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Preschools in China Industry Data and Analysis
China's preschool industry developed rapidly prior to 2019, largely thanks to increased government investment and the growing number of preschool-aged children. From 2019 to 2021, most preschools had to be closed temporarily due to the COVID-19 pandemic outbreak and companies' revenue growth slowed down over this period. With an overall increasing number of preschoolers – which reached a record high in 2020 – and consistently growing state input in preschool education, industry revenue kept increasing up to 2021. In 2022, about 5,600 kindergartens were closed, the first time that the number of kindergartens recorded negative growth. With continual birth rate decreases, the number of preschoolers is expected to drop in the coming years. Industry revenue is expected to decrease 1.6% in 2024, representing a CAGR of 0.2% in the five years to 2024, totaling $87.3 billion. Industry profit margins decreased to 8.3% in 2024, affected by higher purchasing costs and wages.To maintain preschools' normal operations, the Chinese Government invested significantly in preschool education, especially in public and inclusive kindergartens. Government subsidies were an important source of kindergartens' total revenue during the COVID-19 outbreak.China's Preschools industry has been rapidly developing, largely due to growing government investment and an increased number of preschoolers. China's birth rate has continued decreasing despite the third-child policy implementation, which will lead to the number of preschoolers to decrease in the future. As a result, industry revenue is anticipated to decrease at a CAGR of 0.9% over the five years through 2029, to $83.4 billion.
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What's included in this industry analysis
IBISWorld's research coverage on the Preschools industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released June 2025.
About this industry
What's this industry report about?
The Preschools industry in China operates under the industry code 8410. Preschools in China follow the national preschool education regulations, and provide childcare and education to children aged between three and six years old. Both kindergarten and preschool education services are included in the industry. In China, kindergartens are for young toddlers, and comprise an educational approach based on practical activities to help children transition from home to school. Preschools help children adapt to formal schooling. Related terms covered in the Preschools industry in China include itinerant tutoring stations, caravan services, play-and-learn center, preschool and kindergarten.
What's included in this industry?
Products and services covered in Preschools industry in China include Private kindergartens, Education administrative kindergartens and Collective kindergartens.
What companies are included in this industry?
Companies covered in the Preschools industry in China include Beijing Boyuan Education Group, Jing College Education Group and Guangzhou Aile Education Network Technology Co., Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Preschools industry in China.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Preschools industry in China.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Preschools industry in China.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Preschools industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Preschools industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Preschools industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Preschools industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Preschools industry in China.
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Frequently Asked Questions
What is the market size of the Preschools industry in China in 2026?
The market size of the Preschools industry in China is $87.3bn in 2026.
How many businesses are there in the Preschools industry in China in 2025?
There are 224k businesses in the Preschools industry in China, which has declined at a CAGR of 0.5 % between 2020 and 2025.
How may import tariffs affect the Preschools industry in China?
The Preschools industry in China is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Preschools industry in China?
The Preschools industry in China is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Preschools industry in China grown or declined over the past 5 years?
The market size of the Preschools industry in China has been declining at a CAGR of 0.2 % between 2020 and 2025.
What is the forecast growth of the Preschools industry in China over the next 5 years?
Over the next five years, the Preschools industry in China is expected to decline.
What are the biggest companies in the Preschools industry in China?
The biggest companies operating in the Preschools industry in China are Beijing Boyuan Education Group, Jing College Education Group and Guangzhou Aile Education Network Technology Co., Ltd.
What does the Preschools industry in China include?
Kindergarten operation (full time, part time, boarding school and time-based pricing) and Preschool operation are part of the Preschools industry in China.
Which companies have the highest market share in the Preschools industry in China?
The company holding the most market share in the Preschools industry in China is Beijing Boyuan Education Group.
How competitive is the Preschools industry in China?
The level of competition is high and increasing in the Preschools industry in China.
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