Gym Market
Delivered July 30, 2019. Contributor: Hillary O.
Goals
To understand the market size of the gym industry and the key leaders in market for a possible investment in a new gym concept.
Early Findings
GLOBAL
- The global market size of health clubs was about $87.2 billion in 2018. At the time, it was reported that there are over 201,000 health clubs globally with 174 million members up by 20 million members since 2017.
- Based solely on revenue, the largest health club operators worldwide include LA Fitness ($2.1 billion), Konami Sports & Fitness ($2.02 billion
), Life Time Fitness ($1.55 billion
), 24 Hour Fitness ($1.44 billion
), Anytime Fitness ($1.45 billion), and
Equinox ($1.3 billion
).
- The largest fitness franchises include Planet Fitness, Orange Theory, and Jazzercise.
US
- The US has the "world’s largest health and wellness market." Its market size for health clubs is roughly $32.3 billion.
- The US has the most health clubs worldwide with 39,570 health clubs like 24 Hour Fitness in the country.
- In the US alone, there are 62.5 million gym members as of 2018 compared to 60.9 million in 2017.
- US health clubs serve about 71.5 million consumers.
- In the US, the largest gym chains are LA Fitness, Life Time Fitness, and 24 Hour Fitness.
- A study done by IHRSA revealed than more than 1 in 5 Americans "belong to at least one U.S. health club or studio."
- Of note, the aforementioned data is specific to health clubs alone and does not factor in boutique studios, recreation centers, and gym in hotels or other locations.
Proposed next steps:
You need to be the project owner to select a next step.
If the above examples fit what you are looking for, we propose proceeding with a competitive landscape of the three main gym chains in the US - LA Fitness, Life Time Fitness, and 24 Hour Fitness. This will include an overview of who they are (including headquarters, date founded, and so on), the number of locations they have in the US, their pricing, competitive advantage, and target audience.
We recommend a description of about 5 trends in the US gym landscape as this might help understand the industry. This will include any data on newer gym chains and how they've been able to grow.
In addition, a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the US gym industry might help understand what to avoid and what to capitalize on if investing in a new gym. STRENGTHS will include positive characteristics of the industry such as what advantages the industry has over disruptors or other industries, WEAKNESSES will factor in the failures or disappointments the industry experienced and any decline in growth and what caused this, OPPORTUNITIES will include new market trends and changes in technology that open up new possibilities, and THREATS will be from disruptors or other unrelated obstacles that the industry is currently facing such as laws, technologies, money, legal factors, economic factors, and so on.