Abstract
Revenues and membership for the U.S. health and fitness club industry show consistent positive growth, but topline figures may not tell the entire story. Rapid expansion of commercial fitness clubs has pushed the industry closer to saturation, and marketers have shifted their strategies as a result. A number of factors may contribute to slower growth in the near term.
Analysis and insights offered include:
- How club expansion has affected revenue growth
- Where private club membership growth is coming from
- How larger chains are taking their marketing messages in different directions
- Which types of club revenue are growing faster
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Membership shifts from non-profit to commercial clubs
- Rapid gym expansion nears saturation point
- Private club landscape remains highly fragmented
- Ancillary revenue growing faster than membership dues
- Consumers want to look and feel better
- Friendlier fitness for aging Boomers
- Younger consumers more likely targets for long-term contracts
- Marketers should turn focus toward value-doubters and active outsiders
- Market Size and Forecast
- Club expansion outpaces membership growth
- Figure 2: U.S. health and fitness club membership and number of locations, 2002-06
- Rapid growth may slow as market shows signs of saturation
- Figure 3: Health and fitness clubs total revenues, at current prices, 2002-12
- Figure 4: Health and fitness clubs total revenues, at inflation adjusted prices, 2002-12
- Competitive Context
- Exercise outside of health clubs
- Figure 5: Physical fitness venues, by household income, May 2006-June 2007
- Troubled sales of home fitness equipment manufacturers
- A home fitness fad for geeks
- Hotel gyms improve facilities
- Segment Performance
- Commercial gyms gain at expense of non-profit
- Figure 6: Memberships in health and fitness clubs, by segment, 2004 and 2006
- Figure 7: Share of U.S. health and fitness club members, by segment, 2000-06
- Figure 8: Number of health club members, by segment, 2002-12
- Market Drivers
- Friendlier fitness for aging Boomers
- Figure 9: U.S. population and projections and usage of health and fitness clubs, by age, 2002-12
- Consumers want to look and feel better
- Figure 10: Reasons for working out, April 2008
- Nation is becoming more health conscious
- Saturation of health club leads to highly competitive pricing
- Figure 11: Number of health clubs and revenue per member, 2002-06
- Ancillary revenue growth outpaces membership dues
- Figure 12: Indexed revenue streams at Life Time Fitness health and fitness clubs, 2003-07
- Leading Companies
- Industry remains highly fragmented
- Leading chains generate higher revenue per club
- Figure 13: Sales per unit of leading health and fitness club chains, 2006
- Industry news
- Brand Qualities
- Gold' s Gym makeover for Boomers
- Curves' success inspires men-only clubs
- Innovation and Innovators
- Gyms take encouragement to the next level
- New classes beyond aerobics keep it interesting
- Fitness equipment with iPod integration
- Bally-branded products sold in online drugstore
- Advertising and Promotion
- Overview
- Figure 14: Media expenditures for major health and fitness club campaigns, 2005-06
- Key themes
- Bally Total Fitness
- Figure 15: Bally Total Fitness: Total Body Class television ad, January 2008
- Figure 16: Bally Total Fitness: Man' s stomach television ad, February 2008
- Figure 17: Bally Total Fitness: Summer sale television ad, June 2007
- 24 Hour Fitness
- Gold' s Gym
- Life Time Fitness
- Figure 18: Life Time Fitness television ad, January 2008
- Marketing to women
- Curves Fitness
- Figure 19: Curves for Women: Heart television ad, December 2007
- Figure 20: Curves for Women: Legs television ad, December 2007
- Lucille Roberts
- Figure 21: Lucille Roberts: Summer sale television ad, July 2007
- Health Club Usage
- Key points
- Participation in fitness regime
- Figure 22: Incidence of exercise and private health club usage, May 2006-June 2007
- Health club membership status
- Figure 23: Health club membership status, April 2008
- Figure 24: Health club membership status, by age, April 2008
- Figure 25: Health club membership status, by household income, April 2008
- Figure 26: Health club membership status, by race/ethnicity, April 2008
- Membership Types
- Key points
- Types of health club memberships
- Figure 27: Types of health club memberships, by gender, April 2008
- Figure 28: Types of health club memberships, by age, April 2008
- Figure 29: Types of health club memberships, by household income, April 2008
- Exercise Habits
- Key points
- Regular workout times
- Figure 30: Regular workout times, April 2008
- Change in exercise frequency
- Figure 31: Change in exercise frequency, by gender, April 2008
- Figure 32: Change in exercise frequency, by age, April 2008
- Health Club Amenity Usage
- Key points
- Equipment and services used
- Figure 33: Equipment and services used at health or fitness club, by gender, April 2008
- Figure 34: Equipment and services used at health or fitness club, by age, April 2008
- Figure 35: Equipment and services used at health or fitness club, by household income, April 2008
- Motivations for Working Out
- Key points
- Reasons for working out
- Figure 36: Reasons for working out, April 2008
- Figure 37: Reasons for working out, by gender, April 2008
- Figure 38: Reasons for working out, by age, April 2008
- Shunning the Health Club
- Key points
- Reasons for not joining a health club
- Figure 39: Reasons not to join, April 2008
- Figure 40: Reasons not to join, by gender, April 2008
- Figure 41: Reasons not to join, by age, April 2008
- Figure 42: Reasons not to join, by household income, April 2008
- Additional Attitudes
- Key points
- Attitudes toward health and fitness clubs
- Figure 43: Attitudes toward health and fitness clubs, April 2008
- Figure 44: Attitudes toward health and fitness clubs, by gender, April 2008
- Figure 45: Attitudes toward health and fitness clubs, by age, April 2008
- Appendix: Other Useful Consumer Tables
- Fitness club membership
- Figure 63: Health club membership status, by gender, April 2008
- Regular workout times
- Figure 64: Regular workout times, by gender, April 2008
- Figure 65: Regular workout times, by age, April 2008
- Reasons for working out
- Figure 66: Reasons for working out, by household income, April 2008
- Attitudes towards the gym
- Figure 67: Attitudes toward health and fitness clubs, by household income, April 2008
- Appendix: Trade Associations
