Childcare market

• Total market size: £5 billion per year in revenues
• Projected growth rate: Steady 1-3% annual growth forecast, driven by increasing maternal employment and demand for early education.
• Fragmented market: A mix of nursery chains, independent nurseries, childminders and after-school clubs. No dominant player has over 5% market share.
• Average fees: £130-150 per week for full-time nursery care, representing good revenue potential per customer.
• Staffing costs are high at 60-80% of revenues, compressing profit margins.
• Government funding and tax incentives provide revenue opportunities but compliance requirements.
• Real estate and fixed costs can create high overhead and capital expenditure.
• Demand is largely recession-resistant as childcare is a necessity for working parents.
• Market is underserved currently, with limited flexibility and capacity issues.
• Opportunity for differentiated models like workplace nurseries or tech platforms.

Childcare costs - typical range for childcare costs in England is £5.00 - £7.00 per hour depending on age of child, hours of care, and geographic region.