Publicity for the sport is driving new gyms and clubs to specialize in boxing
Los Angeles, CA (PRWEB) May 04, 2012
The Boxing Gyms and Clubs industry took a hit during the Great Recession when consumers tightened spending on industry memberships, instruction and merchandise. “Many people cut out sports from their routines or downgraded to cheaper options when they struggled to make ends meet,” says IBISWorld industry analyst Agata Kaczanowska. US Bureau of Labor Statistics data shows that the percentage of people who participated in sports declined 3.2% in 2008 and did not fully recover until 2010. This dip in demand dragged down industry revenue about 0.2% annually on average since 2007 to $643.5 million in 2012. The annualized drop includes an expected 2.0% revenue recovery in 2012, attributable to increasing disposable income and heightened consumer interest in the sport because of the growing prominence of professional boxing. In particular, Manny Pacquiao has been undefeated since 2005 and Floyd Mayweather Jr. remains undefeated in his professional career, which has sparked intensifying public interest in seeing these two welterweight champions fight. This industry does not include revenue from professional and semiprofessional boxing events.
Says Kaczanowska, “Publicity for the sport is driving new gyms and clubs to specialize in boxing and is helping such businesses increase profitability.” Furthermore, several boxing gyms and clubs are aggressively seeking new franchisees to expand their market reach. Companies like LA Boxing and Title Boxing Club are adding several locations each year. Consequently, IBISWorld estimates the number of Boxing Gyms and Clubs industry establishments has increased over the past five years. This growth is despite several company exits since the Great Recession due to the tight credit market. Over the next five years, operators will continue to expand into new locations. As expansion occurs, concentration is projected to increase. Currently, the industry has a low level of concentration because it is highly fragmented with a large number of nonemploying establishments. Many boxing gyms and clubs employ only one person. The percentage of nonemployers is substantial because the industry has low entry barriers, making it easier to get started in the industry. The majority of establishments employ fewer than 20 people; however, the proportion of businesses that employ 20 employees or more has increased over the past five years, indicating that concentration is rising.
As alternative exercises like boxing grow in popularity, IBISWorld expects industry operations to expand during the next five years. Additionally, recovering disposable income is expected to bolster industry revenue, especially from increased spending on supplementary offerings, such as merchandise, private classes and seminars. Overall population growth and stable sports participation are also expected to benefit the industry over the next five years. For more information, visit IBISWorld’s Boxing Gyms and Clubs in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes facilities that provide instruction on the sport of boxing, the practice of fist fighting with padded gloves within a roped square ring. This industry does not include boxing event promoters or organizers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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