Published in May, The 2013 IHRSA Global Report: The State of the Health Club Industry is the most up-to-date publication on the global fitness business. The report consists of a comprehensive industry overview including input from several industry leaders from independent clubs, large club chains, club associations and federations. The Industry Research section details the market size and scope of the Americas, Europe, and Asia-Pacific markets. The company profiles section highlights over 330 leading club companies from around the world, including financial and membership information. The last section of the report includes supplier profiles, which provides clubs with useful information about industry-leading products and services.
Altogether, the global health club industry currently generates an estimated $75.7 billion in annual revenue from more than 150,000 clubs. Roughly 132 million members belong to health clubs worldwide.
In the U.S., the health club industry held steady in 2012, although successful club operators reported improved performance. Industry-wide, revenue reached an estimated $21.8 billion in 2012. Comparable to 2011 results, more than 50 million card-carrying members belonged to 30,500 U.S. health clubs in 2012.
The IHRSA Index of 18 health and sport club companies, representing 538 facilities, recorded strong performance indicators in 2012 relative to 2011. Overall, revenue grew by 8.1% as total membership dues revenue rose by 6.7%. Same-store units also reported improvements of 2.9% and 2.5%, respectively, in total sales and non-dues revenue.
In Latin America, the industry is robust with opportunities for growth. Health clubs generate an estimated $5.5 billion in revenue from more than 46,000 health clubs in fifteen Latin American markets. Brazil leads all Latin American markets in revenue ($2.4 billion), club count (23,398), and members (7 million). Mexico and Argentina represent the second and third largest markets in the region. Mexico generates an estimated $1.5 billion in revenue from more than 7,800 health clubs serving 2.7 million members. Nearly 6% of Argentinians belong to a health club as the market attracts 2.3 million members.
Low membership penetration rates and increasing health awareness present opportunities for industry growth in Latin America. On average, 1.7% of Latin Americans belong to a health club. According to Gallup, only 53% of Latin Americans exercise at least once a week. Club operators in Latin America are uniquely positioned to address inactivity, rising obesity rates, stress, and other lifestyle indicators.
The economy in Europe continues to challenge markets in Spain, Italy, and Portugal. Preliminary estimates show a decline of up to 20% in market size, club count, and memberships. Key performance indicators are also estimated to have declined by roughly 10% in Greece and Ireland.
Nonetheless, the health club industry in the UK and Germany has remained stable with growth in select sectors. Total club count and membership increased slightly in the UK as 5,900 clubs attracted 7.6 million members. The UK has seen notable growth in the low-cost segment as well as strong member loyalty at independent facilities. The total number of members in Germany held strong as nearly 7.9 million Germans belonged to more than 7,000 health clubs. Chains claim nearly half of the country’s health club members as 3.5 million belong to a multi-site fitness center.
Overall, the European health club industry remains the most lucrative region with the greatest number of health clubs. Europe generates roughly $32 billion in revenue from more than 45,000 clubs. Nearly 41.9 million members belong to health clubs in Europe.
The Asia-Pacific region serves 17 million members at more than 21,000 health clubs. Asia generates roughly $11.5 billion in revenue from more than 18,000 clubs serving 14.6 million members. With nearly 3,000 businesses, Australia and New Zealand generate $2.1 billion in revenue from some 2.3 million members.
According to The Australian Fitness Industry Report, nearly one out of five Australians (18%) participate in fitness activities. This number is expected to exceed 7 million by 2020 as fitness activities represent the second most popular exercise after walking. The Australian fitness industry draws from a range of successful business models, which engage consumers: fitness studios,
24-hour facilities, full-service chains, and outdoor personal training.
Collectively, the global health club industry can anticipate future growth. Although challenges may prevail in Europe, the future looks bright in the Americas. Opportunities for growth also remain in the Asia-Pacific region.
The 2013 IHRSA Global Report (112 pages) is available at ihrsa.org/ihrsa-global-report for US $139.95 ($69.95 for IHRSA members). Contact email@example.com with questions.
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