Industry growth has remained steady amid volatile conditions.
Melbourne, Australia (PRWEB) October 20, 2012
The Pilates and Yoga Studios industry in Australia has grown from a highly specialised niche to an established part of the health and fitness industry over the past fifteen years. The industry has transitioned from growth to maturity, with the rush of new entrants slowing. Over the five years through 2012-13, demand for industry services has been affected by conflicting trends. On the one hand, Australians are becoming increasingly concerned with maintaining their health, which can be seen in indicators like health consciousness and sports participation. According to IBISWorld industry analyst Caroline Finch, “awareness the costs of lifestyle-based diseases and the health risks of obesity have resulted in increasing demand for health and fitness services”. In addition, the industry has been able to target consumers looking for a wellbeing dimension to exercise, with practices like yoga offering a different approach to lifestyles and mere exercise.
Despite the growing interest in the Pilates and Yoga Studios industry in Australia, revenue over the five years through 2012-13 has only grown at a compound annual rate of 0.6%. In the current year, the industry is expected to grow by 3.2% to $967.2 million. The industry's services are discretionary. Consumer and business sentiment plunged during the global financial crisis and the year following. With fears rife of an increase in unemployment or a recession in Australia, consumers cut back their spending on industry services. This occurred at a time of intense internal competition within the industry. In the next five years, the industry is expected to fare better, as demand continues to grow for industry services. Due to the widespread existence of basic industry products, specialisation and the targeting of new markets is likely to drive growth. “The core disciplines of yoga and Pilates are likely to grow in popularity as more people incorporate either practice into their lifestyles”, Finch adds. For example, it is anticipated that the development of services for specific markets already in the five years through 2012-13, such as prenatal and postnatal yoga and Pilates, will expand the industry's market. The adoption of industry practices is also expected to result in a continuing stream of potential instructors seeking training and then employment. In the five years through to 2017-18, the market for services targeted towards seniors is expected to further broaden the industry's revenue base.
The Pilates and Yoga Studios industry is highly fragmented with no one company holding a dominant market share. The largest players are YMCA Australia, Fitness First and Ardent Leisure Group, but most operators run a single location that caters to a narrow local market. The industry's high labour costs and relatively low profit margin are generally not conducive to opening multiple locations across a wide geographic area. Market share concentration has declined over the past five years as yoga and Pilates participation has increased, more forms of specialised yoga and Pilates have become available and barriers to entry remain low. These factors have allowed sole-traders to set up quickly wherever an active market for their services exists. On the other hand, a number of large gym chains that offer yoga and Pilates classes alongside free weight, sauna and spa, and fitness facilities, have struggled to compete against more nimble competitors.
For more information, visit IBISWorld’s Pilates and Yoga Studios report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry comprises facilities that offer Pilates and yoga instruction to individuals or groups. Pilates is a body conditioning routine to build strength and flexibility while yoga is a physical and spiritual practice focused on breath control, flexibility and strength. The industry includes Pilates and yoga classes taught at gyms or other health club centres.
Key External Drivers
Industry Life Cycle
Products & Markets
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Market Share Concentration
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Technology & Systems
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About IBISWorld Inc.
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