Results in £3.81bn Total Market Value, 4% rise on pre-recessionary value
The UK health and fitness industry has maintained a total market value of £3.81 billion, its first flat annual performance in ten years, concludes the 2011 FIA State of the UK Fitness Industry report.
Since the start of the recession, in 2008, the fitness industry has grown its total market value by 4%, increased the member base by 2% whilst increasing the number of fitness facilities by a further 1.7%.
The 2011 reports indicates that the industry has experienced a small but not unexpected dip in membership levels of 0.3% and a small net loss of fitness facilities from 5,885 to 5,852, according to independent leisure market analysts, The Leisure Database Company, who compile the report on behalf of the industry’s trade body the FIA.
Growth in the industry has been driven by a good performance from public fitness operators. The public sector saw growth across three key performance indicators: increasing sites open by 20, a growth in membership numbers of 2% and an impressive growth in market value of 5.8%. Low cost operators have also contributed to this.
Summary of Key Facts
- Total Market Value (public and private sectors combined) is estimated at £3.81 billion, sustained from 2010 and up 4% since 2008.
- 11.9 per cent of the UK population are now registered as members of a health and fitness club or publicly-owned fitness facility.
- Total industry membership base has seen a slight decline (0.3%) to 7.3 million over the past 12 months; however this is a 2% increase since 2008.
- 149 new public and private fitness facilities opened in the 12 month period ending 31st March 2010, up from 122 in 2010 and 114 openings in 2009.
- 125 public and private fitness facilities closed in the reported period.
- There are now 5,852 fitness facilities in the UK; down from 5,885 in 2010 and up 1.7% since 2008.
Commenting for the Fitness Industry Association, CEO, David Stalker, said “The last 12 months have been the toughest in our twenty year history. The Industry has matured and we are not immune to the ongoing economic pressures facing all sectors in the current climate. Achieving an overall flat performance during this period demonstrates that the industry has become indispensable. More competition and further consolidation of the market is to be expected, but with increased public health awareness of the importance of physical activity and a three year industry strategy in place, there is real opportunity for sector growth ahead.”
Commenting on the figures, David Minton, Director of The Leisure Database Company said "The fitness industry continues to defy gravity with this flat performance during the ongoing recessionary period. The strong public sector performance and new facility openings at both ends of the private market signal more growth ahead. Innovation and growth were the hallmarks of the industry during the previous recession and I fully expect to see these features transform our industry over the coming years".
“It is very encouraging but not surprising that public sector leisure services have continued to grow,” said Craig McAteer, Chair of Sporta, which represents more than 100 leisure and cultural trusts, managing over 900 sites on behalf of local authorities across the UK. “Despite having to deal with cuts in public funding, leisure trusts continue to offer affordable and accessible facilities and activities, and the demand for quality, inexpensive leisure services is as high, if not higher than ever.
John Treharne, CEO, The Gym Group
"2010 has been an exciting year for the Gym Group. With the support we have from Bridges Ventures and HSBC plus our retained earnings, our resources are being ploughed back into our aggressive expansion plans. We will open another 6 Gyms in 2011 and over 15 Gyms in 2012.
Part of our success to date continues to be our ability to attract up to 40% of our membership base, who have never used a Health Club or Leisure Centre before. This is partly driven by our 'value for money' offering, but also because we have no membership contracts and all Gyms can be accessed 24/7. Consequently our Membership base will double in size over the next 12 months".
Patrick Henchoz, Chairman, Gymbox
''Gymbox has had a successful 2010/2011 with the core clubs continuing to grow overall membership numbers , and Westfield having a very promising start exceeding all expectations . Attrition has dropped from previous levels, and whilst joiners have been a challenge, with the team refocussing on the core values of the brand and expanding the offer, we have been able to keep the up momentum . Plans are in place to open 2 further clubs in 2011/2012 and further sites are at advanced stages of negotiation”.
Ian Richardson, Acting General Manager, The Peak
“2010 was a successful year. Membership remained stable (full) and both revenue and profitability increased by about 2%. There was certainly pressure on secondary spend in terms of spa revenues which lead to a greater focus on promotional / discounting activities to drive volume but personal training revenues were up 16% year on year and demand for these services is now limited by physical space.
At the start of 2011 membership rates were increased by an average of 6% and Q1 2011 has showed revenue increase above inflation”.
-ENDS-
Notes:
The FIA State of the UK Fitness Industry Report is compiled from the most comprehensive review of the UK fitness industry, involving individual contact with some 5,852 sites. The reporting period is the 12 months to 31st March 2011. The audit and resulting figures are compiled by independent leisure market analysts, The Leisure Database Company who have been monitoring the performance of the fitness industry for over 20 years. Further details of the report are here.
