Low-cost gyms continue to drive the industry
Image courtesy of The Gym Group
The number of gyms and members, the market value of the sector and penetration rates for memberships are key metrics detailed in the 2017 State of the UK Fitness Industry Report published by LeisureDB – and they all show the UK fitness industry to be in rude health.
There are now more than 9.7 million fitness members (a rise of 5.1 per cent from 2016), which has boosted the penetration rate to an all-time high of 14.9 per cent, compared with 14.3 per cent 12 months earlier. The market value has continued to grow and is estimated to be £4.7bn; a 6.3 per cent rise. Now, in the UK, one in seven people is a gym member – the most ever.
Budget success The low cost market has continued to be the main driving force of the industry. With more than 500 sites, it now accounts for 15 per cent of the market value and an impressive 35 per cent of membership across the private sector.
Some trusts, management contractors and in-house operators across the public sector are also operating low cost gyms and many of the low cost brands have discovered that the strength of the market in some areas enables them to raise and move into the mid-market.
Fitness brands, with transparency of pricing and offering, are continuing to grow – and by utilising good social media practices and constantly listening and responding to their customers, they are meeting and exceeding their needs.
Investment However, they are not alone in pushing the boundaries and experimenting with innovation. Both the private mid-market operators and many public sector sites are also investing and expanding their market. Franchise brands have also had their best year to date and some top end brands are quoted as having more members now than ever before.
For the first time in five years, the public sector saw a small decline in membership numbers after closing more sites than it opened for the second year running. With almost 50 per cent of public sites still to go out to tender, the trusts and contract management companies have an opportunity to turn this decline back to growth in 2018 and beyond.
The trend data shows how the industry has grown over the last five years and the industry now offers the widest possible choice of fitness options. New technology and innovation feeds into the existing industry at all levels and could in-part be responsible for helping expand the market.
Diversification Location search, live timetables and deeper booking integration will be commonplace very shortly through search engines, social media platforms and apps. Online class bookings, currently available across 41 per cent of the private sector and 61 per cent of the public sector, show good levels of adoption, even if some of the interfaces are still clunky to use for the more tech-savvy consumers.
Also, new fitness experiences, via travel companies, community groups and highly curated events, are often reliant on the consumer having a higher level of fitness to take part. Boutiques and the growing fitness-for-free sector are anecdotally helping expand the market, and opportunities at activewear shops, park gyms and meet-ups via apps seem to feed into the core fitness industry.
The consumer brings greater expectation for a better and more connected experience, and despite the current political and fiscal uncertainties, the report remains very positive about the future. It may be a little premature to call the period between 2017 and 2020 the “golden age of fitness” but the industry is likely to reach some key milestones in 2018, including the number of fitness sites surpassing 7,000 for the first time, total membership exceeding 10 million, market value totalling £5bn and the penetration rate easily surpassing 15 per cent of the total population. Obviously, the devil is in the detail and the detail is exactly what is contained in this industry report.
Low-cost gyms continue to drive the industry
Image courtesy of The Gym Group
The number of gyms and members, the market value of the sector and penetration rates for memberships are key metrics detailed in the 2017 State of the UK Fitness Industry Report published by LeisureDB – and they all show the UK fitness industry to be in rude health.
There are now more than 9.7 million fitness members (a rise of 5.1 per cent from 2016), which has boosted the penetration rate to an all-time high of 14.9 per cent, compared with 14.3 per cent 12 months earlier. The market value has continued to grow and is estimated to be £4.7bn; a 6.3 per cent rise. Now, in the UK, one in seven people is a gym member – the most ever.
Budget success The low cost market has continued to be the main driving force of the industry. With more than 500 sites, it now accounts for 15 per cent of the market value and an impressive 35 per cent of membership across the private sector.
Some trusts, management contractors and in-house operators across the public sector are also operating low cost gyms and many of the low cost brands have discovered that the strength of the market in some areas enables them to raise and move into the mid-market.
Fitness brands, with transparency of pricing and offering, are continuing to grow – and by utilising good social media practices and constantly listening and responding to their customers, they are meeting and exceeding their needs.
Investment However, they are not alone in pushing the boundaries and experimenting with innovation. Both the private mid-market operators and many public sector sites are also investing and expanding their market. Franchise brands have also had their best year to date and some top end brands are quoted as having more members now than ever before.
For the first time in five years, the public sector saw a small decline in membership numbers after closing more sites than it opened for the second year running. With almost 50 per cent of public sites still to go out to tender, the trusts and contract management companies have an opportunity to turn this decline back to growth in 2018 and beyond.
The trend data shows how the industry has grown over the last five years and the industry now offers the widest possible choice of fitness options. New technology and innovation feeds into the existing industry at all levels and could in-part be responsible for helping expand the market.
Diversification Location search, live timetables and deeper booking integration will be commonplace very shortly through search engines, social media platforms and apps. Online class bookings, currently available across 41 per cent of the private sector and 61 per cent of the public sector, show good levels of adoption, even if some of the interfaces are still clunky to use for the more tech-savvy consumers.
Also, new fitness experiences, via travel companies, community groups and highly curated events, are often reliant on the consumer having a higher level of fitness to take part. Boutiques and the growing fitness-for-free sector are anecdotally helping expand the market, and opportunities at activewear shops, park gyms and meet-ups via apps seem to feed into the core fitness industry.
The consumer brings greater expectation for a better and more connected experience, and despite the current political and fiscal uncertainties, the report remains very positive about the future. It may be a little premature to call the period between 2017 and 2020 the “golden age of fitness” but the industry is likely to reach some key milestones in 2018, including the number of fitness sites surpassing 7,000 for the first time, total membership exceeding 10 million, market value totalling £5bn and the penetration rate easily surpassing 15 per cent of the total population. Obviously, the devil is in the detail and the detail is exactly what is contained in this industry report.
Abu Dhabi-based investment firm Mubadala Capital has made a binding, fully financed
€1 billion
offer to acquire Pierre and Vacances SA, the European holiday resort operator behind the
continental European Center Parcs business.
Expo 2030 Riyadh is being planned as a permanent visitor destination, with organisers
confirming the six-million-square-metre site will become a Global Village after the event closes.
The owner of one of Australia's best-known waterparks has acquired a major competitor,
creating a new attractions business spanning two of the country's largest visitor destinations.
The Toverland theme park in the Netherlands has announced a €98m expansion programme
that will add a resort, new attractions and staff facilities as it pursues plans to become a multi-
day destination.
Hotel de France, located on the British Isle of Jersey, has created a wellness retreat package
that includes a hot yoga session that will take place in Jersey Zoo’s butterfly sanctuary.
A new immersive attraction designed to transport visitors into the final hours of ancient Pompeii
is preparing to open near the world-famous archaeological site in southern Italy.
Experience design company, BRC Imagination Arts, has completed a transition that sees founder
Bob Rogers pass ownership of the business to four long-serving senior executives, while
remaining actively involved with the company.
Movie Park Germany has opened a new Paramount Pictures-themed attraction as part of its 30th
anniversary celebrations, using immersive storytelling and adaptive reuse to reinforce the park’s
longstanding “Hollywood in Germany” positioning.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Efteling has opened Hooghmoed, a new family drop tower designed to broaden the appeal of its
recently launched Sirene Island themed area and introduce younger visitors to thrill attractions.
