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Australian fitness industry revenues to grow to $2.4 billion by 2022/23

Australian fitness industry revenues to grow to $2.4 billion by 2022/23
March 12, 2018

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). 

10th March 2018 - GYMS AND FITNESS CENTRES AMONG AUSTRALIA’S MOST SUCCESSFUL FRANCHISE OPERATIONS

1st November 2017 - FITNESS FIRST MOVE TO 24/7 OPERATIONS AIMS TO ALIGN WITH CHANGING WORK AND LIFESTYLE HABITS

27th October 2017 - FITNESS AND LIFESTYLE GROUP ACQUIRES GO HEALTH CLUBS 

11th August 2017 - COLLECTIVE WELLNESS GROUP EYES 1,000 LOCATIONS AS PART OF AUSTRALIA-WIDE EXPANSION 

27th July 2017 - SURVEY SHOWS FERNWOOD DELIVERS AUSTRALIA’S MOST SATISFIED FITNESS CLUB MEMBERS 

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

11th May 2016 - ANYTIME FITNESS’ MEDIA SUBSIDIARY CHANGES NAME TO DRIVE FUTURE GROWTH

10th May 2016 - MASSAGE ENVY MARKS INTERNATIONAL EXPANSION WITH AUSTRALIAN LAUNCH 

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 

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