IBISWorld Market Research
Industry growth has been stimulated by the emergence of budget 24-hour gym chains.
Melbourne, Australia (PRWEB) February 13, 2015
Operators in the Gyms and Fitness Centres industry in Australia have changed the industry structure considerably over the five years through 2014-15, steering the industry towards healthy growth. The majority of this growth has been stimulated by the emergence of budget 24-hour gym chains. Franchises like Anytime Fitness and Jetts Fitness have grown exponentially over the past five years, attracting customers with their affordability and accessibility. According to IBISWorld industry analyst David Whytcross, “rising health awareness and obesity levels have triggered further uptakes of gym memberships.” However, the substitution by many consumers of their expensive full-service gym memberships for more affordable 24-hour gym memberships has limited the industry's revenue growth potential during this period. These factors have all contributed to the industry being worth an estimated $1.31 billion in 2014-15, after growing at a compound annual rate of 3.3% over the past five years.
Health consciousness has grown over the past five years, with consumers becoming more aware of the effectiveness and benefits of physical activity. Popular TV shows like The Biggest Loser demonstrate the achievement of weight loss goals and improved fitness levels, providing an incentive for consumers to attend gyms. “Further growth has occurred through the expansion of more affordable gyms, which offset the discretionary spending decline during the economic downturn,” says Whytcross. Budget 24-hour gyms generally operate unstaffed, with the wage savings flowing down to consumers in the form of cheaper membership prices. However, increasing market saturation and the continuing shift in consumer preferences towards cheaper 24-hour gym memberships is projected to result in a 0.8% revenue decline in 2014-15. The industry displays a medium level of market share concentration. Major players include Anytime Australia Pty Ltd, Fitness First Australia Pty Limited, Ardent Leisure Group, 24/7Brands Pty Ltd, Fernwood Women’s Health Clubs Pty Ltd and GHF Pty Ltd.
Market saturation is expected to play a major part in the projected slight Gyms and Fitness Centres industry decline over the five years through 2019-20. Membership uptake is expected to fall as most consumer markets have already been tapped by niche gyms catering to all segments of the population. These include full-service gyms, women-only gyms and budget 24-hour gyms. Further substitution from full-service gyms to cheaper 24-hour gyms is also projected to cause revenue to drop. The revenue decline is expected to move slowly, however, as an ageing population habituated to gyms continues to drive demand for full-service gyms.
For more information, visit IBISWorld’s Gyms and Fitness Centres industry in Australia report page.
Businesses in the industry mainly operate health clubs, fitness centres and gymnasiums, and provide a range of fitness and exercise services.
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