As the 20th State of the Industry Report is released, LeisureDB has rebranded to Evolve, as Kath Hudson reports

The 20th State of the Industry Report (UK) from LeisureDB has revealed a resilient, expanding and competitive sector, the importance of differentiation and the ongoing challenge of tackling inequalities.

At the launch of the report, the LeisureDB team also announced a rebrand of the company – which was founded by David Minton 45 years ago – to Evolve, the same name as the company’s annual brand activation event.

Minton said: “The launch of Evolve reflects a market that has evolved and a business that must evolve with it. Our ambition is to combine four decades of sector expertise with new technology, AI and real-time intelligence to help organisations identify opportunities faster and make better decisions.”

The annual report has been broadened this year and includes analysis of more than two million member records, demographic profiling, supply mapping, public-private market trends, digital infrastructure, utilisation insights and interviews with operators and industry leaders from across the sector.

Jamie Buck, head of research at Evolve, explained that the sector has moved beyond its previous peaks and established new benchmarks for participation and market value, saying: “Operators are increasingly positioning themselves within broader health, wellbeing and preventative care ecosystems.

“This shift presents significant opportunities for operators, investors and suppliers who understand where the market is heading.”

Participation tends to be in active and more affluent groups / Shutterstock / WellStock

Operators are increasingly positioning themselves within broader health, wellbeing and preventative care ecosystems

Report highlights

The 2026 report found 7,463 health clubs in the UK, as well as 12.1 million members and a penetration rate of 17.6 per cent. The total market value was identified as £7.29 billion.

The report says: “Growth has been driven by continued expansion in the private sector, alongside steady recovery in public provision. For operators, this signals a larger and more engaged customer base, but also a more competitive and performance-driven landscape, with growth increasingly driven by utilisation and value, rather than expansion alone.

“Members per gym has risen steadily in the post-pandemic period, indicating that existing facilities are accommodating more users than in previous cycles and operating at higher levels of intensity.”

More openings

With gym openings and closures being almost level in 2022 and 2023 and more closures than openings in 2024, the balance has now strongly tipped in favour of openings. In 2025, there were 172 openings and 119 closures. So far this year there have been 205 openings and 82 closures.

With many of the closing sites being more than a decade old, the report points out the importance of investing and repositioning.

The private sector is almost evenly split between chains and independents; however, independents represents represent a greater share of closures – 58.2 per cent compared to 41.8 per cent. This shows the structural advantages of larger operators – economies of scale, brand recognition and greater access to capital for investment – and the importance of clear differentiation for independents.

Shutterstock / WellStock

The evolution of the sector is increasingly  shaped by new services and formats

Where is the growth?

Although membership of public sector facilities is growing, the public sector has actually seen a slight decline in site numbers, with swimming pools representing a larger share of these closures than dry-side facilities.

New supply in the sector is overwhelmingly focused on dry, gym-based formats, with the market moving towards efficient, lower-cost models. The top 10 operators account for around 30 per cent of sites but capture well over half the members and market value, benefiting from national reach, brand strength and more advanced operating models.

Gym usage continues to be regional – provision is weighted towards London and the South East – and still appeals to fairly limited demographics. Engagement is strongest among mainstream, family-oriented and suburban populations. The private sector scoops up many of these members.

The public sector better serves the under-represented rural areas where people face more barriers including provision, affordability and relevance of offer. The report says that closing this gap is critical to long-term growth – this will require greater geographic reach and the adaptation of products, pricing and environments.

New formats

The evolution of the sector is increasingly shaped by new services and formats, such as reformer Pilates and recovery spaces. The report says that the sector is still in the experimentation phase as opposed to widespread rollout.

While padel is growing, the current supply is modest – two to four courts per club, representing a cautious rollout – but the pipeline suggests increasing operator interest. Existing provision leans towards outdoor courts, but planned developments show a shift towards indoor formats and outdoor covered courts.

Operators that combine strong positioning, efficient delivery and targeted investment will be best placed to capture the next phase of market growth

Health impact

The report raises the question of whether the growth of the market is improving public health or if growth is concentrated on improvements within already active segments of the population.

Results show that participation tends to be in more affluent, already active groups. Many of the segments that under-index, such as lower-income, rural and transient populations, are under-represented, despite making up a substantial share of the UK population.

This is a challenge. The low-cost operators are yet to be well-represented in rural areas and while the public sector is playing a critical role in addressing inequalities, economics do place a limit.

Future growth

The market is becoming more competitive – growth in demand has been accompanied by openings, closures and continuous churn and repositioning. The report says this suggests growth is concentrated among operators that are best able to meet evolving performance expectations.

Growth is not determined by expansion alone, but how effectively operators optimise existing assets, such as maximising capacity, improving retention and increasing value per member.

The role of health, wellness and recovery is continuing to expand, representing opportunities for health and fitness club operators to achieve incremental revenue and differentiation.

“Operators that combine strong positioning, efficient delivery and targeted investment will be best placed to capture the next phase of market growth,” says the report. 

• You can read the latest State of the Industry report free of charge at: https://weareevolve.io