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The preschool or childcare market in China is estimated to grow at a CAGR of 11.22% between 2022 and 2027 and size of the market is forecast to increase by USD 7.74 billion. The report includes historic market data from 2017 to 2021. It also extensively covers market segmentation by service (full-time preschool or childcare and on-demand preschool or childcare), age group (children aged below 3 years, children aged between 3 and 6 years), and ownership (public preschool or childcare and private preschool or childcare). This report also includes an in-depth analysis of drivers, trends, and challenges.
Rising demand for sustained enrollment is the key factor driving the growth of the China preschool or childcare market. Although the government in China does not facilitate subsidized education in preschools or kindergartens, there has been a rise in demand for preschool education in the country. However, the government has increased funding for preschool education. Rising disposable income has also created a demand for different types of preschool services. This has allowed domestic and international players to invest in this market
Parents also prefer their children to study at an international preschool. This is because these schools have accreditations that are recognized around the world. Moreover, owing to the increasing number of children enrolled in preschools, vendors are opening new branches to capture market share and sustain in the competitive market in China. Therefore, the development of new preschools or childcare services in China, which offer the above-mentioned types of learning programs for children, is expected to increase enrollment during the forecast period.
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Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3e International School: The company offers child initiated dual language activities for children. Also, it offers preschool activities for children and child-teacher interactions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on Service, the market share growth by the full-time preschool or childcare segment will be significant during the forecast period. In this segment, this education has been observed to have a more lasting effect on children than hourly programs. Parents in China lay significant emphasis on the overall curriculum development of children to prepare them for international standards of education.
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The full-time preschool or childcare segment was valued at USD 6.51 billion in 2017 and continued to grow by 2021. The general education system in China is very rigid, with limited focus on aspects other than curriculum and assessment. Due to the increasing number of international schools in China, the learning process at K-12 and higher education levels is significantly being revamped. Moreover, the current generation of parents in China consists of millennials educated under the traditional Chinese education system. They are also aware of the challenges they faced when entering the globalized workforce. Therefore, as an initiation for the overall grooming of their children during the formative years, parents intend to enroll them in full-time preschools. This is because these schools not only have a set curriculum and framework, but also a well-structured calendar that focuses on the child's learning process and self-development activities. Such factors will increase segment growth during the forecast period.
Growing dual-income households is the primary trend in the China preschool or childcare market growth. The number of working women in China has increased significantly in recent years. According to the World Bank Group, women constituted 48.69% of China's total population in 2020 and almost 43.71% of the country's workforce. Moreover, women are moving from Tier 2 cities to Tier 1 cities in search of better opportunities. An increase in the number of working mothers has led to a rise in disposable income with respect to dual-income households. This has increased the average household income.
Owing to this, an increasing number of families in China can avail of facilities of good preschools for their children. This will enhance the number of enrollments. In such households, parents also have higher awareness pertaining to the benefits of sending children to preschools for learning activities. Furthermore, dual-income households have a good understanding of the types of preschools and are in a position to choose the appropriate preschool for their children. Such factors will increase the market growth during the forecast period.
Increased cost of raising children are a major challenge to the growth of the China preschool or childcare market. The cost of raising a child in China is close to seven times its per capita GDP, significantly higher than in the US and Japan. According to Beijing-based YuWa Population Research Institute, on average, it costs USD 76,760 to raise a child in China. The rapidly increasing education fees are among the major concerns of parents, which may reduce enrollment in preschools or childcare centers. This emphasizes the challenges Chinese officials face as they attempt to address the country's rapidly falling birth rates.
Moreover, the high expense of child-raising is one of the reasons for the rapidly decreasing birth rates. The nation's preschool market's income is impacted by the persistent decline in the birth rate due to all the above-mentioned factors, which also negatively affects the economy's overall growth rate. Thus, the high cost of raising children in the country will negatively impact the growth of the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Preschool or Childcare Market in China Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Preschool Or Childcare Market In China Scope |
|
Report Coverage |
Details |
Page number |
127 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.22% |
Market growth 2023-2027 |
USD 7.74 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.06 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3e International School, Beanstalk Education Group, Canadian International School of Beijing, Crestar Education Group, Etonkids International Educational Group, Fortune Kindergarten, Golden Apple Education Investment Group Co. Ltd, Ivy Education Group, Montessori School of Shanghai, Muffys International Kindergarten, Noah Education Holdings Ltd., RYB Education Inc., Shanghai American School, Soong Ching Ling School, The International Montessori School, and Yew Chung International School of Shanghai |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Age Group
8 Market Segmentation by Ownership
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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