IBISWorld - Gym, Health & Fitness Clubs in The US - 2019

WWW.IBISWORLD.
COM Gym, Health & Fitness Clubs in the USApril 2019 1
Working out: As disposable incomes rise, more

individuals are expected to purchase memberships
This report was provided to
Edeska (2129455405)
by IBISWorld on 04 September 2019 in accordance with their license agreement with IBISWorld
IBISWorld Industry Report 71394

Gym, Health & Fitness
Clubs in the US
April 2019 Ryan Roth
2 About this Industry 16 International Trade 29 Technology and Systems

2 Industry Definition 17 Business Locations 29 Revenue Volatility
2 Main Activities 30 Regulation and Policy
2 Similar Industries 19 Competitive Landscape 31 Industry Assistance
3 Additional Resources 19 Market Share Concentration
19 Key Success Factors 32 Key Statistics
4 Industry at a Glance 19 Cost Structure Benchmarks 32 Industry Data
21 Basis of Competition 32 Annual Change
5 Industry Performance 22 Barriers to Entry 32 Key Ratios
5 Executive Summary 23 Industry Globalization 33 Industry Financial Ratios
5 Key External Drivers
7 Current Performance 24 Major Companies 34 Jargon & Glossary
9 Industry Outlook 24 Fitness International LLC
11 Industry Life Cycle 25 Equinox Holdings Inc.
25 Life Time Inc.
13 Products and Markets 26 24 Hour Fitness USA Inc.
13 Supply Chain 26 Town Sports International Holdings Inc.
13 Products and Services
14 Demand Determinants 28 Operating Conditions
15 Major Markets 28 Capital Intensity
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Gym, Health & Fitness Clubs in the USApril 2019 2
About this Industry
Industry Definition This industry operates fitness and activities, such as swimming, skating or
recreational sports facilities that feature racquet sports. Operators are also
exercise and other active physical fitness involved in facilities management and
conditioning or recreational sports fitness instruction.
Main Activities The primary activities of this industry are

Operating aerobic dance and exercise centers
Operating athletic club facilities for physical fitness
Operating bodybuilding studios for physical fitness
Operating fitness centers, health clubs and gyms
Operating recreational sports club facilities
Operating ice- or roller-skating rinks
Operating spas
Operating squash, racquetball or tennis clubs
Operating swimming pools
The major products and services in this industry are

Guest admissions
Meals and beverages
Membership fees
Merchandise sales
Personal trainers
Spa services
Other
Similar Industries 71399 Golf Driving Ranges & Family Fun Centers in the US
Establishments in this industry operate recreational sports clubs (i.e. sports teams), but do not operate sports
facilities.
72111 Hotels & Motels in the US

Establishments in this industry are primarily engaged in operating health resorts and spas where
recreational facilities are combined with accommodations.
81219a Weight Loss Services in the US

Establishments in this industry are primarily engaged in providing nonmedical services to assist clients in
attaining or maintaining a desired weight.
81219c Tanning Salons in the US

Establishments in this industry are primarily engaged in providing artificial tanning services.
Provided to: Edeska (2129455405) | 04 September 2019

About this Industry
Additional Resources For additional information on this industry

www.ihrsa.org
International Health, Racquet and Sportsclub Association
www.physicalfitness.org
National Association for Health and Fitness
www.sfia.org
Sports and Fitness Industry Association
www.census.gov
US Census Bureau
IBISWorld writes over 1000 US

industry reports, which are updated
up to four times a year. To see all
reports, go towww.ibisworld.com

WWW.IBISWORLD.COM Gym, Health & Fitness Clubs in the US April 2019 4
Industry at a Glance
Gym, Health & Fitness Clubs in 2019
Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

Snapshot
$36.5bn 3.5% 0.7%
Profit Wages Businesses
$4.7bn $12.2bn 104,943

Revenue vs. employment growth Time spent on leisure and sports
Market Share
Fitness 8 4
International LLC
6
6.2% 2
4
% change
% change
0
2
-2
0
-2 -4
Year 11 13 15 17 19 21 23 25 Year 12 14 16 18 20 22 24
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 24
Products and services segmentation (2019)
Key External Drivers 3.1% 1.9%

Guest Spa services
Time spent on
5.2% admissions 3.1%
Merchandise sales
leisure and sports Meals and beverages
Participation in sports
6.6%
Per capita disposable Other
income
Number of adults
aged 20 to 64 12.1%
Personal trainers
Yield on 10-year
Treasury note
68.0%
Membership fees
p. 5
Industry Structure Life Cycle Stage Growth Regulation Level Light

Revenue Volatility Low Technology Change Medium
Capital Intensity Medium Barriers to Entry Low
Industry Assistance Low Industry Globalization Low
Concentration Level Low Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32

Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Summary The Gym, Health and Fitness Clubs number of adults aged 20 to 64, the
industry has benefited over the five years largest gym-going demographic, has
to 2019, primarily as a result of broad increased over the five years to 2019,
economic improvements and increased spurring demand for gym memberships.
health-consciousness. Companies in this Accordingly, over the five years to 2019,
industry operate fitness and recreational industry revenue is expected to increase
sports facilities that offer exercise at an annualized rate of 3.5% to $36.5
equipment and recreational sport billion, including a 0.5% rise in 2019, as
activities for consumers. Some gym, more consumers value fitness as a
health and fitness clubs have appealed to means to bolster their overall health.
consumers on the basis of convenience by Profit is expected to decline during the
offering low-cost memberships with full period to reach a 12.9% share of
operational hours. Comparatively, niche revenue, driven by growing consumer
studios have appealed to consumers by demand for low-cost monthly
offering classes with specific workouts or memberships that has constrained profit
for gyms with low member-retention
rates, as these lower rates typically
Manyhealth-conscious individuals have require a higher volume of subscriptions
to generate growth.
incorporated fitness into their daily regimen Over the five years to 2024, many baby
boomers are expected to sign up for
environments. According to International health club memberships as they grow
Health, Racquet and Sportsclub more health conscious due to their age.
Association data, the number of health Furthermore, employers may subsidize
club memberships in the United States gym memberships for their employees,
increased to 60.9 million members in while parents will continue to seek out
2017, illustrating heightened demand for fitness programs for their children as
industry operators during the period concerns regarding childhood obesity
(latest data available). Overall, grow. However, expected slow-downs in
memberships offered on a monthly basis per capita disposable income and
with low cancellation fees have fared well consumer spending are expected to limit
during the five-year period. industry expansion, compared with the
Further driving demand for industry previous five-year period. Consequently,
services, many health-conscious industry revenue is forecast to grow at an
individuals have incorporated fitness into annualized rate of 0.7% to reach $37.8
their daily regimen. Additionally, the billion over the five years to 2024.
Key External Drivers Time spent on leisure and sports Participation in sports
When individuals have more leisure Participation in sports measures the
time, they can allocate more time percentage of individuals who participate
toward their fitness regimen, which in sports, recreation or exercise each day.
spurs consumer demand for gym, Greater participation in sports reflects
health and fitness club memberships. more health-conscious individuals, which
In 2019, IBISWorld estimates that typically increases consumer demand for
time spent on leisure and sports will gym, health and fitness club
stagnate, representing a potential memberships. Participation in sports is
threat to the industry. expected to increase in 2019.

Key External Drivers Per capita disposable income coupled with the maturation of their
continued As per capita disposable income rises, children, is expected to broaden the
more individuals can purchase gym, market for this industry. The number of
health and fitness club memberships. adults aged 20 to 64 is expected to
Furthermore, as disposable income increase in 2019.
increases, more consumers can afford
high-cost, all-inclusive gym memberships, Yield on 10-year Treasury note
which benefits the industry. Per capita The yield on a 10-year Treasury note
disposable income is expected to increase measures the current interest rate. As
in 2019, representing a potential interest rates rise, the investing
opportunity for the industry. environment for gym, health and fitness
clubs will be less favorable, discouraging
Number of adults aged 20 to 64 gyms from expanding their operations
Individuals aged 20 to 64 make up the and boutique gyms from entering the
largest gym-going demographic. The industry. The yield on a 10-year Treasury
aging of the baby boomer generation, note is expected to increase in 2019.
Time spent on leisure and sports Participation in sports
4 23
22
2
21
% change
0
%
20
-2
19
-4 18
Year 12 14 16 18 20 22 24 Year 10 12 14 16 18 20 22 24

Current The Gym, Health and Fitness Clubs

industry has grown over the five years to Industry revenue
Performance 2019, bolstered by public health initiatives
6
that have shed light on the role of exercise
in fighting diabetes, obesity and other
4
health ailments. Many consumers have
become increasingly health conscious by
% change
adjusting their diets and increasingly 2
participating in various fitness activities.
However, over the five years to 2019, the 0
healthy eating index, which measures the
percentage of a recommended diet that an -2
average American consumes, is expected to Year 11 13 15 17 19 21 23 25
stagnate. This does reflect a positive trend
for industry operators though, as this rate SOURCE: WWW.IBISWORLD.COM
is not expected to decline during the period

amid the increasing presence of fast-food increase at an annualized rate of 2.1%,
chains and restaurant options that are leading to a rise in consumer spending as
considered unhealthy and typically more well. As per capita disposable income
convenient for consumers to attend. increases, so too does the potential for
Additionally, industry operators have consumers to spend on nonessential
benefited from rising gym membership goods and services, such as a gym, health
among the increasingly active baby and fitness club membership. Overall,
boomer population and an increase in industry revenue is expected to increase
per capita disposable income during the at an annualized rate of 3.5% to reach
period. Over the five years to 2019, per $36.5 billion, including 0.5% growth in
capita disposable income is expected to 2019 alone.
Industry landscape Over the five years to 2019, the industry has constraints during the five-year period, as
benefited from rising consumer demand for unemployment has decreased and
health club memberships. According to the consumers have returned to work. Over the
International Health, Racquet and five years to 2019, time spent on leisure and
Sportsclub Association, gym memberships sports is expected to decline at an
increased at an annualized rate of 2.9% to annualized rate of 0.3% to reach 5.2 hours
60.9 million memberships between 2013 per day.
and 2017 (latest data available). Although With many individuals struggling to
this bolstered industry revenue, many gyms allocate time toward fitness, boutique
still compete on the basis of price and fitness studios that offer targeted classes
flexibility. As a result, gyms that have offered have entered the industry to attract
low-cost, contract-free memberships with demand for key markets typically
fewer amenities have fared well during the dominated by the industry’s traditional
period, which is in line with strong demand health clubs. These boutique fitness
from budget-conscious consumers. studios capture demand from local niche
Furthermore, despite the rise in health- markets by locating themselves in areas
conscious individuals who are increasingly of close proximity to residential areas, as
incorporating fitness into their regimen, the well as being strategically placed in areas
industry has contended with consumer time of difficult climates that make it difficult

Industry landscape at various times of the year to travel to an have begun to tailor portions of their gyms
continued industry establishment. Furthermore, to accommodate exercise activities for the
boutique fitness studios primarily revolve elderly. This includes air-powered
around the experience offered, whether it be resistance training and fitness classes that
in the form of a group cross-fit class or emphasize low-impact activities rather
personal training session. Accordingly, the than more conventional weight lifting and
emergence of such studios has placed cardio. Additionally, a rise in businesses
pressure on traditional health clubs to adapt seeking to cut overall health costs for their
to consumer trends and preferences. As a employees over the past five years has
result, industry operators have responded spurred an increase in companies taking
by offering new services and various advantage of industry operators by
establishment formats, particularly within negotiating group rates for their
urban areas, providing consumers with a employees. In doing so, companies wish
range of convenient options and levels of to mitigate common workplace injuries
gym access. that may arise from working in more
Demographic trends have helped shape sedentary environments. As corporate
the industry’s landscape over the five years profit has increased over the past five
to 2019. For example, the aging of the baby years, demand from businesses has also
boomer generation and the maturation of increased. Moreover, government-
their offspring have broadened the sponsored programs have increased
industry’s market. Furthermore, healthcare awareness to the benefits of physical
legislation has spurred an increase in exercise for consumers of all ages. Over
support for at-home care and alternative the past five years, these and other
methods of maintaining one’s well-being. health programs have provided a boon
As a result, many industry establishments to the industry.
Fitness trends The emergence of the budget-conscious

gym member has also considerably Growingconsumer
changed the industry’s landscape. A
growing preference for easily accessible, demand for low-cost
smaller gyms with fewer amenities monthly memberships has
compared with industry operators, such
as Equinox Holdings Inc., has benefited
constrained profit
boutique gyms that cater to a niche local
market. Consequently, the market share are uncomfortable exercising in larger
of budget gyms is expected to be growing. gyms have particularly favored small-
Operators that have been able to provide scale gyms, which has boosted the
a certain level of services for relatively number of industry locations during the
low prices have fared well during the period. This demand is expected to spur
period, leading to an increase in employment growth, as personal trainers
popularity of budget gyms. and superior customer service represent
As a whole, the number of industry major points of competition for industry
establishments is expected to increase at operators. Over the five years to 2019,
an annualized rate of 2.4% to reach employment growth is expected to
111,055 locations over the five years to increase at an annualized rate of 2.8% to
2019. Consumers who seek individualized reach 808,932 workers. However, despite
fitness programs, specific fitness goals or positive trends overall for the industry,

Fitness trends profit, measured as earnings before memberships that constrains profit for
continued interest and taxes, is expected to decline gyms with relatively low member-
from a 13.5% share of industry revenue in retention rates. Accordingly, this makes it
2014 to a share of 12.9% in 2019. This easier for consumers to cancel without
decline comes primarily as a result of warning, as well as expand their activities
growing consumer demand for low-cost to other competitors when desired.
Industry Over the five years to 2024, the Gym,

Health and Fitness Clubs industry is
While many individuals may still be
relatively strapped for time during the
Outlook expected to continue benefiting from period, which may constrain demand
expected growth in per capita disposable for gym memberships, growing demand
income, as well as overall health- for results-driven gyms that can help
consciousness by consumers. As individuals achieve fitness goals are
consumers’ disposable incomes rise, expected to continue to drive growth.
more individuals are expected to For example, fitness classes and both
purchase gym memberships that include personal and group trainers are
a plethora of amenities, compared with expected to remain popular, as
low-cost memberships that fared well boutique fitness studios continue to
during the previous five-year period. enter the industry and attract
Additionally, time spent on leisure and customers that are dedicated exercisers
sports is expected to increase over the or fitness fanatics. Overall, over the five
five years to 2024, effectively increasing years to 2024, revenue is expected to
the potential pool of time consumers increase at an annualized rate of 0.7%
can spend at industry establishments. to reach $37.8 billion.
New demographics Over the next five years to 2024,

demographic changes are expected to Demographic changes are
increasingly drive revenue growth for
industry operators. For example, the expected to increasingly
baby boomer population, which is drive revenue growth
becoming increasingly physically active,
is expected to purchase gym
memberships to maintain healthier Centers for Disease Control and
lifestyles. Additional revenue streams are Prevention, an estimated 42.0% of
also expected to play an integral part in Americans will be considered obese by
industry growth. In particular, as 2030. Consequently, to cut healthcare
healthcare costs continue to escalate, costs, many health insurance providers
health insurance providers may will attempt to lower an individual’s risk
implement incentives to promote for type 2 diabetes, heart disease,
preventive health practices, including the dementia, cancer and high blood
use of fitness centers among individuals pressure, among other ailments.
within their provider network. Additionally, initiatives that promote the
Furthermore, the number of obese health benefits of exercise will likely
individuals in the United States is increase over the next five years,
increasing. According to a study by the stimulating industry revenue.

New demographics Employers are increasingly viewing growing concerns regarding childhood
continued exercise as a vital component of obesity, will prompt gym membership
employee health due to studies sales for this age demographic. As
indicating that fitness can boost worker consumers become increasingly time
productivity. As a result, employers may strapped, many will invest in fitness
increasingly subsidize gym memberships classes and individual or group sessions
for their employees, providing a boon to with trainers to achieve their fitness
the industry. Furthermore, as many goals more efficiently. Over the next five
families become health- and fitness- years, group classes are expected to
conscious, more consumers aged 17 and increase in popularity, especially fusion
younger will join gyms. Less physical classes that combine yoga, Pilates,
education in schools, coupled with ballet, dance and surfing.
Industry landscape While large-scale gyms are expected to

continue to dominate the industry Many small gyms are
landscape by offering a diverse portfolio
of services, many small gyms are
expected to persist in
expected to persist in attracting a niche attracting a niche local
local market. In particular, small market
operators are expected to attempt to
entice local, time-strapped customer
bases by offering conveniently located people over the same five years, as
establishments in unsaturated areas. industry operators implement a larger
However, large industry operators can workforce to provide additional
somewhat mitigate this trend by services, such as fitness classes and spa
attracting consumers via technology, services, to develop and retain their
such as smartphone applications that clientele. Profit is expected to decline
enable gym users to access their fitness over the five years to 2024, contracting
statistics from previous sessions. from 2019 levels, as price competition
Over the five years to 2024, the pressures margins. Nevertheless, profit
number of industry enterprises is is expected to be helped by gyms
anticipated to grow at an annualized offering more high-margin services,
rate of 1.7% to reach 114,398 operators, such as group and personal training
as some small, independently operated sessions, to strengthen their product
gyms and fitness clubs enter the market portfolios and bolster member-
despite relatively robust competition retention rates. However, if industry
from chain gyms and fitness clubs. operators are unable to mitigate other
Additionally, the number of industry associated costs over the next five
employees is expected to increase at an years, the industry profit margins are
annualized rate of 1.3% to 861,959 expected to decline accordingly.

Life Cycle Stage Increased awareness and interest in fitness and
health has bolstered industry performance
IVA is anticipated to grow at a slightly slower rate
than the overall economy over the 10 years to 2024
General population growth leads to
increased demand for facilities

Industry Life Cycle The Gym, Health and Fitness Clubs benefited the industry. Usually, slower
industry is in the growth life cycle stage, growth than GDP is not indicative of an
because consumers continue to be industry in the growth stage of its life
This industry interested in exercise to boost their cycle, but for this industry, expansion
is G
rowing fitness and health. Over the 10 years to and technological change is rampant.
2024, industry value added (IVA), a As public health campaigns spread
measure of an industry’s contribution to awareness about the health benefits of
the overall economy, is expected to grow fitness, consumers will increasingly
at an annualized rate of 1.8%. perceive gym and fitness club
Comparatively, GDP is anticipated to membership as a vital expense. As gym
grow at an annualized rate of 2.2% over memberships become more entrenched
the same period. The industry is growing in the average American’s life, revenue
at a slightly slower pace than the overall growth is expected to slow to match
economy. Over the past five years, population growth, bringing the
growing public discourse on health has industry from growth to maturity.
increased membership rates and caused Future growth areas will likely be in
consistent industry revenue growth. participative sports for women and
Further, as per capita disposable income older sections of the community. These
grew, more time-strapped consumers factors will support continued growth
purchased personal trainers to for gyms and health clubs over the five
accomplish their fitness goals, which years to 2024.

Products & Markets

Supply Chain | Products and Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

99 Consumers in the US
Consumers drive demand for gyms, health and fitness clubs.
KEY SELLING INDUSTRIES

22133 Steam & Air-Conditioning Supply in the US
This industry supplies air conditioning for facilities.
23822a Heating & Air-Conditioning Contractors in the US
This industry supplies heating and air conditioning for gyms and fitness centers.
23822b Plumbers in the US
This industry supplies plumbing services for changing rooms.
33992a Athletic & Sporting Goods Manufacturing in the US
This industry supplies sporting equipment to operators.
33992b Gym & Exercise Equipment Manufacturing in the US
This industry supplies sporting equipment to operators.
Products and Services Products and services segmentation (2019)

1.9%
5.2% Spa
services
3.1%
Meals Guest
admissions
and beverages 3.1%
6.6% Merchandise sales
Other
12.1%
Personal trainers
68.0%
Membership fees
Total $36.5bn SOURCE: WWW.IBISWORLD.COM
Membership fees additional fee for services such as yoga

Membership fees make up the largest share classes and pool access. Overall, this
of Gym, Health and Fitness Clubs industry product segment is expected to have fallen
revenue, with 68.0%. In an attempt to as a share of revenue over the five years to
appeal to budget-conscious consumers, 2019, as industry operators generate an
some gyms have begun to offer low-cost increased share of revenue from alternative
memberships; this has caused demand for services and price competition pressures
gym memberships to rise, as industry revenue within this segment.
operators have been able to tap into a new
customer pool. Many gym, health and Personal trainers
fitness clubs offer memberships that cover Personal trainers are expected to
basic amenities, such as free weights and generate 12.1% of total revenue in 2019.
elliptical equipment, but require an Typically, gym, health and fitness clubs

Products & Markets
Products and Services offer private trainers for individuals or Other

continued private groups. Over the five years to All other industry products and services
2019, demand for personal trainers is are expected to account for 19.9% of
expected to rise, driven by time-strapped revenue. This includes revenue from
consumers who want to achieve their meals and beverages, which account for
fitness goals quickly. Many gyms have 5.2% of revenue; guest admissions, which
been focusing on personal training represent 3.1% of revenue; merchandise
services, which are being demanded by sales, such as athletic apparel, which
an increasingly active baby boomer account for 3.1% of revenue; and spa
population. For example, some gyms may services, which represent 1.9% of
offer personal training services to elderly industry revenue. Some other industry
individuals who require fitness classes services include, ice and roller rinks,
tailored to their injuries and illnesses child care services and admission to live
(e.g. chronic ailments such as arthritis). sports events.
Demand Across the United States, increasing (particularly for outdoor pools), while
Determinants awareness of the need for exercise, also increasing attendance at ice skating
weight control, good nutrition and rinks. Additionally, the beginning of the
healthy lifestyle choices among adults calendar year marks the busiest season
and children is having a positive effect on for new sales. A large portion of new gym
fitness and recreational sports centers. members sign on in January or February,
Demand for services provided by the often because of New Year’s resolutions.
Gym, Health and Fitness Clubs industry Leisure time availability also
is determined by several factors, influences demand, with time-poor
including household disposable income, consumers finding it difficult to
consumer confidence, leisure time incorporate industry services into their
availability, participation in recreation routine. As work hours decline, people
and sports, seasonal conditions, find more ways to attend gyms and use
attitudes toward health and fitness and facilities. The link between leisure time
the cost of services relative to other and demand relates to health and fitness
recreation options. awareness, as people view fitness as a
Household disposable income is valuable way to use their spare time.
particularly relevant to industry demand, While health crazes generally have a
as the level of disposable income within a positive effect on the industry, certain
household will determine the amount fitness trends can have varied effects on
spent at fitness and recreational sports the industry. For example, the increase in
centers. As discretionary spending rises, popularity of yoga, and especially in its
demand for gyms and fitness clubs muscle toning qualities, reduces demand
typically increases. Similarly, industry for weight training among females in
growth is affected by consumer particular. Finally, the lower cost of
confidence, as an increase leads to higher industry services compared with other
demand and willingness to spend on the sport and recreation activities can
industry’s services. stimulate demand as well. Conversely,
Overall, demand is also sensitive to when industry costs are relatively higher
seasonal and weather conditions; for than other recreational activities,
example, cold weather can reduce the consumer demand for gym memberships
level of swimming pool attendance may contract.

Products & Markets
Major Markets Major market segmentation (2019)
21.0%
Consumers aged 18 and younger 27.4%
Consumers aged 18 to 35
24.6%
Consumers aged 50 and older
27.0%
Consumers aged 35 to 50
Total $36.5bn SOURCE: WWW.IBISWORLD.COM
Over the five years to 2019, the Gym, under 18 represent 21.0% of industry
Health and Fitness Clubs industry has demand alone.
experienced substantial growth in
demand and, as a result, the breakdown Consumers 35 to 50
of the industry’s markets has also Individuals aged 35 to 50 are estimated to
changed. The aging population has make up 27.0% of total industry revenue
encouraged health and fitness clubs to in 2019. Activities such as swimming,
widen their target demographic beyond running and weightlifting appeal to this
the traditional market of 18- to 35-year- demographic, which has incited many
olds. Industry operators are increasingly gym, health and fitness clubs to offer these
expanding their target market to include services to cater to this market segment.
35- to 50-year-olds and individuals aged Over the five years 2019, this market
over 50. segment is expected to remain stagnant,
as many industry operators focus on
Consumers aged 35 and younger appealing to other market segments that
Consumers aged 35 and younger are fluctuate more frequently based on
expected to account for 48.4% of total broader economic factors.
revenue. This demographic is more likely
than others to participate in numerous Consumers aged 50 and older
fitness class activities, including group According to the Physical Activity Council,
training, yoga, Pilates and dance, as well this demographic is the most likely to be
as free weights and weight machines. inactive: 32.5% of individuals aged 55 to
Over the five years to 2019, this market 64 and 40.7% of those over the age of 65
segment is expected to expand, despite are considered inactive. However, this
low rates of physical activity among some demographic has a relatively high
individuals in this demographic (notably participation rate in fitness sports as well
individuals aged 12 and younger). Many as outdoor sports. Over the five years to
gym, health and fitness clubs target 2019, the burgeoning elderly population
individuals aged 18 and younger by has become increasingly health conscious,
offering yoga, karate, kickboxing and stimulating demand for industry services.
outdoor physical activities. In 2019, In 2019, IBISWorld expects that 24.6% of
IBISWorld estimates that consumers demand will stem from this cohort.

Products & Markets
International Trade International trade does not generally equipment is recorded at the
apply to the Gym, Health and Fitness manufacturing level for fitness or
Clubs industry, as it is a service- sporting goods (IBISWorld report
oriented sector with no measurable 33992a). For more information on
imports or exports. International global operations, please refer to the
trading of fitness and exercise Industry Globalization section.

Products & Markets
Business Locations 2019
West
AK
0.3 New
England
ME
Great Mid- 0.5
Lakes Atlantic 1 2
NY 3
WA MT ND 7.1
5 4
2.5 0.3 MN
Rocky
0.5 2.0
WI
OR Mountains SD
0.3
Plains 2.0 MI
2.3
PA
4.3
6
7
1.4 ID IA OH 9 8
0.5 WY 3.3
0.2
NE
1.1
IL IN WV VA
4.1 1.8 3.0
West NV
0.7 0.3
KY
UT MO
1.0 NC
0.8
0.8 CO KS 1.8 3.3
2.1 0.8 TN
SC
Southeast
1.7
CA 1.3
11.8
OK AR GA
0.9 0.6 AL 2.8
AZ MS 1.1
1.7 NM
0.5 Southwest 0.8
TX LA
1.3 FL
6.9 6.1
West Establishments (%)
HI Less than 3%
0.3 Additional States (as marked on map) 3% to less than 10%
1 VT 2 NH 3 MA 4 RI 10% to less than 20%
0.3 0.7 3.4 0.4 20% or more
5 CT 6 NJ 7 DE 8 MD 9 DC
1.7 4.1 0.4 2.0 0.3

Products & Markets
Business Locations The four regions that encompass the

Distribution of establishments vs. population
greatest percentages of Gym, Health and
Fitness Clubs industry establishments
30
include the Southeast (23.3% of
establishments), the Mid-Atlantic
(18.2%), the West (17.0%) and the Great 20
Lakes (13.6%) regions of the United
States. Together these four regions
%
account for 72.2% of total industry 10
establishments. Establishments are
particularly concentrated in the following
states: California (11.8% of 0
establishments), New York (7.1%), Texas
West
Great Lakes
Mid-Atlantic
New England
Plains
Rocky Mountains
Southeast
Southwest
(6.9%), Florida (6.1%) and Pennsylvania
(4.3%). Typically, highly populated
regions have a higher portion of industry
establishments. This trend can be Establishments
attributed to consumer’s lack of Population
willingness to travel excessive distances SOURCE: WWW.IBISWORLD.COM
to perform exercise or become a member

of a fitness or recreational sports center. number of establishments dedicated to a
Geographical locations can also particular activity depending on climate
determine the popularity of a fitness and other related factors.
activity, as many areas have climates that Changes in geographic distribution over
are not conducive to particular sports. the past five years have been minimal. The
For example, the population of Maine is Southwest (10.0% of establishments) and
twice as likely to participate in ice-skating West regions have experienced slight
compared with the national average. growth over the past five years, whereas
Similarly, the population of Arizona is the Rocky Mountains (4.0%), New
about twice as likely to participate in England (7.0%) and Great Lakes observed
swimming at a pool compared with the small declines. These changes can be
national average. As a result, areas across attributed to shifting demographics and
the United States will have a greater varying demand levels.

Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share The Gym, Health and Fitness Clubs low level of market share
Concentration industry exhibits a low level of market concentration and fragmentation.
share concentration, with the top four The larger players in this industry
operators in the industry comprising have numerous locations throughout the
Level
less than 20.0% of total revenue in United States, while small players are
Concentration in 2019. The industry’s low level of generally independently owned and
this industry is L ow market concentration can be attributed operate in one or two states. However,
to high fragmentation, due to many over the past five years, the proportion of
industry operators having a market businesses that employ 20 people or
niche with local clientele. The more has increased, indicating that
majority of industry operators are concentration is rising. The industry’s
nonemployer companies, which are market share is expected to become more
expected to account for nearly two- concentrated over the next five years, as
thirds of industry establishments, larger operators acquire small, niche gym
further attributing to the industry’s and health and fitness clubs.
Key Success Factors Easy access for clients Provision of appropriate facilities
A high profile location offering easy Providing appropriate equipment and
access and parking can provide a maintaining it regularly is essential to
IBISWorld identifies competitive advantage for operators in attracting and retaining customers.
250 Key Success this industry.
Factors for a Having a good technical
business. The most Effective product promotion knowledge of the product
Being able to promote a business effectively Skilled employees who can demonstrate
important for this
increases awareness and attracts greater the use of various types of equipment and
industry are: membership and local patronage. assist participants are important to
attract repeat customers.
Economies of scale
Fitness operators that have a large Business expertise of operators
number of establishments and provide a The long-term success of an operator in
wide range of services are able to attract this industry depends on the skill of the
and retain new and existing members, as operator in running a business profitably
well as reduce costs per member. over time.
Cost Structure Profit Furthermore, the cost of recruiting a new

Benchmarks Member retention is a key component in member is more than twice the cost of
fitness centers’ profitability, as many retaining an existing member. As a result,
gym, health and fitness centers have fixed many health clubs are expected to
overhead costs. According to the continue to direct funds toward retaining
International Health, Racquet & existing members in 2019 by prioritizing
Sportsclub Association, the average excellent customer service, adding
attrition rate for gyms in the United amenities and lowering membership
States is 28.6%, meaning that roughly 28 cancellation penalties. Additionally,
out of 100 individuals are expected to industry profit is expected to be
cancel their gym memberships each year. constrained by operators competing on a

Cost Structure basis of price. As a result, in 2019, profit, Wages as a share of revenue varies
Benchmarks measured as earnings before taxes and between employing and nonemploying
interest, is expected to make up 12.9% of establishments, as large businesses
continued
total revenue, which represents a require a range of employees to run their
contraction from 2014. operations, including accountants,
financial analysts and other back-office
Wages support staff. Over the five years to 2019,
Wages are the largest cost for the industry, IBISWorld expects the average size of an
accounting for an expected 33.5% of industry establishment to increase. This
revenue in 2019. To minimize this cost, indicates that many gym, health and
many gym, health and fitness clubs have fitness clubs will implement more full-
implemented staff that includes part-time time staff, particularly trainers with more
employees who are paid on an hourly credentials. However, wages as a share of
basis. Gym, health and fitness clubs also revenue is expected to decline slightly
hire salaried staff, including back-office from its share of 33.6% in 2014, as
support, personal trainers and other industry revenue increases significantly
professionals, but the majority of these during the period and operators have been
staff members generate additional able to mitigate costs associated with
revenue streams for fitness and health rising employment and wages.
clubs. For example, these staff members
also help attract new clientele, as fitness Purchases
classes and training programs are integral Purchases are expected to account for
components in developing new business. 6.3% of revenue in 2019. Purchases
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2019) (2019)
100 n Profit
13.7 12.9 n Wages
n Purchases
80 n Depreciation
n Marketing
27.4 33.5 n Rent & Utilities
n Other
Percentage of revenue
60
21.0 6.3
7.1
40
5.8 2.5
2.9 17.4
8.8
20
20.4 20.3
0

Cost Structure largely include retail products and other energy-efficient lighting fixtures and
Benchmarks miscellaneous items, such as supplements, automatic switches and timers.
which are then sold to members.
continued
Purchases can also include food and Depreciation and other costs
beverages that are sometimes sold in the Depreciation of buildings and equipment
fitness and recreational sports centers. represents another significant expense for
the industry, accounting for 7.3% of
Rent revenue in 2018. Expenditure on capital
Rent is expected to account for 13.8% of includes purchasing new and replacing old
industry revenue in 2019. Rent is equipment, such as treadmills and weight
expected to stagnate as a share of revenue machines. To operate both efficiently and
over the five years to 2019, as industry profitably, enterprises must continually
operators secure accommodative leasing acquire up-to-date fitness technology to
agreements for properties they do not maintain and attract their customer base,
own themselves. Many businesses in this which adds to depreciation costs. Other
industry do not own their fitness costs include general administration, IT
facilities, and as a result they must rent expenses and insurance costs, which
their buildings. Additionally, some account for an estimated 20.2% of revenue.
equipment used in recreational and Many businesses have had to insure their
fitness centers are not purchased entirely, products against damage, which increases
but on a “rental” basis, thus adding to the insurance costs as more consumers use
cost in this segment. Accordingly, with fitness equipment frequently.
some operators trying to expand their The industry is expected to spend 2.5%
equipment offerings, pressure from the of its revenue on advertising in 2019, as
rent portion of industry costs is expected strong marketing support is essential for
to not help industry profit margins attracting new clientele in such a highly
during the period. competitive market. Operators advertise
via TV, direct mail, newspapers,
Utilities telephone directories, radio, billboards,
Utilities are expected to make up just 3.6% internet websites and other promotional
of industry revenue in 2019. Industry activities. Advertisements aim to
operators incur utility costs because the differentiate operators from competitors
industry requires electricity for lighting, by focusing on amenities, prices, services
treadmills, cross-trainers, steppers and and promotional offers. Operators also
other electronic equipment. To lower utility try to appeal to the public’s desire to lose
costs, some centers have implemented weight, look better and improve health.
Basis of Competition Over the five years to 2019, the Gym, types of services offered. For example,
Health and Fitness Clubs industry has industry operators may offer additional
become increasingly competitive. Well- services, including nutritional programs,
Level & Trend financed competitors have entered the meal planning and facial services.
ompetition
C in industry, and existing regional and
this industry is national operators have expanded their Internal competition
Highand the trend operations. Gym and fitness clubs Industry operators compete for brand
typically compete for high consumer recognition and member’s word-of-
is I ncreasing
retention rates on the basis of price, mouth to generate revenue. Many
customer service, brand recognition and operators rely on retaining and

Basis of Competition developing large membership rates to cover fitness clubs because they can obtain land
continued their operational costs. Operators also and build centers at lower costs.
compete on the basis of price. For example, Additional services offered by hospitals,
gym and health clubs that offer low businesses and salons are another source
initiation fees and monthly membership of competition, adding to the highly
will attract first-time gym members in competitive environment. These operators
particular. Additionally, low-cost typically compete based on location,
membership on a month-by-month basis which is the greatest convenience factor
appeals to both budget-conscious for the consumer.
consumers and individuals who do not
want to lock in a year contract. Also, External competition
industry operators may compete on the Operators also experience external
basis of customer service. In particular, competition from entertainment and retail
strong customer service boosts both businesses for the discretionary income of
member retention rates and also develops a the specific target markets in this industry.
strong customer base of individuals who Industry operators compete with amenity
may be new to gym memberships. and condominium clubs, exercise studios,
Operators in this industry also compete country clubs, weight-loss centers and
with other commercial fitness centers and home fitness equipment businesses. Many
recreational facilities that are established other leisure industries, such as bowling
and operated by local governments. alleys and marinas, also compete with this
Nonprofit and government organizations industry for leisure time, albeit without
have an edge on commercial gyms and the fitness aspect.
Barriers to Entry Overall, barriers to entry are relatively

low for the Gym, Health and Fitness Barriers to Entry checklist
Level & Trend Clubs industry. Leasing, rather than Competition High
owning industry facilities, provides a Concentration Low
arriers to Entry
B low-cost option for potential industry Life Cycle Stage Growth
in this industry are entrants, thus keeping barriers to entry Capital Intensity Medium
Lowand S teady relatively low. Additionally, average Technology Change Medium
wages in the industry tend to be low, as Regulation and Policy Light
staff are typically unskilled and provide Industry Assistance Low
training services on a part-time basis.
Equipment costs are relatively low as SOURCE: WWW.IBISWORLD.COM
well, and have long life spans. Many

start-up gyms will either use Access to capital to fund these start-up
secondhand exercise equipment to costs are therefore essential. The high cost
reduce costs or will rent their and lengthy time needed to build brand
equipment. Barriers to entry in urban reputation is a potential barrier to entry.
markets include restrictive zoning laws, Existing players have already established
lengthy permit processes and a shortage trade names, and new entrants will have
of appropriate real estate. New entrants to invest financial resources and time to
may also incur heavy costs when persuade consumers to shift away from
acquiring or leasing the required established, brand-name gyms and fitness
equipment for members and centers. According to data from the
participants to use. International Health, Racquet and

Barriers to Entry Sportsclub Association (IHRSA), the the next five years, barriers to entry for
continued number of health club memberships and new industry entrants may rise. As
health clubs has risen, demonstrating that some businesses partner with health
the industry exhibits relatively low insurers, the implementation of
barriers to entry. As more consumers have corporate wellness programs may result
become health conscious, more gym, in strong demand for large-scale gym
health and fitness clubs have entered the memberships, intensifying barriers to
market to cater to demand. However, over entry for new companies.
Industry The Gym, Health and Fitness Clubs becoming globalized. For example,
Globalization industry has a low level of globalization, Fitness International LLC has
with the majority of players being small subsidiaries that operate in global
local operators. While the industry is markets. Globalization is increasing as
Level & Trend not typified by a high level of national and regional competitors
lobalization
G in globalization, some of the industry’s expand the scope of their operations,
this industry is larger players are increasingly but at this stage, it is relatively low.
Lowand the trend
is I ncreasing

Major Companies
Fitness International LLC | Other Companies
Major Players
(Market Share)
93.8%
Other
Fitness International LLC 6.2% SOURCE: WWW.IBISWORLD.COM
Player Performance Fitness International LLC (Fitness in Oklahoma and one in Nebraska.
International) is the parent company of LA Recently, LA Fitness and Fitness
Fitness, which was founded in 1984 and is International grappled with a class action
Fitness based in Irvine, CA. LA Fitness operates in lawsuit pertaining to its one-month club
International LLC the United States and Canada; however, memberships. In particular, the company
Market Share: 6.2% operations in Canada are not Gym, Health allegedly misled customers into purchasing
and Fitness Clubs industry-relevant. LA yearly, rather than monthly, memberships;
Fitness offers group fitness classes, which a settlement was reached in 2016.
include aerobics, boot camp conditioning,
club boxing and cycling, among other Financial performance
fitness services. The company’s strategy The company does not disclose its
includes making fitness accessible, which it financial performance; as a result,
aims to achieve by offering numerous revenue figures are estimated. Over the
group fitness options. five years to 2019, industry-relevant
In 2011, LA Fitness acquired 171 clubs revenue is expected to increase at an
from Bally Total Fitness Holding annualized rate of 4.6% to $2.3 billion. In
Corporation, which propelled the company 2014, LA Fitness formed a partnership
into becoming one of the top gym, health with Healthways Inc., thus permitting the
and fitness clubs. In 2015, Fitness company’s members to access the
International acquired 11 clubs from 24 SilverSneakers Fitness and Prime Fitness
Hour Fitness USA Inc. in Arizona, while programs since early 2015. Through this
the company sold two LA Fitness locations partnership, LA Fitness aims to become a
Fitness International LLC (US industry-specific segment) - financial

performance
Revenue Locations
Year ($ million) (% change) (units) (% change)
2014 1,816.5 N/C 619 N/C
2015 1,877.4 3.4 663 7.1
2016 1,977.8 5.3 689 3.9
2017 2,059.7 4.1 705 2.3
2018 2,251.5 9.3 721 2.3
2019 2,279.7 1.3 730 1.2
*Estimates
SOURCE: IBISWORLD

Major Companies
Player Performance wellness provider. The SilverSneakers the United States. The company has
continued Fitness program appeals to older adults, focused on expanding their group fitness
evidenced by the program being offerings during the period to attract new
accessible to Medicare beneficiaries. members. These classes range from
Furthermore, over the five years to 2019, cycling to yoga, with targeted exercises
LA Fitness is expected to reach a total for consumers pressed for time and
location count of 730 locations, as they looking for a class that’s more specific
continue to expand their operations in than usually offered.
Other Company Founded in 1991, Equinox Holdings Inc. revenue during the period stems
Performance (Equinox) operates in the higher-end primarily from the company’s ability to
segment in the Gym, Health and Fitness leverage its high-class offerings at a price
Clubs industry. With over 100 locations that is appealing to its target
Equinox Holdings in metropolitan areas such as New York, demographics. By expanding both its
Inc. Chicago, Los Angeles, San Francisco, service offerings and locations, Equinox
Market Share: 4.9% Miami, Boston and Washington, DC, the has been able to boost its membership
company offers personal training and over the five years to 2019. By the end of
group fitness, in addition to ancillary 2019, Equinox is expected to have over
services (e.g. wellness treatments). 100 locations open across the United
Moreover, ancillary services include States. Recently, Blink Fitness has seen
full-service spas, cafes and boutiques. an uptick in demand for Equinox
The company owns other fitness brands, Holdings, as budget-conscious gym goers
which operate under the Blink, Pure Yoga prefer the flexibility the club offers over
and Soul Cycle banners. comparable operators. As a result,
Over the five years to 2019, Equinox’s Equinox Holdings is expected to expand
industry’s-specific revenue is expected to their Blink operations in 2019, with a
increase at an annualized rate of 16.0% to majority of their locations in California,
reach $1.8 billion. This increase in New York, New Jersey and Pennsylvania.
Other Company Life Time Inc. (Life Time), formerly Life States, primarily in suburban locations.
Performance Time Fitness Inc., operates nearly 130 Life Time’s business model includes
centers under the Life Time Fitness and attracting a larger customer base within
Life Time Athletic brands. Life Time Inc. the first three years after a center opens,
Life Time Inc. is headquartered in Chanhassen, MN and as well as retaining members and
Market Share: 4.7% offers a range of services, such as group controlling expenses.
fitness, yoga, swimming, running, In June 2015, Life Time was acquired
racquetball, squash, tennis, Pilates, rock by private equity firms Leonard Green &
climbing and kid activities and camps. Partners and TPG Capital. The
The company designs and develops its transaction was valued at more than $4.0
own centers, with a focus on providing billion. Life Time has continued to
members with products and services in operate as a wholly owned subsidiary of
the areas of exercise, education and affiliates of the two private equity firms,
nutrition. The company currently along with other investors. In June 2017,
operates in Canada and the United Life Time opened a healthy lifestyle

Major Companies
Other Company village in a former shopping mall in Edina, 10 new clubs. Due to the private nature of
Performance MN as a project with Simon Property Life Time Inc., revenue figures are
Group to further increase awareness for estimates and not exact figures directly
continued
health-consciousness. This project comes from the company. Over the five years to
amid the acquisition of six spa locations in 2019, IBISWorld expects Life Time’s Gym,
Seattle, as the company looks to expand Health and Fitness Clubs industry-specific
during the period. In 2019 and 2020, the revenue to increase at an annualized rate
company is expected to open an additional of 6.2% to reach $1.7 billion.
Other Company 24 Hour Fitness USA Inc. (24 Hour Financier Theodore J. Forstmann
Performance Fitness) is a large, privately owned and acquired the company for $1.6 billion and
operated fitness center chain. Established has continued to promote 24 Hour
24 Hour Fitness in 1983, the company’s first club location Fitness as a leader within the Gym,
USA Inc. opened in California. With nearly 450 Health and Fitness Clubs industry, with
clubs across the United States, 24 Hour the aim of continual expansion. Since 24
Market Share: 4.1% Fitness serves nearly 4.0 million Hour Fitness is a privately held company,
members. The company also offers a limited financial information is available;
plethora of gym services, including however, IBISWorld expects the
personal training, group exercise classes company to generate revenue of $1.5
and a variety of strength, cardio and billion in 2019. 24 Hour Fitness is
functional training equipment. currently looking for ways to engage their
Furthermore, the company is one of the members inside and outside of the club,
largest supporters of amateur athletics in as their President encourages efforts to
the United States. 24 Hour Fitness also positively influence member health-
uses celebrities and professional athletes consciousness. In an effort with the
to advertise its brand; for example, the University of Pennsylvania, 24 Hour
company partners with the reality TV Fitness launched a behavior change
show The Biggest Loser. These marketing program and research study for adult
strategies help differentiate 24 Hour members. This is being done in
Fitness from its competitors, which conjunction with the University of
drives the company to strengthen its Pennsylvania’s Change for Good
market share. initiative. The program is expected to
In 2005, 24 Hour Fitness entered a encourage more visits to the gym by
partnership with New York-based private members, as well as improve overall
equity firm Forstmann Little & Co. health through proper dieting.
Other Company Town Sports International Holdings Inc. Sports Clubs, Washington Sports Clubs
Performance (TSI) is one of the largest owners and and Philadelphia Sports Clubs.
operator of fitness clubs in the Northeast The company’s business strategy
and Mid-Atlantic regions of the United involves serving densely populated
Town Sports States and was founded in 1973. TSI metropolitan regions and developing
International moved its headquarters to Jupiter, FL, in locations near TSI’s targeted customer
Holdings Inc. 2017 and operates over 170 locations. TSI base. TSI targets individuals aged 21 to
owns and operates several brands, 50 years old with annual incomes of
Market Share: 1.1% including New York Sports Clubs, Boston $50,000 to $150,000. Recently, TSI has

Major Companies
Other Company engaged in acquiring smaller health clubs while they acquired an additional 12
Performance and spas to expand their operations. For small gym and spa clubs in California in
example, in July 2017, TSI completed the 2018. In 2019, IBISWorld expects TSI to
continued
purchase of Lucille Roberts Health Clubs, earn revenue of $419.4 million.

Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity The Gym, Health and Fitness Clubs industry

is moderately capital intensive. In 2019, for Capital Intensity
Capital units per labor unit
every dollar spent on wages, the industry
Level
incurs an estimated $0.21 on capital costs. 0.5
The levelof capital Wages are expected to account for 33.5% of
intensity is M
edium total industry revenue. Capital costs are 0.4
moderate for the industry and includes the 0.3

cost of fitness equipment, buildings,
vehicles, furniture and computers. 0.2
Nevertheless, labor costs remain high 0.1

because of administration, training,
supervision and maintenance requirements. 0.0
Economy Arts, Entertain- Gym, Health &
Gyms and fitness centers seek to minimize ment and Fitness Clubs
Recreation
their labor costs by employing a part-time Dotted line shows a high level of capital intensity
labor force and employing instructors and SOURCE: WWW.IBISWORLD.COM
personal trainers on an as-needed basis.

Technology and There is a moderate level of Entertainment units are also becoming
Systems technological change in the Gym, increasingly common in fitness centers;
Health and Fitness Clubs industry. the units are mounted to cardiovascular
Level Most fitness centers compete to be the equipment and equipped with a color
establishment with the most state-of- screen for TV viewing. Free Wi-Fi for
The level
of the-art equipment. This equipment gym members is also increasingly
technology change includes the latest cardiovascular and common in industry establishments.
is M
edium weight-training machines. Patrons are Fitness centers use computers to
looking for added extras to improve manage operations and to keep a
their fitness regimens; therefore, it is database of members. Many gyms also
vital for gym, health and fitness clubs to offer electronic payment options, which
offer various equipment options that incorporates computer technology. In
incorporate the latest technology. This selecting this option, on about the same
has encouraged operators to continually date each month, a fixed payment is
update their equipment. For example, either automatically transferred via debit
treadmills can become outdated within from members’ bank accounts or charged
two years. to members’ designated credit card.
Revenue Volatility The Gym, Health and Fitness Clubs memberships, which has constrained
industry has a low level of revenue fluctuations in industry revenue.
volatility. While there are varying degrees While technically a discretionary
Level
of membership rates across centers, service, health and fitness clubs are
The level of which increases revenue volatility, the increasingly viewed by consumers as a
volatility is L ow industry’s diverse array of services and vital health expense. Furthermore, the
high level of fragmentation has structure of gym memberships has
minimized revenue volatility over the five slightly mitigated revenue volatility.
years to 2019. Furthermore, steady Gyms and fitness centers have
promotion of the health benefits of traditionally signed up their members for
exercise by the medical community has 12- to 24-month periods and typically
supported consumer demand for gym have included cancellation fees in their

Revenue Volatility contracts. These fees often deter membership options, such as shorter
continued customers from cancelling their contract periods and rolling contracts. As
memberships. As competition has flexible membership options become
increased over the past five years, many more prevalent, revenue volatility is
gyms have offered more flexible likely to increase.
Regulation and Policy The general rules and regulations of the collection of debts. These laws and
Federal Trade Commission and of other regulations are subject to varying
federal, state, provincial and local interpretations by many state and federal
Level & Trend consumer protection agencies apply to enforcement agencies.
he level of
T franchising, advertising, sales and other Under the cooling-off statutes
Regulation is trade practices. State and provincial employed in most states and provinces,
Lightand the statutes and regulations relevant to the new fitness center members have the
Gym, Health and Fitness Clubs industry right to cancel their memberships within
trend is S
teady
have been enacted or proposed in all of a period of three to 15 days after the date
the states and provinces across the the contract was entered and they are
United States. Typically, these statutes entitled to refunds of any payment made.
and regulations prescribe certain forms The amount of time new members have
and regulate the terms and provisions of to cancel their membership contract
membership contracts, including: giving depends on the applicable state or
members the right to cancel the contract, provincial law.
often within three business days of Advertising of nutritional products is
signing; requiring an escrow for funds subject to regulation by one or more
received from preopening sales or the federal agencies, including the Food and
posting of a bond or proof of financial Drug Administration (FDA) and the
responsibility; and in some cases, Federal Trade Commission (FTC). For
establishing maximum prices and terms example, the FDA regulates the
for membership contracts and limitations formulation, manufacture and labeling of
on the financing term of contracts. vitamins and other nutritional
Operators in the Gym, Health and supplements, while the FTC principally
Fitness Clubs industry are subject to regulates marketing and advertising
numerous other types of federal, state claims. Industry operators are also
and provincial regulations governing the subject to several state and federal labor
sale, financing and collection of laws governing the relationship with
memberships, including both the Truth- employees, such as minimum wage
in-Lending Act and Regulation Z, as well requirements, overtime, working
as state and provincial laws governing the conditions and citizenship requirements.

Industry Assistance The level of Gym, Health and Fitness sports clubs worldwide. This association
Clubs industry assistance is low, but it is provides media articles and press
increasing as more institutions promote releases that promote the benefits of
Level & Trend the benefits of assistance. Such keeping fit and active. Therefore, this
he level of Industry
T assistance is a significant benefit for the association helps drive industry demand.
Assistance is L ow industry, as it reduces expenses and The Fifty-Plus Fitness Association
and the trend creates demand. The Department of (FPFA) is another nonprofit organization,
Health and Human Services, under its with the mission to promote an active
is I ncreasing
Community Prevention umbrella, has lifestyle for the older population. The
allocated $16.0 million toward obesity organization started at Stanford
prevention and fitness. University as an outgrowth of some
The National Association for Health medical research on the value of exercise
and Fitness (NAHF) is a nonprofit for older persons. The FPFA currently
organization that promotes physical has about 1,000 members across the
fitness and sports and supports Governor United States. The association also
and State Councils that promote such publishes a newsletter and distributes
activities. The association produces books and videos. In the past, it has
newsletters on strategies and successful offered a six-week Fifty-Plus Fitness
approaches to increasing physical activity Challenge Camp on the Stanford
and improving health. The International University campus that involved the
Health, Racquet & Sportsclub Association participants in a variety of physical
also supports the industry and is a activities. Some facilities are initially
nonprofit trade association representing established with the assistance of
more than 10,000 health, racquet and government grants.

Key Statistics
Industry Data Industry Healthy
Revenue Value Added Establish- Employment Wages Domestic eating index
($m) ($m) ments Enterprises (People) Exports Imports ($m) Demand (%)
2010 27,787.2 13,472.3 89,895 85,595 620,575 -- -- 9,081.9 N/A 0.7
2011 28,237.4 14,213.8 89,715 85,283 629,882 -- -- 9,300.6 N/A 0.7
2012 28,782.3 14,670.3 93,706 88,970 645,612 -- -- 9,374.4 N/A 0.7
2013 30,117.5 15,483.4 94,330 89,520 664,899 -- -- 9,761.1 N/A 0.7
2014 30,778.4 16,837.3 98,723 93,488 704,190 -- -- 10,343.0 N/A 0.7
2015 32,291.2 17,153.3 100,923 95,577 727,059 -- -- 10,824.2 N/A 0.7
2016 33,931.2 17,632.1 102,444 96,945 754,342 -- -- 11,219.1 N/A 0.7
2017 35,770.3 19,129.9 106,654 100,685 782,201 -- -- 11,868.6 N/A 0.7
2018 36,311.5 19,433.1 108,985 102,903 797,988 -- -- 12,096.2 N/A 0.7
2019 36,494.4 19,546.2 111,055 104,943 808,932 -- -- 12,241.0 N/A 0.7
2020 36,886.0 19,679.9 113,174 106,996 822,538 -- -- 12,431.9 N/A 0.7
2021 36,820.5 19,691.1 114,887 108,731 829,246 -- -- 12,508.6 N/A 0.7
2022 37,165.0 19,863.6 116,829 110,622 840,634 -- -- 12,669.5 N/A 0.7
2023 37,606.0 20,089.1 118,867 112,593 853,084 -- -- 12,849.7 N/A 0.7
2024 37,842.2 20,202.5 120,700 114,398 861,959 -- -- 12,972.7 N/A 0.7
Sector Rank 4/19 4/19 3/19 3/19 2/19 N/A N/A 3/19 N/A N/A
Economy Rank 265/694 152/694 71/694 72/694 43/694 N/A N/A 145/694 N/A N/A
Annual Change Industry Establish- Domestic Healthy

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand eating index
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 1.6 5.5 -0.2 -0.4 1.5 N/A N/A 2.4 N/A 0.0
2012 1.9 3.2 4.4 4.3 2.5 N/A N/A 0.8 N/A 0.0
2013 4.6 5.5 0.7 0.6 3.0 N/A N/A 4.1 N/A 0.0
2014 2.2 8.7 4.7 4.4 5.9 N/A N/A 6.0 N/A 0.0
2015 4.9 1.9 2.2 2.2 3.2 N/A N/A 4.7 N/A 0.0
2016 5.1 2.8 1.5 1.4 3.8 N/A N/A 3.6 N/A 0.0
2017 5.4 8.5 4.1 3.9 3.7 N/A N/A 5.8 N/A 0.0
2018 1.5 1.6 2.2 2.2 2.0 N/A N/A 1.9 N/A 0.0
2019 0.5 0.6 1.9 2.0 1.4 N/A N/A 1.2 N/A 0.0
2020 1.1 0.7 1.9 2.0 1.7 N/A N/A 1.6 N/A 0.0
2021 -0.2 0.1 1.5 1.6 0.8 N/A N/A 0.6 N/A 0.0
2022 0.9 0.9 1.7 1.7 1.4 N/A N/A 1.3 N/A 0.0
2023 1.2 1.1 1.7 1.8 1.5 N/A N/A 1.4 N/A 0.0
2024 0.6 0.6 1.5 1.6 1.0 N/A N/A 1.0 N/A 0.0
Sector Rank 15/19 13/19 9/19 9/19 12/19 N/A N/A 12/19 N/A N/A
Economy Rank 511/694 505/694 210/694 189/694 356/694 N/A N/A 415/694 N/A N/A
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2010 48.48 N/A N/A 44.78 32.68 6.90 14,634.65 0.09
2011 50.34 N/A N/A 44.83 32.94 7.02 14,765.62 0.09
2012 50.97 N/A N/A 44.58 32.57 6.89 14,520.18 0.09
2013 51.41 N/A N/A 45.30 32.41 7.05 14,680.58 0.09
2014 54.70 N/A N/A 43.71 33.60 7.13 14,687.80 0.10
2015 53.12 N/A N/A 44.41 33.52 7.20 14,887.65 0.10
2016 51.96 N/A N/A 44.98 33.06 7.36 14,872.70 0.10
2017 53.48 N/A N/A 45.73 33.18 7.33 15,173.34 0.11
2018 53.52 N/A N/A 45.50 33.31 7.32 15,158.37 0.10
2019 53.56 N/A N/A 45.11 33.54 7.28 15,132.30 0.10
2020 53.35 N/A N/A 44.84 33.70 7.27 15,114.07 0.10
2021 53.48 N/A N/A 44.40 33.97 7.22 15,084.31 0.10
2022 53.45 N/A N/A 44.21 34.09 7.20 15,071.36 0.10
2023 53.42 N/A N/A 44.08 34.17 7.18 15,062.64 0.10
2024 53.39 N/A N/A 43.90 34.28 7.14 15,050.25 0.10
Sector Rank 4/19 N/A N/A 16/19 7/19 11/19 16/19 4/19
Economy Rank 90/694 N/A N/A 669/694 131/694 405/694 663/694 152/694
Figures are in inflation-adjusted 2019 dollars. Rank refers to 2019 data. SOURCE: WWW.IBISWORLD.COM

Industry Financial Ratios

Apr 2017 - Mar 2018 by company revenue
Apr 2014 - Apr 2015 - Apr 2016 - Apr 2017 - Small Medium Large
Mar 2015 Mar 2016 Mar 2017 Mar 2018 (<$10m) ($10-50m) (>$50m)
Liquidity Ratios
Current Ratio 0.8 0.9 0.8 0.8 0.9 0.7 0.8
Quick Ratio 0.6 0.7 0.6 0.6 0.7 0.5 0.3
Sales / Receivables (Trade Receivables
Turnover) n/c n/c n/c n/c n/c 294.0 28.2
Days’ Receivables 0.4 n/a 0.4 0.4 0.4 1.2 12.9
Cost of Sales / Inventory (Inventory Turnover) 73.0 28.3 41.2 18.9 30.6 24.9 7.0
Days’ Inventory 5.0 12.9 8.9 19.3 11.9 14.7 52.1
Cost of Sales / Payables (Payables Turnover) 21.7 20.4 20.2 15.3 46.4 4.9 2.9
Days’ Payables 16.8 17.9 18.1 23.9 7.9 74.5 125.9
Sales / Working Capital -59.2 -138.5 -64.0 -68.8 -284.2 -20.8 -30.6
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) /
Interest 3.7 5.2 3.6 4.6 4.2 7.1 3.5
Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt 3.3 3.5 3.7 5.3 n/a 5.7 n/a
Leverage Ratios
Fixed Assets / Net Worth 3.6 2.8 4.4 3.8 3.0 8.6 -1.8
Debt / Net Worth 4.6 3.0 4.4 5.1 3.9 9.2 -4.2
Tangible Net Worth 1.3 10.3 7.0 0.6 4.4 8.2 -51.7
Operating Ratios
Profit before Taxes / Net Worth, % 42.8 40.3 30.1 26.4 24.9 37.3 n/a
Profit before Taxes / Total Assets, % 9.5 13.7 7.6 9.1 8.7 11.3 8.4
Sales / Net Fixed Assets 3.0 2.9 2.4 3.1 3.5 1.7 3.4
Sales / Total Assets (Asset Turnover) 1.4 1.7 1.4 1.4 1.6 1.0 1.4
Cash Flow & Debt Service Ratios (% of sales)

Cash from Trading 93.7 94.0 92.8 94.4 94.3 91.4 95.7
Cash after Operations 16.1 16.8 16.0 18.4 15.2 26.2 20.0
Net Cash after Operations 16.2 17.1 15.5 17.5 15.9 22.8 19.3
Cash after Debt Amortization 5.3 4.7 4.3 3.9 3.9 8.8 -4.1
Debt Service P&I Coverage 2.6 3.2 2.2 2.4 2.5 2.3 4.2
Interest Coverage (Operating Cash) 5.6 7.6 5.6 6.3 5.5 8.1 6.3
Assets, %
Cash & Equivalents 15.3 15.7 14.2 15.7 17.1 10.4 12.3
Trade Receivables (net) 3.3 2.8 3.3 2.8 2.2 2.9 8.1
Inventory 2.9 2.4 1.9 2.5 2.5 1.0 5.2
All Other Current Assets 2.2 3.5 2.7 3.5 3.5 2.3 6.0
Total Current Assets 23.7 24.4 22.0 24.5 25.4 16.7 31.7
Fixed Assets (net) 58.4 59.0 60.6 55.9 56.2 58.7 47.8
Intangibles (net) 9.3 8.5 10.0 10.6 8.5 17.8 17.1
All Other Non-Current Assets 8.7 8.0 7.3 9.0 10.0 6.8 3.5
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Assets ($m) 3,588.0 3,826.5 4,435.7 3,561.6 483.2 1,513.4 1,565.1
Liabilities, %
Notes Payable-Short Term 6.1 4.0 4.3 6.2 7.3 2.3 3.3
Current Maturities L/T/D 4.6 5.0 4.8 5.6 5.7 5.2 4.3
Trade Payables 3.0 3.5 3.7 3.7 3.6 3.3 6.0
Income Taxes Payable 0.2 0.1 0.1 0.1 0.1 0.2 n/a
All Other Current Liabilities 15.8 15.9 15.3 15.6 15.0 13.5 25.6
Total Current Liabilities 29.7 28.5 28.0 31.1 31.6 24.7 39.3
Long Term Debt 40.0 39.2 42.5 42.1 38.2 41.8 80.3
Deferred Taxes 0.2 n/a 0.1 n/a n/a n/a n/a
All Other Non-Current Liabilities 19.5 13.4 12.4 15.6 17.3 7.5 15.0
Net Worth 10.6 18.8 17.0 11.2 12.9 26.0 -34.6
Total Liabilities & Net Worth ($m) 3,588.0 3,826.5 4,435.7 3,561.6 483.2 1,513.4 1,565.1
Maximum Number of Statements Used 341 374 308 271 208 42 21
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more
than 260,000 statements of member financial institutions’ borrowers and prospects.
Note: For a full description of the ratios refer to the Key Statistics chapter online.

Jargon & Glossary
Industry Jargon BABY BOOMERA person born between 1946 and 1964 PILATESA physical fitness system developed in the
accounting for a major proportion of the population. early 20th century by Joseph Pilates with a focus on the
CARDIOVASCULAR EQUIPMENTEquipment used for strength and endurance of core muscle groups.
aerobic exercise, meant to be used at light to medium RETENTION RATEA rate comparing the number of
intensity for a long period of time, e.g. treadmills, new gym memberships to canceled gym memberships.
elliptical trainers and stationary bikes.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that INDUSTRY REVENUEThe total sales of industry goods
new companies struggle to enter an industry, while low and services (exclusive of excise and sales tax); subsidies on
barriers mean it is easy for new companies to enter an production; all other operating income from outside the
industry. firm (such as commission income, repair and service
CAPITAL INTENSITYCompares the amount of money income, and rent, leasing and hiring income); and capital
spent on capital (plant, machinery and equipment) with work done by rental or lease. Receipts from interest
that spent on labor. IBISWorld uses the ratio of royalties, dividends and the sale of fixed tangible assets are
depreciation to wages as a proxy for capital intensity. High excluded.
capital intensity is more than $0.333 of capital to $1 of INDUSTRY VALUE ADDED (IVA)The market value of
labor; medium is $0.125 to $0.333 of capital to $1 of labor; goods and services produced by the industry minus the
low is less than $0.125 of capital for every $1 of labor. cost of goods and services used in production. IVA is also
CONSTANT PRICESThe dollar figures in the Key Statistics described as the industry’s contribution to GDP, or profit
table, including forecasts, are adjusted for inflation using plus wages and depreciation.
the current year (i.e. year published) as the base year. This INTERNATIONAL TRADEThe level of international trade
removes the impact of changes in the purchasing power of is determined by ratios of exports to revenue and imports
the dollar, leaving only the “real” growth or decline in to domestic demand. For exports/revenue: low is less than
industry metrics. The inflation adjustments in IBISWorld’s 5%, medium is 5% to 20%, and high is more than 20%.
reports are made using the US Bureau of Economic Imports/domestic demand: low is less than 5%, medium is
Analysis’ implicit GDP price deflator. 5% to 35%, and high is more than 35%.
DOMESTIC DEMANDSpending on industry goods and LIFE CYCLEAll industries go through periods of growth,
services within the United States, regardless of their maturity and decline. IBISWorld determines an industry’s
country of origin. It is derived by adding imports to industry life cycle by considering its growth rate (measured by IVA)
revenue, and then subtracting exports. compared with GDP; the growth rate of the number of
EMPLOYMENTThe number of permanent, part-time, establishments; the amount of change the industry’s
temporary and seasonal employees, working proprietors, products are undergoing; the rate of technological change;
partners, managers and executives within the industry. and the level of customer acceptance of industry products
and services.
ENTERPRISEA division that is separately managed and
keeps management accounts. Each enterprise consists of NONEMPLOYING ESTABLISHMENTBusinesses with no
one or more establishments that are under common paid employment or payroll, also known as nonemployers.
ownership or control. These are mostly set up by self-employed individuals.
ESTABLISHMENTThe smallest type of accounting unit PROFITIBISWorld uses earnings before interest and tax
within an enterprise, an establishment is a single physical (EBIT) as an indicator of a company’s profitability. It is
location where business is conducted or where services or calculated as revenue minus expenses, excluding interest
industrial operations are performed. Multiple and tax.
establishments under common control make up an VOLATILITYThe level of volatility is determined by
enterprise. averaging the absolute change in revenue in each of the
EXPORTSTotal value of industry goods and services sold past five years. Volatility levels: very high is more than
by US companies to customers abroad. ±20%; high volatility is ±10% to ±20%; moderate volatility
is ±3% to ±10%; and low volatility is less than ±3%.
IMPORTSTotal value of industry goods and services
brought in from foreign countries to be sold in the United WAGESThe gross total wages and salaries of all
States. employees in the industry. The cost of benefits is also
included in this figure.
INDUSTRY CONCENTRATIONAn indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players account
for more than 70% of industry revenue. Medium is 40% to
70% of industry revenue. Low is less than 40%.

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WWW.IBISWORLD.

COM Gym, Health & Fitness Clubs in the USApril 2019 1

Working out: As disposable incomes rise, more

IBISWorld Industry Report 71394

2 About this Industry 16 International Trade 29 Technology and Systems

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

About this Industry

Main Activities The primary activities of this industry are

The major products and services in this industry are

72111 Hotels & Motels in the US

81219a Weight Loss Services in the US

81219c Tanning Salons in the US

Provided to: Edeska (2129455405) | 04 September 2019

About this Industry

Additional Resources For additional information on this industry

IBISWorld writes over 1000 US

Provided to: Edeska (2129455405) | 04 September 2019

Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

$4.7bn $12.2bn 104,943

Key External Drivers 3.1% 1.9%

Industry Structure Life Cycle Stage Growth Regulation Level Light

Provided to: Edeska (2129455405) | 04 September 2019

Provided to: Edeska (2129455405) | 04 September 2019

Time spent on leisure and sports Participation in sports

Provided to: Edeska (2129455405) | 04 September 2019

Current The Gym, Health and Fitness Clubs

is not expected to decline during the period

Provided to: Edeska (2129455405) | 04 September 2019

Fitness trends The emergence of the budget-conscious

Provided to: Edeska (2129455405) | 04 September 2019

Industry Over the five years to 2024, the Gym,

New demographics Over the next five years to 2024,

Provided to: Edeska (2129455405) | 04 September 2019

Industry landscape While large-scale gyms are expected to

Provided to: Edeska (2129455405) | 04 September 2019

Provided to: Edeska (2129455405) | 04 September 2019

Provided to: Edeska (2129455405) | 04 September 2019

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Products and Services Products and services segmentation (2019)

Total $36.5bn SOURCE: WWW.IBISWORLD.COM

Membership fees additional fee for services such as yoga

Provided to: Edeska (2129455405) | 04 September 2019

Products & Markets

Products and Services offer private trainers for individuals or Other

Provided to: Edeska (2129455405) | 04 September 2019

Products & Markets

Major Markets Major market segmentation (2019)

Total $36.5bn SOURCE: WWW.IBISWORLD.COM

Provided to: Edeska (2129455405) | 04 September 2019

Products & Markets

Provided to: Edeska (2129455405) | 04 September 2019

Products & Markets

Business Locations 2019

West Establishments (%)

Provided to: Edeska (2129455405) | 04 September 2019

Products & Markets

Business Locations The four regions that encompass the

to perform exercise or become a member

Provided to: Edeska (2129455405) | 04 September 2019

Cost Structure Profit Furthermore, the cost of recruiting a new

Provided to: Edeska (2129455405) | 04 September 2019

COM Gym, Health & Fitness Clubs in the USApril 2019 1