Mobile Menu

Preschools in China - Market Research Report (2015-2030)

Millie Walker Millie Walker Beijing, China Last Updated: June 2025 8410

Revenue

$87.3bn

2025

$86.1bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

5m

Businesses

224k

Wages

$XX.Xbn

Preschools in China industry 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.

Trends and Insights

  • The birth rate has been decreasing. This has led to less preschoolers, negatively impacting industry revenue.
  • Public kindergartens hold over half of all preschoolers. This is despite a higher number of private kindergartens.
  • Populous provinces contribute more revenue. Guangdong province contributes the largest revenue share, and the Henan province has the largest number of kindergartens.
  • Competition is intense. The market is very fragmented and the top companies have a small market share.
Show more

Unlimited access to industry research for a full year?

With an annual membership, enjoy the clarity and confidence you need to make forward-looking business decisions. Subscriptions include data and analysis for thousands of industries globally.

Get in Touch

Access hundreds of data points and trends

  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
  • PDF report or online database with Word, Excel and PowerPoint export options
  • 100% money back guarantee

Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 0.2 % over the past five years, to reach an estimated $87.3bn in 2025.

Trends and Insights

Lower birth rates are leading to less preschoolers

  • Despite the population adjustment policy, the birth rate has been decreasing from the highest record of 14.57‰ in 2012 to 6.4‰ in 2023, which is expected to further decrease to 6.0‰ in 2024.
  • Additional trends and insights available with purchase
Preschools in China
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to decline over the next five years.

Trends and Insights

The number of preschoolers is expected to further decrease

  • Despite the implementation of the two-child policy and the third-child policy, the birth rate is expected to continue the decreasing trend, and the total number of preschoolers are expected to decrease.

Biggest companies in the Preschools in China

Company
Market Share (%)
2024
Revenue ($m)
2024
Beijing Boyuan Education Group
637.3
Jing College Education Group
288.1
Guangzhou Aile Education Network Technology Co., Ltd.
104.8

To view the market share and analysis for all 10 top companies in this industry, view purchase options.

Products & Services Segmentation

Preschools in China
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Private kindergartens, Education administrative kindergartens and Collective kindergartens. Private kindergartens is the largest segment of the Preschools in China.

Trends and Insights

Private kindergartens have the largest number

  • Private kindergartens are established using private funds. By the end of 2023, China had approximately 149,500 private kindergartens, accounting for 54.5% of total kindergartens, with 43.8% of total preschoolers.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

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.

What's included in this industry?

Products and services covered in the Preschools industry in China include Kindergarten operation (full time, part time, boarding school and time-based pricing), Preschool operation, Children activity stations operation, Game group services operation, Itinerant tutoring stations operation and Caravan services operation.

Companies

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.

Purchase this report to view all 10 major companies in this industry.

Related Terms

Related terms covered in the Preschools industry in China include itinerant tutoring stations, caravan services, play-and-learn center, preschool and kindergarten.

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The birth rate has been decreasing. This has led to less preschoolers, negatively impacting industry revenue.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Public kindergartens hold over half of all preschoolers. This is despite a higher number of private kindergartens.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Populous provinces contribute more revenue. Guangdong province contributes the largest revenue share, and the Henan province has the largest number of kindergartens.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition is intense. The market is very fragmented and the top companies have a small market share.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The top enterprises have a small market share. This industry is scattered, and the market share is small even among the largest and highest-performing companies.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Beijing Boyuan Education Group's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Jing College Education Group's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Guangzhou Aile Education Network Technology Co., Ltd.'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 7 additional companies

Detailed analysis

  • Description and key data for Beijing Boyuan Education Group, and factors influencing its performance in the industry
  • Description and key data for Jing College Education Group, and factors influencing its performance in the industry
  • Description and key data for Guangzhou Aile Education Network Technology Co., Ltd., and factors influencing its performance in the industry
  • Description, key data and performance trends for 7 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

This industry is labor intensive. It relies a lot on employees, and wages are the largest cost item.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Wages are the industry’s largest cost. This industry is labor-intensive and wage costs have been rising in China.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Preschools industry in China in 2025?

The market size of the Preschools industry in China is $87.3bn in 2025.

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.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

View all industries in China

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in China include:

  • National Bureau of Statistics China
  • General Administration of Customs
  • People’s Bank of China

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.