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
Life Fitness (UK) Ltd
Life Fitness (UK) Ltd
Life Fitness (UK) Ltd
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
The appetite for health clubs is strong among consumers and investors – to take advantage of this, operators must figure out how to meet key challenges in operationally sustainable ways
HCM magazine
Running booms when health clubs and gyms are closed. Could this enthusiasm result in treadmill training becoming the new spinning? Kath Hudson reports
HCM magazine
HCM people

David Beckham

Global partner, F45
This partnership with F45 is an exciting business venture for me
HCM Magazine
Sponsored
Fitness professionals make great social prescribing linkworkers, as their consultation skills, ability to recognise cues when speaking to people and follow-up on actions are all called upon
HCM Magazine
Insight
Dr Davina Deniszczyc talks us through the findings of the first Nuffield Healthier Nation Index, which has benchmarked activity levels and attitudes to exercise among the UK population
HCM Magazine
Interview
David Lloyd Leisure has not only regained its pre-pandemic member numbers, it’s also seeking acquisitions, going hard on digital and continuing to upgrade its portfolio. Its CEO talks to Kate Cracknell
HCM Magazine
HCM People
We first started talking to KSL over two years ago, so this was not a rushed partnership
HCM Magazine
Sponsored
Les Mills is launching a new digital network called Les Mills Connect to help clubs build back better and emerge from the pandemic with a stronger business
HCM Magazine
Sponsored
Andy Janes and Jamie Whisken explain the vision behind R1SE Bournemouth, and why Technogym was their choice of partner in delivering their unique fusion boutique
HCM Magazine
Sponsored
Billed as the ‘2021 Experience Tour’, Egym has taken its connected gym floor experience on the road around the UK
HCM Magazine
Latest News
Half of UK adults aren't happy with their physical fitness levels, according to a study ...
Latest News
Temporary measures brought in to support businesses in the UK from insolvency during the pandemic ...
Latest News
Nadine Dorries has replaced Oliver Dowden as the Secretary of State for Digital, Media, Culture ...
Latest News
In a major move against the gym market, Apple has revealed a number of upgrades ...
Latest News
Physical activity professionals in England will soon be able to access free, one-to-one learning with ...
Latest News
Fitness equipment giant Nautilus has acquired VAY, a firm specialising in AI and motion technology. ...
Latest News
An award celebrating outstanding individuals in the fitness sector is to be named in honour ...
Latest News
David Lloyd Leisure (DLL) has reorganised its top team in order to expand its estate ...
Featured supplier news
Featured supplier news: Active IQ Skills Hub helps fitness professionals boost skills in post-Covid market
Suffice to say that the pandemic has completely changed the way fitness professionals work and the way consumers work out – and therein lies opportunity.
Featured supplier news
Featured supplier news: Uptivo: Individual and group heart rate tracking
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers that provides powerful tools to schedule activities, manage member payments, and monitor heart rate both for remote and on-site classes.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator 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.
Company profiles
Company profile: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Company profiles
Company profile: FIBO Global Fitness
FIBO Global Fitness is the leading international trade show for fitness, wellness & health....
Supplier Showcases
Supplier showcase - Gympass
Catalogue Gallery
Click on a catalogue to view it online
Directory
Wearable technology solutions
MyZone: Wearable technology solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Red Light Therapy
 Red Light Rising: Red Light Therapy
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Salt therapy products
Himalayan Source: Salt therapy products
Management software
Premier Software Solutions: Management software
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Fitness equipment
Octane Fitness: Fitness equipment
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
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
Half of UK adults aren't happy with their physical fitness levels, according to a study ...
Latest News
Temporary measures brought in to support businesses in the UK from insolvency during the pandemic ...
Latest News
Nadine Dorries has replaced Oliver Dowden as the Secretary of State for Digital, Media, Culture ...
Latest News
In a major move against the gym market, Apple has revealed a number of upgrades ...
Latest News
Physical activity professionals in England will soon be able to access free, one-to-one learning with ...
Latest News
Fitness equipment giant Nautilus has acquired VAY, a firm specialising in AI and motion technology. ...
Latest News
An award celebrating outstanding individuals in the fitness sector is to be named in honour ...
Latest News
David Lloyd Leisure (DLL) has reorganised its top team in order to expand its estate ...
Latest News
Downtown Miami’s upcoming mixed-use development Legacy Hotel & Residences has signed a joint venture deal ...
Latest News
Colin Waggett has revealed that the recent deal, which saw KSL Capital Partners acquire a ...
Latest News
3d Leisure has acquired franchised studio operator Yourzone45 from Elms Fitness Group for an undisclosed ...
Featured supplier news
Featured supplier news: Active IQ Skills Hub helps fitness professionals boost skills in post-Covid market
Suffice to say that the pandemic has completely changed the way fitness professionals work and the way consumers work out – and therein lies opportunity.
Featured supplier news
Featured supplier news: Uptivo: Individual and group heart rate tracking
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers that provides powerful tools to schedule activities, manage member payments, and monitor heart rate both for remote and on-site classes.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator 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.
Company profiles
Company profile: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Company profiles
Company profile: FIBO Global Fitness
FIBO Global Fitness is the leading international trade show for fitness, wellness & health....
Supplier Showcases
Supplier showcase - Gympass
Catalogue Gallery
Click on a catalogue to view it online
Directory
Wearable technology solutions
MyZone: Wearable technology solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Red Light Therapy
 Red Light Rising: Red Light Therapy
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Salt therapy products
Himalayan Source: Salt therapy products
Management software
Premier Software Solutions: Management software
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Fitness equipment
Octane Fitness: Fitness equipment
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
Life Fitness (UK) Ltd
Life Fitness (UK) Ltd