Despite the challenges posed by low birth rates and economic pressure on households, the private daycare and preschool market grew at a rate of 2.4% during the 2024–2025 school year, according to a new industry study by ICAP CRIF.
The increase in revenue is primarily due to tuition adjustments, with private centers maintaining a competitive advantage over public facilities by offering better facilities, more flexible hours, and a higher level of service.
The private daycare and preschool sector is directly linked to the need for reliable and flexible early childhood education services, as parents’ modern work demands and women’s increasing participation in the labor market are driving up the demand for organized childcare facilities. Parents’ choice of a preschool is determined primarily by location, the functionality of the facilities, cost, and the reputation of each facility. The sector consists mainly of small, independent facilities that operate at the local level. Several daycare centers also have a preschool program, while some larger institutions cover the entire spectrum of education.
Stamatina Pantelaiou, Director of Sector Studies & Publications at ICAP CRIF, reports that there are approximately 1,220 private daycare centers and nurseries operating in Greece, the majority of which are represented by the Panhellenic Federation of Private Daycare Centers (POSIPS).
Only 68 facilities reported a turnover exceeding €400,000 in 2024, with most of them employing fewer than 50 staff members—a fact that highlights the sector’s fragmented structure and the small economic scale at which the majority of these businesses operate. The companies under review focus on providing high-quality services in order to respond to the conditions arising from the low birth rate, which poses the primary threat to the sector.
Spyros Tsavalas, a consultant with ICAP CRIF’s Sector Studies & Publications Division, who authored this study, notes that preschool education is a key factor in children’s development, as it enhances not only their cognitive skills but, above all, their emotional and social maturity. However, mounting financial pressure on households, combined with rising operating costs for preschools, poses significant challenges for families. In this context, many parents are seeking more affordable options and often turn to care provided by grandparents, which is considered more flexible, reliable, and free of direct costs.
The total number of children enrolled in private – and daycare centers during the 2024/2025 school year is estimated at 55,000, with the value of the relevant market rising by 2.4% compared to the previous year—a result of increased tuition fees. However, due to strong competition and the high fragmentation of the sector, companies operating in this sector are unable to capture significant market shares. Notably, during the 2024–25 school year, the combined market share of the 16 largest companies in the sector did not exceed 2.5%.
As part of the study, a financial analysis was also conducted on a representative sample of 31 companies in the sector for the period 2020–2024. Based on the analysis of their consolidated balance sheets, it appears that both total revenue and cumulative EBITDA trended upward, with the year-over-year increase (2024/2023) standing at 15.6% and 14.6%, respectively.