Feasibility Study Services for Preschool Ventures in India

As per the Market Research Services for Schools, India has world’s largest schooling system with over ~1.5 million schools split into central government, state government, NGO-run, and private entities. This vast network of schools shapes the lives of countless young minds. But with such a massive undertaking, complexities and challenges arise. In this exploration we’ll delve into the ongoing endeavours of school education in India and the rise of preschools in the nation. 

The market size of Indian education is around ~USD 120 Billion and government’s expenditure on the sector is over 3% of the GDP. Discussing about the structure, Indian education system follows a 10+2 layout with 10 years of primary and secondary schooling followed by 2 years of higher secondary schooling. Meanwhile, Pre-primary education not being compulsory, it is gaining importance due to various factors. Parents are now understanding the importance of pre-schooling in the country. Get more insights looking at the data Market Research Services for Education Sector.

Rise of Preschools in India

The Market size of preschools in India is USD 1.2 Billion (2023). With a Total addressable market of around USD 4.5 billion, a modest penetration rate of around 26% is achieved. There is tremendous potential for future growth in the market can be observed through Market Research Services for Education Sector.

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Currently the market is growing with a promising CAGR of 9.57%. Almost 1.4 million anganwadis were registered under the poshan tracker application in India. Also, there are over 25,300 private preschools registered as of 2023.  Out of this 32% of the market is organized and rest 68% is served by unorganized & local players.

In 2021-22, preschools in India recorded a high number of admissions of up to 9.5 million children. Preschools are now having a structured curriculum which begins at age three following the NEP (National Education Policy’s) 5+3+3+4 pattern. These include low-income options for village areas and Montessori schools for affluent families. Pre-schools focus on play-based learning schools represented by the fast-growing number of pre-schools all over India as per Feasibility Study for Schools.

Early literacy and numeracy go hand in hand with cognitive, social, emotional, and physical aspects of growth as per the NEP approach to holistic development. The policy aims to move away from rote memorization and focus on developing critical thinking, problem-solving, and creativity. 

Preschools are divided into three stages of early childhood education in India. Starting with pre-nursery when children are between 2.5 to 3 years old; basic socialization, exploration as well as self-help skills should be emphasized. Nursery is an early childhood stage where children aged between 3 to 4 years engage in play-based activities that also promote their communication skills. 

Kindergarten is about building foundational levels that emphasize pre-writing and reading exercises involving problem-solving methods to prepare them for primary schools. Such types of school settings will probably have a more formalized structure if they use LKG or UKG, which means classes such as lower kindergarten or upper kindergarten respectively within pre-primary section in Indian schools.

Growth drivers of Preschools in India

Preschools in India are undergoing a phenomenal growth, and it is backed by various factors like demographics, rise in disposable income, awareness regarding importance of early education and many more. Here’s a deeper breakdown into key growth drivers:

I. Working parents and changing family structure boosting the demand for childcare facilities:

According to statista of Market Research Services for Schools, 27% of Indian women participated in workforce in 2021 and the number of working women is steadily increasing. This increases the demand of childcare solutions and preschools witness a hike in registrations specially in urban areas. Also, there was an increase in nuclear families resulting in unavailability of grandparents and relatives for childcare while parents are at work.

II.  Awareness regarding importance of early education:

Recent studies show that a human brain has exceptional grasping power and learning abilities between the age of 2 to 6 years. During this period, human brain experiences synaptogenesis, where billions of neural connections are formed which is a foundation for memory and cognitive skills. This early learning is the foundation for academic success, social competence and mental well-being. This is fueling the demand of high-quality early education among Indian parents.

III. Rise in disposable income and increased spending power:

The Indian economy is growing rapidly boosting the disposable income for many families. With more spending power, parents are more likely to enroll their children to preschools for quality education and better future. The Market Research Services for Education Sector shows preschools are available for broader segment of country as there are schools of various ranges as per an individual’s financial needs.

IV.  Technological advancements:

With a deeper penetration of internet, education sector of India is also coming up with various advancements. Introduction of interactive learning tools and educational apps has made early education more engaging and accessible. Technology can also cater to different learning styles and personalised education.

V.  Government Initiatives:

The Indian government is also actively working on the early education setup. Schemes like Samagra Shiksha and ICDS constantly aims to improve quality of education from pre-primary to class 12th. NEP introduced a new school structure, 5+3+3+4, which includes 3 years of pre-school (age: 3-6 years).   

Growth of branded preschool chains

Although 68% of the preschools in India falls under unorganized sector, there has been a surge in popularity of branded preschools chains in the market. This rise in demand is backed by various factors like consistent and structured curriculum, qualified teachers, better infrastructure, brand value and reputation, technology integration etc. As the market is growing branded preschools are moving beyond metro cities and tapping into Tier 2 and Tier 3 cities. Brands like kidzee leading from the front has over 1800 centres in over 750 cities across India. The presence of such branded chains in the market creates a competitive landscape for all the existing preschools to focus on improving quality and reputation. One major reason for growth of these organised entities is the franchise system. This allows chains to grow rapidly and reach out to more wider geographical area. A survey by TeamLease revealed that 87% of the parents consider brand reputation while choosing a preschool for their children. 

Brands like KidZee, Eurokids, Little millennium, Bachpan global and Shemrock play school are top 5 players. They lead the market on both ends, size and revenue. Market size of KidZee and Eurokids was estimated to be USD 45.1 million and USD 30.6 million respectively, for year 2023. Tree House Education. Hello Kids, Podar Jumbo Kids etc, are some of the other notable players. 

Challenges in the business

Both branded chains and independent institutions face certain challenges that can be detected through Feasibility Study for Schools. These are discussed below:

-    Affordability and Accessibility: Preschool schooling is very expensive in branded chains. This is a hindrance to families with low or middle-income since they can’t access quality early childhood education for their children. At the same time, rural areas and small towns where demand for these schools is increasing misses out because these schools are concentrated mainly in urban areas.

-    Human Resources and Training: It becomes a challenge to attract and retain qualified preschool teachers due to low salaries compared to the cost of living as well as absence of opportunities for career growth. Inadequate training programs in some preschools may be a result of failure by the school to invest enough on teacher’s training programs. Hire the through Feasibility Study for Schools.

-    Branded Chains vs. Independent Preschools: Both types compete for students; Branded Chains leverage brand recognition, while independent preschools promise flexibility and perhaps lower charges.

-    Keeping Up with Educational Trends: The early education for children is constantly making progress. Hence, preschools need to keep up with the latest trends and effective ways to ensure their curriculum and teaching remain relevant and impactful.

-    Standing Out in a Crowded Market: With increasing numbers of preschools, differentiation is crucial, if one wants to successfully reach target market. 

Market Research and Feasibility Study Services for Preschools in India 

If you are a business owner, investor, or a corporate house planning to start a new preschool/ preschool chain business in India, then we can help you with tailor made Market Research Services for Schools & consulting solution. Our range of services include but are not limited to the following 

1- Feasibility study services, viability studies, and project reports for new school ventures

2- Market research and surveys to gauge consumer behaviour, brand perception, customer loyalty, etc. 

3- Competitive benchmarking

4- Tailor made market insights 

5- Business and strategic research

6- Market scanning and new opportunity assessment

7- New market entry plans for upcoming schools

8- For any further assistance in How to Write Feasibility Study for Schools, please feel free to drop us a mail at info@theindiawatch.com 

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