Benzinga | Jul 1, 2021 04:49PM EDT

Child Care Costs Likely To Rise Over Next 6 Years: Report

In the next six years, U.S. child care prices will precipitously rise -- at 3.9% annually from 2020 to 2027, according to a report from the market research and consulting firm Grand View Research.

A lot of this is due to the effects of the pandemic and the rise in demand for child care, consequently hiking up prices and creating more opportunities for child care businesses, the report states.

According to a survey by Care.com, 72% of parents already report child care costs being higher.

This is reflected in child spending costs. A recent U.S. government report demonstrated that most parents project spending about $233,000 to raise a child.

The pandemic particularly disrupted women participation in the labor market: women lost significantly more jobs than men over the pandemic, reaching 156,000 in losses for that group in December 2020.

Grand View Research's report could mean big business for large child care corporations.

Child care companies like Natura & Co. Holding S.A. ADR (NYSE:NTCO), Bright Horizons Family Solutions Inc. (NYSE:BFAM) and McGrath RentCorp (NASDAQ:MGRC) have all seen their shares trending up in the last year.