Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011
Los Angeles, California (PRWEB) October 20, 2011
Despite experiencing solid growth during the past decade (with the exception of the past two years), the market has not yet reached saturation. As a result, the Gym, Health and Fitness Clubs industry is expected to remain in a growth phase, with revenue expected to rise at an average annual rate of 2.6% to $28.2 billion in the five years to 2016, according to IBISWorld, the nation’s largest publisher of industry research. During this period, demand is expected to improve as the US economy stabilizes and unemployment declines.
According to IBISWorld’s latest report, the Gym, Health and Fitness Clubs industry has benefited greatly from the vast array of marketing campaigns and ensuing consumer trends for fighting obesity and improving health. Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011. This trend has resulted in soaring demand for fitness activities, and industry operators have capitalized on this growth by expanding establishments in both size and number.
However, the industry has not been recession-proof. In 2008 and 2009, demand for gyms and health clubs weakened as consumers cut back on discretionary spending. But compared with other industries, the Gym, Health and Fitness Clubs industry has remained remarkably resilient, as increased leisure time and boosts in health and morale from exercise have kept the industry highly competitive. Gyms and health clubs have broadened their markets and are offering value to gym-goers in a bid to retain membership numbers throughout the recession's aftermath. The downturn has also favored the growth of small-budget gyms with fewer amenities over more expensive, all-inclusive clubs. In fact, many smaller operators have expanded over the past two years despite the economic climate. Overall, industry revenue is expected to grow at an average annualized rate of 1.7% to $24.8 billion over the five years to 2011, including growth of 2.3% in 2011.
According to IBISWorld analyst, Mary Gotaas, over the next five years, the industry will benefit from increased youth and baby boomer memberships. “Revenue will expand at an average annualized rate of 2.6% to $28.2 billion over the five years to 2016,” says Gotaas. “Firms will profit from growing interest in staying fit, and the industry will transition toward larger and all-inclusive clubs.” With total health club memberships expected to reach 47.5 million in 2016, players will capitalize on this growth and provide members with additional services in a bid to increase registration and retention rates.
Due to the fragmented nature of the Gym, Health and Fitness Clubs industry, no players hold a market share larger than 5.0%. IBISWorld’s latest report findings discusses major players like 24 Hour Fitness Worldwide Inc., Life Time Fitness, Bally Total Fitness Holding Corporation, Curves International Inc., Town Sports International Holdings Inc., and Gold's Gym International Inc., a chain with more than 600 facilities in 40 US states and 30 countries.
For more information, download the full report from IBISWorld on the Gym, Health and Fitness Clubs industry
Gym, Health and Fitness Clubs industry Report Table of Contents
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
# # #