Getting lean: A trend towards no-frills gyms has limited industry revenue expansion

The industry covers the operation of gyms and health and fitness clubs, which include personal training services offered through a gym but not the activities of independent personal trainers. Revenue is predominantly derived from membership fees, typically on an annual contract basis. Gyms can be broadly classified as low-market, mid-market and high-market based on their membership fees and the facilities they offer. Despite the presence of several large players, there are still many small independent gyms operating across the United Kingdom. However, mergers and acquisitions have occurred in recent years, indicating that the structure of the industry is changing, with franchising also proving increasingly popular...read more.

Industry Statistics & Market Size
Revenue
£1.9bn
Annual Growth 14-19
5.6%
Forecast Growth 19-24
Profit
Employment
40,896
Businesses
2,710

Industry Threats & Opportunities

  • The shift towards budget gyms has limited expansion, but revenue has still grown strongly
  • Intensifying competition as budget gyms have grown has encouraged consolidation activity
  • Older people are likely to be a key market for targeted fitness, mobility and lifestyle offerings
  • Industry Report - Industry Locations Chapter

    Gyms and fitness centres are largely concentrated in urban areas. These areas can support more clubs because the population density is higher and there are fewer alternative exercise options in an urban environment. The lack of large spaces in central locations mean that many gyms are found on the edge of towns, although this is changing slightly as more small gyms and studios are opened on high streets. The distribution of revenue and establishments by region largely follows the spread of population and income across the United Kingdom.LondonLondon contains the most gyms and fitness centres in the United Kingdom, with 19.2% of industry establishments. The capital is home to the second-highest proportion of the population. Lon...purchase to read more.

    Additional Insights for the Gyms & Fitness Centres Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gyms & Fitness Centres Industry are

  • Easy access for clients
  • Superior financial management and debt management
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Health consciousness in the Gyms & Fitness Centres industry impact industry performance..

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    What's in this report

    What is the Gyms & Fitness Centres Industry?

    Operators in this industry provide fitness facilities, specifically gyms and health clubs. These organisations typically provide services on a membership basis, and benefits include the use of exercise equipment and weights, personal training, group classes and other club facilities.

    Industry Products
  • Weights and exercise machines
  • Group fitness classes
  • Personal training
  • Industry Activities
  • Gym and health club operation
  • Provision and running of fitness and bodybuilding clubs and facilities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Health consciousness
  • Average weekly hours of work
  • Sport participation

  • Current Performance
  • Rising health consciousness
  • Technology and marketing
  • Budget gyms dominate
  • Merger and acquisition activity
  • Current concerns
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising obesity
  • Budget segment
  • Luxury and mid-market segments
  • Growth strategies and new markets
  • Location, location, location
  • Market structure and profit
  • Table: Gyms & Fitness Centres Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gyms & Fitness Centres Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Dietetic Food Manufacturing
  • Juice, Mineral Water & Soft Drink Wholesaling
  • Sporting Goods Manufacturing
  • Sports & Recreation Education

  • Products & Services
  • Weights and exercise machines
  • Group fitness classes
  • Personal training
  • Other
  • Chart: Gyms & Fitness Centres Industry Products and Services Segmentation

  • Demand Determinants
  • Household disposable income
  • Social trends
  • Other

  • Major Markets
  • People aged between 25 and 44 years
  • People aged between 45 and 64 years
  • People aged between 16 and 24 years
  • People aged 65 years and over
  • People aged 15 years and under
  • Chart: Major Market Segmentation for the Gyms & Fitness Centres Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRentDepreciationUtilitiesMarketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Gyms & Fitness Centres

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gyms & Fitness Centres Industry

  • Industry Globalization
    David Lloyd Leisure Ltd, Pure Gym Ltd, Virgin Active Ltd, Dave Whelan Sports Ltd, The Gym Group plc, Bannatyne Fitness Ltd,
  • Table: David Lloyd Leisure Ltd - financial performance
  • Table: Pure Gym Ltd - financial performance
  • Table: Virgin Active Ltd - financial performance
  • Table: Dave Whelan Sports Ltd - financial performance
  • Table: The Gym Group plc - financial performance
  • Table: Bannatyne Fitness Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gyms & Fitness Centres Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gyms & Fitness Centres Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cardio
  • Cardiovascular training or aerobics.
  • Membership Churn
  • Gyms and health clubs sign up thousands of new members each year, yet lose many of these within six months, resulting in flat membership growth.
  • Yoga
  • A system of physical, mental and spiritual exercises that originated in ancient India.
  • Zumba
  • A combination of dance and aerobics that has become popular in recent years.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gyms & Fitness Centres market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    This report on Gyms & Fitness Centres:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gyms & Fitness Centres market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gyms & Fitness Centres, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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