Latest News

Back to Latest News back


New IBISWorld study shows fitness industry still challenged but poised to return to growth

New IBISWorld study shows fitness industry still challenged but poised to return to growth
June 9, 2023

Impacted by pandemic closures and a drop in real household discretionary income, the fitness club industry has contracted at an annualised 6.8% through to the end of 2022/23, according to a newly released report from market research business IBISWorld.

IBISWorld’s latest Gyms and Fitness Centres in Australia (Industry Report R9111), shows industry revenue will slip by an estimated 1.5% in 2022/23 alone to total an estimated $2.2 billion.

Advising that “the gyms and fitness centres industry has faced its biggest challenge during the COVID-19 pandemic” the report notes that “revenue was consistently expanding before the pandemic (as) rising health consciousness and obesity drove demand for fitness services … (with) the appeal of premium and functional training gyms aided industry profitability.”

Highlighting an “oversaturated” market for budget 24/7 gyms, the IBISWorld study also notes that wages are the industry's largest cost and that, with so many part-time and casual workers “gyms have a lot of leeway in controlling their labour costs”.

Return to Growth
On a more positive note the report does advise “revenue is poised to return to growth, albeit at a slower rate than pre-pandemic (with) continued growth in health consciousness and obesity rates (set to) buoy industry demand.”

However, it notes “the potential saturation of budget 24-hour gyms will shift demand for premium and functional training gyms and fitness centres”.

The report is also positive about boutique fitness brands, noting that they have “evolved from a niche product to a popular mainstream option.”

On pricing it advises “growing consumer interest in the community and experience over the price is contributing to a surge in boutique gym subscriptions.”

In summary, it predicts that industry “revenue is on track to rise by an annualised 1.6% through the end of 2027/28, to an estimated $2.4 billion.”

Rise in Health Consciousness
Gyms and Fitness Centres in Australia (Industry Report R9111) suggests that the ongoing rise of health consciousness among the Australian public is presenting an opportunity for revenue growth.

It suggests that this health consciousness (growing at an estimated 0.5% in 2022/23) means Australians are more likely to exercise.

However, this tempered by falling household discretionary income (shrinking by an estimated 7.1% in 2022/23) that is impacting spending on ‘non-essential’ products and services, like gyms and fitness centres.

The report also notes that rising numbers of overweight and obese people across Australia - which already experiencing an ongoing rise climbed even further during the pandemic - will see overweight and obese individuals motivated to attend gyms to lose weight and improve their health.

With Australia experiencing low unemployment, IBISWorld also stated that this is increasing labour costs and shortages for employers.

It adds “this low unemployment rate has supported real household disposable incomes and consumer sentiment during a period of economic uncertainty.”

Overall, it noted that 19,802 were employed in the industry, representing a -5.2% decline during the 2018 to 2023 period.

Click here for more information on Gyms and Fitness Centres in Australia (Industry Report R9111) on the IBISWorld website.

Related Articles

6th June 2023 - Fitness On Demand launches new experience app for facilities to empower users

29th May 2023 - Australian Fitness Academy launches Certified Personal Trainer course in Singapore

26th May 2023 - Asuria’s self-employment assistance program empowering fitness entrepreneurs

15th May 2023 - Life Fitness Australia introduces new Aspire Cardio equipment range

12th May 2023 - Fitness and sport executives dominate Top 30 Franchise list for 2023

5th May 2023 - Ignite Fitness Business to expand with new Group Fitness Summit in 2024

2nd May 2023 - GapMaps survey shows net reduction of seven fitness clubs across Australia in last quarter

28th April 2023 - AUSactive Chief Executive says fitness can ‘save’ Medicare

24th April 2023 - Planet Fitness looks to ‘shake up the Victorian fitness industry’

20th April 2023 - Report says Fitness and Lifestyle Group looking to sell Jetts Fitness 24/7 New Zealand gyms

18th April 2023 - BFT partners with HYROX to bring largest fitness race in the world to Australia

18th April 2023 - FIBO 2023 impressively demonstrated the synergies between fitness and health

13th April 2023 - PureGym research reveals worrying lack of fitness in 2023

7th March 2023 - IBISWorld sees declining fitness industry revenue and potential saturation of budget 24/7 gyms

11th October 2022 - IBISWorld report suggests personal training market set for strong recovery

2nd October 2021 - New IBISWorld study shows significant revenue decline for Australian gyms and fitness centres

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

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

12th March 2018 - Australian fitness industry revenues to grow to $2.4 billion by 2022/23

10th March 2018 - Gyms and fitness centres among Australia’s most successful franchise operations

Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.

Click here to view our subscription options.


supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Smart Connection Consultancy

Smart Connection Consultancy is a boutique sport and recreation consultancy who has become one of Australia’s leading advocates for the use of synthetic sports surfaces as a vehicle to grow…

read more

Consultants / Recreation / Sport / Surfaces


Myrtha Pools

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

Aquatics / Design / Play / Waterparks / Wellness



Digonex is a leading provider of customised dynamic pricing solutions to clients in arts and entertainment, sport, attractions, cultural institutions and retail sectors. Digonex’s technology is…

read more

Attractions / Entertainment / Sport / Technology / Ticketing


HIB Insurance Brokers Pty Ltd

HIB Insurance Brokers - Experts in Leisure and Amusement Insurance With over 20 years specialising in the Amusement and Leisure industries, we have the experience to understand your operations and…

read more

Attractions / Entertainment / Insurance / Recreation / Safety



revolutioniseSPORT is the emerging market leader in online club management in Australia. Whether it is memberships, registrations, events, online sales or governance tools - revolutioniseSPORT is the…

read more

Recreation / Sport / Technology


TicketSearch Pty Ltd

TicketSearch is focused on providing businesses, organisations, and venues with affordable, efficient, and powerful self-managed ticketing solutions. The organisation has offices in Australia, New…

read more

Attractions / Entertainment / Technology / Ticketing / Venues


Riedel Communications Australia Pty Ltd

We live for media production and global events, providing real-time networks for video, audio, data and communications.

read more

Entertainment / Events / Technology / Venues


Chadson Engineering Pty Ltd

Australia’s leading manufacturer of horizontal and vertical media filters suited to all types of commercial pools, water playgrounds marine parks, aquaculture and zoos. They are an ideal…

read more

Aquatics / Technology / Waterparks


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