A global perspective

Kristen A Walsh highlights some of the key findings in this year’s IHRSA Global Report, available to purchase now

Published in May, The 2013 IHRSA Global Report 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 nearly 300 leading club companies from around the world, including financial and membership information. The final section 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 US$75.7bn in annual revenue from more than 150,000 clubs. Roughly 132 million people belong to health clubs worldwide.

The Americas
In the US, the health club industry held steady in 2012, although successful club operators reported improved performance. Industry-wide, revenue reached an estimated US$21.8bn in 2012. Comparable to 2011 results, more than 50 million card-carrying members belonged to 30,500 US health clubs in 2012.

The IHRSA Index of 18 health and sport club companies, representing 538 sites, recorded strong performance indicators in 2012 relative to 2011. Overall, revenue grew by 8.1 per cent as total membership dues revenue rose by 6.7 per cent.

In Latin America, the industry is robust, with opportunities for growth. According to The IHRSA Latin American Report, health clubs generate an estimated US$5.5bn in revenue from more than 46,000 health clubs in 15 Latin American markets. Brazil leads in revenue (US$2.4bn), 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 US$1.5bn in revenue from more than 7,800 health clubs serving 2.7 million members. Nearly 6 per cent of Argentinians belong to a health club as the market attracts 2.3 million members.

Low penetration rates and increasing health awareness present opportunities for industry growth in Latin America. On average, 1.7 per cent of Latin Americans belong to a health club.

Europe
The economy in Europe continues to challenge markets in Spain, Italy and Portugal. Preliminary estimates show a decline of up to 20 per cent in market size, club count and memberships. Key performance indicators are also estimated to have declined by roughly 10 per cent 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.

Overall, the European health club industry remains the most lucrative region with the greatest number of health clubs. Europe generates roughly US$32bn in revenue from more than 45,000 clubs. Nearly 41.9 million members belong to health clubs in Europe.

Asia Pacific
The Asia Pacific region serves 17 million members at more than 21,000 health clubs. Asia generates roughly US$11.5bn in revenue from more than 18,000 clubs and 14.6 million members. With nearly 3,000 businesses, Australia and New Zealand generate US$2.1bn in revenue from some
2.3 million members.

According to The Australian Fitness Industry Report, nearly one out of five Australians (18 per cent) participate in fitness activities. This 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 business models, such as fitness studios, 24-hour facilities, full-service chains and outdoor PT.

Roughly 132 million people around the world are health club members

FOR MORE INFORMATION

The 2013 IHRSA Global Report is available at www.ihrsa.org/2013-ihrsa-global-report for US$139.95 (US$69.95 for IHRSA members). Contact the [email protected] with questions.