A recent press release from the IBISWorld market research group contains some very interesting observations on the current state of the Gym, Health and Fitness Clubs industry. According to IBISWorld’s latest report, the Gym, Health and Fitness Clubs industry has shown remarkable growth over the last decade and is expected to continue to grow at an average annual rate of 2.6% over the next five years leading up to 2016. The report says the growth trend has been solid with the exception of the last two years when gym membership remained flat in the weakened economy, and IBISWorld says the overall market has not yet reached a saturation point. As the U.S. economy begins to stabilize and the high unemployment numbers start to subside, overall gym, health and fitness club membership numbers are expected to grow to more than 42.8 million by the end of 2011.
Gym membership was reported to be about 36.3 million people in 2002 and the rapid growth since then has been attributed to many creative marketing campaigns along with a growing consumer interest and awareness for fighting obesity and improving health. . The growth trend has benefited from the consumer demand for more fitness activities and many savvy gym operators responded by expanding their establishments in both size and number.
This does not mean the gym and health club industry has been totally recession-proof however, as the demand for gyms and health clubs did decline a bit as consumers cut back on their discretionary spending during the 2008-2009 recession. In comparison to other entertainment and leisure-time industries, gyms have done very well by broadening their markets and offering more value to members in the effort to keep membership numbers stable as the economy recovers. Overall industry revenue has grown at an average annual rate of over 2.3% in the first half of 2011 alone.
IBISWorld analysts expect even more growth as more youth and baby boomer gym memberships are sold and revenue is expected to expand at an average annualized rate of 2.6% to $28.2 billion over the next five years leading up to 2016. IBISWorld says more gyms will profit from the growing interest in fitness and the industry will start moving toward larger, all-inclusive clubs. Because the total gym membership total is expected to reach 47.5 million people in 2016, successful gyms will capitalize on the growth by providing their members with more new services in the attempt to increase their registration and retention rates.
Although no single gym brand currently has a market share larger than 5.0%, the major players like 24 Hour Fitness Worldwide Inc., Life Time Fitness, Bally Total Fitness Holding Corporation, Curves International Inc., Town Sports International Holdings Inc., and Gold's Gym International Inc. are all expected to add many new locations before the decade is over. Growth in any industry is good and the trend in the health club industry means more options, more competitive pricing and more features for all members will be coming in the near future.