Latest News

Back to Latest News back

 

Fitness industry growth contained by market saturation and decline in discretionary income of consumers

Fitness industry growth contained by market saturation and decline in discretionary income of consumers
March 14, 2019

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.

Related Articles

12th March 2019 - New marketing strategies needed to drive ongoing growth of 24/7 gyms

11th March 2019 - Sport Australia’s Kate Palmer announced as speaker for FILEX Women of Influence Forum

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

18th October 2018 - Stock market launch for Club Lime owner Viva Leisure reflects positive fitness industry performance

5th October 2018 - Urban Land Institute event explores multiple elements of ‘the business of wellness’

23rd July 2018 - Gold’s Gym International owner puts brand up for sale

14th May 2018 - ABC asks if fitness centre growth cycle might be coming to an end

8th April 2018 - IBISWorld shows that 24/7 budget gyms have transformed Australian fitness

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.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

HTS Group Ltd

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

Aquatics / Events / Sport / Technology

 
 

CERAMIC SOLUTIONS

Established in 1994, Ceramic Solutions has excelled at the supply and installation of swimming pool tiles and equipment for the pool and leisure industry, with a focus on the needs of end-users. …

read more

Aquatics / Design / Surfaces / Venues

 
 

Otium Planning Group

Otium Planning Group is a contemporary sport and leisure consultancy providing services in planning, facility development, management and funding for the sport, recreation and leisure industries…

read more

Aquatics / Consultants / Recreation / Sport / Venues

 
 

PRIAVA

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

Attractions / Billing / Entertainment / Events / Technology

 
 

LINKS MODULAR SOLUTIONS

Links Modular Solutions are a leading provider of high-quality, innovative software solutions for leisure facilities. Our software suite includes modules such as POS, Classes, Members, Facility…

read more

Access / Billing / Finance / Fitness / Technology

 
 

Aussie Strength

We are Aussie Strength. The ultimate supplier for Commercial Gym Equipment that's built to deliver in the toughest environments. From USA-Built hardcore weight training equipment from Arsenal…

read more

Fitness / Technology / Wellness

 
 

PAYSMART

Headquartered in Brisbane with an Australia-wide network of satellite offices, PaySmart is one of Australia’s largest and longest-standing direct debit billing companies. In 1996 we began…

read more

Access / Billing / Fitness / Technology

 
 

AAC ID SOLUTIONS

AAC ID Solutions is a leading supplier of identification access wristbands, barcoded wristband tickets, lanyards, membership products and RFID solutions for events and venues, working with thousands…

read more

Access / Marketing / Safety / Ticketing

 
 
 
 

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