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The industry will benefit from the burgeoning elderly population becoming increasingly active, which will result in many baby boomers signing up for health club memberships. For this reason, industry research firm IBISWorld has updated a report on the gym, health and fitness clubs industry in its growing industry report collection.
The gym, health and fitness clubs industry has weighed in on the recent marketing campaigns and consumer trends that have aimed to fight obesity and advocate for improved consumer health. In the five years to 2014, health club memberships have grown. According to IBISWorld Industry Analyst Sarah Turk, “While health club memberships have fared well over the period, they still declined in 2009, in line with many budget-conscious individuals terminating their memberships.” Further exacerbating this trend, time-strapped consumers became more prevalent, evidenced by individuals’ time spent on leisure and sports remaining relatively stagnant, which has slightly constrained industry revenue growth.
However, from 2010 to 2014, many small, low-cost gyms with few amenities and month-by-month contracts have fared well when compared with high-cost, all-inclusive gym memberships. Furthermore, many health-conscious individuals have implemented fitness into their daily regimen, which has buoyed industry revenue. “Additionally, the number of adults aged 20 to 64, the largest gym-going demographic, has exhibited growth, which spurred demand for gym memberships over the period,” says Turk. As a result, in the five years to 2014, industry revenue is anticipated to grow, including revenue growth in 2014 due to more consumers valuing fitness to bolster their overall health and well being. Nevertheless, profit is expected to contract from, which can be attributed to many gym, health and fitness clubs offering memberships with low cancellation penalty fees, thereby cutting into profitability, particularly for gyms that had high attrition rates over the period.
Over the next five years, the industry will benefit from the burgeoning elderly population becoming increasingly active, which will result in many baby boomers signing up for health club memberships. Consequently, industry revenue is forecast to grow in the five years to 2019. Moreover, consumers will substitute larger, all-inclusive clubs for low-cost memberships, which is anticipated to propel industry revenue forward.
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