Fun Wheels Pty Ltd are the premium dealer in Australasia for the Dutch company BERG’s commercial and domestic products. Our flagship product is their revolutionary pedal go-kart – the…read more
Fitness industry growth contained by market saturation and decline in discretionary income of consumers
A decline in the discretionary income of Australians over the past three years has contained the expansion of the fitness industry growth while market saturation is anticipated to play a major part in slower revenue growth in the industry over the next five years.
As revealed by the latest IBISWorld’s latest Gyms and Fitness Centres - Australia Market Research Report, industry revenue has grown at an annualised 4.8% over the five years through to 2018/19 to $2.5 billion in value.
IBISWorld attribute that increasing health consciousness over this past five years, with consumers becoming more aware of the benefits of physical activity, as being a key driver of this growth. This has been fuelled by wider social trends, such as a growing audience for social media fitness models and ongoing promotions by governments.
It also identifies industry growth as being down to facilities being more affordable gyms, with budget 24/7 chains - with lower staffing costs - offering consumers cheaper memberships.
However, it anticipates industry growth to slow to 2.6% a year in the coming five years, due to market saturation.
The report advises “market saturation is anticipated to play a major part in the industry’s slower revenue growth over the next five years.
“Gym membership numbers are forecast to increase at a slower rate than they did over the past five years, 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. However, forecast strong discretionary income growth is anticipated to drive demand for premium gyms over the next five years.”
IBISWorld also suggests that “single-visit programs such as Medibank’s GymBetter will also potentially slow revenue growth, as infrequent users scale back their gym costs to pay smaller per-visit fees.”
Industry revenue is forecast to grow at an annualised 3.1% over the five years through 2023/24, to $2.9 billion.
Click here for more information on IBISWorld’s latest Gyms and Fitness Centres - Australia Market Research Report.
12th March 2019 - New marketing strategies needed to drive ongoing growth of 24/7 gyms
29th January 2019 - Report suggests Fitness and Lifestyle Group buys CMG Asia for $200 million
13th December 2018 - Anytime Fitness reveals new design identity for Australian clubs
23rd November 2018 - Les Mills Asia Pacific names new Chief Executive
13th November 2018 - HIIT Factory plans 15 new franchised studios
23rd July 2018 - Gold’s Gym International owner puts brand up for sale
12th August 2016 - Gymbetter scales back to three participants
11th February 2014 - IBISWorld predicts flat growth in fitness industry through 2014
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