The Fitness Industry

Submitted by Jessica.kerame… on Tue, 11/14/2023 - 14:06
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The fitness industry is a dynamic and ever-evolving sector promoting physical well-being, health, and overall fitness. As health in our society regresses, the fitness industry becomes even more prevalent in creating necessary changes for people worldwide to improve health and fitness.

The fitness industry encompasses a wide range of activities, products, services, and professionals, all aimed at helping individuals achieve their fitness goals and lead healthier lives. This industry has experienced significant growth and transformation, reflecting changing societal attitudes towards health and wellness.

As a qualified personal trainer, you have the privilege to be able to have a positive impact on the health of those in our community.

Key components of the fitness industry include:

  • Fitness facilities
  • Personal training
  • Group fitness
  • Home fitness
  • Wearable technology
  • Online fitness communities
  • Wellness and mindfulness.

Let’s learn a little more about each of these components.

Fitness facilities

Gyms, health clubs, CrossFit boxes, PT Studios and other fitness centres are central to the industry, providing a space for people to engage in various forms of exercise. We’ll look deeper at a typical commercial gym and the different departments that make it up a little later.

Personal training

Personal training has evolved majorly over the last few years. It was once an offering exclusive to the rich and famous, but now it is a mainstream service that many individuals use to guide and support them through their fitness journeys. The role of a PT can be nicely summarised with the 7 Ms of Personal Training seen in the following video.

Group fitness

Group exercise classes, such as pump, yoga, pilates, spin, and HIIT, are popular options for people seeking high energy, social engagement and structured workouts. Les Mills International conducted a study on group exercise and found that those members who regularly participated in Group Exercise stayed significantly longer at a facility than those who exercised alone. The following graph shows that those who participate in group classes three times a week will stay, on average, a year more than those who don’t.

A diagram showing average class attendance

Home fitness

With the advent of technology and the rise of home fitness equipment and apps, many individuals prefer working out at home. This trend accelerated during the COVID-19 pandemic.

Wearable technology

A person wearing a smart watch

Fitness trackers and smartwatches have become indispensable tools for tracking physical activity, heart rate, sleep, and more.

Online fitness communities

Social media and online platforms have given rise to virtual fitness communities, where individuals can share their fitness journeys, find inspiration, and access virtual workout sessions. Like home fitness, the pandemic saw a huge surge in online fitness services.

Wellness and mindfulness

A group doing yoga

Not only has physical health regressed in our culture, but there has also been an increase in stress and mental health issues. This has seen a big surge in holistic wellness services like yoga, Pilates, sound healing, and breathwork. Many fitness programs now emphasise mental well-being, incorporating these practices into their offerings.

The fitness industry's growth has been driven by increasing awareness of the importance of health, rising obesity rates, and a desire for a more active lifestyle. Technological innovations have also played a pivotal role, with apps, virtual training, and connected fitness equipment providing new avenues for engagement. Furthermore, the industry has adapted to changing consumer preferences, emphasising inclusivity, diversity, and personalised fitness solutions.

In summary, the fitness industry is multifaceted and focuses on improving physical health and well-being. Its diverse offerings cater to a wide range of individuals, from beginners to elite athletes, and continue to evolve in response to changing trends and consumer demands.

Let’s look at some of the key information about the fitness industry in Aotearoa.

A diagram showing revenue sources

The annual revenue for the Fitness Industry in New Zealand is around $380m. The revenue can be broken down further into the following categories:

  • Gym Memberships 62%
  • Group Exercise Offerings 18%
  • Personal Training 13%
  • Other services 7%.
Industry revenue has decreased over the past three years with the pandemic. Many consumers chose to withhold membership fees during lockdown periods and fear of exposure to Covid-19 meant many individuals stayed away from fitness facilities and exercised from home. This, sadly, led to many fitness facilities closing down in New Zealand. However, the good news is that growth is trending back.
Approximately 15% of Kiwis have a gym membership. This figure is known as the penetration rate, and we rank around 10th in the world for gym usage (it does change quite regularly). Sweden leads the world in gym use with slightly over 22%.
It is estimated that the Fitness Industry in New Zealand employs over 4000 staff, this includes full-time employees, part-time employees, and independent contractors.
The good news for personal trainers is that even though the industry revenue has decreased, the demand for personal training has increased. Personal trainers have been in great demand, bolstered by growing discretionary income, as people seek to be fit while avoiding the risks associated with the pandemic. Consumers' preferences have evolved from larger facilities to smaller, more personalised workout groups.
There has been a significant spike in the number of functional, community-based, small-group training facilities like CrossFit boxes, F45, Orange Theory, BFT, etc. These facilities come at a higher price point (approximately $40 - $80 per week) but offer a more personalised, coaching-based model to traditional group fitness such as pump, spin, and jazzergetics type of classes that were big in the 1990s and early 2000s.
Whilst the cost for these smaller functional facilities has increased, the weekly fees for a traditional commercial gym have significantly reduced over the past ten years. The addition of a lot of budget-based, 24/7 chains to the market has brought down the average cost of gym memberships. Franchises such as City Fitness, Anytime Fitness, Snap, and Jetts have made gyms more affordable for Kiwis. 
The three largest companies in the New Zealand Fitness Industry are:
  • Les Mills
  • City Fitness
  • Snap Fitness.

To find out more and stay up to date with gym and fitness centres in New Zealand. You can purchase a report from IBIS World that includes information on market size, industry analysis, trends, and forecasts.

If you think the large numbers around the New Zealand fitness industry are impressive wait to see the numbers for the worldwide industry!

The global fitness industry is a thriving and dynamic sector that has grown significantly over the past few decades. It encompasses various activities, services, and products aimed at promoting physical health, wellness, and fitness among individuals of all ages and backgrounds. Please note: much of the information provided was taken in 2019, before the global pandemic. The numbers have fluctuated quite significantly since then.

Revenue in the fitness industry

The revenue generated by the worldwide fitness industry has consistently increased over the years. In 2020, the global fitness industry faced unprecedented challenges due to the COVID-19 pandemic. Lockdowns and restrictions temporarily and permanently closed many fitness facilities and disrupted traditional business models. However, the industry demonstrated resilience and adaptability, with various segments finding new ways to serve customers through online classes, home fitness equipment, and digital fitness platforms. It was discovered those businesses that showed innovation, creativity, and agility thrived whilst many struggled or fell over altogether. Even as a self-employed personal trainer, it’s important to be able to think outside the box when these challenges come along.

Before the pandemic, the global fitness industry was experiencing steady growth. In 2019, the industry's estimated revenue reached nearly $100 billion USD, according to Statista. This figure included revenue from gym memberships, fitness equipment sales, health and wellness coaching, and related services.

It's important to note that the pandemic significantly impacted industry revenue in 2020 and potentially in subsequent years. Some fitness facilities faced closures, while others adopted innovative approaches to retain members and attract new ones through virtual classes and outdoor training.

Number of facilities

The number of fitness facilities worldwide has grown remarkably, reflecting the increasing demand for fitness services. These facilities include traditional gyms, health clubs, boutique fitness studios, and community centres. As of 2019, there were an estimated 210,000 fitness facilities globally, according to the International Health, Racquet & Sportsclub Association (IHRSA).

The distribution of fitness facilities varies across regions, with countries like the United States, China, and the United Kingdom has a substantial number of gyms and fitness centres. Emerging markets, such as India and Brazil, have also seen rapid growth in the number of fitness facilities as fitness awareness and disposable incomes rise.

Number of members

The number of fitness facility members worldwide is critical for assessing the industry's reach and impact. In 2019, IHRSA reported that there were approximately 184 million fitness club members globally. These members represent diverse individuals with varying fitness goals, ranging from casual exercisers to dedicated athletes.

Membership numbers can fluctuate yearly due to factors like economic conditions, societal trends, and the availability of fitness options. The COVID-19 pandemic disrupted membership patterns as some people paused or cancelled their memberships during lockdowns while others explored alternative fitness solutions.

Largest gym chains

Of the 200,000+ fitness centres, many of them belong to a franchise. In New Zealand, City Fitness and Les Mills lead the way. Below are the largest 5 chains on the planet.

  • McFIT (Germany)
    McFIT is one of the largest gym chains in Europe, with numerous locations across Germany and other European countries.
  • Anytime Fitness (United States)
    Anytime Fitness is a 24-hour gym franchise with thousands of locations worldwide, making it one of the largest gym chains globally.
  • Planet Fitness (United States)
    Planet Fitness is a budget-friendly gym chain with a significant presence in the United States and expansion into other countries.
  • 24-Hour Fitness (United States)
    24-Hour Fitness has a large presence in the United States, with hundreds of clubs nationwide. However, please note that the company filed for Chapter 11 bankruptcy in 2020, and its status may have changed since then.
  • Gold's Gym (United States)
    Gold's Gym is a well-known fitness chain located in various countries, but it has faced financial difficulties and ownership changes in recent years.

IHRSA

In New Zealand, we have Exercise New Zealand as our governing body. The global equivalent is IHRSA (International Health, Racquet & Sportsclub Association).

IHRSA is a global trade association representing the fitness and health club industry. Founded in 1981, IHRSA serves as a resource and advocate for fitness professionals, health club operators, and suppliers of fitness equipment and services. It promotes fitness and wellness, provides industry research and education, and facilitates networking and collaboration within the fitness industry worldwide. IHRSA plays a pivotal role in supporting the growth and success of fitness businesses and promoting healthier lifestyles. IHRSA holds many amazing fitness conferences. Hopefully, throughout your time in the fitness industry, you’ll be able to experience one (or more) of them.

Trends shaping the fitness industry

One of IHRSA’s key research areas is around trends in the fitness industry. Fitness is a bit like fashion in that it is constantly changing. As a fitness professional, it’s important to be aware of the changes and trends and adapt accordingly. An example of this was when Zumba took the fitness world by storm in the early 2010s. Those facilities or individuals who quickly capitalised on this trend made a lot of money, whereas those who didn’t (or took too long to develop an offering) missed the boat. Let’s look at some of the trends that have been shaping the worldwide fitness industry recently.

Digital transformation The industry has embraced technology with the proliferation of fitness apps, wearables, and online streaming platforms. Virtual workouts and remote coaching have become essential components of fitness offerings.
Boutique fitness Boutique fitness studios specialising in specific workout formats (e.g., CrossFit, barre, boxing) have gained popularity for their specialised and community-focused approach.
Holistic health and wellness Fitness facilities increasingly offer holistic wellness services, including nutrition counselling, mental health support, and recovery options like spas and saunas.
Sustainability There is growing awareness of the environmental impact of fitness equipment and facilities, leading to a focus on eco-friendly practices and equipment.
Personalisation The industry has moved towards personalised fitness experiences with tailored workout plans, data-driven insights, and individualised coaching.
Inclusivity There is a greater emphasis on making fitness accessible to all, with facilities and programs designed to accommodate diverse abilities, body types, and backgrounds.
Home fitness The home fitness market has expanded with the popularity of connected fitness equipment, allowing individuals to work out conveniently at home.
Outdoor fitness Many fitness enthusiasts have turned to outdoor activities like hiking, biking, and outdoor group workouts/bootcamps, particularly during the pandemic.

Challenges and opportunities

While the fitness industry offers immense opportunities for growth and innovation, it also faces challenges, including competition, changing consumer preferences, and the need to adapt to unforeseen disruptions like the COVID-19 pandemic. Fitness businesses must stay agile and responsive to emerging trends and technologies to remain competitive and meet evolving customer demands.

In conclusion, the worldwide fitness industry is a dynamic and resilient sector that has continued to evolve despite challenges. It plays a crucial role in promoting health and well-being across the globe, with millions of members seeking to improve their physical fitness and overall quality of life. The industry's adaptability and embrace of technology have positioned it for future growth and continued impact on individuals' lives. To obtain the most current data and insights on the global fitness industry, it's advisable to consult recent reports and industry publications.

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