2025 Outlook: The Children’s Activity Industry Is Growing Up
For the second year running, FranScape has partnered with the Institute of Children’s Activity Providers (ICAP) to deliver the UK’s most comprehensive outlook on the children’s activity sector.
This annual survey combines anonymised marketing and operational data with insights from providers across the country. In 2025, the data represents more than 50 leading children’s activity brands and over 100,000 individual bookings—giving us a truly nationwide picture of the trends shaping the sector.
If you’re in the business of keeping little ones active, engaged, and smiling, you already know how fast the landscape is shifting. But 2025? It’s shaping up to be a game-changer—especially for those embracing franchising and digital transformation.
Despite ongoing cost-of-living pressures, UK parents (and increasingly, grandparents) continue to invest heavily in enriching experiences for children. The numbers prove it. Whether you run swim classes, STEM clubs, drama workshops, or toddler music sessions, now’s the time to think bigger, scale smarter, and digitise boldly.
A £17.7 Billion Industry—And Growing Fast
Let’s talk scale. The UK children’s activity sector is now worth a staggering £17.7 billion, with families spending an average of £1,400 per child per year. That’s not just big—it’s booming.
But tapping into this opportunity isn’t just about joining the market. It’s about systemising your offer, standing out with digital convenience, and expanding without losing your soul. That’s where franchising and tech play crucial roles.
Why Franchising Is Having a Moment
Franchising is no longer just for fast food and fitness. In 2025, it’s a serious growth model for children’s activity providers. Here’s why:
• Scalability with Soul: Franchising lets you grow your brand while maintaining the local, personal touch families trust.
• Built-In Community: Franchisees are often parents or educators themselves, bringing passion and relatability to the brand.
• Lower Risk Expansion: You grow your footprint without taking on all the overhead and operational risk.
In fact, many of today’s top-performing providers have already gone down this route—creating a national presence from a humble local start by leveraging franchise systems and processes.
Digital Transformation: Not Optional Anymore
Whether it’s CRM automation, online booking, digital payment, or data-driven marketing—digital maturity is now a growth multiplier. Providers who invest in modern platforms are not only running leaner businesses but also improving the customer experience tenfold.
Here’s what digitally mature providers are doing:
• Using platforms like FranScape to automate bookings, charges, and customer journeys
• Leveraging data dashboards to track retention, revenue, and class capacity in real-time
• Deploying automated referral systems and loyalty programs to capitalise on word-of-mouth
• Offering mobile-first experiences that let time-poor parents and grandparents book and pay with ease
It’s simple: if your systems aren’t digital, your growth will be limited.
What Providers Say They Need Most
In a recent industry survey, providers listed their top 2025 challenges:
• 56% need more bookings
• 36% are struggling to find more staff
• 8% are looking for more venues
These aren’t just operational hurdles—they’re growth constraints. But they’re also solvable with the right strategic partnerships, franchise expansion plans, and technology stack.
Imagine a franchise model where:
• Head office powers marketing, lead gen, and national partnerships
• Franchisees focus on delivery and local community engagement
• Digital systems handle admin and analytics seamlessly
That’s not the future. That’s happening now.
Market Trends You Can’t Ignore
1. Optimism Is High
70% of providers expect at least 5% growth this year. Confidence is strong—even amid economic uncertainty. Growth-focused operators are building systems and processes that scale, not just sessions that sell.
2. Grandparents Are the New MVPs
Intergenerational wealth is transforming spending power. With £5.5 trillion being passed down, grandparents are funding ballet, football, drama, and more. Smart providers are now:
• Offering giftable packages and multi-child bundles
• Targeting marketing toward older buyers with simpler UX and flexible payment terms
3. Premium Still Performs
While value is key, quality wins when it’s clearly communicated. The lesson? Price confidently when you can prove the worth.
Sales, Marketing & Data: Cutting Through the Noise
Let’s clear something up. What providers think is working isn’t always aligned with reality:
|
Channel |
Perceived Leads |
Actual Leads |
|---|---|---|
|
Word of Mouth |
36% |
50% |
|
Organic Social Media |
36% |
15% |
|
Paid Social Ads |
20% |
1% |
|
Internet Searches |
8% |
3% |
The takeaway? Referrals dominate. Yet many providers are pouring money into channels that aren’t performing.
A digital franchise model can centralise marketing, run smart referral engines, and test what really converts—so that every franchisee benefits from shared intelligence.
Pricing & Trials: Segment Smart
As the economy splits into two tiers, so does pricing:
• 16% charge £16+ per session (premium tier)
• 48% hover in the £8–£10 range
• 20% stay under £7
• Only 4% go below £5
Meanwhile, trial sessions remain a key conversion lever:
• 28% offer them for free
• 48% offer discounted trials
• 24% offer none
For multi-location providers or franchises, having standardised trial strategies supported by automation can drastically improve conversion and retention.
Keys to Success in 2025—and Beyond
Here’s how to thrive in today’s evolving landscape:
✅ Double Down on Referrals
Digitise your word-of-mouth. Incentivise parents to refer, automate follow-ups, and track referrals in real time.
✅ Digitally Enable Your Model
Don’t just go online—become digitally fluent. Whether you’re solo or franchising, your tech should work as hard as you do.
✅ Think Franchise-First
Systemise what works. Whether you have two locations or ten, a franchise-ready mindset prepares you for sustainable growth.
✅ Engage the Grandparent Economy
Design messaging, UX, and pricing with this demographic in mind. Don’t underestimate their influence—or their spending power.
Final Thoughts: Growth Is Here—If You’re Ready
The children’s activity sector in 2025 isn’t just growing—it’s maturing. The winners will be those who blend passion with process, scale with structure, and connect with customers on and offline.
So whether you’re a founder with big dreams, or an established brand ready to franchise—this is your moment.
Franchising and digital transformation aren’t buzzwords anymore. They’re your blueprint for thriving in a market that’s growing up fast.
Want help getting franchise-ready or digitally streamlined? Let’s talk.