The market for private nurseries - France (2024)

1.2 The French market has shown strong growth in recent years

Let's take a look at the size of the crèche market in France.

By ****, crèches are expected to generate sales of almost *.* billion euros , and this figure is rising steadily, as the graph below shows.

Size of the private daycare market France, ****-****, millions of euros Source: ****

The first economic barometer for early childhood, published by EY in **** reports that the private sector was able to generate **,*** new places in the sector between **** and ****. This trend is set to continue upwards, as the supply of nursery places is still not keeping pace with strong demand, and is thus driving private sector development. In ****, an article in Challenges gives a figure of **,*** places available in private crèches. The evolution in value can be estimated from the rate of growth in places offered, which has increased at a CAGR of **.*% between **** and ****.

growth in the number of places offered by private day-care centers France, **** - ****, in number of places Source: ****

The evolution in value can be estimated from the growth rate of places offered, which has increased at a CAGR of **.*% between **** and ****.

1.3. The different types of crèches in France

Since the early ****s, a new type of crèche has emerged in France, competing with public crèches.

In France, crèches can be divided into three main categories:

public crèches private crèches community crèches

Below is a breakdown of crèches in France, according to the legal status of the operator:

Distribution of crèche places by legal status of operator France, ****, in Source: ****

Let's take a closer look at the different types of crèche operators in France.

Public managers, accounting for nearly **% of all crèche places in France. This category includes regions, départements, communes, government departments, etc.

The second category is made up of community crèches, which are often managed by an association and linked by an agreement to the town hall of the city in which they are located. They do not necessarily all benefit from Caf subsidies, and are free to set their own rates, making costs variable for parents. Also in this category are the mutualist crèches, of which there are over *** in France, financed by the Prestation de service unique (***).

Finally, we have the commercial sector, the lucrative crèches that generatemost of the new crèche ...

2.1 Demand still outstrips supply

a falling birth rate in France and a consequent drop in the number of potential day-nursery customers

In ****, the number of births in France will continue to fall, with only ***,*** new births recorded, a drop of almost *% compared to ****.

Number of births in France France, ****-****, in thousands Source: ****

In addition, the fertility rate in France is also set to fall, to around *.** in ****.

fertility rate trends in France ****-**** France, ****-****, average Source: ****

Let's take a look at the distribution of children by age in crèches. We can see that in the majority of cases, children are between * and * years old when they are cared for in crèches.

Age distribution of children in crèches France, ****, in % Source: ****

In addition, we can analyze the evolution below of the schooling rate for *-year-olds between **** and ****.

evolution of the schooling rate for *-year-olds between ****-**** France, ****-****, in Source: ****

This rise in the two-year-old school enrolment rate means a drop in the population expected to be accommodated in crèches.

However, there is a growing demand in this sector, and most families who want a crèche place don't have one.

Increased demand

Women's participation in the workforce is on ...

2.2 Day-care centers: in vogue

Let's take a look at the breakdown between different types of childcare in ****. We can see that the majority of children will still be looked after by their families (***).

Breakdown of childcare options in France in **** France, ****, % of total Source: ****

According to an IPSOS survey, for the majority of French people, the move to a crèche remains an essential step in a child's development. Indeed, most parents believe that the crèche is very important for their child's development, whether in terms of social development, motor skills, language or cognitive development.

The transition to crèche: an essential step in a child's development France, ****, in % Source: ****

In light of this vision of the crèche, we have seen an evolution in demand and in the number of babies placed in day-care centers in France since ****.

change in the number of children under * years old on weekdays in day-care centers France, ****-****, in % Source: ****

This increase in the number of children in day-care centers is also due to the fact that the profit-making private day-care sector is the network with the most new day-care places , as shown below.

Contribution of day-care centers to the creation of cribs since **** France, ****-****, in ...

2.3. Sociological analysis of parents who send their children to crèches

The graph below shows that there is a real social disparity in access to crèches in France.

Analysis of occupation of parents of children in day-care centers France, ****, in Source: ****

We can see that the majority of children come from managerial or white-collar families, with nearly **% between them.

We can therefore assume that access to crèches is a budgetary issue for families. This hypothesis is borne out by the graph below, which shows that it is families above the low-income threshold, at **%, who use formal childcare.

Rate of formal childcare for children under *, by income group France, ****, in Source: ****

Rate of formal childcare for children under * years of age France, ****, in % Source: ****

Social inequalities in early childhood have a huge impact on children's lives.

Indeed, a child from a disadvantaged background masters half as many words on average as a child from an advantaged background, which slows down his or her subsequent learning to read. Hence the importance of crèches and "socio-cultural rebalancing".

2.4. Day-nursery satisfaction marred by scandals

Parents' satisfaction with crèches

Parents' confidence in crèches remains very high, despite the shortage of professionals. **% are very satisfied.

Level of confidence (***) when leaving your child at a crèche France, ****, in Source: ****

Similarly, parents continue to appreciate the professional teams. However, more than * out of * parents give them a mark higher than *, and more than half of them give the highest mark.

Level of satisfaction with the team of professionals who look after your children France, ****, in Source: ****

Below, we can see the number of people who answered "I like" to the following private crèche brand.

French people's favorite private crèche brands France, ****, in Source: ****

This result needs to be qualified, as few of the people concerned actually know these private crèche brands. Nevertheless, we can see that Les Petites Canailles tops this ranking.

So, on the whole, parents are very satisfied with the crèches. However, there are a few unfavorable criteria, such as the fact that they are not the most attractive financially (***).

In recent years, however, a number of scandals have come to light concerning the childcare conditions at certain crèches.

In September ****, Victor Castanet published his book"Les Ogres", highlighting ...

3.1 Types of financing

Let's take a look at the value chain in the nursery market.

Source: ****

Municipal crèches under public service delegation (***) ;

These are traditional neighborhood crèches, operated by a private player on behalf of a local authority. This is possible within the framework of a public service delegation (***) for operations. For information purposes, a full PSD is defined as the creation of a facility from scratch, in addition to its operation. Places in municipal crèches are allocated by the town council, and the maximum capacity is **;

Company crèches (***);

There are two types: single-company (***) can set up a crèche.

Micro-crèches (***);

These have a capacity of just ** children. They may be run by private operators. In this case, they usually charge families free of charge (***).

3.2 Childcare financing methods

How is a crèche financed?

In France, the financing of day-care centers is quite complex. In fact, it combines funding from families, reservation employers and a number of public bodies: CNAF (***), the State and local authorities. The aim of this section is therefore to provide an overview of the different types of aid available in France in ****.

Two models for financing operators

In order to finance their operations, childcare providers rely on two funding models: the PSU (***). The breakdown of these financing methods in the French EAJE landscape is as follows:

Breakdown of day-nursery managers by financing method France, ****, in Source: ****

Single service provision (***)

The PSU was introduced in ****, based on the principle of a single hourly rate. The CAF provides the PSU in exchange for a guarantee that all families will be charged the same hourly rate. This operating aid is equal to **% of the child's hourly cost, up to the ceiling set by the CAF, minus family contributions. Since ****, it has been modulated according to the service provided. In ****, the Cnaf has decided to increase the PSU by *% of its amount, in order to cope with the effects of the health crisis and the challenges posed by the ...

3.3 A structural weakness: a lack of professionals

Let's begin by analyzing the breakdown of professionals by position.

Breakdown of training courses for nursery managers France, ****, in Source: ****

We can divide ECEC staff into two categories:

Category * qualified staff Staff with a qualification defined by decree

Within an EAJE, at least **% of the staff responsible for supervising children must hold Category * qualifications.

Category *

Early childhood educators: support parents and families by implementing an educational, pedagogical and social project. They design activities to promote child development. Nursery nurses: assess children's physical and psychological development and ensure their good health. Auxiliaire de puériculture: carry out stimulation and care activities to promote the child's well-being, autonomy and development.

Category *

Early childhood educational assistants: nursery workers, early childhood animators, childcare assistant or animation agents.

Now, let's take a look at the issues facing early childhood professionals.

Low pay

The graph below shows that the salaries of early childhood supervisors are low compared to the French average.

Average annual salary for early childhood professionals France, ****, in euros Source: ****

Occupational risks

There has been an increase in sick leave and work-related accidents among early childhood professionals.

Insufficient qualifications

What do you think are the reasons for this difficulty in recruiting? France, ****, in Source: ****

According ...

4.1 Supply typology: between concentration and the desire to diversify

The private day nursery market in France is highly concentrated. Only * major crèche groups share the market in France:

The Babilou group: network of almost *,*** establishments throughout France, present in ** countries. The Grandir - Les Petits Chaperons Rouges group: manages *** establishments, with an international presence (***). La Maison Bleue group: manages nearly *** day-care centers and is also present abroad. The People&Baby group: manages *** facilities in ** countries, including *** in France.

Number of facilities managed by the big * crèches France, ****, in number of establishments Source: ****

Towards diversification

All day-care centers offer the same services, apart from a few details: childcare, early-learning activities, naps, meals, etc. This makes it difficult to stand out from the crowd. This makes it difficult to stand out from the competition. To stand out from the competition, the offer relies heavily on image and on the pedagogical project.

At first glance, it seems that this desire to differentiate is of little use, given that demand outstrips supply. Indeed, the new managers have no trouble filling their places.

But this differentiation isn't just aimed at attracting families, it's also aimed at companies (***) who have no trouble finding places. Indeed, a company looking to guarantee places for its employees ...

4.2 Price typology

The rate is regulated by the CAF, so the Babilou website offers a price simulator that gives us the following table of prices in ****.

Source: ****

The formula used is as follows

(***)

Example: If a family has * children, a net monthly income of €*,*** and would like to have their child looked after * days a week, at a rate of * hours per day:

Cost of nursery place = **** x *.****** x * x (***) = €***/month[***].

4.3 Trends in nursery provision in France

Decline in overall supply, but increase in the ECEC sector

There has been a decline in the total number of places for all formal childcare options, as shown in the graph below.

Trend in total number of places in formal childcare facilities France, ****, in millions Source: ****

At the same time, however, the number of places available in childcare establishments is increasing.

number of places available for children under * years of age in childcare facilities France, ****, in % Source: ****

Trend towards digitalization

Private crèches have developed their offer by exploiting digital progress to propose new forms of interaction between parents and their child in crèche.

One example is the French company Les Petits Chaperons Rouges, which has developed an application described as "a veritable open window", enabling parents to access content relating to their child's activities within the childcare facility. This digitalization of the offering makes communication easier between parent and daycare center. [***]

The same line of development has been followed by major player Babilou Family with the introduction of BabilouApp and its Espace Parent. The main aim of these initiatives is to facilitate interaction between parents and professional teams. BabilouApp is described by the company as "the social network of ...

5.1 Legal framework and standards

Quality standards

An EAJE can only be managed by a doctor, a nursery nurse with * years' experience, or an early childhood educator with * years' experience in structures with fewer than ** places.

If an EAJE has more than ** places, an early childhood educator is mandatory.

If an EAJE exceeds ** places, a sub-directorate comprising a nurse, a nursery nurse and an experienced early childhood educator is required. [***]

Quantity standards

The statutory limit of ** places may be exceeded, provided that the average weekly occupancy rate does not exceed ***% of the capacity. (***)

Legal framework

The regulatory framework for the supervision of day-care centers is defined by three reference texts.

Decree no. ****-*** (***): diploma and experience requirements for supervisory staff;Decree no. ****-*** of June *, ****: personal standards.

Restrictions on the quality of personnel are significant, and positions are regulated. In particular, these regulations lead to the recruitment problems mentioned earlier. [***]

Applicable codes and texts

Last but not least, there are numerous texts applicable to the structure of day nurseries in France, and these can vary depending on the departmental services. The codes that apply to the operation of a crèche are as follows:

Public Health Code (***);Rules governing establishments open to the public;CAF circular ...

5.2 Decree of August 30, 2021 on childcare assistants and childcare establishments

The French Secretary of State for Children and Families, Adrien Taquet, has published the texts of the **** reform of childcare arrangements, known as NORMA.

These texts propose limits at national level for the following elements :

the number of micro-crèche places (***) attendance times for the various players (***) mandatory mentions in facility projects and operating regulations

The following standards are also introduced

surface area (***) security (***) height (***)

Source: ****

6.1 Segmentation

• Grandir Groupe -Les petits chaperons rouges
• Babilou Groupe
• Crèche Attitude Liveli (Sodexo)
• People and Baby (Holding)
• La Maison Bleue
• Léa et Léo
• Les P'tits Babadins
• Rigolo Comme La Vie
• Les Petites Canailles
• Zazzen
• Tom & Josette
• Croc La Vie
• Cap Enfants
• O P'tit Môme
• Callihop
• Kangourou Kids