Latest
issue
GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Features   Products   Company profilesProfiles   Magazine   Handbook   Advertise    Subscribe  
Research round-up
One step ahead

The fitness industry might be growing, but it needs to do even more to achieve future success. David Minton reports

By David Minton | Published in Health Club Handbook 2017 issue 1


William Shakespeare famously said: “We know what we are, but know not what we may be”.

Eloquently spoken personal trainers often recite this quote as their opening line – and I could make the same observation when asked, time and time again: “How big can the fitness industry grow?”

LET’S GET INNOVATIVE
Like all business, timing is everything and this year we’ve seen more innovation than ever before. This has continued to drive growth in the industry for the fourth consecutive year, as detailed in The Leisure Database Company’s (TLDC) State of the Fitness Industry Report 2016.

Last year’s highlights include the combined penetration rate for the public and private fitness sectors in the UK rising from 13.7 per cent to 14.3 per cent; the total number of fitness sites growing from 6,312 to 6,435; and the number of members jumping from 8.8 million to 9.2 million – the first time the UK industry has surpassed nine million members.

Combined, the strong performance in all these areas contributed to the overall market value climbing from £4.3bn in 2015 to £4.4bn in 2016.

BUDGET BRANDS BOOM
Although the disruptive business models of the so-called low-cost brands are primarily responsible for driving this growth, it’s not having an adverse effect on the overall industry value – many have found that the market’s strength allows them to charge above publicity-grabbing ‘teens’ price tags.

These low-cost brands are now responsible for around one-third of all private fitness memberships. The average monthly membership price in this segment also moved from £18.23 in 2015 to £18.77 in 2016, reflecting the strength in latent demand for fitness across these sites.

Benefiting from scale and innovative new in-house systems enabling hour-to-hour and day-to-day business management, these first movers have allowed this sector to grow to more than 450 sites with around two million members within a very short time period. And the low-cost sector has continued to grow in the past year: it saw a huge (41 per cent) increase in the number of clubs in the last 12 months, with an average club membership of 4,118.

Looking to the future, immediate data science and enterprise security software are key to further growth in this sector.

KEY PLAYERS
Some major changes have taken place in the six months since the publication of the 2016 report. Although Pure Gym (which has already opened a further 17 clubs) remains at the top of the fitness operator leader board by number of sites (169), there’s a new entry at the number two slot.

Following a buying spree, which included mostly Virgin Active clubs, Nuffield Health has jumped from fifth to second place, with 112 clubs. It has gained 35 clubs and more than 120,000 new members.

The Gym Group and DLL claim joint fourth spot, after franchise Anytime Fitness, which lies in third place. Both the Gym Group and DLL have 82 sites and similar membership numbers.

It looks like 2016/17 will be the best year yet for the franchise sector: as of end September 2016, Anytime Fitness had opened 22 new clubs, taking its total to 91; Energie Fitness and its low-cost brand Fit4Less had jumped to seventh place with 76 clubs; and Snap Fitness had added six clubs, taking it to 14 sites.

PUBLIC LEADERS
Moving on to the public sector, 2,735 fitness sites collectively account for more than 3.3 million fitness members and an estimated similar number of ‘pay as you go’ customers. Forty-one per cent are now managed by a trust.

For the third year running, the top three public operators by number of gyms are GLL, SLM and Places for People Leisure. Freedom Leisure and Fusion are the only operators to move up the top 10 rankings in the last year: Fusion jumped to fourth; Freedom to sixth.

Last year, for only the second time in six years, the number of closures across the public sector surpassed the number of openings: 49 new gyms opened while 65 closed – a net loss of 16 fitness sites. However, these sites were characterised as smaller gyms (24 per cent smaller than the average), with fewer members (27 per cent fewer than average) and fewer facilities. Without investment, they were never realistically going to compete.

POKEMON GO!
In the past six months, we’ve also experienced Pokémon Go fever, which overnight eclipsed social media platforms. The game achieved a higher number of daily users and longer time periods spent in the app than anything achieved by WhatsApp, Instagram, Snapchat and Twitter.

Although I’m sure it didn’t set out to make more people more active, in just a few weeks it achieved just that. It was fun while it lasted – the latest data shows the craze is waning – but the fitness industry can learn a valuable lesson from Pokémon Go’s popularity: people will take part in more activity if it’s fun, engaging and different.

ONLINE ABSENCE
In this fast-changing world, social media remains a challenging area for fitness brands in their bid to win followers and build quality engagement.

Among the top 20 private fitness brands, Facebook is the most popular platform, reaching just over one million ‘likes’. Twitter is in second place with just over 275,000 followers across the top brands, while the highly engaging Instagram lags behind with only 68,000 followers.

But only half of the top 20 fitness industry brands have a presence – shame on you! To check out who’s leading the way, take a look at The Leisure Database Company’s Social Media Fitness Index Report.

ACTIVE TRACKING
It’s no coincidence that the top four active wear brands – Nike+ Running, Under Armour Record, Adidas Train & Run and Puma’s Pumatrac – are all building fitness communities through activity tracking. Fitness industry brands could grow as quickly if they took advantage of the opportunities and channels available to better connect with their consumers through repeat check-ins for classes, challenges, guest passes and push notifications. One day, my personalised push notification will come!


Want all the stats?

 

David Minton
 

The annual State of the Fitness Industry Report is published by independent analyst for the industry The Leisure Database Company (TLDC), which compiles the report from a comprehensive review and audit involving individual contact with all sites.

For further information, contact TLDC director David Minton:

E: [email protected]
@davidmintonTLDC
www.leisuredb.com


Active wear brands build fitness communities via activity tracking – and so could health club brands Credit: shutterstock
Pokémon Go shows that people will take part in an activity if it’s fun, engaging and different
FEATURED SUPPLIERS

How technology can help drive growth for your spa business
It's safe to say that technology is transforming every sector, and the spa, wellness and beauty industries are no exception. [more...]

Crafting luxury: Beltrami Linen's bespoke spa solutions
Beltrami Linen’s approach to the world of spa is underpinned by a strong emphasis on bespoke design, where close collaboration with customers and their designers is always of the utmost importance. [more...]
+ More featured suppliers  
COMPANY PROFILES
Oakworks Inc

Oakworks is a US-based FSC-certified manufacturer of spa, massage, and medical equipment. [more...]
International SPA Association

Since 1991, the International SPA Association has been recognised worldwide as the professional orga [more...]
+ More profiles  
CATALOGUE GALLERY
 

+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

28-30 Apr 2024

Spa Life Scotland

Radisson Blu Hotel, Glasgow,
08-08 May 2024

Hospitality Design Conference

Hotel Melià , Milano , Italy
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Products   Magazine   Subscribe
Research round-up
One step ahead

The fitness industry might be growing, but it needs to do even more to achieve future success. David Minton reports

By David Minton | Published in Health Club Handbook 2017 issue 1


William Shakespeare famously said: “We know what we are, but know not what we may be”.

Eloquently spoken personal trainers often recite this quote as their opening line – and I could make the same observation when asked, time and time again: “How big can the fitness industry grow?”

LET’S GET INNOVATIVE
Like all business, timing is everything and this year we’ve seen more innovation than ever before. This has continued to drive growth in the industry for the fourth consecutive year, as detailed in The Leisure Database Company’s (TLDC) State of the Fitness Industry Report 2016.

Last year’s highlights include the combined penetration rate for the public and private fitness sectors in the UK rising from 13.7 per cent to 14.3 per cent; the total number of fitness sites growing from 6,312 to 6,435; and the number of members jumping from 8.8 million to 9.2 million – the first time the UK industry has surpassed nine million members.

Combined, the strong performance in all these areas contributed to the overall market value climbing from £4.3bn in 2015 to £4.4bn in 2016.

BUDGET BRANDS BOOM
Although the disruptive business models of the so-called low-cost brands are primarily responsible for driving this growth, it’s not having an adverse effect on the overall industry value – many have found that the market’s strength allows them to charge above publicity-grabbing ‘teens’ price tags.

These low-cost brands are now responsible for around one-third of all private fitness memberships. The average monthly membership price in this segment also moved from £18.23 in 2015 to £18.77 in 2016, reflecting the strength in latent demand for fitness across these sites.

Benefiting from scale and innovative new in-house systems enabling hour-to-hour and day-to-day business management, these first movers have allowed this sector to grow to more than 450 sites with around two million members within a very short time period. And the low-cost sector has continued to grow in the past year: it saw a huge (41 per cent) increase in the number of clubs in the last 12 months, with an average club membership of 4,118.

Looking to the future, immediate data science and enterprise security software are key to further growth in this sector.

KEY PLAYERS
Some major changes have taken place in the six months since the publication of the 2016 report. Although Pure Gym (which has already opened a further 17 clubs) remains at the top of the fitness operator leader board by number of sites (169), there’s a new entry at the number two slot.

Following a buying spree, which included mostly Virgin Active clubs, Nuffield Health has jumped from fifth to second place, with 112 clubs. It has gained 35 clubs and more than 120,000 new members.

The Gym Group and DLL claim joint fourth spot, after franchise Anytime Fitness, which lies in third place. Both the Gym Group and DLL have 82 sites and similar membership numbers.

It looks like 2016/17 will be the best year yet for the franchise sector: as of end September 2016, Anytime Fitness had opened 22 new clubs, taking its total to 91; Energie Fitness and its low-cost brand Fit4Less had jumped to seventh place with 76 clubs; and Snap Fitness had added six clubs, taking it to 14 sites.

PUBLIC LEADERS
Moving on to the public sector, 2,735 fitness sites collectively account for more than 3.3 million fitness members and an estimated similar number of ‘pay as you go’ customers. Forty-one per cent are now managed by a trust.

For the third year running, the top three public operators by number of gyms are GLL, SLM and Places for People Leisure. Freedom Leisure and Fusion are the only operators to move up the top 10 rankings in the last year: Fusion jumped to fourth; Freedom to sixth.

Last year, for only the second time in six years, the number of closures across the public sector surpassed the number of openings: 49 new gyms opened while 65 closed – a net loss of 16 fitness sites. However, these sites were characterised as smaller gyms (24 per cent smaller than the average), with fewer members (27 per cent fewer than average) and fewer facilities. Without investment, they were never realistically going to compete.

POKEMON GO!
In the past six months, we’ve also experienced Pokémon Go fever, which overnight eclipsed social media platforms. The game achieved a higher number of daily users and longer time periods spent in the app than anything achieved by WhatsApp, Instagram, Snapchat and Twitter.

Although I’m sure it didn’t set out to make more people more active, in just a few weeks it achieved just that. It was fun while it lasted – the latest data shows the craze is waning – but the fitness industry can learn a valuable lesson from Pokémon Go’s popularity: people will take part in more activity if it’s fun, engaging and different.

ONLINE ABSENCE
In this fast-changing world, social media remains a challenging area for fitness brands in their bid to win followers and build quality engagement.

Among the top 20 private fitness brands, Facebook is the most popular platform, reaching just over one million ‘likes’. Twitter is in second place with just over 275,000 followers across the top brands, while the highly engaging Instagram lags behind with only 68,000 followers.

But only half of the top 20 fitness industry brands have a presence – shame on you! To check out who’s leading the way, take a look at The Leisure Database Company’s Social Media Fitness Index Report.

ACTIVE TRACKING
It’s no coincidence that the top four active wear brands – Nike+ Running, Under Armour Record, Adidas Train & Run and Puma’s Pumatrac – are all building fitness communities through activity tracking. Fitness industry brands could grow as quickly if they took advantage of the opportunities and channels available to better connect with their consumers through repeat check-ins for classes, challenges, guest passes and push notifications. One day, my personalised push notification will come!


Want all the stats?

 

David Minton
 

The annual State of the Fitness Industry Report is published by independent analyst for the industry The Leisure Database Company (TLDC), which compiles the report from a comprehensive review and audit involving individual contact with all sites.

For further information, contact TLDC director David Minton:

E: [email protected]
@davidmintonTLDC
www.leisuredb.com


Active wear brands build fitness communities via activity tracking – and so could health club brands Credit: shutterstock
Pokémon Go shows that people will take part in an activity if it’s fun, engaging and different
LATEST NEWS
Bannatyne has bounced back from the pandemic
The Bannatyne Group says it has officially bounced back from the pandemic, with both turnover and profits restored to pre-2020 levels in 2023, according to its year-end results.
Sport England’s Active Lives insight finds record activity levels, but enduring health inequalities
While British adults are the most active they’ve been in a decade, health inequalities remain with the same groups missing out, according to Sport England’s latest Active Lives Adults Report.
Kerzner to expand Siro portfolio with recovery-focused hotels in Los Cabos and Riyadh
Kerzner International has signed deals to operate two new Siro recovery hotels in Mexico and Saudi Arabia, following the launch of the inaugural Siro property in Dubai this February.
Nuffield Health calls for National Movement Strategy as research shows decline in fitness levels among some consumers
Nuffield Health’s fourth annual survey, the Healthier Nation Index, has found people moved slightly more in 2023 than 2022, but almost 75 per cent are still not meeting WHO guidelines.
US spa industry hits record-breaking US$21.3 billion in revenue in 2023
The US spa industry is continuing its upward trajectory, achieving an unprecedented milestone with a record-breaking revenue of US$21.3 billion in 2023, surpassing the previous high of US$20.1 billion in 2022.
Immediate rewards can motivate people to exercise, finds new research
Short-term incentives for exercise, such as using daily reminders, rewards or games, can lead to sustained increases in activity according to new research.
Shannon Malave appointed spa director at Mohonk Mountain House
Spa and wellness veteran Shannon Malave has been named spa director at iconic US spa destination Mohonk Mountain House.
Six Senses unveils urban wellness retreat in Kyoto inspired by Japanese Zen culture
Six Senses Kyoto opens its doors today, marking the eco-luxury hotel and spa operator’s entry into Japan and a new addition to its urban collection.
UAE’s first Dior Spa debuts in Dubai at Dorchester Collection’s newest hotel, The Lana
The UAE’s first-ever Dior Spa has officially launched at The Lana, Dubai – the Dorchester Collection’s debut property in the Middle East.
Four Seasons’ Sacred River Spa in Bali relaunching in Q3 following extensive renovation
The Sacred River Spa at Four Seasons Resort Bali at Sayan will reopen later this year with an all-new design plus enhanced treatments and experiences inspired by its river valley home.
Circadian Trust invests in wellness to support its NHS partnerships
Operator Circadian Trust has launched a five-year growth drive designed to support health and wellbeing across South Gloucestershire, UK. The initiative will see a £2.4m investment in its five Active Lifestyle Centres.
US named world’s largest wellness economy, reaching US$1.8 trillion valuation
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion.
+ More news   
 
FEATURED SUPPLIERS

How technology can help drive growth for your spa business
It's safe to say that technology is transforming every sector, and the spa, wellness and beauty industries are no exception. [more...]

Crafting luxury: Beltrami Linen's bespoke spa solutions
Beltrami Linen’s approach to the world of spa is underpinned by a strong emphasis on bespoke design, where close collaboration with customers and their designers is always of the utmost importance. [more...]
+ More featured suppliers  
COMPANY PROFILES
Oakworks Inc

Oakworks is a US-based FSC-certified manufacturer of spa, massage, and medical equipment. [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

28-30 Apr 2024

Spa Life Scotland

Radisson Blu Hotel, Glasgow,
08-08 May 2024

Hospitality Design Conference

Hotel Melià , Milano , Italy
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS