IHRSA released the 2013 edition of The IHRSA European Health Club Report: Size & Scope of the Fitness Industry at its European Congress in October.
The report focuses on the health club industry in leading and emerging markets in Western and Eastern Europe, including Russia. “This report is the most comprehensive examination of the European health club industry available,” says Jay Ablondi, IHRSA’s executive vice president of global products. “With insights derived from more than 40 industry leader interviews, the report is the ultimate reference on the industry in Europe for club operators, developers, analysts, lenders and investors.”
The report provides analysis of 32 health club markets, and includes 17 comprehensive country reports as well as profiles of 15 emerging markets.
European overview
Roughly 44 million members frequent 48,000 clubs in Europe, where revenues are an estimated €25bn. While the economic environment has challenged some markets in recent years, the industry has posted growth in key countries including Germany, Norway, Poland, Russia and Sweden.
Germany leads all markets covered in the report in terms of number of clubs, with more than 7,500 facilities. Meanwhile Norway claims the greatest membership penetration rate: nearly 16 per cent of the total population, and 25 per cent of Norwegians over the age of 15.
Challenges and opportunities remain in Portugal, Italy, Spain and Greece, where high VAT rates and debt have affected growth in recent years. Nonetheless, experts believe opportunities remain for clubs to address obesity rates, facilitate regular physical activity and complement sports participation outside of the club.
Spain and Italy still rank among the top five European markets in market size, number of clubs and memberships, while Portugal and Greece maintain member penetration rates well below the average for EU markets (6 per cent), therefore signifying potential for future growth.
“Although the economy has clearly challenged Western Europe, several markets are stable, with some witnessing moderate growth,” says Hans Muench, IHRSA director of Europe.
“Looking ahead, we anticipate consumer penetration rates will rise, particularly in Eastern Europe where less than 5 per cent of the population currently patronise clubs.”
Emerging markets in Eastern Europe account for roughly €1.1bn in health club revenue, from 6,900 health clubs and 2.3 million members. Poland and Turkey lead emerging markets in terms of market size, club count and memberships.
Industry trends
The report also sheds light on industry trends. “Indoor cycling is incredibly popular, especially in Scandinavia,” says Muench. “Group exercise in its various forms is still strong, and the new trend of virtual classes is making inroads as well.”
The report also highlights another trend: the focus not just on the workout, but on pre- and post-workout activities. “Expansive wellness and relaxation areas are worth taking note of,” Muench adds.
Report contents
The report comprises the following sections:
European Health Club Industry Overview – the economy, VAT rate impact, leading /struggling markets, drivers for growth.
Market Reports – in-depth analysis of European markets along with interviews with club operators, association leaders and other experts in each country.
Emerging Markets – a special report on markets poised for growth.
Company Profiles – a snapshot of 100 leading club companies in Europe.
