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Summary of our market study
The total childcare market can be estimated at over €7 billion by combining revenues from crèches and childminders.. Crèches alone will generate sales of €1.5 billion in 2023.
There are two forms of childcare: collective childcare (crèches) and individual home-based childcare (childminders). Over 85% of the children of non-working parents are cared for at home, while dual-income parents opt for childminders or group childcare.
The average price of out-of-home childcare rose by 20% after the pandemic.
The number of children under the age of three is hovering around 2 million, while the number of children under the age of six will reach 4.2 million by 2024.
Despite a 20% drop in the birth rate between 2010 and 2023, demand for childcare services remains strong, due to the increase in the employment rate of mothers, which has risen from 56% to over 70%. The number in 2023 is around 678,000.
Almost half of all children under the age of three benefit from some form of formal childcare.
Pricing remains based on family income.
Market players
- Crèches and day-care centers: Public and private organizations run these institutions
- Maternal assistants (Aides Maternelles), commonly known as "nannies", are at the service of families, looking after children, usually in their own homes.
- specialized home childcare organizations bring the convenience of professional childcare to the family.
- Micro-crèches and the Paje (Prestation d'Accueil du Jeune Enfant) system are representative of the inventiveness that reigns in this sector.
Day nursery market players
- Les Petits Chaperons Rouges (Grandir Group)
- Babilou
- People and Baby
- La Maison Bleue
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Summary and extracts
1 Market overview
1.1 Market overview and definition
Childcare refers to all the formal and informal solutions parents use to find people to look after their children when they are not available. The childcare market mainly concerns the care of children under the age of three, as in France it is compulsory for children to attend school from the age of three. Certain types of childcare, such as drop-in centers, also cater for children under the age of six.
This market is characterized by a highly diversified offer, often adapted to the parents' situation. A general distinction is made between in-home and out-of-home childcare solutions.
The main offers are organized as follows:
- Collective childcare : in public or private crèches. These include crèches (especially for pre-school children), day nurseries, kindergartens and multi-care centers.
- Maternal assistance: A maternal assistant looks after children, usually in her own home, in what is colloquially known as a nanny.
- In-home childcare : In-home childcare is one of the activities of the home help market.
Nursery assistants emphasize their individual approach to childcare, while group childcare and crèches emphasize their socialization skills.
Although the number of births is falling in France, especially by 2023, the capacity of childcare facilities is still not sufficient to meet demand. In fact, theoretical capacity corresponds to just over half the number of children. The childcare market is characterized by a severe shortage of personnel, leading some players to set up their own training schools.
The COVID-19 crisis had a major impact on this market, closing most childcare centers during the initial containment period and gradually reopening for so-called "priority" children, i.e. children of the medical profession, teachers, single-parent families or those unable to work from home. Today, however, the market has almost completely recovered, but the offer is adapting to parents' new lifestyles.
1.2 A booming global market
The childcare market is estimated at ***.** billion in ****, with a compound annual growth rate (***) of **.**% between **** and ****. The most developed market is the United States, with an estimated **.** billion in ****. This large market share is partly explained by the ** million single-parent families in the United States, and by the investments made ...
1.3 A growing domestic market
As of January *ᵉʳ, ****, France will have * million children under the age of * and *.* million under the age of *. The younger the children, the more important it is for parents to find suitable childcare solutions and professionals available to awaken the children. Under the age of six months, the vast majority of ...
2 Demand analysis
2.1 Annual births in France continue to fall sharply
Births in France In ****, around ***,*** births were registered in France, representing a sharp drop of *.*% compared to ****. Since ****, the number of births in France has fallen steadily each year, except for a rebound observed in ****. Between **** and ****, the average annual decline in the number of newborns was -*.*%, accelerating to -*.*% ...
2.2 EAJEs and childminders, the main childcare options for the French
obviously, the vast majority of parents on maternity or paternity leave don't turn to outside childcare solutions. But once they return to work, if they decide to do so, there are many options for looking after their baby and possibly other children. For young parents or parents of several children, the ...
3 Market structure
3.1 Value chain
3.2 The different types of player
In France, education is compulsory from the age of three, which is particularly young compared with other European countries. For childcare, a distinction is therefore made between childcare for children under three, for children aged * to *, and for children over six, at which age certain care solutions are no longer authorized, ...
3.3 Market size and breakdown
The childcare sector is hiring more and more people every year, and is becoming increasingly diversified in terms of companies, as the market is gradually being conquered by private companies.
number of companies and number of employees in the childcare sector France, ****-****, in thousands, in thousands Source: ****
In France (***), in ...
3.4 Government assistance
Source: ****
4 Offer analysis
4.1 An extremely diversified offering to meet the needs of families
In-home childcare encompasses a variety of tasks and services to meet the daily and specific needs of children and parents:
Source: ****
The asterisks * indicate the childcare services included in this study
Among the various services on offer, home help services and childminders provide additional assistance with home maintenance, childcare... Here are ...
4.2 Some prices
The price of most childcare solutions varies with the income of the parent(***).
Source: ****
This table shows the out-of-pocket expenses in **** for a dual-income family, depending on the type of childcare for a full-time child, after tax credit.
it should be noted that the net out-of-pocket expenses in **** for these families ...
4.3 Industry trends
There has been an evolution in the offer to adapt to the latest expectations of parents when it comes to childcare. First of all, some homecare and crèche franchises have developed their own training programs to offset the staff shortage affecting the sector. Family Sphère, for example, has ...
5 Regulations
5.1 The 2017 Finance Act
The **** Finance Act introduced measures to encourage the employment of home-based employees by offering significant tax benefits. This part of the law enabled individual employers to benefit from a tax reduction equivalent to **% of the expenses incurred for the employment of a home-based employee, up to certain ceilings. In practical terms, ...
5.2 Day-care regulations
Decree n°****-**** of August **, ****
Decree no. ****-**** of August **, **** on childcare assistants and childcare establishments is an important measure concerning childcare assistants and childcare establishments. This decree aims to reinforce the quality of care for young children by regulating more precisely the conditions of practice of maternal assistants and childcare ...
5.3 Regulations governing childminders
Convention collective nationale des particuliers employeurs et de l'emploi à domicile (***)
The national collective agreement for individual employers and home-based employment, which came into force on January *, ****, brings together the rules applicable to employees working in the homes of individual employers. It aims to simplify and clarify the rights and obligations of ...
6 Positioning the players
6.1 Player segmentation
Here are some of the major players in the sector, with their particularities and sales figures.
Source: ****
- Babychou Services
- Family Sphère
- Poppinou
- Baby Sittor
- Kidlee
- BSIT
- Yoopies
- Babilou Groupe
- Grandir Groupe -Les petits chaperons rouges
- People and Baby (Holding)
- La Maison Bleue
- O2
- Kangourou Kids
- Callihop
List of charts presented in this market study
- Sales in the childminder and crèche markets in 2023
- Number of births per year in France
- Change in the number of women aged 20 to 40 and the fertility rate in France
- Rate of use of paternity and maternity leave
- Paternity leave uptake by employment status
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Latest news
Day nursery scandal: People & Baby, symbol of a sick system, once again in turmoil - 19/09/2024
- People & Baby is suspected of having implemented a "low-cost" operating model.
- - Founded in the early 2000s
- - People & Baby's international expansion from 2015 includes countries such as China, Singapore, Dubai, Luxembourg, and the United States, supported by a 500 million euro loan, excluding interest, from Alcentra.
- - By 2023, People & Baby's sales had risen to 475 million euros, with a total of 11,000 employees (6,000 in France and 5,000 abroad) and the management of almost 700 crèches (600 in France and around 100 internationally).
- - To bypass calls for tenders closed to private crèches, People & Baby set up an association in 2011, a strategy that is not illegal but has caused tension with the French Federation of Crèche Companies.
- - Faced with a refusal to release the final tranche of a 12.9 million loan from Alcentra (bought by Franklin Templeton), People & Baby stopped paying interest on its debt, leading to the ousting of Christophe Durieux from the group's management.
- - Les Petits Chaperons Rouges operates 1,200 nurseries and kindergartens worldwide, while People & Baby manages around 20 facilities in the United States.
People & Baby's crèches are the envy of the world - 27/06/2024
- People & Baby:
- - Daycare centers managed: 762 worldwide, including 583 in France.
- - Children cared for in France: 14,000.
- - Principal shareholder: Founding couple, with 100% of capital, less one preference share.
- - Amount of debt: 500 million euros with Alcentra.
- - Percentage of voting rights acquired by Alcentra: 75%.
- Competitors - Babilou: Interested in assets in Dubai.
- - Groupe Grandir (Les Petits Chaperons Rouges): Interested in American facilities.
- - Busy Bees
People & Baby founder ousted - 24/04/2024
- - Christophe Durieux, founder of People & Baby, owns 80% of the group's capital.
- - People & Baby has debts of 400 million euros.
- - People & Baby's creditors now have 75% of the voting rights, following a decision taken at the Annual General Meeting.
Workforce shortage: private daycare centers face training headache - 15/04/2024
- les Petits Chaperons Rouges , one of France's largest private crèche groups. Headed by a network of 850 crèches under its own name, 2,200 partner crèches and 9,000 employees, the company, which generated sales of 450 million euros in 2023
- the early childhood sector employs 150,000 people
- the private childcare sector, which accounts for 40% of the 480,000 crèche places in France, does its best to offer training courses to its employees and students.
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