Child Care Services in New Zealand - Industry Market Research Report

Baby steps: The industry's return to growth is child's play, as strong government funding continues

The Child Care Services industry has struggled with difficult operating conditions in recent years. Household incomes are climbing and mums are returning to work, bumping up female participation in the labour force and benefiting the industry. The largest driver of revenue has been increased government expenditure on early childhood education (ECE). Falling occupancy rates and the effects of the COVID-19 pandemic have significantly disrupted the industry. Overall, industry revenue will decline at an annualised 1.2% over the five years through 2022-23, to $879.8 million. This includes a drop of 1.1% in 2021-22, as discretionary incomes and the youthful population both diminish.

Industry organisations provide formal day care services for infants and children. Child care services are mainly provided for children under six years of age. Education and childcare centres that provide early childhood education are included in the industry. Preschools, play centres and play groups are not part of the industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.