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features

Research round-up: Breaking barriers

Fitness is not just a growing business, it’s a movement. David Minton summarises the key findings from the latest State of the Fitness Industry Report

Published in HCM Handbook 2019 issue 1

I’m sticking to my prediction that from now until 2020, the health and fitness sector will continue to break all barriers. It is, and will continue to be, a golden period for fitness.

The consistent methodology used in the data audit and the robust database that lie behind the State of the Fitness Industry Reports focus on key metrics that continue to be very positive for the industry.

The audit and report for the past six years has highlighted that all key indicators – the number of sites, the number of members and the value of the market – have all been growing.

Now add to that the industry’s improved consumer-focused technology – including personalisation, localisation, seamless booking and payment options – and the barriers to participation have been even further eradicated.

For example, just one element of this new consumer-focused technology – online class bookings – jumped from almost zilch five years ago to 46 per cent across the private health and fitness sector today.

Likewise, in the public health and fitness sector, where many operators were quicker to adopt new technology, online bookings now stand at an even more impressive 65 per cent.

LONDON LEADS THE WAY
The 2018 State of the Fitness Industry Report highlights how London is leading the way and setting the pace that other parts of the country should be emulating. The capital is over-achieving with one in every five people being a member of a gym, compared with the UK average of just one in seven.

The key penetration rate across the whole population remains at 14.9 per cent for the second year in a row simply due to an increase in total population numbers. To achieve greater penetration, the challenge now is to strive for broader consumer adoption, enabling the industry to push the 14.9 per cent to a more naturally achievable 20 per cent, while London can grow to an easy 25 per cent.

AGEISM IS THE BARRIER
The industry also needs to accept that age is no longer a barrier, so ageism needs to be stamped out. At my age it’s something I feel strongly about and, all too often, come across. Gen Z and millennials are merely part of the consumer mix.

The so-called baby boomers are the new demographic cohort that value their health now they’re getting older. Often equipped with the time and money, they can exhibit loyalty to the brands that appreciate them.

JOINING IN
I predicted last year that membership numbers would exceed the 10 million mark, and at 9.9 million they were getting very close. The two per cent gain in 2018 was a decrease from the previous year’s whopping 5.1 per cent, but there’s nothing to stop growth at the higher figure.

The 2018 report highlights how smaller sites are giving way to newer, bigger and better-equipped sites. The private sector gained 240,000 members from these new sites. The sites that closed had 26 per cent fewer members and 17 per cent fewer stations than the UK average.

LOW COST HIKE
According to the State of the Fitness Industry Reports since 2011, low cost brands have grown from securing less than five per cent of private memberships to 38 per cent in 2018, despite accounting for just 14 per cent of the private sector market.

The top ten low cost brands operate more than 90 per cent of all low cost sites. Many of these operators are discovering that the strength of the market allows them to add value and obtain a higher yield by charging over the original £20 threshold. In fact, more than half of the top ten brands now have an average rack-rate price above £20 and this does not reflect the brands value-added extras.

GO PUBLIC
The public sector had a penetration rate of 5.2 per cent in 2014, 2015 and 2016 but dropped to 5.1 per cent in 2017 and to 5.0 per cent in 2018. So one in every 20 people is a member of a public gym and 84 per cent of the population live within two miles of a site.

The top ten public sector operators are bucking the trend, opening collectively 44 more sites and thereby gaining 83,000 members, and they are now responsible for 36 per cent (1.2 million) of all public members. These top ten public operators are responsible for 743 sites, which leaves just less than 2,000 public sites showing signs of some decline – but this is no way terminal or a given.

POSITIVE OUTLOOK
Some operators see fitness as a business, but those that treat it as a movement will realise it is ushering in a revolution in the way the consumer feels, relates and participates in fitness.

Rapid changes are afoot with the boutique health and fitness market and its new business models, as well as from the growing trend for live-streaming and on-demand content coming from existing and new brands to all our devices, all of the time. Right here, right now really is a golden period for the industry.

About the author
David Minton

David Minton is director of LeisureDB
[email protected]
@davidmintonTLDC

The reports cited here are available at:www.leisuredb.com/publications

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
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features

Research round-up: Breaking barriers

Fitness is not just a growing business, it’s a movement. David Minton summarises the key findings from the latest State of the Fitness Industry Report

Published in HCM Handbook 2019 issue 1

I’m sticking to my prediction that from now until 2020, the health and fitness sector will continue to break all barriers. It is, and will continue to be, a golden period for fitness.

The consistent methodology used in the data audit and the robust database that lie behind the State of the Fitness Industry Reports focus on key metrics that continue to be very positive for the industry.

The audit and report for the past six years has highlighted that all key indicators – the number of sites, the number of members and the value of the market – have all been growing.

Now add to that the industry’s improved consumer-focused technology – including personalisation, localisation, seamless booking and payment options – and the barriers to participation have been even further eradicated.

For example, just one element of this new consumer-focused technology – online class bookings – jumped from almost zilch five years ago to 46 per cent across the private health and fitness sector today.

Likewise, in the public health and fitness sector, where many operators were quicker to adopt new technology, online bookings now stand at an even more impressive 65 per cent.

LONDON LEADS THE WAY
The 2018 State of the Fitness Industry Report highlights how London is leading the way and setting the pace that other parts of the country should be emulating. The capital is over-achieving with one in every five people being a member of a gym, compared with the UK average of just one in seven.

The key penetration rate across the whole population remains at 14.9 per cent for the second year in a row simply due to an increase in total population numbers. To achieve greater penetration, the challenge now is to strive for broader consumer adoption, enabling the industry to push the 14.9 per cent to a more naturally achievable 20 per cent, while London can grow to an easy 25 per cent.

AGEISM IS THE BARRIER
The industry also needs to accept that age is no longer a barrier, so ageism needs to be stamped out. At my age it’s something I feel strongly about and, all too often, come across. Gen Z and millennials are merely part of the consumer mix.

The so-called baby boomers are the new demographic cohort that value their health now they’re getting older. Often equipped with the time and money, they can exhibit loyalty to the brands that appreciate them.

JOINING IN
I predicted last year that membership numbers would exceed the 10 million mark, and at 9.9 million they were getting very close. The two per cent gain in 2018 was a decrease from the previous year’s whopping 5.1 per cent, but there’s nothing to stop growth at the higher figure.

The 2018 report highlights how smaller sites are giving way to newer, bigger and better-equipped sites. The private sector gained 240,000 members from these new sites. The sites that closed had 26 per cent fewer members and 17 per cent fewer stations than the UK average.

LOW COST HIKE
According to the State of the Fitness Industry Reports since 2011, low cost brands have grown from securing less than five per cent of private memberships to 38 per cent in 2018, despite accounting for just 14 per cent of the private sector market.

The top ten low cost brands operate more than 90 per cent of all low cost sites. Many of these operators are discovering that the strength of the market allows them to add value and obtain a higher yield by charging over the original £20 threshold. In fact, more than half of the top ten brands now have an average rack-rate price above £20 and this does not reflect the brands value-added extras.

GO PUBLIC
The public sector had a penetration rate of 5.2 per cent in 2014, 2015 and 2016 but dropped to 5.1 per cent in 2017 and to 5.0 per cent in 2018. So one in every 20 people is a member of a public gym and 84 per cent of the population live within two miles of a site.

The top ten public sector operators are bucking the trend, opening collectively 44 more sites and thereby gaining 83,000 members, and they are now responsible for 36 per cent (1.2 million) of all public members. These top ten public operators are responsible for 743 sites, which leaves just less than 2,000 public sites showing signs of some decline – but this is no way terminal or a given.

POSITIVE OUTLOOK
Some operators see fitness as a business, but those that treat it as a movement will realise it is ushering in a revolution in the way the consumer feels, relates and participates in fitness.

Rapid changes are afoot with the boutique health and fitness market and its new business models, as well as from the growing trend for live-streaming and on-demand content coming from existing and new brands to all our devices, all of the time. Right here, right now really is a golden period for the industry.

About the author
David Minton

David Minton is director of LeisureDB
[email protected]
@davidmintonTLDC

The reports cited here are available at:www.leisuredb.com/publications

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
Gallery
More features
Editor's letter

Into the fitaverse

Fitness is already among the top three markets in the metaverse, with new technology and partnerships driving real growth and consumer engagement that looks likely to spill over into health clubs, gyms and studios
Fit Tech people

Ali Jawad

Paralympic powerlifter and founder, Accessercise
Users can easily identify which facilities in the UK are accessible to the disabled community
Fit Tech people

Hannes Sjöblad

MD, DSruptive
We want to give our users an implantable tool that allows them to collect their health data at any time and in any setting
Fit Tech people

Jamie Buck

Co-founder, Active in Time
We created a solution called AiT Voice, which turns digital data into a spoken audio timetable that connects to phone systems
Profile

Fahad Alhagbani: reinventing fitness

The team is young and ambitious, and the awareness of technology is very high. We share trends and out-of-the-box ideas almost every day
Opinion

Building on the blockchain

For small sports teams looking to compete with giants, blockchain can be a secret weapon explains Lars Rensing, CEO of Protokol
Innovation

Bold move

We ended up raising US$7m in venture capital from incredible investors, including Andreessen Horowitz, Khosla Ventures, Primetime Partners, and GingerBread Capital
App analysis

Check your form

Sency’s motion analysis technology is allowing users to check their technique as they exercise. Co-founder and CEO Gal Rotman explains how
Profile

New reality

Sam Cole, CEO of FitXR, talks to Fit Tech about taking digital workouts to the next level, with an immersive, virtual reality fitness club
Profile

Sohail Rashid

The app is free and it’s $40 to participate in one of our virtual events
Ageing

Reverse Ageing

Many apps help people track their health, but Humanity founders Peter Ward and Michael Geer have put the focus on ageing, to help users to see the direct repercussions of their habits. They talk to Steph Eaves
App analysis

Going hybrid

Workout Anytime created its app in partnership with Virtuagym. Workout Anytime’s Greg Maurer and Virtuagym’s Hugo Braam explain the process behind its creation
Research

Physical activity monitors boost activity levels

Researchers at the University of Copenhagen have conducted a meta analysis of all relevant research and found that the body of evidence shows an impact
Editor's letter

Two-way coaching

Content providers have been hugely active in the fit tech market since the start of the pandemic. We expect the industry to move on from delivering these services on a ‘broadcast-only’ basis as two-way coaching becomes the new USP
Fit Tech People

Laurent Petit

Co-founder, Active Giving
The future of sports and fitness are dependent on the climate. Our goal is to positively influence the future of our planet by instilling a global vision of wellbeing and a sense of collective action
Fit Tech People

Adam Zeitsiff

CEO, Intelivideo
We don’t just create the technology and bail – we support our clients’ ongoing hybridisation efforts
Fit Tech People

Anantharaman Pattabiraman

CEO and co-founder, Auro
When you’re undertaking fitness activities, unless you’re on a stationary bike, in most cases it’s not safe or necessary to be tied to a screen, especially a small screen
Fit Tech People

Mike Hansen

Managing partner, Endorphinz
We noticed a big gap in the market – customers needed better insights but also recommendations on what to do, whether that be customer acquisition, content creation, marketing and more
More features