The private daycare market - Spain (2024)

1.2 The world market

The global private childcare market is experiencing sustained growth, with forecasts for an increase from €***.* billion in **** to €***.** billion in ****, representing a compound annual growth rate (***) of around *%. Several factors explain this positive dynamic.

Firstly, the increase in the female employment rate is leading to a higher demand for childcare services, as families need adequate solutions to reconcile work and family life. In addition, changes in family structure, with an increase in single-parent families and a decrease in multigenerational households, are also contributing to the need for childcare options.

In addition, many governments in developed countries are introducing birth support policies, which include subsidies and incentives for families. These policies are intended to encourage access to childcare services, thus contributing to the growth of this sector through financial aid or public programs to support parents.

Growth forecasts for the childcare market World, ****-****, billion euros Source: ****

1.2 National market estimates

The system of nursery schools is a distinctive feature of the Spanish education system, unlike that of other European countries. While in France, Germany and the United Kingdom nurseries are not considered schools, in Spain this stage of early childhood is part of the education system.

According to a study by FUCI (***), we have estimated the market turnover of first-cycle nursery schools using the following calculation. We have also chosen *, *, ** and ** months as the average duration of attendance at nursery schools, as some are open all year round and others are not.

Turnover ****-**** = number of students in the ****/**** academic year x proportion of students in private daycare centers x average cost of daycare centers x months of attendance

Turnover ****-**** = ***,*** / *** x **.** x *** x months of attendance

We have used the same method to estimate the sector's turnover between **** and ****.

Thus, the market for private first-cycle nursery schools in Spain has shown a slight increase between the ****-**** and ****-**** school years. For six months of attendance, the market was estimated at €***.** million for ****-****, compared to €***.** million for ****-****. For eight months of daycare, the value has gone from €***.** million to €***.** million. For ten months, the market has gone from ...

1.4 The Spanish school system

In Spain, the day care system is structured to meet the needs of parents and is divided into two main types of facilities for young children: day care centers and nursery schools, organized in two cycles.

Day care centers (***): Day care centers generally cater to children from * to * years of age. Their main purpose is to provide basic care while parents work, with no obligation to follow a structured educational program. They are usually subsidized by the State and offer a flexible service in terms of schedules, although places may be limited, especially for low-income families. Private day-care centers also exist, but they are usually more expensive than public ones. Nursery schools (***): Nursery schools, which cater to children from * to * years of age, are centers authorized by the Department of Education that offer a structured educational program. Their function is to favor the integral development of the child through activities that cover areas such as motor skills, early language learning and socialization. Nursery schools are subject to high quality standards, with staff specifically trained in the educational care of young children.

In fact, in Spain, all facilities for children under the age of three are referred to as escuelas infantiles de ...

2.1 Early childhood education in Spain

In Spain, during the ****-**** school year, **.*% of children aged * to * years were in school, while **.*% were not. These figures show that the majority of young children were not yet integrated into the education system, reflecting the trend toward later schooling in this age group.

Percentage of children aged * to * years in school Spain, ****-****, % Source: ****

Between **** and ****, the enrollment rate in nursery schools in Spain showed a marked increase for young children. For children under * year old, the rate rose from *.*% in ****-**** to **.*% in ****-****. Enrollment of *-year-olds increased significantly, from **.*% in ****-**** to **.*% in ****-****. For *-year-olds, the enrollment rate has increased from **.*% in ****-**** to **.*% in ****-****, showing significant growth. Finally, *-year-olds have maintained high levels of enrollment, at around **%, with a slight variation between years. These figures reflect a trend towards increasingly earlier schooling in Spain, in response to the educational and socialization needs of young children.

Evolution of the schooling rate by age bracket in nursery schools - primary cycle Spain, ****-****, % Source: ****

Between **** and ****, there will be a steady increase in the number of children enrolled in the first cycle of primary education in Spain. In ****-****, the number of pupils was ***,***. This figure ...

2.2 Demographic trends in Spain

Between **** and ****, the average age at childbirth in Spain has gradually increased from **.** years in **** to **.** years in ****. At the same time, the average number of children per woman has decreased, from *.** children in **** to *.** children in ****. This trend reflects social and economic changes in Spain, where women tend to delay childbearing and the birth rate per woman is declining.

Evolution of the conjunctural birth rate Spain, ****-****, number of children per woman Source: ****

The forecast for the number of births in Spain shows a slight increase in the coming years. In ****, the number of births is estimated at ***.* thousand, gradually increasing to ***.* thousand in ****. For the period **** to ****, an annual average of *** thousand births is expected, continuing an upward trend with ***.* thousand per year between **** and **** and reaching ***.* thousand per year between **** and ****. These projections underline a medium and long-term growth dynamic of the Spanish birth rate.

Forecasts of the number of births Spain, ****-****, number of births, *each year Source: ****

The evolution of the Spanish population shows a steady growth between **** and ****. In ****, the population is estimated at **.** million inhabitants, rising to **.** million in **** and exceeding ** million in ****. This growth rate continues to reach **.** million in ****. In the longer ...

2.3 Changes in family structure in Spain

In Spain, the number of households varies by size, with a slightly increasing trend for households of two and five or more persons between **** and ****. In ****, two-person households accounted for *.** million and are expected to reach *.** million in ****. Three-person households will increase from *.** million in **** to *.** million in ****. On the other hand, four-person households are expected to decline slightly, from *.** million to *.** million. Finally, households with five or more persons are expected to increase slightly, from *.** million in **** to *.** million in ****. These developments reflect demographic changes and trends in the composition of households in Spain.

Projected number of households by size Spain, ****,****, number of households Source: ****

Between **** and ****, the number of households in Spain showed a slight growth, from **.*** million in **** to **.*** million in ****. This trend continues, with a progressive increase forecast to **.*** million in ****, **.*** million in ****, **.*** million in **** and **.*** million in ****. This trend is due to demographic factors, particularly population growth, as well as the increase in the number of single-parent and single-parent households, as a result of social and lifestyle changes in Spain.

Growth in the number of households in Spain Spain, ****-****, millions of households Source: ****

The average household size in Spain has shown a gradual decline since ...

2.4 large families in Spain

In ****, there were about ***,*** large families in Spain. It should be noted that a family is considered large in Spain if it has * or more children, or * or more if one of the children has a disability.

In ****, the distribution of large families in Spain varied according to the number of children. The majority of these families had three children, representing **% of the total. Families with two children accounted for **% of this group, while those with four children accounted for **%. Large families with five children were rarer, at *%, and those with six or more children accounted for *% of the total. These figures illustrate the prevalence of families with three children among large families in Spain, with the proportion decreasing as the number of children increases.

Distribution of large families in Spain by number of children Spain, ****, % (***) Source: ****

In ****, the children of large families in Spain belonged mostly to the * to * age group, accounting for **% of the total. Children aged ** to ** accounted for **% of this population, while young people aged ** to ** accounted for **%. These data show a predominance of young children in Spanish large families, suggesting a younger family profile within this category.

ages of children in large families Spain, ****, % (***) Source: ****

In ...

2.5 Private or public school?

In Spain, the distribution of students in the first cycle of early childhood education shows a slight predominance of the public sector. In ****-****, **.**% of students were enrolled in public centers, compared to **.**% in subsidized centers. This trend has strengthened for the ****-**** school year, with a slight increase in the share of the public sector to **.**% and a corresponding decrease in the private sector, which now accounts for **.**%. This shift illustrates an increasing orientation towards the public sector for the first years of education.

Distribution of pupils in the first cycle of preschool by type of education Spain, ****-****, % (***) Source: ****

In Spain, for the ****-**** school year, the average number of children per class in nursery schools varies slightly according to the status of the center. The national average is **.* children per class, a figure that is identical in public centers, with **.* children per class. In private centers, however, the figure is slightly higher, with **.* children per class.

Average number of children per nursery school, by private or public school Spain, ****-****, average number of children per class. Source: Ministry of Education, Vocational Training and Sport The following figures show the additional services offered by early childhood education centers, depending ...

2.6 Other child care methods

Childcare methods for children up to * years of age:

To analyze the childcare method preferred by parents for their children, it is necessary to cross-check schooling data with sociological and social factors.

The low schooling rate (***) for children under * year of age is explained by the existence of maternity and paternity leave, which grant parents ** weeks each to care for their child. This figure also shows that grandparents or nannies step in to help parents once these leaves are over. In addition, those who can, resort to teleworking to care for their children while they work.

It is also noted that nursery school becomes systematic as soon as the child turns * years old (***). For children aged * and *, schooling rates of **.*% and **.*% show that parents continue to rely on grandparents or other methods of childcare.

Babysitters, babysitters and grandparents:

The daycare system is less developed in Spain than in other European countries, such as France. The Red de Madres de Día, one of the largest in Spain, has ** educational centers, while the Asociación de Madres de Día de Madrid has only * educational projects. Daycare assistants, as an alternative to nursery school, also provide classes for children, who are ...

3.1 Differences between private and public schools

In Spain, public education is free of charge from the age of *, i.e., from the second cycle of early childhood education. The first cycle, from * to * years of age, is not free. However, public centers are usually less expensive thanks to the financial resources that the Autonomous Communities allocate to this first cycle of education.

The financing of nursery schools varies according to whether they are public, private or shared management:

public nursery schools: they are financed by the public administrations, in particular the Autonomous Communities and municipalities, with the support of the State. Fees for parents are usually low or subsidized. Some communities offer aids to further reduce costs for families, such as subsidies for children from * to * years old. collaborative nursery schools: these are private but receive public subsidies, allowing them to set more affordable fees. This model is less common in early childhood education than in primary and secondary education. private nursery schools: Financed exclusively by the school fees paid by families, these centers do not usually receive public subsidies. Private nursery schools tend to have more freedom in their curricula and services, but can be more expensive for parents.

The following table shows the different types ...

3.2 Distribution of nursery schools in Spain

Between **** and ****, there was a significant increase in the number of public schools in Spain, especially in the public sector. In ****-****, there were *,*** charter schools and *,*** public schools, giving a total of *,*** centers. Five years later, in ****-****, this figure had increased to **,*** centers, with a notable increase in public schools to *,***(***).

In ****-****, the growth continues, especially in the public sector, which increases from *,*** schools in ****-**** to *,*** schools, an increase of +**.*%. On the private side, the number of schools remains stable at *,***, unchanged compared to ****-****. Therefore, the total number of primary schools will reach **,*** in ****-****, marking an overall increase of +*.*% compared to ****-****. This trend shows a particularly marked expansion of the public sector to meet the schooling needs of young children in Spain.

Evolution of the number of private and public nursery schools in Spain Spain, academic year ****-****, academic year ****-****, academic year ****-**** Source: Ministry of Education and Vocational Training In ****-****, the distribution of first-cycle nursery schools in Spain will show a slight predominance of the public sector, with **.**% of students, while the private sector will account for **.**%. This almost equal distribution between public and subsidized centers reflects the diversity of options ...

3.3 Future developments: an increasingly agitated market

In Spain, private nursery schools are facing increasing difficulties, mainly due to the lingering effects of the Covid-** pandemic and increased competition with state-funded schools.

A sector weakened by the pandemic:

The Covid-** pandemic has particularly affected private nursery schools. In ****, Spain had *,*** public schools for young children, a number that fell to *,*** establishments following the health crisis. The closure of many schools was due to a lack of financial support from the government at a time when children were no longer attending these establishments due to health measures. With revenues plummeting, many schools were unable to meet their fixed costs and were forced to close. In ****, in some regions such as Catalonia, private nursery schools had a vacancy rate of **%, which further aggravated their economic situation.

Increased competition with public schools:

In addition, the funding scheme for early childhood education in Spain, introduced by the government to subsidize charter schools, has exacerbated the difficulties faced by public schools. Falling costs in the public sector make it difficult for public schools to remain competitive, especially in autonomous communities where they do not receive subsidies. In Catalonia, for example, **% of private nursery school places were vacant in ****. Moreover, in regions such as ...

4.1 Price typology

The following table highlights some of the "model" private nursery schools in Spain:

Source: ****

4.2 Operating expenses

Expenses of private day care centers

Private nursery schools require a significant initial investment and entail an ongoing expense to maintain a high level of service to families.

Initial investment :

Private nursery schools require an initial investment of up to **,*** euros. This amount is intended to cover the following items:

Furniture : Nursery schools must have adequate furniture for young children to ensure their comfort and safety. This includes tables, chairs, beds for naps and play areas. Refurbishment work: Compliance with safety standards is essential. This may involve works to bring the building up to standard, installing play areas, child sanitation facilities and safety systems such as safety gates and fire extinguishers. Procurement of equipment: this includes educational toys, teaching materials, art materials and items needed for sensory and motor activities. Premises securitydeposit: Childcare centers are often required to pay a security deposit for the rental of premises, which represents a significant cost in urban areas.

Major expenses:

The recurring operating costs of a private daycare center are varied and contribute to ensuring the quality of the services provided. Here are the main cost items:

Teachers' salaries: The average salary of a qualified teacher is *,*** euros gross per month. This item usually ...

4.3 A diversification strategy

To differentiate themselves from state nursery schools and justify their higher prices, public schools may offer the following services:

The educational program :

English classes: In some nursery schools, the introduction of the English language from an early age has become an important differentiating factor. Children are exposed to fun activities in English, which helps them learn the basics of the language and prepares them for future comprehension. This partial immersion also helps to raise children's awareness of foreign languages, an advantage in an increasingly globalized world. bilingual schools: For students from other countries, some schools offer a full bilingual program in Spanish and another language, usually English. This model facilitates the integration of non-Spanish-speaking children while promoting an education open to the world. Children learn to juggle two languages, which also stimulates their cognitive and social skills. Positive Discipline Program: This program focuses on encouraging and positively reinforcing desired behavior in children, rather than on punishment. Positive discipline aims to reinforce children's confidence, foster their independence and develop their social skills by resolving conflicts constructively. This type of program is very popular with parents who want a caring and respectful upbringing for their children. Multiple intelligences: inspired by Howard Gardner's theories, ...

4.4 Supply trends

High-end private daycare centers with multiservices:

Guarderías Brain Madrid may be a good example of a private daycare that aims to attract high net worth clients. In exchange for its high monthly fees (***), it offers a wide range of activities. It offers extracurricular activities for children, English classes, pediatrics service, extended hours, parking, psychological support for children with interviews for parents, educational diagnosis, nutritional consultations and digital equipment.

Private day-care centers with high educational standards:

The private daycare center El Mundo de Mozart in Madrid, which charges between *** and *** euros per month, adopts a differentiation strategy through its pedagogy called Little Brain. In addition, it guarantees parents the integration of their children in preferential access schools, both public and private, in Madrid. Finally, its educational projects seek to differentiate themselves by offering programs such as Language Works (***), Baby Einstein, a program of education in values, an emotional intelligence program and So Smart. It is a school that stands out for the high quality of its teaching.

Private religious day care centers:

Some daycare centers stand out for their religious teaching. Although it is possible to choose a religious education in Spanish schools, public daycare centers tend to be secular. Some ...

5.1 Legislation

The Ley de Ordenación General del Sistema Educativo (***) lays the foundations for the operation of early childhood education centers in Spain, guaranteeing the conditions of quality and safety in the care of the youngest children. Here is a summary of the essential rules that centers must comply with:

Exclusive use of premises and independent access:

Every first-cycle nursery school must be installed in premises for exclusive use, with independent access from the outside. This means that the premises cannot be shared with other types of establishments, such as offices or stores, to ensure an environment dedicated exclusively to children. This exclusivity increases the safety and well-being of the children, isolating them from possible external dangers and providing them with a space conducive to learning.

Educational project :

Each center must have a specific educational project adapted to the needs of children under three years of age. This project defines the educational objectives, pedagogical methods and daily activities and routines. Having a structured educational project allows parents to better understand the philosophy of the establishment and to ensure that the proposed activities are adapted to the psychomotor and emotional development of young children.

Qualified staff:

Staff should be qualified, with specific training ...

6.1 Segmentation

• The British school of Barcelona
• Colegio brains
• Montessori village
• El mundo de Mozart
• Escoles pérez Iborra
• Escuela infantil bambinos de Valencia
• Escuela Infantil La Casita De Julieta de Burjassot
• Escuela Infantil Mis Prime de Madrid
• Escuela Infantil El Osito Carlos de Málaga
• Escuela Infantil San Juan De Dios de Bormujos,
• Escuela Infantil Caracol de Sevilla