Childcare is an essential business and a booming industry. As more families adopt dual-income households and return to normalcy post pandemic, childcare and childcare franchises can expect to regain footing lost to operational challenges due to the pandemic.
Globally, childcare services are estimated to reach $295.99bn in 2021 and continue at a CAGR of 9% to reach $415.96bn by 2025. In the U.S. alone, the childcare market was valued at $54.3bn in 2019 and is expected to expand at a CAGR of 3.9% by 2027.
While childcare endured challenges like other businesses during the coronavirus pandemic, the industry was greatly supported by three COVID-19 relief packages provided by the federal government which totaled over $50bn in dedicated funds. The American Rescue Plan Act, the most recent package, includes $39bn for childcare stabilization efforts. These federal aid packages, along with additional subsidies included in the Build Back Better Plan should substantially benefit the child care industry, especially high quality brands such as Ivy Kids.
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Trends in Childcare
Child education and developmental center franchises in the U.S. have a market size of $3bn, with over 2,000 businesses employing over 55,000 people. The childcare franchise industry can benefit from several factors: economic growth and parental employment, which is driving growth in per capita disposable income; an increase in the number of children age nine and younger; and a sustained demand for high-quality, education-based services.
The childcare industry is emerging from the pandemic stronger and better. Some childcare trends that can lead to further opportunity and innovation within the industry next year include:
Stringent safety protocols
Taking appropriate precautions to curb the transmission of COVID-19 remains a key component to help parents feel confident about sending their children back to outside care. Childcare providers should adopt safety procedures and processes that are dictated by local governments or CDC guidelines. Our state-of-the-art facilities go above and beyond to keep children and staff safe.
Engaging parents remotely
With pandemic precautions and contactless procedures, face-to-face interaction is limited. Parents want to be immersed in their child’s activities and progress through engagement apps, emails, newsletters, shared lesson plans, and emergency updates. Ivy Kids offers full-day monitoring for parents via webcams and a parent engagement app that keeps parents informed of their child’s well-being through updates and pictures throughout the day.
Technology integration
Digital communication is critical, both for parents and staff. Using digital technology such as childcare management systems can help lower costs, streamline operations through automation, boost enrollment ratios, and maintain strong relationships with parents. From time-saving software to streamlined safety procedures, we provide our franchisees with well-designed operations procedures to keep their location running smoothly.
Childcare franchises play an important role in helping children resocialize post pandemic. The balance of routine and recreational activities provides children with social-emotional development that can help bring a sense of normalcy, community, belonging, and socialization to children. Ivy Kids is proud to adopt a unique curriculum based on Howard Gardner’s theory of multiple intelligences so that children can nurture all areas of intelligence.
As the childcare industry gets ready to witness a rise in demand, there’s never been a better time to consider a childcare franchise with Ivy Kids.
Contact us today to learn more about our outstanding franchise opportunities in childcare at Ivy Kids.