Kids birthday industry Canada

Part
01
of three
Part
01

Kids' Birthday Industry Canada: Statistics

While there are no definitive sources available in the public domain providing the amount parents spend on average for their child's birthday in Canada, it is estimated that roughly three in five parents spend under $200 for their kid's birthday party. In addition, there were 376,291 children born in Canada in 2017, and the average cost of raising a child in Canada is CAD $17,000 per year.

BIRTHDAY EXPENDITURE PER FAMILY

  • On an average, a parent spends between $150-$250 on their kid's birthday party.
  • According to a survey conducted by T. Rowe Price in the United States, excluding presents 33% of parents spend less than $100 on a child's birthday party; 26% spend between $100 to $199; 18% spend between $200 to $299; 23% spend $300 or more; 31% spend less than $100; while 28% spend between $100 to $199 on birthday presents; 17% spend between $200 to $299 on birthday presents; and 24% spend $300 or more on birthday presents.
  • According to a survey conducted by Baby Center, 26% of parents in the United States spend $500 or more on the first birthday party.
  • Baby Centre survey results also revealed that 25% of parents in the United States spend between $200 to $500 on a single party and 11% spend over $500.
  • Based on T. Rowe Price's findings, it is calculated that 59% (33%+26%) spend less than $200 on their kid's birthday party.
  • According to Baby Centre's estimates, 64% (100%-25%-11%) of parents spend less than $200 on their kid's birthday party. Therefore, the median spend on birthday parties is likely to be in the range of $100-$199.
  • A custom birthday cake costs up to CAD 100 ($75) and renting a room for the birthday party costs up to CAD 200 ($150).

NUMBER OF BIRTHDAY PARTIES A CHILD ATTENDS

  • Data on the birthday party industry in Canada is "hard to come by". However, The Globe and Mail, Canada makes references to a study done by Lumos, a UK-based research firm, which found that the average child attends five birthday parties a year.
  • The average kid's birthday party has 10 guests.

NUMBER OF BIRTHS (2005-2017)

BIRTHDAY SEASONALITY

  • The percentage of births/birthday's in and around summer (June to September) in Canada is 35%; in and around winter (November to February) it is 31.33%.

COST OF RAISING A CHILD

  • According to Statistics Canada, the average cost of raising a child from birth to the age of 18 is CAD $253,956 ($190,876). This translates to an average yearly spend of CAD 14,109 ($10,604).
  • According to the US Department of Agriculture, the average cost of raising a child from birth to the age of 18 for a middle-income couple with two children is CAD $308,000 / $233,000. This translates to a spend of CAD $17,000 ($12,777) per year.
  • The breakup of the expenditure:
    • Housing: 27%
    • Food: 17%
    • Transportation: 14%
    • Childcare/daycare: 12%
    • Healthcare: 9%
    • Extra-curricular: 9%
    • Education supplies: 6%
    • Clothing: 5%
    • First-year cost: 1%

  • The Canada Child Benefit, an initiative to encourage Canadians to start families, gives parents benefits of CAD $6,400 ($4,810) for children under six years and CAD $5,400 ($4,059) for children between six and 17 years.

RESEARCH STRATEGY

Research began through reports and studies that cover the birthday party market in Canada. This includes portals on parenthood and parenting such as Today's Parent, BC Parents News Magazine, Six Time Mommy, and City Parent. However, pertinent information regarding the cost of a birthday was not present. Following this, we searched media sources like The Globe and Mail, The Loop, Global News, and CBC for any reports pertaining to birthday parties kids attend and the annual expenditure on gifts given at birthday parties. The more the number of parties attended, the greater the gifting expenditure.

Researched also included any birthday party-specific peer related coverage and social media based reports. While we were able to find related articles to the same, none of them contained the average number of parties attended by kids in Canada or North America. An article in The Globe and Mail pertaining to the birthday market in Canada makes references to a UK study that found that the average kid attends 5 birthday parties a year. While the statistic is dated, it is reasonable to expect the number has not changed drastically. Also, though the article was updated as in 2018, the statistic was not updated.

Also, please note that the most recent north statistic published by Statistics Canada is for the year 2017.

CALCULATIONS FOR AVERAGE BIRTHDAY PARTY EXPENDITURE PER FAMILY

    33% parents spend less than $100 on a child's birthday party.
    26% spend between $100 to $199 on a child's birthday party.
    18% spend between $200 to $299 on a child's birthday party.
    23% spend $300 or more on a child's birthday party.

We calculated the average using middle values of the ranges. For example, as 26% parents spend $100-199 on their child's birthday party, we assumed that 33% of parents spend an average of $150 (middle value of 100-199 range) for their kids birthday party.

Therefore, the average birthday expenditure per family = (33%*$50 + 26%*$150+18%*250+23%*$300) = $169.5

As the lower limit of the $300+ range has been used for calculating the average, it is likely that the actual number is higher than what we calculated. While we could not triangulate the average accurately, it helped us define a range. Based on the calculations, the average is likely to be in the range of $150 to $250 per birthday party.


Part
02
of three
Part
02

Kids' Birthday Industry Canada: Current Trends

After an exhaustive search of market reports, expert analysis, news articles, event planner and birthday parties supplier websites, the research team was unable to compile at least five key current trends in kids birthday parties in Canada. However, the research team was able to gather two key trends in kids birthday parties in Canada; these two trends include two toonie parties and toy-sharing subscriptions.

1. Two Toonie Parties

  • Canadian kids have “two toonie” parties, where the birthday celebrant is gifted two $2 coins and they keep one two-dollar coin and give the other to charity.
  • IMPACT ON INDUSTRY: Natalie L. Moser, Ph.D., director of the Michigan State University Psychological Clinic and Gerson Family Mental Health Initiative has stated that the trend has potential to teach kids that birthdays aren’t all about unwrapping presents and receiving gifts.
  • DRIVING FACTOR: It keeps bulky or unwanted gifts out of the birthday kid’s house and at the same time, removes the stress of gift-buying from the guests’ parent.
  • EFFECT ON PARTY EXPENDITURE: Other than the part where the child doesn’t end up with a pile of gifts, everything including the games and food remains the same. So, there is not much effect on party expenditure.

2. Toy-sharing subscriptions

  • Toy companies are getting in on subscription services, which comes across as a great option for parents who want to cut down on unwanted gifts.
  • IMPACT ON INDUSTRY: The new trend is creating controversy among parents. While some believe that most kids have way too much stuff, the others feel that asking for specific things from peers for the birthday child is inappropriate.
  • DRIVING FACTOR: The idea is to eliminate the possibility of having duplicate items. The host, as well as the guests, can also see what has already been purchased from the list of toy-sharing subscriptions.
  • EFFECT ON PARTY EXPENDITURE: The trend helps parents implement a budget and limits guests on the birthday gifts for kids.

Other findings

  • According to the Huffington Post, some other kids' birthday trends for 2019 as per Pinterest are chalk drawings, number-shaped cakes, scavenger hunts, backyard parties, flower garlands, enchanted forest parties, donuts decor, and smoke bombs.

Research Strategy

To identify current trends in kids birthday parties in Canada, we commenced our research with articles, surveys or studies conducted by media sources that cover the party industry in Canada. We looked through sources such as HuffPost, Delish, Global News Canada, and many others. Our definition of current trends were the trends identified and mentioned in multiple sources. While HuffPost provided a list of trends as identified by Pinterest, no additional sources were found that corroborated the findings and were, therefore, not included our identified list. This strategy only identified two trends that have been presented above.

As a second strategy, we broadened the premise of the research and looked for trends in birthday parties in general in North America, which are also applicable to kids in Canada. We searched for publications and blogs by event planners such as One Fine Day Event Planning and Fab Fete Planning Boutique to see if we could identify what is popular among kids in Canada. We also scanned through their social media accounts such as Pinterest and Instagram for a deep dive into their work. Unfortunately, these sources only focused on what their ideas are and what they can offer instead of what is popular among the masses.

Next, we shifted our focus to individual products which are often found in kids birthday parties such as cake, party decor items, and games. We looked through company websites, blogs and other resources of suppliers of these products including, but not limited to bakeries and party supplies stores such as Diamond Decor and openaparty.com. The idea was to find any particular type of cake or type of decoration or theme which is popular among Canadian Kids parties by multiple suppliers. Unfortunately, these suppliers only talked about their offerings and no relevant information was found that could be identified as current trends. After conducting thorough research, the research team has concluded that no major studies or surveys have been conducted that can be used to identify current trends in kids birthday parties in Canada.
Part
03
of three
Part
03

Kids' Birthday Industry Canada: Competitors

MakerKids, Kids Kingdom, and KoalaKidz are the top 3 competitors in the Canadian kids' birthday space. More information regarding venues and gifts in this space is provided below.

PROVIDERS

MASTERKIDS

What the company is doing:

KIDS KINGDOM

What the company is doing:

KOALAKIDZ

  • Koalakidz Indoor Playground, is a 10,000 sq. ft facility that includes many fun activities for all the family.
  • Safety is a top priority at this company and their indoor playground equipment is made in Canada and has the highest safety standards.
  • Among its features are six multiple colossal slides, tunnels to play hide-and-seek, mini soccer sets, mini basketball sets, electronic games, and many others.

What the company is doing:

  • It offers the following packages: Kidz Birthday Party which costs $195.00 and attends up to 15 guests; Koala Birthday Party which costs $295.00 and attends up to 20 guests; Premium Birthday Party which costs $395.00 and attends up to 30 guests; Royal Birthday Party which costs $495.00 and attends up to 40 guests; Supreme Birthday Party which costs $595.00 and attends up to 60 guests; Deluxe Birthday Party which costs $795.00 and attends up to 80 guests; and Private Birthday Party which costs $1395.00 and attends up to 150 guests.

VENUES

CANADIAN CANOE MUSEM

  • The Canadian Canoe Museum is a venue for birthday groups and has an experienced and caring staff.
  • It offers the Birthday Camp-In plan for kids between 2 and 5 years old. Among its features are tunnels, tents, and a water table. It costs $285 for 15 kids and their parents and it can handle a maximum of 30 persons.
  • Their Arctic Adventures plan is for kids between 6 to 8. Additional activities include a visit to the Puppet Theatre and the rocking canoe. It costs $20 per child, and handles up to 20 participants.
  • It also offers the Sleepover Adventure plan, which is unique ‘camping’ experience, which costs $600 and has space for up to 15 children.

OTHER VENUES

  • Other major venues include: Laser Dome Plus (Burnaby), The Edge Climbing Centre (North Vancouver), Adventure Zone (Vancouver), Grandview Lanes birthday parties, Creative Music Centre (Vancouver), CircusWest (Vancouver)s, and Kidoodles Art Studio (Burnaby).
  • Additional more venues are Greater Vancouver Zoo (Langley), Extreme Air Park (Langley, Richmond), Koko’s Activity Centre (Coquitlam), Honeybee Centre (Surrey), and Cineplex Odeon (many locations).

GIFTS

  • ECHOage is a provider of gifts, which include E-invitations, group gifts, as well as charitable giving.
  • Popular gifts for kids include products like kidMoon nightlight, Jetpack Backpack, Cineplex Holiday Gift Bundle, Sleepover kit, Wooden jewelry box, Birdfeeder kit, Balance blades, Singer EZ Stitch sewing machine, and Kidizoom Action Cam 180.

OTHER FINDINGS

  • Kids Market, located in Granville Island Vancouver, offers outdoor entertainment as well as the many indoor activities.
  • It was created in 1984, it features "wood-beam ceilings, large windows and an airy market design". It was voted as one of "Vancouver’s top family destinations", it featured on SACHA! DeVORETZ blog in 2018, and it was listed in the top 3 favorites in the Westcoast Families Reader’s Choice Award for Best Local Family Attraction Category in 2013.

Research Strategy:

In order to identify the top 3-4 competitors in the Canadian kids' birthday space regarding venues, providers, and gifts, our team initially explored the pre-identified reports in search for the top competitors in the specified industry. But there was no information that could let us identify the top 3 competitors.
Next, we decided to explore the most popular kids' birthday companies among the parents of Canada. This strategy helped us to identify popular companies among parents and celebrities.
As there were no credible sources to rank the top 3 competitors, we consulted celebrity parents reviews, testimonials, and popularity among parents. With this information, we categorized the top 3 companies in the Canadian kids' birthday space.
Then, with the help of Zoumzoumparty and Canadian Canoe Museum, our team identified the most popular venues for celebrating kids birthday parties.
Finally, through Huffingtonpost and Echoage website, our team categorized the most popular gifts among the kids' birthday space in Canada.



Sources
Sources

From Part 01
Quotes
  • "Beyond the likes and retweets, the cost of raising a child in Canada is expensive! It’s generally estimated that raising a child will cost you $10-15,000 a year until the age of 18 in Canada. "
Quotes
  • "In terms of yearly costs, life in Canada is a bit kinder on your pocket overall due to the Canada Child Benefit which is a government initiative created to encourage starting families to combat its ageing population. This benefit gives parents $6, 400 CAD for children under six-years-old and $5, 400 CAD for children between six and 17-years-old. "
  • "On top of this, residents also receive tax breaks for listing their children as dependants and it only costs an additional $20 CAD to add the child to medical aid schemes."
  • "If one considers that the U.S. spends an annual $50, 000 CAD more on daycare due to the strict parental leave regulations mentioned above and that a child in Canada costs its parents $12, 000 CAD per year, there is no competing with those benefits."
  • " Furthermore, even if one were to consider a family of six with four children living in a moderate region of Canada, the total childcare expenses would still be less than a year of daycare in the States at $48, 000 CAD."
Quotes
  • "In Canada, an estimate released two years ago pegged the annual cost of raising a child at $13,366. "
  • "Financial planner Shannon Lee Simmons has come up with this list of average costs for raising a child in Toronto. She pegs daycare at $1,600 a month and activities at between $500 and $8,000 a year."
Quotes
  • "According to the most recent numbers from Statistics Canada, the average cost of raising a child from birth to 18 years old is $253,956. At over a quarter million dollars, children aren’t cheap."
Quotes
  • "According to new findings released by the United States Department of Agriculture, $233,000 USD, or $308,000 Canadian, roughly. That number, which breaks down to about $17,000 CAD a year, represents the average spend for a middle-income couple with two children."
Quotes
  • "While figures on the birthday party industry in Canada are hard to come by, Statistics Canada says there are 5.5 million children 13 and under – a huge market for special events companies."
  • "Children attended an average of five birthday parties in the last year, according to the survey."
Quotes
  • "The author argued that while fi gures on the birthday party industry in Canada were hard to come by, Statistics Canada said there are 5.5 million children 13 and under – “a huge market for special events companies.” "
Quotes
  • "According to a poll conducted by Vouchercloud earlier this year, the average kid’s party currently comes in at around £320.50. "
Quotes
  • "On just first birthday parties alone, 26 percent of parents spend $500 or more according to a survey conducted by babycenter.com. "
Quotes
  • "According to a T. Rowe Price 2016 Parents, Kids & Money Survey, sixty-seven percent of parents said they spent more than $100 on their child’s birthday party and nearly a quarter said they spent over $300, and that’s just the party, not including the birthday presents."
  • "With the average birthday party having about 10 guests, at $100 dollars, that is $10 or more per guest, and at $200 to over $300, that is $20 to $30+ per child’s party guest, just for the party. "