New markets like baby boomers and men will sustain demand for Pilates and yoga studio.
Los Angeles, CA (PRWEB) October 06, 2012
The Pilates and Yoga Studios industry has experienced robust growth over the past five years. From 2007 to 2012, revenue is estimated to grow at an average annual rate of 7.7% to $6.9 billion. Interest in yoga and Pilates has soared over the past two decades, driven by fitness trends and rising interest in alternative health practices in the United States. “While revenue growth peaked in 2003, expansion into new geographic and consumer markets has sustained revenue growth,” says IBISWorld industry analyst Caitlin Moldvay. “Furthermore, while the majority of yoga and Pilates participants are women, participation rates among men have increased over the five-year period, aiding industry growth.” In 2012, the industry is expected to continue its upward trajectory, with revenue expected to jump 5.1%.
In response to rising consumer interest, the number of studios offering classes has proliferated over the past five years. During this period, the number of industry studios is expected to rise at an average annual rate of 5.9% to an estimated 26,610. This growth has been led by the increasing popularity of Pilates and yoga among the US population. Over the past decade, yoga participation has grown from 4.3 million people in 2001 to an estimated 22.1 million, based on 2012 data provided by the Sporting Goods Manufacturers Association. Pilates has experienced similar growth, rising from 2.4 million participants in 2001 to 8.5 million as of 2011, according to the latest available data. “The Pilates and Yoga Studios industry is highly fragmented and has a very low market share concentration,” adds Moldvay. “Most players operate a single location that caters to a narrow local market.” Industry concentration has increased only slightly during the past five years. The consolidation, though not statistically significant, has largely occurred as larger companies expand, opening new locations and acquiring existing studios in order to grow their existing customer base and enter new regional markets. Profit margins have grown in part because of an industry-wide trend away from donation-based classes to standard class pricing. Additionally, the growing popularity of yoga and Pilates has led to larger class sizes, another factor favorably affecting margins. Additionally, membership payment plans have become more popular, stabilizing revenue for industry operators.
Over the five years to 2017, industry revenue is projected to rise. Improving economic conditions will result in greater per capita disposable income growth, aiding demand for lucrative private instruction classes. In addition, the Pilates and Yoga Studios industry will benefit from rising demand from the baby-boomer generation. The trend will be partly influenced by population growth and demographic factors; yoga and Pilates are popular among baby boomers, as they are a low-impact form of exercise. For more information, visit IBISWorld’s Pilates and Yoga Studios in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
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. This industry does not include Pilates and yoga classes taught at gyms or other health club centers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.