Research Expert: Sarah Overall
  • Published: Apr 2025
  • Pages: 150
  • SKU: IRTNTR44425

  • China’s Preschool and Childcare Market to Grow by USD 9.47 Billion by 2028 Amid Urbanization and Tech-Driven Education Boom

    The China preschool and childcare market is projected to increase by USD 9.47 billion between 2023 and 2028, expanding at a CAGR of 12.2%. This robust growth is driven by rapid urbanization, rising disposable income, the dominance of organized players, and a strong cultural emphasis on early childhood education. As urban lifestyles become the norm in China, more nuclear families with working women are seeking structured early learning programs. This transformation, coupled with government policy shifts, private sector expansion, and education technology adoption, is reshaping the early education landscape and offering major opportunities for domestic and international stakeholders.

    Preschool Or Childcare Market in China 2024-2028

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    Market Dynamics

    Key Drivers

    Established and International Players Hold Pricing Leverage

    Leading players like Kidzee, Bachpan Global, Shemrock Play School, Kangaroo Kids, Hello Kids, Little Millennium, and Podar Jumbo Kids are driving market momentum. These institutions are leveraging pricing power through franchise-based models, offering consistent quality across locations with a focus on physical, cognitive, and emotional development.

    These players integrate digital classrooms, bilingual education, and international curricula, which are increasingly popular among tech-savvy parents. Their stronghold in the market enables competitive advantage despite high operational costs and the challenge of maintaining quality standards.

    Urbanization and Growth of Nuclear Families

    The continued rise of China’s urban population (over 63.9% as per the latest census) is boosting demand for organized preschool and childcare solutions. With more dual-income households, especially in cities, the need for structured full-day and afterschool programs is escalating, fueling expansion for both public and private providers.

    Key Trends

    Increase in Educational Expenditure in Households

    Chinese households are investing more in early education, viewing it as critical to long-term success. Rising GDP per capita and higher disposable income levels have turned preschools into a top priority for families. Organized players are responding by integrating e-learning tools, personalized education models, and comprehensive care solutions.

    Bilingual and international programs are gaining favor, supported by investments from both the Ministry of Education and private operators. The emphasis is on providing a strong educational foundation for children aged below 3 and between 3 and 6, through structured, high-quality care environments.

    Key Challenges

    COVID-19 Pandemic-Like Scenarios

    The market faces potential setbacks from pandemic-related disruptions. During the COVID-19 crisis, closures and safety concerns significantly impacted traditional preschools. The economic aftermath affected parental spending, limiting access to tech-driven and international curriculum-based programs.

    Players like Kidzee, Hello Kids, and others had to pivot to digital platforms, shifting to online education and remote learning. These scenarios underscore the need for resilient operational models, robust digital infrastructure, and continued policy support to safeguard future growth.

    Market Segmentation

    By Service

    • Full-time preschool or childcare

    • On-demand preschool or childcare

    By Age Group

    • Children aged below 3 years

    • Children aged between 3 and 6 years

    By Ownership

    • Public preschool or childcare

    • Private preschool or childcare

    By Service

    Full-Time Preschool or Childcare

    The full-time preschool or childcare segment is projected to witness the highest growth during the forecast period. In 2018, this segment was already valued at USD 7.09 billion, with continuous growth fueled by:

    • Rising need for comprehensive care for working families

    • Expansion of franchise-based models

    • Integration of digital learning environments

    • Emphasis on bilingual and emotional development

    Full-time care supports early formal schooling, offering children consistent routines, developmental play, and structured learning throughout the day.

    By Age Group

    • Children aged below 3 years

    • Children aged between 3 and 6 years

    Both age groups benefit from differentiated programs tailored to their developmental needs. Private and public providers design curricula and care models for infants, young toddlers, and preschoolers, ensuring holistic growth at every stage.

    By Ownership

    • Public Preschool or Childcare

    • Private Preschool or Childcare

    Public preschools focus on accessibility, supported by Ministry of Education policies that promote Anganwadi centers and preprimary sections. Meanwhile, private providers cater to parents seeking individualized attention, international exposure, and advanced technology adoption.

    Regional Market Trends

    While the report covers China exclusively, growth is concentrated in urban regions, where infrastructure development and rising incomes converge. Tier 1 and Tier 2 cities are seeing surges in:

    • Franchise expansions

    • Digital learning integration

    • Full-day and afterschool program demand

    These areas represent the highest concentration of tech-savvy parents, international schools, and private operators with the capacity to offer premium services.

    Get more details by ordering the complete report

    Market Research Overview

    The Preschool or Childcare Market in China is expanding rapidly, with increasing demand for both full-time programs and flexible on-demand care options. Key drivers include a growing emphasis on early learning, supporting children's cognitive development, emotional growth, and physical activities from a young age. The integration of digital classrooms and e-learning tools is transforming traditional education, while enhancing parent engagement through real-time updates and communication apps. Many institutions are embracing holistic education and adopting scalable franchise models to meet demand in urban and rural areas. The proliferation of daycare centers, afterschool programs, and access to preprimary education is also encouraging. Additionally, the focus on teacher training and effective curriculum design is rising, alongside stricter attention to child safety and the benefits of play-based learning. Foundational skills such as literacy skills, numeracy skills, and socialization skills are nurtured through immersive and age-appropriate approaches.

    Key Companies in the China Preschool or Childcare Market

    • 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
    • Yew Chung International School of Shanghai

    These companies adopt various strategies including mergers and acquisitions, geographic expansion, and product/service innovation. Their portfolios range from pure-play early education centers to diversified international institutions. The competitive landscape is evolving rapidly, with quality assurance, curriculum innovation, and tech integration emerging as critical differentiators.

    Research Analysis Overview

    In-depth analysis of China’s preschool market reveals a rising preference for bilingual education, integration of STEM activities, and arts integration to promote well-rounded development. Schools emphasize outdoor play and implement structured nutrition programs and regular health screening to support children’s well-being. Attention to behavior support, accommodation for special needs, and inclusive inclusion policies reflects the growing importance of equity in early education. Operational aspects like maintaining optimal staff ratios, investing in high-quality learning materials and educational toys, and implementing modern classroom tech play crucial roles in quality delivery. Assessment methods such as child assessment ensure personalized development tracking, while institutions streamline the enrollment process, adapt fee structures, and encourage parental feedback. Together, these elements support adherence to rising quality standards and position the market for sustainable growth.

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