Gyms broadened their customer bases to stay competitive during the recession
Los Angeles, CA (PRWEB) February 15, 2013
The Gym, Health and Fitness Clubs industry has benefited from an array of marketing campaigns and ensuing consumer trends for fighting obesity and improving health. “Prior to the 2009 recession, gym memberships increased rapidly as a result of soaring demand for fitness activities,” says IBISWorld industry analyst Dale Schmidt. “Industry operators have capitalized on this growth by expanding establishments in both size and number.” In addition, the industry has been diversifying through small-scale gyms and gyms targeted at females and older adults, which have both helped expand the industry's overall customer base. The larger players in this industry have numerous locations throughout Canada, while small players are generally independently owned and operate in only one or two provinces. Over the past five years, industry market share concentration has slightly risen as a result of larger firms continuing to expand operations to improve economies of scale and enter new markets.
Broadening their markets was also a way for gyms to retain membership numbers during the recession. In 2009, demand for gyms and health clubs weakened as consumers cut back on discretionary spending. Compared with other industries dependent on consumer spending, the Gym, Health and Fitness Clubs industry “has remained resilient as increased leisure time and boosts in health and morale from exercise have kept the industry highly competitive,” says Schmidt. “Additionally, the downturn has also favored growth of lower-cost gyms with fewer amenities over more expensive, all-inclusive clubs.” Because of generally positive trends despite the recession, industry revenue grew an estimated 2.1% per year on average to $1.9 billion over the five years to 2012.
Over the next five years, the industry will benefit from increased youth and baby-boomer memberships, trends that have surfaced over the past five years. Companies will also profit from the public's growing interest in staying fit and fighting the rising obesity rate, as well as membership growth outpacing population growth. As consumers' incomes grow in line with the recovering economy, the industry will transition back toward larger and all-inclusive clubs. Income growth will also increase demand for all types of gyms in the five years to 2017; players will capitalize on this growth and provide members with additional services in a bid to increase registration and retention rates. For more information, visit IBISWorld’s Gym, Health and Fitness Clubs in Canada 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 operates fitness and recreational sports facilities that feature exercise and other active physical fitness conditioning or recreational sports activities, such as swimming, skating or racquet sports. Firms are also involved in facilities management and fitness instruction.
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 and Canadian 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.ca or call 1-800-330-3772.