Digonex is a leading provider of customised dynamic pricing solutions to clients in arts and entertainment, sport, attractions, cultural institutions and retail sectors. Digonex’s technology is…read more
Australian fitness industry revenues to grow to $2.4 billion by 2022/23
While warning that Australia’s gym market may reach saturation in the next five years, a new report from international market research company IBISWorld predicts that fitness centre revenues will grow at an annualised 1.8% over the half decade through to 2022/23, to reach $2.4 billion from its 2017/18 value of $2.2 billion.
The recently released report Gyms and Fitness Centres in Australia (subtitled Exercising power: Establishment numbers have bulked up due to the popularity of 24-hour gyms) explains that the “gyms and fitness centres industry has grown strongly over the past five years while undergoing considerable structural change.”
The report goes on to explain how the emergence of budget 24/7 gym chains has stimulated the majority of industry growth, advising “franchises like Anytime Fitness and Jetts Fitness have undergone exceptional growth over the past five years, attracting new customers with their affordability and accessibility.”
It also highlights “rising health consciousness and high obesity levels have triggered further growth in gym memberships. However, many consumers are substituting expensive full-service gym memberships with more affordable 24-hour gym memberships, which has slightly restricted growth. Industry revenue is expected to grow at an annualised 7.5% over the five years through 2017/18, to reach $2.2 billion.
“Health consciousness has increased over the past five years, with consumers becoming more aware of the benefits of physical activity. This trend has increased consumer uptake of gym memberships. Further industry growth has occurred as more affordable gyms have expanded. Budget 24-hour gyms generally operate without staff, and wage savings flow down to consumers in the form of cheaper membership prices.
“However, increasing market saturation, and forecast declines in consumer sentiment and discretionary incomes are expected to result in slightly slower revenue growth in 2017/18, at an anticipated 2.9%.”
It also predicts that market saturation will play a major part in revenue growth slowing over the five years through 2022/23.
Gyms and Fitness Centres in Australia also states that “gym memberships are expected to grow at a slower rate as niche gyms catering to all segments of the population have already accessed most consumer markets.
“These gyms include full-service gyms, women-only gyms and budget 24-hour gyms.
“Consumers further shifting from full-service gyms to cheaper 24-hour gyms is also projected to slow revenue growth. However, this trend should be partially offset as the ageing population becomes more familiar with gyms and drives demand for full-service gyms offering group fitness classes.”
The report also shows the scale of the Fitness and Lifestyle Group’s operations, which include Goodlife Health Clubs, Jetts Australia and Fitness First Australia among Australia’s 4,200 fitness facility businesses.
Operated by parent entity Fitness And Lifestyle Group Topco Pty Ltd, the combined sales of these three gym chains have resulted in the consolidated entity accounting for almost 30% of industry revenue.
Anytime Fitness is the industry’s second largest player with 14.8% of industry revenue.
Click here for more information on IBISWorld Industry Report R9111: Gyms and Fitness Centres in Australia (Exercising power: Establishment numbers have bulked up due to the popularity of 24-hour gyms), November 2017.
Images: Fitness First Barangaroo (top) and women enjoying Fernwood Fitness (below).
27th October 2017 - FITNESS AND LIFESTYLE GROUP ACQUIRES GO HEALTH CLUBS
4th August 2017 - COLLECTIVE WELLNESS GROUP ENERGISES ORANGETHEORY FITNESS IN AUSTRALIA
1st March 2017 - BUYER SOUGHT FOR NEXT GEN HEALTH & LIFESTYLE CLUBS
13th February 2017 - WORLD GYM ANNOUNCES AUSTRALIAN EXPANSION PLANS
2nd December 2016 - ACCC WILL NOT OPPOSE QUADRANT’S FITNESS FIRST ACQUISITION
14th November 2016 - THREE MULTI-MILLION-DOLLAR FITNESS CLUBS OPEN IN BRISBANE
25th October 2016 - FITNESS FIRST CLUBS TO BEGIN 24/7 OPERATIONS
29th September 2016 - QUADRANT EXPANDS WELLNESS EMPIRE WITH ACQUISITION OF FITNESS FIRST AUSTRALIA
14th August 2016 - GOLD’S GYM REVEALS AGGRESSIVE GROWTH PLANS FOR AUSTRALIA
20th April 2016 - LOWER WAGE COSTS BOOST PROFITABILITY OF 24/7 GYMS
24th March 2016 - ACTIVITY ENTREPRENEURS SHARE THEIR BUSINESS SECRETS
23rd February 2015 - AUSTRALIAN GYM MARKET TO REACH SATURATION WITHIN FIVE YEARS
8th August 2014 - CONTOURS SHEDS AUSTRALIAN FRANCHISEES
16th July 2014 - 24/7 GYMS TO DRIVE FITNESS INDUSTRY REVENUES DOWN
11th February 2014 - IBISWORLD PREDICTS FLAT GROWTH IN FITNESS INDUSTRY THROUGH 2014
Share your news. If you have industry news that you’d like us to include in Australasian Leisure Management, or if you have any ideas of new industry topics that you’d like us to focus on, then please just contact us at email@example.com with details. We rely on industry contributions, and remember, our content is not paid for advertorial.
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
The Fitness Generation is now part of NovoFit - see www.ausleisure.com.au/suppliers/novofit/read more
Perfect Gym Solutions is a software as a service (SaaS) solution purpose-built to service the fitness industry, with over 1000 clients servicing over 2 million gym members across 40 countries making…read more
BioGuard is Australia and New Zealand’s most trusted supplier of premium, innovative and affordable commercial water treatment systems and chemicals. BioGuard offers a comprehensive range of…read more
Playrope Aqua-Fun, are the Australian & New Zealand exclusive distributors for Vortex Aquatic Structures International, the world leader in aquatic playgrounds and urban water landscapes.…read more
SPORTENG specialises in the Planning, Design and Construction inspection of Fields of Play for all sports. Blending engineering with the specialist knowledge gained from working closely with sport…read more
The P.A. People is a specialist integrator and contractor in sound reinforcement, audio visual systems, performance lighting and production communications. Over its almost 50 year history the company…read more
TicketSearch is focused on providing businesses, organisations, and venues with affordable, efficient, and powerful self-managed ticketing solutions. The organisation has offices in Australia, New…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!