Adoption & Child Welfare Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: March 2023
NAICS 62411Revenue
$25.1bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
275k
Businesses
47,066
Wages
$XX.Xbn
Adoption & Child Welfare Services in the US industry analysis
Adoption and child welfare services companies are predominately nonprofit, providing local, traditionally in-person services. Since service provision is labor intensive, requiring skilled employees, average profit margins are thin. Numerous regulations act as a small barrier, but changes in technology, made more commonplace during COVID-19, have brought some changes, evidenced by the growth in establishments. New ways to provide services and reach clients (telehealth, mobile apps, social sites) offer opportunities to expand geographically. Online matching platforms, VR training systems and case management software are examples of how technology reduces costs and differentiates services to incentivize niche entry into underserved markets. Due to growth in the number of firms and COVID-19 support, industry-wide revenue has grown at a CAGR of 2.8% to $24.7 billion over the five years to 2023, when revenue will dip an estimated 0.9%.Company revenue depends on government funding and private donations, which can change markedly due to economic conditions and funding policy. Economic, demographic and social stressors also influence the need for services. The disconnect between payors and clients impacts a firm's ability to budget effectively, generating revenue volatility during the years surrounding COVID-19.Looking forward, demographic factors and government funding will work to reduce growth. While increases in the poverty rate will boost the need for child welfare services, slower growth of federal funding for social services, per capita disposable income and corporate profit will dampen funding sources and reduce performance. Consequently, industry revenue is forecast to climb at a CAGR of 1.2% over the five years to 2028 to total $26.2 billion.
Trends and Insights
- New technology will spur entry into underserved markets. New technology enhances the reach and type of services permitting intra-state expansion to underserved markets.
- Services are federally funded but provided locally. Most funds are distributed to states through the US Department of Health and Human Services for various child welfare and adoption services, providing for local needs and state laws to determine how services are supplied.
- Many regions' establishments share surpasses their population percentage. Companies in areas with excess establishments may face stiff competition as federal funds spurred by a state's unique demographic needs may have fostered entry.
- Numerous regulations foster fragmentation. Multiple and sometimes changing licensing requirements, familiarization of local and state laws, programs and funding act as an informational barrier to new entry and stall service providers from expanding geographically for clients.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.6 % over the past five years, to reach an estimated $25.1bn in 2023.
Trends and Insights
Increased entry into the industry drives revenue
- Many child welfare services must be delivered locally and in person, keeping establishment size small.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Funding sources will continue to support industry performance
- Federal funding for social services is expected to remain positive, supporting the funds for adoption and child welfare services providers.
Biggest companies in the Adoption & Child Welfare Services in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Adoption & Child Welfare Services in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Adoption & Child Welfare Services in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Foster and guardianship placement services, Counseling and information services for youth and families and Adoption services. Foster and guardianship placement services is the largest segment of the Adoption & Child Welfare Services in the US.
Trends and Insights
HSS funds adoption services
- The US Department of Health and Human Services' (HSS) Children's Bureau allocates funding to states and tribes through a discretionary grant fund program called Adoption Opportunities.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Testing & Educational Support in the US
- Orphanages & Group Homes in the US
- Day Care in the US
International industries
- Personal Welfare Services in Australia
- Personal Welfare Services in New Zealand
Table of Contents
About this industry
Industry definition
This industry includes nonresidential social assistance services for children and young adults. Private sector and nonprofit establishments in this industry offer services in the areas of adoption, foster care placement, drug prevention, guidance and self-help, life skills training and positive social development. This industry excludes orphanages and group homes, day-care services, youth recreational sports centers, sports teams and leagues and scouting organizations.
What's included in this industry?
Adoption servicesFoster care and guardianship arrangement servicesCounseling and information services for youth and familiesBasic education and skills programsTrade, career, technical and professional development programsOther servicesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
PRIVATE ADOPTION AGENCYPUBLIC ADOPTION AGENCYADOPTION FACILITATORIndustry Code
NAICS 62411 - Adoption & Child Welfare Services in the US
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
New technology will spur entry into underserved markets. New technology enhances the reach and type of services permitting intra-state expansion to underserved markets.
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Services are federally funded but provided locally. Most funds are distributed to states through the US Department of Health and Human Services for various child welfare and ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
Many regions' establishments share surpasses their population percentage. Companies in areas with excess establishments may face stiff competition as federal funds spurred by...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, 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
Numerous regulations foster fragmentation. Multiple and sometimes changing licensing requirements, familiarization of local and state laws, programs and funding act as an inf...
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 2018-2023
- 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
Regulations deter major companies' growth. State-level rules make it more difficult for a small nonprofit to expand geographically, preserving fragmentation.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Copious regulations are in force to protect diverse needs. Adoption and child welfare services cover a variety of services and clients, with each market possessing its own se...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Technology will keep volatility at bay. To reduce volatility and maintain profit, small firms can use social networks and platforms to boost marketing efficiency, expand geog...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
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 the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Adoption & Child Welfare Services in the US industry in United States in 2024?
The market size of the Adoption & Child Welfare Services in the US industry in United States is $25.1bn in 2024.
How many businesses are there in the Adoption & Child Welfare Services in the US industry in 2023?
There are 47,066 businesses in the Adoption & Child Welfare Services in the US industry in United States, which has grown at a CAGR of 4.2 % between 2018 and 2023.
Has the Adoption & Child Welfare Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Adoption & Child Welfare Services in the US industry in United States has been growing at a CAGR of 1.6 % between 2018 and 2023.
What is the forecast growth of the Adoption & Child Welfare Services in the US industry in United States over the next 5 years?
Over the next five years, the Adoption & Child Welfare Services in the US industry in United States is expected to grow.
What does the Adoption & Child Welfare Services in the US in United States include?
Adoption services and Foster care and guardianship arrangement services are part of the Adoption & Child Welfare Services in the US industry.
How competitive is the Adoption & Child Welfare Services in the US industry in United States?
The level of competition is low and increasing in the Adoption & Child Welfare Services in the US industry in United States.
