Trisley's Hydraulic Services P/L (THS) are a specialised pool company dealing with all aspects of the commercial swimming pool industry, including the installation and servicing from the smallest…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
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.
TJS Services is a leading national facility services provider. We deliver quality cleaning, maintenance, construction and facility management services to over 1,500 sites Australia wide. Our…read more
SLE Worldwide Australia is a Managing General Underwriter specialising in insuring risks in the world of Sports, Leisure and Entertainment. Be it relaxing, playing, organising or watching sports,…read more
Summit Fitness Equipment is now part of NovoFit - see www.ausleisure.com.au/suppliers/novofit/read more
SKC Operations Pty Ltd (SKCorp) is an expert retail and marketing services team specialising in sports, leisure, aquatics, fitness, health, wellness & recreation industry. Using proven…read more
About Priava's Technology - Priava is a cloud-based and centralised venue and event management system aimed at venues of all sizes. With its familiar and easy-to-use web interface, the…read more
Fitness On Demand™ is a market-leading developer of virtual group fitness products. Our innovative video delivery systems offer robust content and a simple-to-use, comprehensive web app. Fitness…read more
Hydrocare Pool Services Pty Ltd offer 25 years of experience in aquatic industry features, products and water treatment. Hydrocare Pools has undertaken water treatment for aquatic centres and…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!