Demand for gyms and health and fitness clubs will continue to rise over the next five years

Even in the midst of the economic downturn, the industry has maintained steady growth, with membership rates growing consistently and profit remaining solid. Demand for gyms and health and fitness clubs will continue to rise over the next five years, as the general public becomes more health conscious and the aging population places a greater emphasis on staying fit. In particular, growth in household incomes will positively affect businesses, leading operators to expand into larger facilities. For these reasons, industry research firm IBISWorld has added a report on the Gym, Health & Fitness Clubs industry to its growing industry report collection.

 The Gym, Health and Fitness Clubs industryhas benefited from the array of marketing campaigns and ensuing consumer trends for fighting obesity and improving health. Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 43.6 million by 2012. According to IBISWorld industry analyst Dale Schmidt, “this trend is the result of soaring demand for fitness activities, and industry operators have capitalized on this growth by expanding establishments in both size and number.” In addition, the industry has diversified some with the rise of small-scale gyms and female-oriented gyms, which have expanded its customer base.

 However, the industry has not been recession-proof. In 2008 and 2009, demand for gyms and health clubs weakened as consumers cut back on discretionary spending. Still, compared with other industries, the Gym, Health and Fitness Clubs industry has remained remarkably resilient, as increased leisure time and boosts in health and morale from exercise have kept the industry highly competitive. Gyms and health clubs have broadened their markets in a bid to retain membership numbers throughout the recession’s aftermath. “Due to their lower cost, the downturn has also favored the growth of small-budget gyms with fewer amenities over more expensive, all-inclusive clubs,” says Schmidt. Consequently, this industry has a low level of market share concentration, with the top four firms in this industry accounting for a relatively small portion of sales. The concentration remains low because of the large number of centers that only employ one person or are nonemploying establishments. The larger players in this industry, such as 24 Hour Fitness, Bally’s Total Fitness and Curves International have numerous locations throughout the United States, while small players are generally operate in one or two states. Over the past five years, concentration has increased as a result of larger firms continuing to expand operations to improve economies of scale and enter new markets.

 Over the next five years, the industry will benefit from increased youth and baby-boomer memberships, which will boster the industry’s revenue. Firms will profit from the public’s growing interest in staying fit as well as the rising obesity rate, and membership growth will continue to outpace population growth. As consumers’ income grows in line with the recovering economy, the industry will transition back toward larger and all-inclusive clubs. With total health club memberships expected to rise at a healthy rate over the next five years, 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 & Fitness Clubs in the US industry report page. 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.

 

Industry Performance

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 Gavin Smith
IBISWorld
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