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Global fitness club revenues continue to rise

Global fitness club revenues continue to rise
October 27, 2015

The global fitness club industry amassed US$84 billion (A$118 billion, NZ$125 billion) in revenue last year – a rise of 8% when compared with figures for 2013, US$78 bilion (A$109 billion, NZ$116 billion).

Based on data from 6,819 facilities worldwide, the newly released Industry Data Survey (IDS) from the International Health, Racquet & Sportsclub Association (IHRSA), showed that fitness-only clubs (as opposed to multi-purpose facilities) were the biggest drivers of this growth, increasing revenue by 8.9%.

Given their continued momentum in global markets, it can be inferred that low-cost gyms with a stripped-back approach to fitness accounted for much of the gain.

However, global growth would appear to be outstripping Australia’s, where IBISWorld have reported industry growth at a compound annual rate of 3.3% over the past five years.

Overall, the health club industry posted a strong performance in 2014 with more than 180,000 clubs attracting 144 million members. Worldwide, the number of facilities grew from 165,000 to 184,000 (an 11% gain); and the number of members increased from 139 million to 144 million (up 3.6%).

The new IHRSA report also provides detailed analysis of the annual performance of leading health and fitness clubs, including key performance metrics such as revenue and membership growth, payroll, member retention, non-dues revenue, and EBITDA. Profit centre analysis as well as income statement and balance sheet data are also provided.

IHRSA's Executive Vice President of Global Products, Jay Ablondi commented "IHRSA's annual industry data survey results indicate that leading club operators continue to play to their strengths as respondents recorded improvements in key financial and membership metrics.

“This year’s results show multipurpose and independent club reported strong retention results in 2014, while fitness-only and chain facilities posted high net membership growth. All segments increased revenue on a year-over-year basis.”

Click here to view the full report.

9th June 2015 - GLOBAL FITNESS CLUB INCOME REACHES US$84 BILLION

23rd February 2015 - AUSTRALIAN GYM MARKET TO REACH SATURATION WITHIN FIVE YEARS

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

5th September 2013 - FITNESS CLUB MEMBERSHIPS GROW BY MORE THAN 10% IN ONE YEAR


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