Gym, Health and Fitness Clubs Industry Market Research Report from IBISWorld has Been Updated
Even in the midst of the economic downturn, the industry has maintained steady growth, with membership rates growing consistently and profit remaining solid. For these reasons, industry research firm IBISWorld has updated a report on the Gym, Health and Fitness Clubs industry to its growing report collection.
Los Angeles, CA (PRWEB) February 10, 2013
The Gym, Health and Fitness Clubs industry has benefited greatly from the vast array of marketing campaigns and ensuing consumer trends for fighting obesity and improving health. Gym memberships have increased considerably over the past 10 years, rising from 46.4 million in 2003 to more than 52.6 million by 2013. “This trend has resulted in soaring demand for fitness activities, and industry operators have capitalized on this growth by expanding establishments in both size and number,” says IBISWorld industry analyst Dale Schmidt. In addition, the industry has diversified some with the rise of small-scale gyms and women-oriented gyms, which have helped the industry draw a larger 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. But 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. In fact, many smaller operators have expanded over the past two years despite the economic climate. Overall, industry revenue is expected to grow at an annualized rate of 1.4% to $25.9 billion over the five years to 2013, including growth of 2.5% in 2013.
Over the next five years, the Gym, Health and Fitness Clubs industry will benefit from increased youth and baby boomer memberships. IBISWorld forecasts that revenue will expand over the five years to 2018. Firms will profit from growing interest in staying fit as well as the increasing obesity rate, and membership growth will continue to outpace population growth. As consumers’ income grows in earnest with the recovering economy, the industry will transition back toward larger and all-inclusive clubs. With total health club memberships expected to reach 58.2 million in 2017, players will capitalize on this growth and provide members with additional services in a bid to increase registration and retention rates. This industry has a low level of market share concentration, with the top four firms in this industry accounting for about 12.7% of industry sales. According to Schmidt the concentration remains low because of the large number of centers that only employ one person or are nonemploying establishments. In 2012, about 36.0% of all establishments were nonemploying, and these establishments are expected to generate only 11.9% of industry revenue. The percentage of nonemployers is substantial because the industry’s low barriers to entry, making it an attractive industry to enter. For more information, visit IBISWorld´s Gym, Health and Fitness Clubs industry report page.
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IBISWorld industry Report Key Topics
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/2/prweb10414661.htm