The Health and Fitness Association’s new 2024 HFA Global Report shows that despite ongoing macro-economic challenges, the fitness industry has rebounded from the pandemic.

The 112-page reports includes data from 19 countries, covering 2023 and early 2024. HFA president and CEO, Liz Clark, celebrated the sector’s resilience in navigating the challenges of recent years.

One positive to come out of the pandemic has been the consumer recognising the value of health and the perception of fitness changing from a leisure activity to a necessary, preventative health activity.

Despite this, the World Health Organization reports that one-third of adults worldwide did not meet the recommended physical activity levels in 2022 and this number is projected to rise.

Alongside obesity, mental illness is an escalating global health problem, with the Lancet Psychiatry reporting that half of the global population is at risk of suffering from depression and anxiety by the age of 75.

However, the data on the benefits of physical activity on mental health is building, with research published in The British Medical Journal asserting that exercise is as good as therapy or drugs for mild to moderate depression.

Mental wellness continues to be a leading concern for younger generations and a motivator for joining a gym, while seniors are recognising the value of healthy ageing and taking out memberships.

Of those health club operators surveyed for the report, 86.8 per cent expect membership to increase in 2024 and 92.6 per cent expect revenue growth.

Trends

GLP-1 is one of the most discussed current trends. According to Morgan Stanley, sales reached US$6 billion worldwide in 2023 and are estimated to reach between US$105 billion and US$144 billion by 2030.

A William Blair survey found that these weight loss medications could boost health club membership, with people who take the drugs reporting improved motivation, mobility and energy levels after taking the medication.

Having been impacted less than other parts of the sector by the pandemic, franchising is continuing to worldwide growth.

AI is being increasingly embraced to aid personalisation, expand the market and reduce costs.

Inclusivity is another talking point, with diversity both in employment and membership presenting a challenge.

Home fitness companies are struggling, as people lives return to normal and seek more social ways to work out.

Pickleball participation in the US has increased by 224 per cent over the last three years and is also growing quickly in China, Australia and Europe. Fitness facilities are increasingly converting spaces devoted to other racquet sports into pickleball courts.

Working spaces within gyms are tipped as a burgeoning trend, with Life Time in the US and Wello Works in Australia active in this area.

Penetration rates

A number of countries reported record penetration rates in 2023: the US (23.7 per cent,) Germany (13.4 per cent), Spain (11.9 per cent), Switzerland (14.9,) Portugal (6.9 per cent) and Japan (4.5 per cent) all reported record memberships and penetration rates. The UK also posted all time highs in memberships and penetration earlier this year (15.9 per cent.)

There is growth potential in Mexico (5.6 per cent), India (0.7 per cent) and Saudi Arabia (5.9 per cent).

EuropeIn Europe there was a reported membership increase of 4.3 per cent to 67.6 million. While markets in Western Europe and the Nordics are among the most mature in the world, Eastern Europe is lower at an average of 8.4 per cent.

By the end of 2023, Europe had almost 65,000 fitness clubs, with annual revenue at US$34.42 billion and all three indicators surpassing pre-pandemic levels.

Europe is home to many global leaders: almost 40 per cent of the 25 club companies with the most memberships are based on the continent.

The five biggest are:

RSG Group: more than five million members and third largest globally.

Basic-Fit: 3.8 million and sixth largest in the world, also the largest in Europe with 1,402 sites.

PureGym: 1.9 million, also 10th largest in the world and second largest in Europe with 573 sites.

Virgin Active: more than one million members and number 13 in the world.

Fitness Park Group has one million members and is the 14th largest in the world and 282 clubs.

While Europe is dominated by homegrown players, among the firms based outside the region Anytime Fitness has the largest presence, with almost 400 sites.

The report says the European fitness market is resilient, with performance approaching or surpassing pre-pandemic levels and a promising future.

The UKThe key figures for 2024 are all looking good: fitness sites up by 0.2 per cent compared to 2023; membership the highest it’s ever been at 10.7 million, ditto market value which is 9.7 per cent higher than 2023 at £5.9 billion.

The increased value is attributed to premiumisation and there is a buzz of positivity across the sector.

Latin America

Latin America’s market is fragmented and offers untapped potential. HFA predicts further growth and development in this region due to data showing solid demand.

Smart Fit is the largest operator, with 1,438 units. It saw a 44 per cent growth in revenue from 2022 to 2023, and with 4.5 million members it ranks fourth globally in membership and seventh largest by number of units.

Local players dominate this market, with some US franchises – Anytime Fitness, Planet Fitness and Orangetheory – each having a small presence.

The Middle EastThe Middle East offers significant tailwinds as a result of the high-growth economies. Saudi Arabia is the largest economy in the GCC with independent chains making up 74 per cent of the market. Women-only gyms are an important segment and a lack of nearby facilities has been reported as a barrier for this demographic.

Leejam / Fitness Time is the market leader in the Middle East, with more than 180 sites and 396,000 members. In 2023 it ranked among the top 25 operators globally in terms of revenue at US$353 million.

Other operators include Sports Club Company (55 units, 112,000 members), Kun Sports (50 units, 44,000 members) and Armah Sports Company (12 sites, 13,000 members).

Anytime Fitness, Fitness First Middle East and PureGym each have a growing presence.

North America

An HFA-commissioned report published in the summer showed the US fitness industry is responsible for US$22.4 billion of economic activity and supports 432,942 direct jobs.

Membership in 2023 was 72.9 million: a 13.5 per cent increase from 2019.

The biggest operators are Planet Fitness with 18.7 members and 2,575 locations; Anytime Fitness with 4.2 million members and 5,267 sites and Crunch Holdings with 2.6 million members and 458 sites.

At the premium end, Life Time generated US$2.22 billion in revenue in 2023, making it number one globally, with 1.5 million members and 171 sites.

Looking ahead, key themes are likely to be strategic consolidation; rethinking the US$10 per month HVLP membership; the convergence of preventative wellness and fitness; the emergence of gyms as social hubs and wellness centres; the potential passing of the Personal Health Investment Today Act and the effects of GLP-1 on fitness.

CanadaCanada’s penetration rate is 11 per cent, down from 16 per cent pre-pandemic.

However, Gen Z are flocking to the gym – working out independently, with strength training being the favourite activity – while active ageing has exploded, so there is the expectation that 2024 will surpass pre-pandemic levels.

The Fitness Industry Council of Canada says there is a massive shift in people joining the gym for their mental health and has welcomed the Ministry of Sport being renamed the Ministry of Sport and Physical Activity.

Australia

Despite a tightening economy, record numbers of people are joining gyms for social and motivational reasons, as opposed to using online programmes.

Increased media coverage about the benefits of exercise for physical and mental health conditions is helping to drive this, with many new joiners being female and older clients.

Pilates and strength training are the fastest growing modalities.

AUSActive predicts a rise in more specialised and functional gyms going forward.

ChinaChina was home to more than 36,000 health clubs in 2023. The report says that the fitness industry is poised for further segmentation and diversification. Those facilities offering efficient services, short-term payment options, personalised programming, community-focused experiences and professional services will do best.

The report is available to buy from the HFA website at US$399.