» Canadian Forum
Key Findings from The 2018 IHRSA Global Report
BY MELISSA RODRIGUEZ, senior research manager, IHRSA
I
n 2017, health club member- ships topped 174 million consum- ers around the globe, according to the 2018 IHRSA Global Report.
Industry revenue totaled an estimat- ed $87.2 billion in 2017, and the club count exceeded 200,000 facilities. As leading markets posted strong perfor- mance, emerging markets—particularly in the Asia-Pacific region—showed po- tential for continued growth.
THE AMERICAS Revenue, membership, and the total number of clubs all increased in the U.S. from 2016 to 2017. Revenue grew from $27.6 billion (USD) in 2016 to $30 billion in 2017, while membership in- creased from $57.2 million to $60.9 million. The U.S. club count rose from 36,540 to 38,477 sites. The IHRSA Canadian Health Club
Report indicates that club operators serve nearly 6 million members at roughly 6,000 facilities. IBISWorld, an independent industry research firm, projects that revenue from gyms and health clubs in Canada will increase through 2019. One of the key drivers for growth is consumer demand for health and fitness programs to help ad- dress obesity, active aging, proper nu- trition and sports performance. The Latin American health club
market is robust with potential for growth. The IHRSA Latin American Report (Second Edition) reports that
that revenue from gyms and health clubs in
Canada will increase through 2019.”
34 Fitness Business Canada Summer 2018
independent industry research firm, projects
“IBISWorld, an
MIDDLE EAST & NORTH AFRICA (MENA) Approximately 3.4 million members utilize 5,600 health clubs in 10 mar- kets in the Middle East and North Africa. These 10 markets generate roughly $2 billion in revenue. Saudi Arabia leads all markets in this region with nearly $620 million generated at 1,100 health clubs, which attract more than 800,000 members. In terms of club count and memberships, Egypt leads with 1,680 facilities and 957,500 members. Despite conflicts in several MENA
countries, there is a demand for fitness. Fitness First, Gold’s Gym and World’s Gym, for example, have expanded into the Middle East. In fewer than 10 years, Saudi Arabia’s Fitness Time has grown to 100 locations, highlighting opportunities in this region.
Brazil’s 34,000 health clubs rank the country second only to the U.S. among global fitness markets. More than nine million Brazilians are mem- bers of more than 12,000 facilities. Opportunities for growth exist as member penetration rates remain low at an average of 2.15 percent across 18 countries.
EUROPE Roughly 60 million Europeans be- long to a health club or studio, and the industry generated an estimated $28.8 billion at 59,000 facilities. The U.K. and Germany continue to lead all markets in Europe. In the U.K., 9.7 million members belong to one of the nation’s 6,728 health clubs or studios. Germany attracts more than 10 mil- lion members at nearly 9,000 locations and generates $5.6 billion in annual revenue. According to the European Health
& Fitness Market Report, Europe has strong prospects for growth, consider- ing not only the mature, solid markets in Western Europe but also the poten- tial in Eastern European markets such as Russia, Turkey and Poland. While the average penetration rate in Europe is 10.3 percent, Russia and Turkey have the lowest penetration rates at 2.4 per- cent and 2 percent.
ASIA-PACIFIC The Asia-Pacific region serves 22 mil- lion members at more than 25,000 clubs. In total, this market generates annual revenues of $16.8 billion, ex- cluding the Middle East, according to the IHRSA Asia-Pacific Health Club Report (Second Edition). Fueled by growing economies, the
health club industry in the Asia-Pacific is robust with significant potential for continued growth. Only Australia and New Zealand, which have the high- est penetration rates at 15.3 percent and 13.6 percent, are considered ma- ture markets. While the fitness mar- ket shows signs of rapid growth and professionalization in Hong Kong (5.85 percent), Singapore (5.8 percent) and Japan (3.3 percent), opportunities for growth remain in the Philippines (0.53 percent), Thailand (0.5 percent), Indonesia (0.18 percent) and India (0.15 percent). Driven by the momen- tum of economic growth, the fitness market in the Asia-Pacific region has shown steady growth with a positive outlook going forward. The outlook of the global health
club industry is bright and promis- ing. Instructors, trainers, coaches, club operators are well-positioned to lead a healthier world. FBC
Visit
www.ihrsa.org/research-reports to access any of the publications cited in this article.
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