Name: the tutoring market
Brand: Businesscoot
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1.1 Presentation and definition of the tutoring market

The tutoring market, also sometimes called "shadow education", covers all activities aimed at students (primary and secondary education) to help them improve their academic level : private or group lessons in specific subjects, homework help for primary school students, vacation courses, correction of papers.

It is at the high school level that students most often request tutoring and studies show that parents are the ones who, in most cases, initiate the process. A distinction is made between the client (the final recipient of the service: the student) and the applicant (the parents).

In 2008, the sector experienced a major crisis due to scandals related to dubious hiring methods and incompetent teachers that negatively impacted the image of the operators.

Faced with this crisis of credibility, many operators, including Anacours and Cours Legendre, have initiated Qualicert certification procedures in order to regain a positive and qualitative image.

The tutoring market is currently growing in France and the tutoring segment provided by companies such as Acadomia will be worth several hundred million euros by 2020. The positive dynamics of the tutoring market have also prompted new companies to enter the market, such as o2, a subsidiary of the Oui Care group, which had a turnover of more than 230 million euros in 2019.

Also noteworthy is the popularity of home tutoring activities, which involved approximately one million students in France in 2020.

The reform of the Baccalaureate in 2021 could be detrimental to companies that provide tutoring services, because as Acadomia director Philippe Coleon points out, the Baccalaureate exams are less important than in previous years, whereas it is for this exam that tutoring is most popular with parents. In fact, he estimates that Acadomia will experience a 25% drop in sales in 2021. However, the tutoring market still has a bright future ahead of it, as we note that there are still many students with academic deficiencies and that, with the various technological advances, the possibility of taking home courses online is developing rapidly.

1.2 The global tutoring market

Global tutoring market Global, ****-****, in billion dollars Source: ****

In ****, the global private tutoring market size was estimated at $***.* billion. The market is expected to grow strongly at a CAGR of *.*% per annum, reaching $***.* billion by ****. This growth is primarily driven by Asia, where higher disposable incomes are driving increased demand ...

1.3 The national market: An expanding market somewhat slowed down by the informal market

French tutoring market France, ****-****, in billions of euros Source: ****

The French tutoring industry experienced a major crisis from **** to ****, followed by stable growth until ****. In ****, the French tutoring market was estimated to be worth approximately * billion euros. With an average annual growth rate of **% since ****, France has established itself as ...

1.4 Tutoring in the face of Covid-19

The crisis in covid-** has inevitably had an impact on the tutoring market: most tutoring is done at home and focuses on work done at school. However, many students experienced a prolonged interruption of classes, due to difficulties in attending classes - when they could be maintained - and lack of ...

1.5 Interview with Shannon Picardo, founder of SchoolMouv

Marine: Welcome to the Niche, the podcast that analyzes the niche market with the entrepreneurs who are eager to change the rules of the game. I'm Marine and I work at Businesscoot, the startup that's renewing market research reports. Before we get started, subscribe to our podcast on Spotify and Apple ...

2.1 The profile of the French tutoring consumer

The big picture

According to a BFMTV article, the tutoring market was estimated to involve * million students in ****. In the same year, it is estimated that one in three high school students and one in five middle school students are receiving tutoring. In addition, the average number of hours of tutoring ...

2.2 State spending on education on the rise

Increased spending on education

Government spending on education France, ****-****, in billions of euros Source: ****

The graph above represents total education-related spending by the government between **** and ****. In ****, the French government spent ***.* billion euros on education. There has been some increase in spending on education between **** and **** and this increase in ...

2.3 Household spending on tutoring

Household spending on education France, ****-****, in billions of euros Source: ****

**% of parents of students who say they use in-school tutoring say they pay nothing, while **% of them say they pay more than €*** for in-school tutoring. On average, according to the IFOP study, parents of students who use in-school tutoring ...

3.1 Market Overview

Typology of the different types of tutoring

A highly concentrated market

Revenues of the main companies in the tutoring sector France, ****, in millions of euros Source: ****

The French market for tutoring services is highly concentrated: in ****, Acadomia accounted for **% of the French market with a strong market leadership position. Each year, ...

3.2 A distribution system often based on franchise systems

The big picture

Distribution is either physical or digital: today, tutoring is mainly face-to-face, but the digital channel is slowly gaining importance in the market. Most often, teachers go to their students' workplaces to teach. In some cases, group sessions are held in a public space.

The franchise model

A significant ...

3.3 The informal market

In the field of tutoring, the informal market is a strong component of the market, representing a major problem for the incumbents and for any player trying to tackle the tutoring market. The CEO of Acadomia, for example, claims that it is his worst competitor[***]. The informal sector, although impossible to ...

3.4 Tutoring at school

Some tutoring programs take place after school, but within the school premises. This type of tutoring is a partnership between the school, the company and the student's parents. The studies take place in small groups and the parents are kept informed of their child's progress through a message sent by the ...

3.5 Online tutoring: A host of new players driven by Edtech

Edtech players

evolution of fundraising in start-ups France, ****-****, in billions of euros Source: ****

Since ****, investment in French start-ups has been growing steadily, reaching €*.** billion in ****. In ****, investment in startups that belong to the Edtech sector was €*** million and its weight on investments in French startups was *.*%. However, due to the ...

4.1 Overview of the market offer

The offer of tutoring is relatively standardized: in general, classes last about one hour, take place every week, mostly at the student's home. The support lasts up to several months, with a greater concentration in the period before the exams.

the different options available in the tutoring market are as ...

4.2 Prices on the market

In France, tutoring teachers generally earn between ** and ** € per hour. Private tutoring by students is charged around €** to €** on average, but the range is wide, making it difficult to estimate a reference price. Acadomia, for example, charges around €** per hour. New players such as Kartable are determined to gain market share ...

4.3 An evolving offer

Strategies to respond to parental distrust In France, parents and students have the impression that French education is deficient, anxiety-provoking and uncompetitive: First, the education system is perceived as highly unequal and producing "difficulties" for the student: "We are, among the developed countries, the one whose school elite is proportionally the ...

5.1 Regulations

Tax credit and tax benefits

First, the **** Borloo law allows individuals who use private tutoring to deduct from their income tax **% of the amount spent on certain home-based services, including tutoring. This measure was intended to reduce informal work in this sector.

In March ****, the tax credit is extended to online ...