Project Fitness UK 2018

UK FITNESS CLUB MARKET POWERS AHEAD AS CONSUMERS EMBRACE HEALTH AND WELLNESS

£5.1bn UK fitness club market achieved annual growth of 7.1%, with strong expansion forecast over the next 5 years.

Project Fitness UK 2018, the definitive new report from Allegra Strategies, reveals the total UK fitness club market serves an estimated 10.2 million members across more than 7,000 outlets, with circa 5% outlet growth forecast over the next five years.
The research was produced in partnership with leading leisure market intelligence specialists Leisure Database Company and leading retail and leisure field experts, The Local Data Company.
Project Fitness UK 2018 states the private sector now makes up more than half of the total fitness club market, with an estimated 6.8 million members across 4,300 gyms.
Property scarcity and low membership penetration among a new generation of value-conscious consumers represent the biggest challenges to fitness club growth. Operators must also respond to tightening consumer spend and decreased investment associated with on-going Brexit uncertainty.


Boutiques pick up the pace as smaller independents feel the burn
Allegra records strong growth in the boutique sector over the last 5 years. The burgeoning segment has successfully innovated beyond the traditional fitness club proposition, specialising in group-based, instructor-led classes. There are an estimated 250 boutique outlets in the UK, with Allegra identifying appetite for further investment in the segment.
As of May 2017, there are an estimated 2,077 independent fitness club operators in the UK according to the Leisure Database Company. A lack of capital investment funds and competition from low-cost operators is increasingly marginalising this segment.
Low-cost is the fastest-growing market segment, opening an average of 75 new outlets and attracting an estimated 300,000 new members every year. With 200 sites and 1 million members, Pure Gym is the UK’s leading low-cost private fitness club chain, followed by Anytime Fitness with 146 outlets and The Gym Group with 130.


Increased health awareness fuels UK growth but north-south prices poles apart
Profound societal changes, such as urbanisation, preventative healthcare and a focus on wellbeing are fuelling growth in UK fitness club memberships. Increasing recognition that exercise is essential to wellbeing is driving the rising popularity of fitness activities among UK consumers. 86% surveyed claim exercise is essential to their wellbeing and 32% state regular exercise is their most important health priority.
Harnessing the UK’s enthusiasm for health and wellness is a key challenge for fitness club operators. While 81% of consumers believe fitness is important, only 39% are happy with their current fitness level and just 23% agree that gym memberships are necessary for staying fit.
The average monthly membership spend across the UK is £29.68, with Allegra revealing substantial regional divide in terms of average monthly membership outlay. Consumers in the South are paying £41.07, nearly twice as much as those in the North at £22.75.


Digital integration and customisation will redefine the fitness club experience
Exercise motivation varies significantly between demographics, highlighting that operators must tailor their approach to products and services rather than adopting a ‘one size fits all’ model.
Key opportunities to hone revenue streams across core growth demographics include digital integration for millennials, holistic healthcare services for older consumers, and innovative group fitness concepts for women.
Technology will increasingly drive growth as operators move towards full-scale digital integration. Adopting new and emerging technologies, such as wearable devices and digitally-integrated equipment, will be essential for attracting new members and maximising membership retention in the coming 5-10 years.


The health and wellness market outlook
Allegra CEO and founder, Jeffrey Young said: “I’m very excited by recent market developments in the health and wellness sector. The fundamentals of the industry remain strong as UK consumers seek to improve wellbeing through the adoption of exercise for a healthy lifestyle. I see positive trends in the long-term and great opportunities for fitness clubs to continue innovating by offering new products and developing their membership propositions.”
Jeffrey Young will present key findings from Project Fitness 2018 UK at the Allegra Health and Wellness Summit, taking place at Balance Festival, 11 May 2018, Old Truman Brewery, London.
The Project Fitness UK 2018 Report is now available to purchase from Allegra Strategies.


Editor’s Notes
Sources

  • Over 100 online and telephone interviews with industry leaders, including CEOs and Managing Directors of major fitness club chains, key suppliers, industry associations and other industry participants (May 2016 – September 2017)
  • Over 7,500+ online surveys with UK consumers (May – September 2017) and in conjunction with Men’s Health and Women’s Health.
  • Desk research including trade press, company financials and online data sources

Allegra Strategies

Established in 1999, and part of Allegra Group, Allegra Strategies is a leading-edge research and strategy consulting firm based in central London. Since 2002, Allegra has published research in the health and wellness sector, supporting companies globally across the health and wellness value chain and adjacent retail, leisure and consumer lifestyle sectors.
Working closely with clients across critical M&A activity, growth strategies, customer segmentation research, global expansion, pricing strategies, and NPD, Allegra analysts are well-placed to answer key business questions and help clients harness their full growth and profit potential.
Allegra Group is the owner and creator of the Balance Festival, UK’s largest celebration of the thriving health and wellness movement, and the producer of the annual UK Health + Wellness Summit. Allegra Group is also the author of the London Wellness Guide.