Keeping Australia fit is a big job. In fact in 2011-12 it will be a $2.87 billion job.
Melbourne, Australia (PRWEB) October 31, 2011
The coming five years will see the Australian Fitness industry return to its growth trajectory after the dip that occurred during the worst of the economic downturn, according to IBIS World, Australia’s largest publisher of industry research. Revenue will expand at a rate of 3.6% per annum, reaching $3.43 billion in 2016-17. The industry's profit margin will be quite stagnant as competition between operators increases.
Keeping Australia fit is a big job. In fact in 2011-12 it will be a $2.87 billion job. This is not a surprise given Australia's position as one of the most overweight nations in the world. Despite Australia's ever growing waistlines, revenue to providers of Australian fitness industry has grown by just 1.4% per annum over the five years to 2011-12. However, the timid growth reflects declines in 2008-09 and 2009-10 as cautious Australian consumers opted for cheaper health and fitness alternatives.
Prior to the downturn, the fitness industry had grown strongly, and aside from the interruption of the financial crisis and economic downturn, the story of the past five years is one of strong growth. The growth has been driven by the mainstreaming of fitness services as health awareness increases. The industry's performance has gained additional assistance from ‘The Biggest Losereffect' with the reality TV weight-loss contest having effectively served as an advertisement for fitness services. The household outsourcing trend has also played a part in industry growth, with the do-it-for-me mindset carrying over to fitness regarding advice, instruction and motivation.
According to IBISWorld analyst, Ian MacGowan, the coming five years will see the fitness industry approaching maturity, with revenue growing steadily. “Revenue will increase at 3.6% per annum to total $3.43 billion in 2016-17,” says MacGowan. “Customers in older age groups will continue to be key drivers of growth as awareness of the benefits physical activity can have on health and quality of life in later years becomes more widespread.” The ageing population will also see greater numbers of people entering this age group. The industry will continue to trial new products, programs and delivery methods. Although some new methods and programs will fade away other are likely to be very successful as Australia's willingness to spend on their health increases.
For more information, download the full report from IBISWorld on the Fitness Industry in Australia
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