IBISWorld Market Research
Increases in health consciousness are driving up gym memberships.
Melbourne, Australia (PRWEB) February 04, 2014
The overall structure of the Gyms and Fitness Centres industry has changed over the past five years, steering the industry towards healthy growth. While discretionary spending plunged at the onset of the global financial crisis and instigated a trough in industry revenue in 2008-09, spending on fitness has since increased. IBISWorld industry analyst David Whytcross states “industry growth has been largely stimulated by the advent of budget 24-hour gym chains, which have grown exponentially over the past five years as consumers have been attracted to their affordability and accessibility.” Rising health awareness and obesity levels have triggered further uptake in gym memberships. These factors have contributed to the industry being worth an estimated $1.31 billion in 2013-14 after annualised growth of 4.8% over the past five years.
Health awareness has grown over the past five years, with TV shows like The Biggest Loser promoting the benefits and effectiveness of exercise. With Australia's obesity levels continuing to rise, reality TV fitness programs have provided added incentive for overweight or obese people to attend gyms. Further growth has occurred through the expansion of more affordable gyms, which offset the discretionary spending decline during the economic downturn. Budget 24-hour gyms such as Anytime Fitness and Jetts Fitness have driven industry growth over the past five years. These gyms generally operate unstaffed, with the wage savings flowing down to consumers in the form of cheaper membership prices. The market has become saturated, however, with stifled revenue growth of 2.2% forecast for 2013-14. Market saturation is expected to contribute to an industry slowdown over the next five years. Consumers have abundant choices, including full-service gyms, women-only gyms and budget 24-hour gyms. According to Whytcross, “membership uptake is expected to fall as most consumer markets have already been tapped due to niche gyms catering to all pockets of the population.” Further substitution from full-service gyms to cheaper 24-hour gyms is projected to cause revenue to drop. The revenue decline is expected to move slowly though, as an ageing population more habituated to the gym environment than previous generations drives demand for full-service gyms.
The Gyms and Fitness Centres industry is characterised by a moderate level of market share concentration. The growth of medium-sized companies and foreign entrants to the industry has increased industry concentration. Ardent Leisure Group's Goodlife Health Clubs have increased their reach through various acquisitions, while the budget 24-hour gym chains Anytime Fitness and Jetts Fitness have grown exponentially over the past five years as consumers have become more price-conscious. The industry’s major players include Fitness First, Ardent Leisure Group (Goodlife), Anytime Fitness, 24/7 Brands (Jetts Fitness), YMCA Australia, Fernwood and Genesis Fitness. For more information, visit IBISWorld’s Gyms and Fitness Centres report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry consists of businesses mainly engaged in operating health clubs, fitness centres and gymnasia. These businesses provide a range of fitness and exercise services.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
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