Article – A rollercoaster ride

11th February 2025
Cairneagle’s Managing Partner Arun Kanwar and Manager Madeline Alcock outline both the opportunities and the challenges that the UK nursery sector currently faces. While demand is growing due to policy changes, funding constraints and operational challenges pose risks. Nurseries must navigate pricing strategies, staffing issues, and market dynamics to remain competitive.

As we find ourselves in the middle of one of the most significant changes to the UK nursery sector since 2017, Cairneagle Managing Partner Arun Kanwar and Manager Madeline Alcock discuss the demand outlook, and the key issues facing operators in 2025 (and beyond) in their recent article for NMT magazine.

 

The UK nursery sector is undergoing major transformation with the rollout of expanded free childcare. Enrolment is rising, and demand is expected to grow significantly through 2030. However, challenges such as staffing shortages, funding shortfalls, and increased competition from state schools could impact profitability.

 

 

Despite these pressures, the sector remains an attractive investment opportunity, with mergers and acquisitions picking up. Operators are focusing on strategic growth, pricing adjustments, and expansion to navigate this evolving landscape.

 

This report provides an in-depth analysis of the UK nursery sector, focusing on key developments, challenges, and growth projections for 2025 and beyond.

 

You can read the complete article here.

 

Authors: Arun Kanwar (partner) and Madeline Alcock (manager)

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