The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…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.
Track. Engage. Retain GreeneDesk is a suite of cloud based software solutions helping health clubs, leisure centres and swim schools to effectively track progression, improve customer engagement and…read more
The Calgym/Synergy group has had a long and proud history since 1976 as world leaders in the innovation, design and evolution of commercial strength and conditioning equipment. The Synergy group was…read more
HTS Group Ltd provides a complete design, system integration, installation and maintenance package to the transportation, traffic engineering, parking and sports timing industries in New Zealand,…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
iDwala is the Community Sports Surface Specialist offering the highest quality designs and technical expertise to Councils, Schools and Sporting Clubs looking to create sporting…read more
Founded in 1961, Myrtha Pools® quickly became Italy’s première swimming pool company, and has since grown into one of the world's leading swimming pool construction…read more
Commercial Aquatics Australia provides aquatic solutions nationwide and is one of the largest and most experienced companies specialising in the design, construction, renovation, service, maintenance…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!