Procurement Market Intelligence Report
Child Day Care Services
Sourcing Guide & Market Intelligence
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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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2
Geography Drilldown - US
Average Cost of Child Day Care Services
United States
2026 Market Pricing$300.00 to $X,XXX.XX
per monthAverage 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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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)
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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
Set Up Fees
Billed During
Labor
Unforeseen
Emergencies
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
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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 | ||||
| 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. |
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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Our Reports include:
- Opportunity assessment
- Market dynamics
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- Buyer power levers
- Price environment and market pricing
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- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
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