Procurement Market Intelligence Report

Child Day Care Services
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Child Day Care Services Global Overview

Definition

Summary

This market consists of home- and center-based establishments that provide supervision and educational programs to infants and children during the day. These services are designed to support the emotional, social, physical and intellectual development of each child and infant. Suppliers generally care for preschool-aged children but may also care for older children when school is not in session, such as during the summer or after school. Common buyers include households, businesses, government agencies and adoption and child welfare service providers. This report excludes in-home day care and babysitting cooperatives.

This Report Includes:

  • Day Care
  • After-School Care
  • Summer Care

Not in this Report:

  • In-Home Day Care
  • Babysitting Cooperatives

Global Child Day Care Services Market - Suppliers by Region

Country/Region Number of Suppliers
#1 China 516,495
#2 Europe 483,575
#3 Africa & Middle East 106,330

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

2

Geography Drilldown - US

Average Cost of Child Day Care Services

United States

2026 Market Pricing
$300.00 to $X,XXX.XX
per month

Average Price

Prices in the Child Day Care Services market range from $300.00 to $X,XXX.XX, depending on Location, Type of Childcare, Child's Age and Length of Service. For example, lower prices are associated with Low income per capita ($350 to $800 per month) and Rural ($300 to $400 per month), whereas higher prices are associated with High income per capita ($1,000 to $2,000 per month) and Urban ($1,000 to $2,000 per month).

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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.

Child Day Care Services Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Child Day Care Services market, prices in the US have grown 0.7% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more

United States (2022-2025)

0.7%
Compound Annual Growth Rate
United States (2025-2028)

Compound Annual Growth Rate

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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.

Cost Analysis - Total Cost of Ownership for Child Day Care Services

Total cost of ownership is Medium in the Child Day Care Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.

Negotiated Before

Pre-evaluation

When evaluating different suppliers, buyers typically undergo an assessment to determine the needs of the child receiving supervision. Some day-care centers have established curriculums that include all extracurricular activities in a single fixed price, while others allow buyers to select additional programs to enrich the daily care schedule.

Set Up Fees

Suppliers may charge additional fees for supplies and registration.

Billed During

Labor

Buyers may encounter difficulty finding day-care centers that are open on holidays. Some suppliers have set holiday periods during which they still receive payment through a contract, but do not provide their day-care services.

Unforeseen

Emergencies

Some suppliers will not reduce tuition fees due to a child's illness or the emergency closure of the center.

Buyer Power in Procurement Negotiations

In 2026, buyer power amounts to 1.6 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States

1.6

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Supply Chain Risk

The average level of supply chain risk is assessed as Very Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Book Stores
  • Computer Stores
  • Furniture Wholesalers
  • Toy & Craft Stores

2nd

Tier Suppliers

  • Book Publishers
  • Computer Manufacturers
  • Toy, Doll & Game Manufacturers

Biggest Child Day Care Services Suppliers in the US by Revenue

The largest Child Day Care Services vendors by revenue in the US are KinderCare Education LLC, Learning Care Group, Inc. and Bright Horizons Family Solutions Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

Supplier Operational Size Headquarters Number of Employees Market Share (%) Market Share Performance (3yr trend) Total Revenue ($ million) Profit Level (%) Risk Level
KinderCare Education LLC National Portland, OR >10,000 < 5
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Learning Care Group, Inc. National Novi, MI >10,000 < 5
Bright Horizons Family Solutions Inc. Global NEWTON, MA >10,000 < 5
Primrose School Franchising SPE LLC National Atlanta, GA 1,001-10,000 < 5
Spring Education Group International Saratoga, CA 1,001-10,000 < 5
The Learning Experience National Deerfield Beach, FL 501-1,000 < 5

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Profit Analysis

The average profit margin across vendors in the Child Day Care Services market is 7.8% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

Although mergers and acquisitions are common in this market, there are more suppliers entering the market each year. Consequently, the high volume of new entrants has been helping to keep market share concentration low during the past three years, thus increasing buyers’ leverage during the negotiation process.

Despite healthy profit margins, the average supplier operates with a moderate degree of financial risk, as most market players operate on a small scale and heavily depend on a particular buyer segment. Larger suppliers are usually more financially stable due to their economies of scale, their various offerings and their operations in multiple geographic markets.

Because of the service-based nature of the market, there is limited supply chain risk. This benefits buyers by reducing the likelihood of service disruptions.

The US is a net importer, meaning they import more than they export. As a result, buyers are advised to ensure that the quality of imports meets American regulatory standards.

Supplier Information

Bright Horizons Family Solutions Inc.

Bright Horizons Family Solutions Inc. is a public company operating globally in the healthcare and social assistance sector. The company's offerings include child day-care services. Founded in 1986, the company is currently headquartered in NEWTON, Massachusetts, United States of America with an estimated... Subscribe to learn more

KinderCare Education LLC

KinderCare Education LLC is a private company operating nationally in the healthcare and social assistance sector. The company's offerings include child day-care services. Founded in 1969, the company is currently headquartered in Portland, Oregon, United States of America with an estimated 10000 employees.... Subscribe to learn more

Learning Care Group, Inc.

Learning Care Group, Inc. is a private company operating nationally in the healthcare and social assistance sector. The company's offerings include child day-care services. Founded in 1967, the company is currently headquartered in Novi, Michigan, United States of America with an estimated 18000 employees.... Subscribe to learn more

Primrose School Franchising SPE LLC

Primrose School Franchising SPE LLC is a private company operating nationally in the healthcare and social assistance sector. The company's offerings include child day-care services. Founded in 1982, the company is currently headquartered in Atlanta, Georgia, United States of America with an estimated 5500... Subscribe to learn more

Spring Education Group

Spring Education Group is a private company operating internationally in the healthcare and social assistance sector. The company's offerings include child day-care services. Founded in 2012, the company is currently headquartered in Saratoga, California, United States of America with an estimated 6000 employees.... Subscribe to learn more

The Learning Experience

The Learning Experience is a private company operating nationally in the healthcare and social assistance sector. The company's offerings include child day-care services. Founded in 1980, the company is currently headquartered in Deerfield Beach, Florida, United States of America with an estimated 750 employees.... Subscribe to learn more

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Procurement Management KPIs for the Child Day Care Services Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Complaints and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Pricing and other factors.

KPI Level of Importance (1-5) Measurements Key Considerations
Customer Complaints

Number of Reviews

Number of Negative Reviews

Number of Customer Complaints

Buyers should determine in what areas customer complaints are concentrated in.

Customer complaints measure the percentage of customers that have expressed dissatisfaction with the vendor's service.

Customer complaints that relate to negligence should be addressed. Buyers should ask their vendor what procedures are in place to ensure that all children are accounted for at all times.

Customer Satisfaction (CSAT)

Number of Customer Reviews

Number of Positive Customer Reviews

Customer satisfaction represents customers’ overall satisfaction with a company.

Customer satisfaction can be used to evaluate a provider's reputation.

Customer satisfaction should primarily be determined through the reviews and testimonials of parents.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Location

Does your day care have relatively new and developmentally appropriate educational tools for children?

If the facility has a playground, does this meet all state safety standards? How do you ensure that the facility is childproof?

Business Continuity

How do unemployment levels affect your business? Do you adjust your operations as employment levels shift?

Do you offer incentives or assistance for low or single-income families?

Competition

How does your occupancy rate compare with your competitors? How much of your budget is spent on marketing?

What measures do you take to differentiate yourself from your competitors in such a fragmented market?

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Child Day Care Services RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should describe their organization, including what they do, their size and where they are located.

Buyers should provide details on the type of child day-care services they are currently using and are hoping to source.

Statement Of Need

Buyers should detail the scope of work (e.g. nutritional, health, behavioral and educational programs) that they require.

Buyers should include the times and locations the child day-care services must operate.

Project Budget

Buyers should specify their budgets for child day-care services.

Buyers should detail the cost model and contract term for annual ongoing costs, such as educational programs.

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