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What is the market size for babysitting in the US? What is the service's market share in the larger cities of Ohio: Columbus, Akron, Toledo, Cincinnati, Dayton, and Cleveland?
Hi! Thank you for your question about the market size for babysitting in the US in general and in the largest cities of Ohio in particular.
METHODOLOGY
We first researched the babysitting market in the US, then we identified the most appropriate metric that is tied to the market size (the number of households with children under 18) and applied it to the number of households with children under 18 in the largest cities in Ohio.
So let's dive into the results.
US MARKET SIZE
The babysitting market is also not highly covered and in order to obtain the market size, we had to cross reference a few sources. This analysis is also extremely hard to perform as is it is highly likely that the babysitting market has a significant portion of its transactions conducted in cash and are never reported to authorities.
Thus, I decided to rely on a credible source (IBIS World) as well as an industry expert opinion which is very likely based on real marketplace "feel" and knowledge.
According to IBIS World, the babysitting and nannies market is about 29.8% of the total maids, nannies, and gardeners market in the US, which is about $18B in size.
This makes the babysitting and nannies market roughly $5.4B in size as of 2016.
According to this source, Erica Ziedel the co-founder of SittingAround, which is a babysitting startup, estimated the market size as $5B, in 2011.
I find it likely that the market grew by about 8% in this five-year period as growth rates are highly correlated to population growth, and in the same period was about 5.2%.
Thus, I estimate the babysitting market in the U.S. to be about $5.4M in size.
Now, let's calculate the number of households in the U.S. with children under 18. There are 124.6M households in the U.S. and about 42.8% has children under 18, meaning, 53.3M household.
Taking the market size and dividing it by the number of households with children under 18, will give us the average annual spend on babysitting in the US.
$5.4B divided by 53.3M households = $101/year.
Finally, from this survey, we see that Akorn, Ohio is one of the least expensive cities in terms of babysitter rates. with $11.84/hour, which is 12% lower than the national average. If we'll assume Akron is a good representation of babysitter rates in Ohio's largest cities, we can conclude that the average annual spend for households with children under 18, on babysitters in Ohio's largest cities are about $89/year.
OHIO LARGEST CITY MARKET SHARE
The list below show Ohio's largest cities by population. The average household in the U.S. has 2.54 people.
Columbus 850,106
Cleveland 388,072
Cincinnati 298,550
Toledo 279,789
Akron 197,542
Dayton 140,599
Parma 79,937
We can calculate a number of households with children under 18 by dividing the population figure by 2.54 to get the number of households and then multiply it by 42.8% to get to the number of households with children under 18. Then, we can multiply that figure by $89 to get the babysitting market size per year in those cities.
Below is a list of babysitting market sizes in Ohio's largest cities together with their market share of the U.S. babysitter market.
Columbus - $12.7M (0.24% market share)
Cleveland - $5.8M (0.11% market share)
Cincinnati - $4.5M (0.08% market share)
Toledo - $4.2M (0.08% market share)
Akron - $2.9M (0.05% market share)
Dayton - $2.1M (0.04% market share)
Parma - $1.2M (0.02% market share)
SUMMARY
I have provided you with a detailed analysis of the babysitting market in the US and in the largest cities of Ohio.
Thank you for using Wonder! if you have any additional questions, don't hesitate!