Chinese agency market diversifying, report shows

The Chinese agency market is diversifying, with new businesses opening, more companies promoting high school and English language study, and greater market share for other Asian destinations, according to new analysis of the sector.

The China Agent Market Annual Update 2025 was presented by Su Su, Senior Research Manager at research company Bonard, in a special webinar this week.

Agency mapping: Screening of businesses in the four Tier 1 cities and 15 New Tier 1 cities found that 1,231 agencies were active and verified across those locations.

Beijing hosts the most active agencies with 171, followed by Shanghai (138), Chengdu (103), Shenzhen (88), Guangzhou (80) and Nanjing (78).

The number of active agencies in the four Tier 1 cities was calculated at 475, a significant increase compared with 339 in the last research in 2023. Each city had an increase in active agencies.

_{Mapping active agencies in China. Source - Bonard.}

However, there was considerable churn in the sector, as only 44 per cent of those identified in 2023 could still be verified as active in the latest research, while 44 per cent were out of contact and 12 per cent were not operating in the sector any longer.

In the 15 New Tier 1 cities, Bonard identified 756 active agencies and found that only 22 per cent of those from eight cities previously researched in 2022 were still active.

Diversification of product portfolios: There has been a significant divergence in the portfolios of the active agencies in the four Tier 1 cities. In 2023, 95 per cent of agencies analysed offered higher education programmes, but this ratio reduced to 81 per cent in the latest research.

The ratio of agencies promoting ELT programmes increased from 34 per cent to 76 per cent, while those offering K-12 courses grew from 40 per cent previously to 57 per cent.

Promotion of K-12 and ELT programmes has also increased in the New Tier 1 cities, the authors found. All agencies in Hebei were offering ELT programmes, while 96 per cent in Wuxi, 82 per cent in Ningbo, and 79 per cent in Chengdu were promoting English language.

Hebei (92), Wuxi (92) and Ningbo (82) also had similarly high levels of K-12 high school promotion.

Changes in destinations promoted: While previously the USA was the most promoted destination for Tier 1 agencies, in the latest research it slipped to third place, behind the UK and Australia. Canada slipped to fourth place, while Singapore was fifth.

Singapore is notably popular with agencies in Shenzhen, where 53 per cent of agencies are promoting it as a destination, and Guangzhou (43 per cent).

Japan is offered by 29 per cent of agencies in Guangzhou, while 43 per cent of agencies in Shenzhen are promoting Hong Kong, the authors said. Approximately a quarter of Tier 1 agencies are offering higher education in the EU.

Among the New Tier 1 cities, the UK is also the most promoted destination on 81 per cent, followed by Australia (65), the USA (63), Canada (59), Singapore (47), New Zealand (33) and Japan (25).

Policy changes and announcements in the USA, as well as threats to end the Optional Practical Training (OPT) post-study work system have undermined confidence in the USA, Su said, while policy changes and study permit caps have affected Canada, particularly below degree level. The UK, in contrast, is seen as relatively reliable with a solidly high visa approval rate.

Asian destinations, meanwhile, are gaining in popularity and attracting students with faster visas and benefits. Japan has simplified student visa procedures, South Korea has implemented several measures to attract more international students, and Malaysia has introduced a ‘green channel’ to reduce visa processing times for Chinese students to 14 days.

_{Changes in programmes offered in Tier 1 cities. Graphic source - Bonard.}

During the webinar, Su said that value, career-relevance and flexibility and now key drivers in the study abroad decision-making process for families, and that many new agents are entering the sector with awareness of the emerging market trends.

Many students are still willing to pay the higher fees for more traditional destinations, but institutions will need to demonstrate why they are worth the extra investment.

Su highlighted that the average undergraduate tuition fees in Japan (55,000 RMB per year) and Malaysia (60,000) are several times cheaper than the UK (205,000) and the USA (280,000).

_{Singapore is the most promoted destination beyond the 'Big Four'.}

However, she highlighted that the price variance in study tours is much closer, offering an opportunity for the traditional destinations.

Recommendations for educators: In interviews with a focus group of 16 agencies, respondents cited regular agent training as the most important advantage of an educational provider (70 per cent), followed by improving programme quality (64), more visits to China (57), and having Chinese-speaking staff and translated materials (50).

Providing advice for educators, Su said educators should accept and adapt quickly. She argued that the Chinese outbound market is no longer the gold mine that it was, but it remains large and full of opportunities, although economic factors and alternative destinations are reshaping the market.

She also advised educators to refine strategies to local markets within China, as broad-brush approaches no longer work, and to adapt strategies to highlight affordability.

“Agencies are critical gatekeepers in China. Focus on building relationships with agencies that show flexibility, market knowledge, and long-term vision. Invest in regular agency training to ensure they are well-informed and motivated to promote your programmes authentically,” Su said.

Clickhere to request access to the webinar and slides.