China Preschool and Childcare Market to Grow by USD 9.47 Billion (2024-2028) as Established International Players Gain Pricing Leverage, with AI Impacting Market Trends- Technavio

NEW YORK, Oct. 16, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The Preschool or Childcare Market in China  size is estimated to grow by USD 9.47 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  12.2%  during the forecast period. Established and international players have pricing leverage is driving market growth, with a trend towards increase in educational expenditure in chinese households. However, covid-19 pandemic-like scenarios may hinder growth  poses a challenge - Key market players include 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, Shanghai American School, Soong Ching Ling School, The International Montessori School, and Yew Chung International School of Shanghai.

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Key Market Trends Fueling Growth

China's urbanization and rising living standards have significantly increased disposable income for its citizens, leading in education expenditure. According to the Seventh National Population Census, approximately 63.9% of China's population resided in cities in 2020, and this number is projected to rise. This economic growth enables Chinese parents to invest in high-quality education for their children. The education sector, including preschools and childcare centers, has become a substantial part of urban family consumption. Additionally, the popularity of private tutoring schools offering value-added lessons and training contributes significantly to children's education in China. Vendors like Etonkids Educational Group provide daily health checkups to notify parents of their children's physical health and growth. The importance of education in Chinese culture, family structure, and social status further reinforces this trend. Consequently, the increasing disposable income and the value placed on education are expected to fuel the growth of the preschool and childcare market in China during the forecast period. 

The preschool and childcare market in China is experiencing significant growth due to the increase in nuclear families, working women, and rapid urbanization. With an expanding urban population and infrastructure, disposable income is on the rise, creating opportunities for organized players in the early education sector. Franchise-based models like Kidzee, Bachpan Global, Shemrock Play School, Kangaroo Kids, Hello Kids, Little Millennium, and Podar Jumbo Kids are leading the way. Trends include tech-driven learning, personalized education approaches, bilingual education, and international curricula. Maintaining quality standards is crucial with high operational costs. The Ministry of Education is implementing educational policies to address the investment gap and improve early education. Anganwadi centers and preprimary sections are also expanding, offering comprehensive care including full day and afterschool care. Tech-savvy parents prefer e-learning tools and digital classrooms for their holistic child's physical, cognitive, and emotional growth. 

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Market Challenges

• The preschool market in China has been significantly impacted by the COVID-19 pandemic, with traditional preschools facing closures since March 2020. Parents, particularly those experiencing financial hardships due to job losses and pay cuts, have reduced spending on technology for online learning. Children's susceptibility to the virus and parents' concerns over their safety have led to an increase in homeschooling. These factors have adversely affected preschool vendors' business operations and revenues, potentially limiting enrollment and hindering market growth during the forecast period.
• The Chinese preschool market, featuring brands like Kidzee, Bachpan Global, Shemrock Play School, Kangaroo Kids, Hello Kids, Little Millennium, and Podar Jumbo Kids, faces challenges in maintaining quality standards with high operational costs. Urban population growth and infrastructure development create an investment gap. The Ministry of Education's educational policy prioritizes early education, with preprimary sections in schools and Anganwadi centers, but the demand for personalized tech-driven learning and comprehensive care exceeds the supply. Private preschools cater to tech-savvy parents seeking professional care, while publicly-owned preschools serve infants, young toddlers, and preschoolers aged less than 2 to 4 years. The market requires significant investments in technology in education, such as e-learning tools, to meet the needs of the growing population. Ownership models include both private and publicly-owned preschools, offering full day care, afterschool care, and formal schooling for children aged 2-6

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Segment Overview 

This preschool or childcare market in China report extensively covers market segmentation by

1. Service 
• 1.1 Full-time preschool or childcare
• 1.2 On-demand preschool or childcare
2. Age Group
• 2.1 Children aged below 3 years
• 2.2 Children aged between 3 and 6 years
3. Ownership 
• 3.1 Public preschool or childcare
• 3.2 Private preschool or childcare
4. Geography 
• 4.1 APAC

1.1 Full-time preschool or childcare-  In China, full-time preschool or childcare education is gaining popularity among parents due to its long-term benefits for children's development. Parents place great importance on a comprehensive curriculum to prepare their children for international education standards. The Chinese education system is known for its rigidity, focusing mainly on curriculum and assessments. However, with the rise of international schools in China, the K-12 and higher education levels are undergoing significant changes. Parents, who are predominantly the millennial population, understand the challenges they faced in the globalized workforce and want to provide their children with a well-rounded education during the critical 0-8 years. Full-time preschools offer a structured curriculum, calendar, and personality development activities, making them an attractive option for parents. Vendors like Crestar Education Group provide dance, speech and drama, language, music, art, abacus, mathematics, and Chinese language tuition through their brands Kinderland and ELFA. The growth of the preschool or childcare market in China is expected to increase as more parents recognize the benefits of full-time education for their children.

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Research Analysis

The preschool and childcare market in China is experiencing significant growth due to rapid urbanization and the increasing number of nuclear families with working women. With disposable income on the rise, organized players are capitalizing on the demand for comprehensive care through franchise-based models. These learning institutions offer a holistic approach to child development, focusing on physical, cognitive, and emotional growth. Bilingual education and technology integration, including digital classrooms and e-learning tools, are becoming increasingly popular. Anganwadi centers and preprimary sections in publicly owned preschools coexist with standalone, privately owned preschools. Tech-savvy parents seek full day care, afterschool care, and ownership options for their less than 2-year-old infants. The market caters to the needs of the growing population of young children with various offerings, including less than 2 programs and technology integration.

Market Research Overview

Preschool and childcare markets in China have seen significant growth due to rapid urbanization, working women, and nuclear families seeking quality early education for their children. With increasing disposable income, organized players have entered the market, offering franchise-based models and tech-driven learning. Holistic child development is a priority, focusing on physical, cognitive, and emotional growth. Bilingual education and international curricula are popular, with brands like Kidzee, Bachpan Global, Shemrock Play School, Kangaroo Kids, Hello Kids, and Little Millennium leading the way. Maintaining quality standards is crucial, but high operational costs remain a challenge. The Ministry of Education and educational policy play a role, with Anganwadi centers and preprimary sections also present. Standalone preschools, tech-driven learning tools, and e-learning platforms cater to tech-savvy parents. Comprehensive care, including full day care and afterschool care, is in demand, with ownership models ranging from publicly-owned to privately-owned preschools. The market serves infants, young toddlers (less than 2), preschoolers (2-4 years), and children of all ages preparing for formal schooling. Investments continue to flow into the sector, bridging the investment gap and addressing population growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Service
• Full-time Preschool Or Childcare
• On-demand Preschool Or Childcare
• Age Group
• Children Aged Below 3 Years
• Children Aged Between 3 And 6 Years
• Ownership
• Public Preschool Or Childcare
• Private Preschool Or Childcare
• Geography
• APAC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio