The pandemic did nothing to diminish the growth of international school groups, with the number of schools now operated by school groups reaching 4,861, up from 2,526 in 2017, according to a new report from ISC Research.
The report, The brands and groups leading the world’s international schools sector, also found that the number of pupils taught by international school groups is now 2.18 million, up from 1.28 million five years previously, and global income to school groups from fees rose by $13.7 billion (£10.5 billion) to reach $22.3 billion.
The report details that the largest international school group is now a Canadian firm called Maple Bear Global Schools, which comprises 361 schools. It focuses on offering a Canadian education model for pre and elementary school, and operates in countries including India, Bangladesh, Brazil and Turkey.
Overcoming Covid
The following four biggest providers are Beaconhouse Group (146 schools, predominately based in Pakistan); Grupo SEB (141 schools all in Brazil except for one); The City School (133, all in Pakistan); and Nord Anglia (86 schools, situated across the world)
The largest group in terms of enrolled students, though, is GEMS, at 124,000, which has most of its schools in the United Arab Emirates, although it does have a presence in other nations, too.
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Sam Fraser, research director at ISC Research, said the growth showed that the sector came through the pandemic “relatively unscathed”, although those with a presence in China were “particularly challenged” by circumstances there.
However, as countries have eased Covid restrictions, growth has picked up in most other regions and should now continue without impact, as existing groups expand or merge together.
“It is anticipated that existing school groups will expand and more school groups will emerge within the international schools sector,” Fraser told Tes.
“There’s plenty of acquisition opportunity remaining for school groups because of the high number of individual schools still present within the sector.”
Brand awareness
The report also said that one reason in particular why school groups have performed well despite the pandemic is that many have reached a strong level of brand exposure, which entices people to seek out their schools.
“Many parents and teachers will be attracted to a school group or brand name they recognise.
“There is a perception of trust and security in a group or brand name, as well as a historical track record that can take many years for an individual school to develop and demonstrate,” the report said.
Fraser elaborated by explaining that, for example, families will often seek out a school from the same group if they are moving between countries.
“School groups with campuses in multiple countries can be particularly appealing to those families frequently migrating. Many families will move their children from one Nord Anglia school to another, for example,” he said.
“As these brand names have gained recognition in recent years, so the appeal of these brands has definitely increased.”
However, despite the growth of international school groups, they still account for only 38 per cent of all international schools, with 62 per cent of the global total of 12,853 run as single entities - either family-run schools or as spin-offs of independent schools, including those from the UK.
Future growth expected
Fraser said, however, that given how “costly and challenging” it is for standalone schools to compete on everything from maintaining high standards of teaching and learning, and building new school facilities and resources, to attracting new admissions and skilled educators, this may switch soon.
“School groups can provide management support and professional development to enable continued improvement for a school, as well as centralise some of the costs, making them a very attractive proposition for mergers and acquisition,” he said.
“Of the future international schools and campuses scheduled to open in the next few years that ISC Research is aware of, 63 per cent are known to be part of a school group,” he added.
“This demonstrates the increasing dominance of school groups.”
