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Fitness Industry Trends

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The deck presents recent trends within the fitness industry. In particular, it analyzes fitness industry growth in conjunction with consumer demand and consumer segmentation. We compare revenue growth rates with the membership and facility growth rate.
Further, it shows fitness industry consumer life cycle framework focusing on the reasons why consumers join and drop gym memberships. Finally, it offers some insights on consumer behavior and on how Americans perceive healthy living lifestyle. In particular, we analyze how consumers feel about healthy eating vs working out and what are the trends in these lifestyle statements.
For more information on the fitness industry study, please visit www.fitnessdotcommed.com

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Fitness Industry Trends

  1. 1. Fitness DotCommedFitness Industry Study Chapter 1: Fitness Industry Overview
  2. 2. Volatile demand and high operating costs slow the growth of the fitness industry Profit, 8.4 Other, 7.9 Rent & Utilities, 15.5 Marketing, 10 Purchases, 20 Wages, 30.7 Depreciation, 7.5 Industry revenue $25.9bn Industry profit $2.2.bn -3.00% 0.00% 3.00% 6.00% 9.00% 2006 2007 2008 2009 2010 2011 2012 Membership Growth Rate Facilities Growth Rate Average Revenue Growth Rate Slow industry revenue growth (1.4%) is forecasted to pick up to 2.9%  Wages, purchases, and rent are three largest costs of the industry  Companies try to lower these costs or recover them through high membership prices  Membership growth is rather volatile  This volatility makes it riskier for companies to invest in expanding their facilities Data Source: IBISworld.com, IHRSA.org
  3. 3. Fitness facilities growth lags behind increase in the demand for club memberships 43 42 46 45 50 51 50 Number of health clubs (thousand) Health club membership (million) Health clubs have a flatter average growth (0.8%) than the club members average growth (4%) Data Source: IHRSA.org, Leisure Trends Images are courtesy of kanate / FreeDigitalPhotos.net +0.8% +4.0% 1,469 1,414 1,535 1,523 1,679 1,716 1,646 As membership growth outpaces facilities growth, more members leave fitness clubs due to overcrowdings: 17% in 2013 vs. 10% in 2012 2006 2007 2008 2009 2010 2011 2012 Average number of members per club
  4. 4. Only 12.6% of Americans visit fitness clubs regularly, majority of them being urban population aged 34-55 7% 27% 41% 25% Generation X is the largest consumer group of fitness clubs Men and women contribute almost equal shares to club memberships 53% 47% Data Source: IHRSA.org; SimplyMap SimmonsLOCAL Images are courtesy of kanate / FreeDigitalPhotos.net In absolute numbers California, Texas, and New York have the most people who workout regularly 7.2%12.6%26.9%53.3% I do not workout I workout at home At club Other Although over 40% own gym memberships, only 12.6% use them
  5. 5. Customers join gyms to improve health, learn about fitness, and socialize, but are price-sensitive Health Social Why join a gym? Which gym to join? Price Location Facility Customer experience and engagement Health Social Why leave the gym? Price Location Facility Other place Other activity Nowhere Where to next?  Overall health 57%  Fun 36%  Access to fitness instructors 30%  Social 21%  Location 42%  Variety of equipment 39%  Price 38%  Found free place 25%  Location 17%  It was too crowded 18%  Was not using membership 23%  No friends 11%  Felt out of place 9%  It felt intimidating 8%  Nobody guided 7% Data Source: IHRSA.org, Leisure Trends Education Education
  6. 6. In the mind of consumers, healthy living focus shifts from food to exercise ∆2011-2008 I CONSIDER MY DIET TO BE VERY HEALTHY 12.7% I THINK OF THE CALORIES IN WHAT I EAT 8% I TRY TO EAT HEALTHIER FOOD THESE DAYS 25.7% ∆2011-2008 I EXERCISE MORE OR LESS REGULARLY 42.4% I MAKE SURE I EXERCISE REGULARLY 18.2% -1.4% -2.4% -2.2% +8.1% +3.1%  Consumers are more concerned with trying to eat healthier food (25.7%) than exercising regularly (18.2%)  However, exercise becomes more important as consumers choose somewhat less healthy food 29% 16% 12% 10% 9% 6% Walking for exercise Swimming Jogging Weight lifting Aerobics Yoga Top fitness activities by participation rate  In the next 5 years group classes are expected to increase in popularity, especially yoga and fusion classes Data Source: IHRSA.org; SimplyMap SimmonsLOCAL, Leisure Trends, IBISworld.com Images are courtesy of kanate / FreeDigitalPhotos.net

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