West region schools.

 Profit was only available for Bright Horizons, as it is the only public system on the list. The other six schools are private and are therefore not required to disclose their profits.
ConclusionBased on the number of centers operated in the West region of the United States, Kindercare is the top early childhood provider, with 304 centers in the West region. Bright Horizons is second, with 106 centers in the West.