Latest News

Back to Latest News back

 

Australian gym market to reach saturation within five years

Australian gym market to reach saturation within five years
February 23, 2015

Market saturation is expected to play a major part in the Australian gym and fitness centre market over the five years through 2019/20, with potential industry decline looming.

In a just released update to its report Gyms and Fitness Centres in Australia, market reaseach company IBISWorld has highlighted growing health consciousness among Australians over the past five years, with consumers becoming more aware of the effectiveness and benefits of physical activity.

Referring to new operators having changed the structure considerably over the five years through 2014 and the emergence of budget 24/7 gym chains, IBISWorld industry analyst David Whytcross explains “rising health awareness and obesity levels have triggered further uptakes of gym memberships.”

Whytcross cities the substitution by many consumers of their expensive full-service gym memberships for more affordable 24/7 gym memberships has limited the industry's revenue growth potential during this period.

These factors have all contributed to the industry being worth an estimated $1.31 billion in 2014/5, after growing at a compound annual rate of 3.3% over the past five years.

Whytcross adds “further growth has occurred through the expansion of more affordable gyms, which offset the discretionary spending decline during the economic downturn.”

Suggesting a “medium level” of market share concentration at the present time, the IBISWorld report predicts market saturation and industry decline over the five years through 2019/20 with membership uptake expected to fall as “consumer markets have already been tapped by niche gyms catering to all segments of the population … these include full-service gyms, women-only gyms and budget 24-hour gyms.”

Further substitution from full-service gyms to cheaper 24/7 gyms is also projected to cause revenue to drop although revenue decline is expected to move slowly, as an ageing population habituated to gyms continues to drive demand for full-service gyms.

For more information, click here to visit IBISWorld’s Gyms and Fitness Centres in Australia report page.

22nd January 2015 - AUSTRALIANS SPENDING $8.5 BILLION ANNUALLY ON FITNESS

5th December 2014 - FITNESS INDUSTRY BOOSTED BY HIGH DISCRETIONARY INCOMES AND HEALTH PROMOTION

3rd December 2014 - REPORT IDENTIFIES GROWTH IN PERSONAL TRAINING LED BY RISING LEVELS OF HEALTH CONSCIOUSNESS

11th February 2014 - IBISWORLD PREDICTS FLAT GROWTH IN FITNESS INDUSTRY THROUGH 2014

26th April 2012 - AGEING POPULATION PRESENTS OPPORTUNITES FOR FITNESS CLUBS


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.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

GLADSTONE MRM

Gladstone Health & Leisure (Gladstone MRM Pty Ltd Australia) is a leading supplier of leisure management and fitness software and is endorsed by leading health and fitness professionals and…

read more

Access / Billing / Fitness / Technology / Venues

 
 
 

Les Mills Asia Pacific

Les Mills Asia Pacific Les Mills Asia Pacific (LMAP) have been setting the benchmark for providing professional fitness solutions across Australia and South East Asia since 1996. Our world renowned…

read more

Fitness / Technology / Wellness

 
 

INTELLIGENZ

Recreation Management Software for managing all your program registrations, facility bookings, membership pass sales and Point of Sale; including detailed reporting, automated customer communication…

read more

Access / Billing / Finance / Marketing / Technology

 
 

Humanforce

Humanforce is a global provider of workforce management solutions for companies who need flexibility to manage complex workforces. Companies use Humanforce to manage everything from time and…

read more

Hospitality / Retail / Technology / Venues

 
 

Enta Australasia

As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd.  Click here to view the VIVATICKET Pty Ltd listing.  19th July 2018 - ENTA…

read more

Technology / Ticketing / Venues

 
 

Vticket

Vticket Pty Ltd is the Australian and New Zealand distributor for Gateway Ticketing Systems Inc., the world leader in high-speed access control, admission control and ticketing software for the…

read more

Attractions / Security / Technology / Ticketing / Venues

 
 

NovoFit

NovoFit is an exciting and dynamic new company born from two of Australia’s leading commercial fitness equipment suppliers. NovoFit combines over 45 years of industry expertise, delivering state…

read more

Fitness / Recreation / Sport / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business