GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
Technogym
Technogym
Technogym
Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

IHRSA update: Learning from Latin America

A new report provides valuable data on the Latin American market. IHRSA’s Kristen Walsh explains

By Kristen Walsh, IHRSA | Published in Health Club Management 2017 issue 6
The majority of clubs in Latin America belong to Smartfit, which owns 340 gyms throughout the region
The majority of clubs in Latin America belong to Smartfit, which owns 340 gyms throughout the region

Last month, IHRSA released The IHRSA Latin American Report (Second Edition), which is sponsored by Hoist Fitness. This research publication, an update to the groundbreaking 2012 report, was produced in collaboration with Mercado Fitness (Argentina) and supported by trade body Fitness Brasil.

A healthy industry
According to the report, the health club industry in Latin America is robust. The 18 Latin American markets analysed generate US$6 billion in revenue from more than 65,000 clubs. Nearly 20 million Latin Americans are members of a health club. Brazil alone accounts for more than half of the health clubs in Latin America with 34,509 facilities. Argentina has the highest penetration rate among all the markets, as 6.8 per cent of Argentineans currently belong to a health club.

“The health club landscape in Latin America is dynamic and has undergone significant developments since 2012,” said Guillermo Velez, editor of the report and director of Mercado Fitness. “In addition to the growth of the low-cost segment, other developments, including economic indicators, increasingly savvy consumers, technology, the boutique phenomenon and professionalisation have all impacted and shaped the industry in Latin America.”

Room for growth
While club operators and industry experts have observed growth amidst market developments in the region, opportunities abound in Latin America. The report shows an average penetration rate of 2.15 per cent, signifying potential for growth. Along with Argentina’s 6.8 per cent, Brazil and Mexico both have member penetration rates exceeding 3 per cent, at 4.6 per cent and 3.2 per cent, respectively.

Highlights from the report

• Overcoming obesity
In Latin America, 130 million people – one fourth of the global population – are affected by obesity. These figures could reach 191 million by 2030. The countries with the highest rates of obesity are Mexico (32.8 per cent), Venezuela (30.8 per cent), Argentina (29.4 per cent), Chile (29.1 per cent) and Uruguay (23.5 per cent).

Obesity is a global pandemic: a person with obesity lives 10 years less than someone with a healthy weight. World Bank reports indicate that if this tendency continues, by 2030 the number of people in Latin America with obesity will reach 30 per cent of the population.

• The problem of inactivity
World Health Organization data points out that in Latin America 60 per cent of the population is sedentary. This same agency indicates that in this region physical inactivity causes one out of every 10 deaths. This is nearly the same impact that smoking has on the population, according to scientists.

• Embracing low cost
When the last regional IHRSA report was published in 2012, there were only two low cost chains in two countries in Latin America. Today, less than five years later, there are at least 23 different brands with a total of 448 gyms (340 of these belong to SmartFit) in 12 countries throughout the region.

Undeniably, this phenomenon has only just begun. As consultant Ray Algar explains, “it’s not only a matter of pricing, but more an all-embracing organisational philosophy”. As far as consumers are concerned, “they know that high costs do not necessarily guarantee quality service and they’re less obsessed with paying more just to prove status – they value their money and are convinced that paying less is more savvy”.

Several specialists agree that the low cost offer stimulates a new demand and does not necessarily encourage less spending. However, they also remark that this model’s growth will affect health clubs in the mid market.

Traditional gyms – full service in theory – must review their value propositions in order to validate higher pricing. “Those who don’t will be less valued and become irrelevant” claims Algar. The market tends to polarise itself and in between poles there will be nothing left.

• A diverse offering
In competitive scenarios, with consumers eager for an enhanced experience, the fitness industry is undergoing a substantial diversification process. While premium health clubs and low cost gyms consolidate opposite poles within the market, boutique fitness studios – also known as Micro Gyms – thrive in Latin America as well as globally.

OBESITY PERCENTAGE RATES IN LATIN AMERICA

Guillermo Velez
Guillermo Velez

“The growth of the low-cost gym market, increasingly savvy consumers, technology, the boutique phenomenon and professionalisation have all shaped the industry in Latin America” - Guillermo Velez

Get the Report

The IHRSA Latin American Report (Second Edition) [77 pages] is available as a PDF at www.ihrsa.org/latin-american-report

ABOUT IHRSA

Founded in 1981, IHRSA – the International Health, Racquet & Sportsclub Association – is the only global trade association, representing more than 10,000 health and fitness facilities and suppliers worldwide.
Locate an IHRSA club at www.healthclubs.com

To learn how IHRSA can help your business thrive, visit www.ihrsa.org

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/885092_424335.jpg
A healthy industry, but plenty of room for growth, reveals a new report from IHRSA on the Latin American health club market
Kristen Walsh, IHRSA,IHRSA, Latin American market, club operators, The IHRSA Latin American Report
HCM magazine
As the industry enters a phase of regrowth following the loss of members during lockdown, it’s crucial to understand customer acquisition cost versus the lifetime value of each customer, as Paul Bedford and Jamie Owens explain
HCM magazine
Aneurin Leisure Trust used lockdown to transform and digitise its gyms, ready for reopening
HCM magazine
Safe Space Lockers has extended its partnership with boutique fitness franchise TRIB3, in a new 10-site supplier agreement, following the recent installation at TRIB3 Edinburgh
HCM Magazine
Strength
CV kit has been fully connective for some time, but with the rise of the hybrid gym goer, what are strength suppliers doing to meet the demand for a fully connected offer?
HCM Magazine
Sponsored
Come join the party!
HCM Magazine
Sponsored
As the UK’s first dedicated development framework for leisure comes to the end of its initial four-year term, Jamie Groves and Sarah Watts discuss the impact
HCM Magazine
Talking Point
Consumer research has shown a population-wide surge in interest in reducing lockdown weight gain and getting fitter. Is the industry ready and willing to put its hand up to help people with weight loss? Kath Hudson reports
HCM Magazine
Policy
As our sector starts to recover, there will be changes in the needs of communities, consumers and the provision of opportunities. To explore this subject we hosted a virtual round table to better understand views on key workforce questions
HCM Magazine
HCM People
We see a world where every major city has access to Solo 60
HCM Magazine
Opinion
Moving Communities is our chance to demonstrate our value and develop a universal service for all, argues Martyn Allison
HCM Magazine
Latest News
Operating a further four weeks at reduced capacity will place serious pressure on English fitness ...
Latest News
People experiencing homelessness are being offered free access to leisure centres by Oxford City Council. ...
Latest News
IHRSA has appointed Elizabeth Clark as its new president and CEO. Clark joins the industry ...
Latest News
Boutique studio operator TRIB3 has launched its own-brand range of luxury toiletries. The operator, which ...
Latest News
Rainer Schaller's RSG Group is bringing its John Reed brand of health clubs to the ...
Latest News
The government needs to urgently set out its plans to support physical activity and fitness ...
Latest News
Glofox will begin offering health clubs, gyms and fitness studios instant access to financing, following ...
Latest News
Hong Kong-based Bricks Group has revealed plans to launch its health club chain, U Time, ...
Opinion
promotion
While much of the fitness industry has reopened its doors across the UK over the past weeks, many members are yet to return.
Opinion: Re-engaging your post-lockdown absent members
Featured supplier news
Featured supplier news: First digital ecosystem for fitness equipment is launched after £300,000 funding boost
Orbit4 is the first digital ecosystem that manages and facilitates the entire commercial fitness product cycle.
Featured supplier news
Featured supplier news: Active IQ launches two industry-ready health and fitness diplomas
Active IQ has launched two new qualifications – the Level 2 Diploma in Health and Fitness and Level 3 Diploma in Health and Fitness – to help engage learners in an industry-ready training experience that can be tailored to suit local employer needs.
Featured operators news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operators news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
Company profile: Orbit4
Orbit4 is the umbrella brand for FitnessCompared, FitnessFinance, WeServiceGymEquipment and WeBuyGymEquipment....
Company profiles
Company profile: Myzone
Myzone is an innovative heart rate monitor and community engagement tool to track physical activity ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Exercise equipment
Matrix Fitness: Exercise equipment
Trade associations
International SPA Association - iSPA: Trade associations
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Spa software
SpaBooker: Spa software
Wearable technology solutions
MyZone: Wearable technology solutions
Red Light Therapy
 Red Light Rising: Red Light Therapy
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Fitness equipment
Precor: Fitness equipment
Architects/designers
Zynk Design Consultants: Architects/designers
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Diary dates
01-04 Jul 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
28-29 Sep 2021
ExCeL London, London, United Kingdom
Diary dates
04-07 Nov 2021
Exhibition Centre , Cologne, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

features

IHRSA update: Learning from Latin America

A new report provides valuable data on the Latin American market. IHRSA’s Kristen Walsh explains

By Kristen Walsh, IHRSA | Published in Health Club Management 2017 issue 6
The majority of clubs in Latin America belong to Smartfit, which owns 340 gyms throughout the region
The majority of clubs in Latin America belong to Smartfit, which owns 340 gyms throughout the region

Last month, IHRSA released The IHRSA Latin American Report (Second Edition), which is sponsored by Hoist Fitness. This research publication, an update to the groundbreaking 2012 report, was produced in collaboration with Mercado Fitness (Argentina) and supported by trade body Fitness Brasil.

A healthy industry
According to the report, the health club industry in Latin America is robust. The 18 Latin American markets analysed generate US$6 billion in revenue from more than 65,000 clubs. Nearly 20 million Latin Americans are members of a health club. Brazil alone accounts for more than half of the health clubs in Latin America with 34,509 facilities. Argentina has the highest penetration rate among all the markets, as 6.8 per cent of Argentineans currently belong to a health club.

“The health club landscape in Latin America is dynamic and has undergone significant developments since 2012,” said Guillermo Velez, editor of the report and director of Mercado Fitness. “In addition to the growth of the low-cost segment, other developments, including economic indicators, increasingly savvy consumers, technology, the boutique phenomenon and professionalisation have all impacted and shaped the industry in Latin America.”

Room for growth
While club operators and industry experts have observed growth amidst market developments in the region, opportunities abound in Latin America. The report shows an average penetration rate of 2.15 per cent, signifying potential for growth. Along with Argentina’s 6.8 per cent, Brazil and Mexico both have member penetration rates exceeding 3 per cent, at 4.6 per cent and 3.2 per cent, respectively.

Highlights from the report

• Overcoming obesity
In Latin America, 130 million people – one fourth of the global population – are affected by obesity. These figures could reach 191 million by 2030. The countries with the highest rates of obesity are Mexico (32.8 per cent), Venezuela (30.8 per cent), Argentina (29.4 per cent), Chile (29.1 per cent) and Uruguay (23.5 per cent).

Obesity is a global pandemic: a person with obesity lives 10 years less than someone with a healthy weight. World Bank reports indicate that if this tendency continues, by 2030 the number of people in Latin America with obesity will reach 30 per cent of the population.

• The problem of inactivity
World Health Organization data points out that in Latin America 60 per cent of the population is sedentary. This same agency indicates that in this region physical inactivity causes one out of every 10 deaths. This is nearly the same impact that smoking has on the population, according to scientists.

• Embracing low cost
When the last regional IHRSA report was published in 2012, there were only two low cost chains in two countries in Latin America. Today, less than five years later, there are at least 23 different brands with a total of 448 gyms (340 of these belong to SmartFit) in 12 countries throughout the region.

Undeniably, this phenomenon has only just begun. As consultant Ray Algar explains, “it’s not only a matter of pricing, but more an all-embracing organisational philosophy”. As far as consumers are concerned, “they know that high costs do not necessarily guarantee quality service and they’re less obsessed with paying more just to prove status – they value their money and are convinced that paying less is more savvy”.

Several specialists agree that the low cost offer stimulates a new demand and does not necessarily encourage less spending. However, they also remark that this model’s growth will affect health clubs in the mid market.

Traditional gyms – full service in theory – must review their value propositions in order to validate higher pricing. “Those who don’t will be less valued and become irrelevant” claims Algar. The market tends to polarise itself and in between poles there will be nothing left.

• A diverse offering
In competitive scenarios, with consumers eager for an enhanced experience, the fitness industry is undergoing a substantial diversification process. While premium health clubs and low cost gyms consolidate opposite poles within the market, boutique fitness studios – also known as Micro Gyms – thrive in Latin America as well as globally.

OBESITY PERCENTAGE RATES IN LATIN AMERICA

Guillermo Velez
Guillermo Velez

“The growth of the low-cost gym market, increasingly savvy consumers, technology, the boutique phenomenon and professionalisation have all shaped the industry in Latin America” - Guillermo Velez

Get the Report

The IHRSA Latin American Report (Second Edition) [77 pages] is available as a PDF at www.ihrsa.org/latin-american-report

ABOUT IHRSA

Founded in 1981, IHRSA – the International Health, Racquet & Sportsclub Association – is the only global trade association, representing more than 10,000 health and fitness facilities and suppliers worldwide.
Locate an IHRSA club at www.healthclubs.com

To learn how IHRSA can help your business thrive, visit www.ihrsa.org

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/885092_424335.jpg
A healthy industry, but plenty of room for growth, reveals a new report from IHRSA on the Latin American health club market
Kristen Walsh, IHRSA,IHRSA, Latin American market, club operators, The IHRSA Latin American Report
Latest News
Operating a further four weeks at reduced capacity will place serious pressure on English fitness ...
Latest News
People experiencing homelessness are being offered free access to leisure centres by Oxford City Council. ...
Latest News
IHRSA has appointed Elizabeth Clark as its new president and CEO. Clark joins the industry ...
Latest News
Boutique studio operator TRIB3 has launched its own-brand range of luxury toiletries. The operator, which ...
Latest News
Rainer Schaller's RSG Group is bringing its John Reed brand of health clubs to the ...
Latest News
The government needs to urgently set out its plans to support physical activity and fitness ...
Latest News
Glofox will begin offering health clubs, gyms and fitness studios instant access to financing, following ...
Latest News
Hong Kong-based Bricks Group has revealed plans to launch its health club chain, U Time, ...
Latest News
A £30m luxury leisure development scheme which has been more than a decade in the ...
Latest News
Apple has previewed its much-awaited watchOS 8, the operating system for its Apple Watch. The ...
Latest News
Chinese health club chain Supermonkey has finalised a series E funding round, valuing the company ...
Opinion
promotion
While much of the fitness industry has reopened its doors across the UK over the past weeks, many members are yet to return.
Opinion: Re-engaging your post-lockdown absent members
Featured supplier news
Featured supplier news: First digital ecosystem for fitness equipment is launched after £300,000 funding boost
Orbit4 is the first digital ecosystem that manages and facilitates the entire commercial fitness product cycle.
Featured supplier news
Featured supplier news: Active IQ launches two industry-ready health and fitness diplomas
Active IQ has launched two new qualifications – the Level 2 Diploma in Health and Fitness and Level 3 Diploma in Health and Fitness – to help engage learners in an industry-ready training experience that can be tailored to suit local employer needs.
Featured operators news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operators news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
Company profile: Orbit4
Orbit4 is the umbrella brand for FitnessCompared, FitnessFinance, WeServiceGymEquipment and WeBuyGymEquipment....
Company profiles
Company profile: Myzone
Myzone is an innovative heart rate monitor and community engagement tool to track physical activity ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Exercise equipment
Matrix Fitness: Exercise equipment
Trade associations
International SPA Association - iSPA: Trade associations
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Spa software
SpaBooker: Spa software
Wearable technology solutions
MyZone: Wearable technology solutions
Red Light Therapy
 Red Light Rising: Red Light Therapy
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Fitness equipment
Precor: Fitness equipment
Architects/designers
Zynk Design Consultants: Architects/designers
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Diary dates
01-04 Jul 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
28-29 Sep 2021
ExCeL London, London, United Kingdom
Diary dates
04-07 Nov 2021
Exhibition Centre , Cologne, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
Technogym
Technogym