Melbourne, Australia (PRWEB) July 21, 2013 -- Keeping Australians fit is big business. This is not a surprise given Australia's position as one of the most overweight nations in the world. Despite Australia's growing waistlines, revenue for the Gyms and Fitness Centres industry is expected to grow by a healthy annualised 4.8% over the five years through 2013-14. According to IBISWorld industry analyst Craig Shulman, “this growth hides a 2008-09 decline as cautious consumers opted for cheaper health and fitness alternatives given the poor economic climate”. While a stronger economy and the momentum of low-cost alternatives have fostered growth over the past five years, increasing market saturation is expected to lead to revenue growth of 1.4% to total $1.31 billion in 2013-14.
Prior to the downturn the industry grew strongly, and aside from the disruption brought about by the global financial crisis, the story of the past five years is one of strong growth. “This growth has been driven by the mainstreaming of fitness services as health awareness increased,” says Shulman. Industry performance has benefited from reality TV shows, such as the Biggest Loser, with the weight-loss contest effectively serving as an advertisement for fitness services. The trend towards household outsourcing has also played a part in industry growth, with the do-it-for-me mindset carrying over to fitness advice, instruction and motivation. Over the past five years, competition has increased and the industry now displays medium concentration. The top players include Fitness First Australia Pty Ltd, Ardent Leisure Group, Anytime Australia Pty Ltd, 24/7 Brands Pty Ltd, YMCA Australia, Fernwood Women’s Health Clubs Pty Ltd and GHF Pty Ltd.
The Gyms and Fitness Centres industry will approach maturity over the coming five years, with revenue forecast to stagnate as industry consolidation occurs. Customers in older age groups will be key drivers of growth as awareness of the benefits of physical activity on health and quality of life in later years becomes more widespread. The ageing population will also result in greater numbers of people entering this age group. The industry will continue to trial new products, programs and delivery methods. Although some new methods and programs will fade away, others are likely to be successful as Australians' willingness to spend on their health increases.
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, 310-490-5973, [email protected]