In good health: Rising health consciousness has

boosted revenue over the past five years

This report was provided to
La Trobe University (2128659532)
by IBISWorld on 07 April 2018 in accordance with their licence agreement with IBISWorld

IBISWorld Industry Report OD4198

Pilates and Yoga Studios
in Australia
February 2018 Hayley Munro-Smith

2 About this Industry 14 Demand Determinants 24 Revenue Volatility

2 Industry Definition
2 Main Activities
2 Similar Industries
2 Additional Resources
3 Industry at a Glance
4 Industry Performance
4 Executive Summary
4 Key External Drivers
5 Current Performance
7 Industry Outlook
10 Industry Life Cycle
14 Major Markets 25 Regulation & Policy
15 International Trade 25 Industry Assistance
16 Business Locations
26 Key Statistics
18 Competitive Landscape 26 Industry Data
18 Market Share Concentration 26 Annual Change
18 Key Success Factors 26 Key Ratios
18 Cost Structure Benchmarks
20 Basis of Competition 27 Jargon & Glossary
21 Barriers to Entry
21 Industry Globalisation
22 Major Companies

12 Products & Markets 23 Operating Conditions

12 Supply Chain 23 Capital Intensity
12 Products & Services 24 Technology & Systems

www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com

WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in Australia February 2018   2

About this Industry

Industry Definition Industry operators offer Pilates and yoga physical and spiritual practice focused on
instruction to individuals or groups. Pilates breath control, flexibility and strength. The
is a body conditioning routine to build industry includes Pilates and yoga classes
strength and flexibility, while yoga is a taught at gyms or other health clubs.

Main Activities The primary activities of this industry are

Pilates and yoga studio operation
Pilates and yoga classes
Specialised training involving Pilates and yoga activities
Pilates and yoga accreditation training
Accessories and equipment sales

The major products and services in this industry are

Accreditation and training services
Equipment and accessories retailing
Pilates and hybrid classes
Prenatal and postnatal classes
Yoga classes

Similar Industries Q8533 Physiotherapy Services in Australia

This industry is made up of companies and practitioners that primarily provide physiotherapy services.

R9111 Gyms and Fitness Centres in Australia

This industry includes companies or organisations that operate indoor and outdoor sports or exercise
facilities, except for those used for horse or dog racing.

X0015 Alternative Health Therapies in Australia

Practitioners in this industry primarily deliver treatments such as acupuncture, traditional Chinese medicine,
aromatherapy and homeopathy.

X0028 Sports in Australia

The Sports industry provides products and services that are used specifically to aid fitness.

Additional Resources For additional information on this industry

www.abs.gov.au
Australian Bureau of Statistics
www.australianpilates.asn.au
Australian Pilates Method Association
www.ausport.gov.au
Australian Sports Commission
www.iyta.org.au
International Yoga Teachers Association
www.pilates.org.au
Pilates Alliance Australasia
www.yogaaustralia.org.au
Yoga Australia

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WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in Australia February 2018   3

Industry at a Glance
Pilates and Yoga Studios in 2017-18

Key Statistics Revenue Annual Growth 13–18 Annual Growth 18–23

Snapshot
$536.4m 3.0 % 1.2 %
Profit Wages Businesses

$41.8m $335.0m 3,017

Revenue vs. employment growth Expenditure on recreation and culture
Market Share
There are no 10 120
major players in
this industry 5 110
% change

$ billion
0 100

-5 90

-10 80
Year 10 12 14 16 18 20 22 24 Year 10 12 14 16 18 20 22 24
Revenue Employment
SOURCE: WWW.IBISWORLD.COM.AU
p. 22
Enterprises

Key External Drivers 1.9 % 0.8 %

Expenditure on 6.0% ACT NT

recreation and culture

SA 1.2 %
TAS
Real household 9.5 %
WA
discretionary income
Total health expenditure
31.1 %NSW
Consumer
sentiment index
Health consciousness
Sport participation
24.1 %
QLD

p. 4
25.4 %
VIC
SOURCE:
SOURCE: WWW.IBISWORLD.COM.AU
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Industry Structure Life Cycle Stage Mature Regulation Level Light

Revenue Volatility Low Technology Change Low
Capital Intensity Low Barriers to Entry Low
Industry Assistance Low Industry Globalisation Low
Concentration Level Low Competition Level Medium

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 26

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Industry Performance
Executive Summary   |   Key External Drivers   |   Current Performance
Industry Outlook   |   Life Cycle Stage
Executive A growing consumer trend towards
Summary healthy lifestyles has supported the
Pilates and Yoga Studios industry’s stable
growth over the past five years. The
adoption of industry services has risen
steadily, with yoga and Pilates becoming
widely accepted as a means of physical
exercise. While the industry has
continued to grow, it has transitioned
from the growth stage to the mature stage
of its life cycle over the past five-year
period. Industry revenue is expected to
grow at an annualised 3.0% over the five
years through 2017-18, to $536.4 million.
This includes an anticipated fall of 0.5%
in 2017-18, largely due to declining
consumer sentiment and discretionary
household incomes.
The industry’s services are largely
homogeneous at the basic level, so
competition among providers is strong.
Individuals looking to participate in yoga
or Pilates are particularly price conscious.
Industry competition has constrained
revenue growth over the past five years,
with operators facing the prospect of
losing customers if they raise prices.
Profit margins have declined over the
past five years, as operators have
struggled to pass on rising expenses. In
an effort to support margins and revenue,
Key External Drivers Expenditure on recreation and culture
People often engage in yoga and Pilates
as a form of leisure or recreation. As
consumers spend more money on leisure
activities, a portion of this spending will
go towards yoga or Pilates activities
supplied by industry firms. Expenditure
on recreation and culture is expected to
increase in 2017-18.
Real household discretionary income
Household discretionary income is the
amount of income available for
consumers to use after paying all
necessary and essential expenses.
Expenditure on Pilates and yoga classes
is highly discretionary. As a result, an
increase in discretionary income provides
an opportunity for the industry to
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Pilates and Yoga Studios in Australia February 2018   4
operators have sought to differentiate
themselves by targeting niche markets
and offering a range of yoga and Pilates
methods. This innovation has provided
an opportunity for the industry to grow
and has helped some studios retain
customers. However, external
competition has also increased from
online yoga and Pilates instructors
offering industry services at a far lower
cost to the consumer.
Steady demand for industry services is
projected to continue over the next five
years, supporting revenue growth.
Industry revenue is forecast to rise at an
annualised 1.2% over the five years
through 2022-23, to $569.8 million.
While intensifying competition is
anticipated to constrain revenue growth
to a degree, the rising credibility of these
exercises as a form of injury management
and treatment will likely provide a boost
for the industry. Furthermore, rising
health consciousness and mental health
awareness among the population is
forecast to support demand for industry
services. However, the removal of federal
subsidies for yoga and Pilates classes
accessed via private health insurance is
expected to slow industry growth over the
five-year period.
expand. Real household discretionary
income is expected to fall in 2017-18.
Total health expenditure
Total expenditure on health captures the
total amount of health-related spending
in Australia. This driver includes
expenditure on yoga and Pilates that is
covered by private health funds. As a
result, an increase in total expenditure on
health typically boosts industry revenue.
Total health expenditure is expected to
increase in 2017-18.
Consumer sentiment index
Consumer sentiment influences demand
for the industry’s services. A declining
consumer sentiment index indicates that
consumers are less optimistic about their
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Industry Performance
Key External Drivers current and future economic situation.
continued When consumer sentiment is low,
consumers are less likely to increase
discretionary spending on activities such
as Pilates and yoga. The consumer
sentiment index is expected to decrease
in 2017-18.
Health consciousness
Changes in the Australian public’s health
consciousness can be analysed via a health
consciousness index using data from the
ABS and the Food and Agriculture
Organization of the United Nations. The
index includes data relating to the
consumption of alcohol and tobacco, the
consumption of fruits and vegetables, the
level of obesity, and participation in sports
and physical recreation activities. People
that participate in yoga and Pilates are
Expenditure on recreation and culture
120
110
$ billion
100
90
80
Year 10 12 14 16 18 20
Current Growing health awareness has driven
steady growth in the Pilates and Yoga
Performance Studios industry over the past five
years. The core disciplines of yoga and
Pilates have become more popular over
the five-year period. Consistent
demand growth has pushed revenue
upwards, despite some fluctuations in
consumer sentiment and greater
substitute competition.
Industry revenue is expected to rise at
an annualised 3.0% over the five years
through 2017-18, to $536.4 million. This
includes an anticipated decline of 0.5%
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Pilates and Yoga Studios in Australia February 2018   5
typically very health conscious. As a result,
an increase in the index is likely to benefit
the industry. Health consciousness is
expected to rise in 2017-18.
Sport participation
An increase in the number of people
participating in sport or general exercise
is beneficial for the industry. This driver
analyses the share of Australians aged 15
and over that participate in sports and
physical recreation activities. The
industry typically benefits as participation
in sport increases, as yoga and Pilates are
often practiced in conjunction with other
recreational activities. Sport participation
has declined over the past five years,
posing a threat to the industry. However,
sport participation is expected to increase
slightly in 2017-18.
Real household discretionary income
8
6
4
% change
2
0
-2
-4
22 24 Year 12 14 16 18 20 22 24
SOURCE: WWW.IBISWORLD.COM.AU
in 2017-18, due to falling consumer
sentiment and household discretionary
incomes. Demand growth over the past
five years has continued from the
preceding five-year period, in which the
industry expanded to meet growing
community interest in yoga and Pilates.
Despite the industry performing well
over the past five years, revenue growth
has been constrained by the
combination of internal price
competition, online platforms, and
greater competition from other exercise,
sport, and leisure activities.
WWW.IBISWORLD.COM.AU
Industry Performance
Growth and The adoption of yoga and Pilates has
acceptance increased across Australia over the past
five years. Industry services have
transitioned from being considered niche
over a decade ago to a mainstream form
of physical activity today. Clients have
flocked to studios to exercise and
socialise. The low-impact nature of
classes has made yoga and Pilates
particularly attractive to older people,
with demand from these users growing
strongly. As a result, gyms have
expanded their yoga and Pilates offerings
over the past five years. Industry services
are now widely accepted as a form of
exercise, with participation rates for yoga
and Pilates largely comparable with
other sports.
The industry has also received a
significant boost from the adoption
Pilates and yoga as a form of alternative
medicine. Pilates and yoga classes are
relatively low impact and are focused on
stretching, resistance and core stability.
As a result, these services are ideal for the
Prices and While demand for industry services has
competition grown over the past five years, revenue
growth has been more restrained. The
influx of operators early in the past
decade created a highly competitive
operating environment. Gym chains,
community centres and other sport and
fitness service providers have also
boosted their involvement in the
industry, increasing the number of
classes on offer. These organisations
typically provide a more generic service,
but at a lower cost per class than
dedicated yoga or Pilates studios. The
industry has also faced intensifying
competition from online yoga and Pilates
instructors and platforms over the past
five years. Many mobile apps, streaming
services and YouTube channels offering
yoga and Pilates classes have emerged
over the period, providing live and
recorded classes at a significantly lower
cost to participants than industry
operators. Some industry firms have
embraced this trend and incorporated
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Pilates and Yoga Studios in Australia February 2018   6
treatment and management of some
injuries. Physiotherapists and doctors
can prescribe basic exercises to aid
recovery, and industry operators capture
a portion of this demand.
For individuals, Pilates and yoga
classes are often funded through the
extras packages of some health insurers,
particularly Pilates classes that are run by
trained physiotherapists. This has further
increased community access to, and
acceptance of, industry services. Industry
operators require accreditation with
major industry bodies to gain a
partnership with private health funds.
Industry bodies advertise the list of
participating health funds on their
websites, encouraging consumers to
explore these exercises through their
private funds. The industry has also
benefited from growing public awareness
of mental health issues and mindfulness,
which has boosted demand for yoga and
Pilates as a stress-relief aid and to
maintain a healthy mind.
technology into their services offerings,
for example, by streaming studio classes
live to members.
Tighter economic conditions have
affected the industry over the past five
years. The industry’s services are highly
discretionary, meaning that individuals
can readily forego yoga and Pilates
classes if required. Furthermore,
customers can easily seek a cheaper
operator for their classes or substitute
industry services with free activities such
as walking or jogging. Restrained
consumer spending and growing internal
competition have forced operators to
compete on either price or service.
Cautious consumer spending and falling
demand from recreational goods
retailing over the period have caused
revenue from yoga and Pilates
accessories retailing to decline.
Increased price competition over the
past five years has adversely affected
industry profitability. Margins declined
over the period with operators struggling
WWW.IBISWORLD.COM.AU
Industry Performance
Prices and to pass on cost increases to consumers.
competition While demand for industry services has
grown over the period, acceptance into
continued
the mainstream fitness sector has led to
larger operators chasing volumes rather
than margins.
In an effort to support profit margins,
smaller operators have sought to
differentiate their offerings through more
sophisticated services and narrow target
markets. Niche areas have also provided a
popular avenue of entry to the industry,
with several new operators offering
Industry structure Enterprise and establishment numbers
have increased steadily over the past five
years, with a small number of industry
exits offset by a greater number of new
entrants. The industry’s low barriers to
entry have encouraged new entrants, as
more accredited instructors have sought
to open their own businesses.
Furthermore, firms have increased in size,
with average revenue per establishment
increasing over the past five years.
Industry employment numbers have
risen over the past five years, with new
instructors typically undertaking short
Industry The emergence of a wider range of yoga
and Pilates methods is projected to
Outlook bolster the Pilates and Yoga Studios
industry’s revenue over the next five
years. While price competition has limited
revenue growth over the past five years,
differentiation and increased
sophistication will likely justify some
price increases over the next five years.
Demand for industry services,
particularly niche services, is forecast to
grow over the next five years, allowing the
industry to expand. High-value industry
activities, such as the provision of
accreditation and teaching programs, are
anticipated to make up an increasing
share of industry revenue, as internal
regulation of the industry increases.
However, the removal of federal subsidies
for yoga and Pilates classes accessed
through private health insurance
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Pilates and Yoga Studios in Australia February 2018   7
services such as Bikram yoga, Iyengar
yoga or yogalates over the past five years.
Bikram yoga, also known as Hot Yoga,
requires the room to be heated up to 37
degrees Celsius for every class. The
growing popularity of Bikram yoga has
caused operators offering the speciality to
incur rising utilities costs, which have
eroded profit margins over the period.
Increasing property prices have also lifted
rental expenses for industry operators,
placing downward pressure on industry
profit margins over the five-year period.
accreditation courses before entering the
industry. The number of new instructors
beginning to practice over the period has
limited average wages growth per
employee and caused wages to fall as a
share of industry revenue. For many
practitioners, yoga and Pilates represent
more than just exercise. Yoga, in
particular, often becomes a holistic
practice, involving mind, body and
lifestyle. The uptake of both disciplines
has increased the pool of people
interested in participating in the industry
as instructors or studio operators.
Industry revenue
10
5
% change
0
-5
-10
Year 10 12 14 16 18 20 22 24
SOURCE: WWW.IBISWORLD.COM.AU
memberships will likely constrain
industry growth over the period. Industry
revenue is projected to grow at an
annualised 1.2% over the five years
through 2022-23, to $569.8 million.
WWW.IBISWORLD.COM.AU
Industry Performance
Finding their niche Over the next five years, industry
operators are anticipated to aggressively
market to groups with special
requirements, and also grow niche
markets. Operators are likely to expand
their offering of seniors classes as more
baby boomers enter retirement. Yoga and
Pilates are particularly attractive to older
clients due to the low-impact nature of
the exercises. Doctors and health
professionals are increasingly
recommending industry services to older
people as a means of maintaining health,
managing injuries and controlling
weight. Operators are anticipated to
benefit from catering to the specific
health needs of ageing Australians,
tailoring services to address mobility,
flexibility and strength issues.
Community recognition of the role of
flexibility in overall health and wellbeing
is also forecast to aid industry expansion.
Health insurance The anticipated growth in community
acceptance of industry services and their
associated health benefits will be
advantageous for the industry over the
next five years. As the credibility and
professionalism of the industry rises,
more doctors and patients are expected
to turn to yoga and Pilates as a form of
health care. Industry operators are
anticipated to continue advertising
specialised services, as these services
often attract premium prices. This trend
will likely be most pronounced among
Pilates classes, with licensed
physiotherapists increasingly practicing
clinical Pilates.
Within the Pilates segment, operators
are likely to differentiate themselves by
offering classes targeted at specific
injuries and medical conditions. The
wider provision of services as a form of
alternative therapy or injury
management is anticipated to provide a
source of growth for the industry over
the next five years. This trend will likely
also fuel demand for training and
accreditation services, as health insurers
will typically only cover services
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Pilates and Yoga Studios in Australia February 2018   8
Operators are increasingly finding work
in the public sector, including schools
and aged-care facilities. Growing health
consciousness and awareness of mental
health issues will likely support demand
for industry services over the next five
years, due to the anxiety and stress-relief
benefits offered by yoga and Pilates.
An increased emphasis on training and
accreditation is projected to emerge as a
by-product of specialisation. Industry
employment is forecast to increase
slightly over the next five years, as
operators seek to expand their yoga or
Pilates practice by running accredited
courses for prospective instructors.
Although industry employment and
wages are calculated on a full-time
equivalent basis, many of the industry’s
employees work part-time. This is due to
the variable hours of classes and the
demand for morning and evening classes.
Demand is projected to
slow with the removal of
private health insurance
subsidies for classes
provided by accredited instructors.
In October 2017, the Federal
Government announced that yoga and
Pilates classes would not be eligible for
Commonwealth subsidies from April 2019
onwards. While private health insurers
will still be able to offer rebates for these
services, the rising cost of premiums is
expected to dissuade many Australians
from purchasing insurance and accessing
yoga and Pilates classes via extras cover.
With Commonwealth subsidies
eliminated, some private health insurers
will likely remove cover for industry
services, which would further diminish
the number of consumers attending yoga
and Pilates classes using health insurance.
As a result, demand growth for yoga and
Pilates studios is anticipated to slow over
the next five years.
WWW.IBISWORLD.COM.AU
Industry Performance
Growth matures After solidifying its presence in the
Australian health and fitness sector over
the past five years, the industry is
projected to consolidate slightly over the
next five years. Although the number of
industry enterprises is forecast to rise
over the five-year period, establishment
numbers growth will be slightly more
pronounced. This is a sign of the
industry’s increasing maturity.
While industry employment is forecast
to marginally increase over the next five
years, wages are projected to contract as
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   9
a share of revenue. Profit margins are
anticipated to increase over the period, as
higher pricing offsets rising rental and
utilities costs. External competition from
digital channels offering yoga and Pilates
instruction is anticipated to intensify over
the period, as consumers adopt cost-
effective alternatives to visiting industry
establishments. Companies that can
successfully carve out niche operations
are the most likely to be successful, as
these operations are more shielded from
price-based competition.
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Industry Performance
Life Cycle Stage The industry is growing at a slower
pace than the overall economy
There has been wholehearted market
acceptance of industry products
The number of establishments is increasing,
with further opportunities present for growth

20 Maturity Quality Growth

% Growth in share of economy

Key Features of a Mature Industry

Company High growth in economic
consolidation; importance; weaker companies Revenue grows at same pace as economy
level of economic close down; developed Company numbers stabilise; M&A stage
importance stable technology and markets Established technology & processes
Total market acceptance of product & brand
15 Rationalisation of low margin products & brands

10

Quantity Growth
Many new companies;
minor growth in economic
importance; substantial
5 technology change

Health Insurance
Gyms and Fitness Centres
Sports and Physical Physiotherapy Services
0
Recreation Clubs
Pilates and Yoga Studios
Toy and Sporting Goods Wholesaling

-5 Decline
Shrinking economic
importance

-10
-10 -5 0 5 10 15 20
% Growth in number of establishments
SOURCE: WWW.IBISWORLD.COM.AU

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WWW.IBISWORLD.COM.AU
Industry Performance
Industry Life Cycle The Pilates and Yoga Studios industry is
in the mature stage of its life cycle. Over
the 10 years through 2022-23, the
Thisindustry industry’s contribution to the economy
is M
 ature (industry value added) is expected to rise
at an annualised 1.6%. This represents
an underperformance of real GDP, which
is expected to grow at an annualised
2.5% over the same period. This
indicates that the industry is growing at
a slightly slower pace than the overall
economy. However, strong competition
among providers, rather than weak
demand, that has limited growth over
the past five years.
The industry’s services have become
increasingly accepted as a form of
physical exercise. Health-conscious
people, particularly women, have flocked
to group fitness classes, driving demand
upwards. While the practices of yoga and
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   11
Pilates are not new, the popularity of
these activities has soared over the past
decade as interest in alternative forms of
fitness and relaxation has grown.
The industry’s low barriers to entry
have allowed the number of
establishments to rise over the past five
years. The growth in establishments
includes both gyms providing yoga and
Pilates as part of a portfolio of other
fitness services and niche operators
running specialised studios.
Opportunities also exist for new
operators in niche areas, and for
operators providing yoga and Pilates as
a form of injury treatment or
management. However, technological
change remains low within the industry
and service groups are clearly
segmented. These factors are
characteristic of a mature industry.
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Products & Markets

Supply Chain  |   Products & Services  |   Demand Determinants
Major Markets  |   International Trade  |   Business Locations

Supply Chain KEY BUYING INDUSTRIES

K6321 Health Insurance in Australia
Some health insurers provide coverage of yoga and Pilates as a part of injury
management services.
R9112 Sports and Physical Recreation Clubs in Australia
Clubs in this industry utilise Pilates and yoga services in order to improve the fitness and
health of athletes.
Z9901 Consumers in Australia
Consumers drive demand for yoga and Pilates services.

KEY SELLING INDUSTRIES

F3734 Toy and Sporting Goods Wholesaling in Australia
This industry supplies sporting goods to Pilates and yoga operators, including yoga balls, yoga
straps, Pilates springs and athletic gear.
L6712c Industrial and Other Property Operators in Australia
This industry leases studio space to Pilates and yoga companies.

Products & Services Operators in the Pilates and Yoga Studios
industry primarily provide yoga and
Pilates classes. Some operators also sell a
range of equipment, clothes and other
accessories to complement these classes.
The industry also derives revenue from
accreditation and training services.
Yoga classes
Yoga is an ancient Indian discipline
combining mental, physical and spiritual
practices. Contemporary Western
interpretations tend to view yoga as a
holistic approach to general health and
fitness that involves different breathing
techniques, postures and meditation.
Most styles of yoga used for general
health and fitness are derived from Hatha
yoga, which focuses on poses, breathing
techniques and meditation. Popular
forms of yoga include Ashtanga yoga,
Bikram yoga (also known as Hot Yoga)
and Iyengar yoga. Bikram is an intense,
high-impact form of yoga, which is
practiced in studios heated up to 37
degrees Celsius. The popularity of Bikram
and other high-impact yoga styles has
grown rapidly over the past five years,
due in part to their fast rate of adoption
by fitness centres.
Other slower paced versions of Hatha
yoga, such as Iyengar, focus on alignment
using props. Hatha yoga is often
associated with a slower and gentler style
of classes. These slower paced yoga styles
have also grown rapidly in popularity
over the past decade as they are viewed
as effective methods of exercise for
beginners, for the elderly, and for people
rehabilitating from injuries. The spiritual
and meditational components of yoga
have broad appeal due to the growing
desire of many people, particularly in
major cities, to unwind and disconnect
from their busy lives and workloads.
Private health insurers have increasingly
subsidised yoga classes over the past five
years, as part of recovery and injury
management programs or extras cover.
In addition, rising health consciousness
and growing public awareness of mental
health issues over the period has spurred
on many Australians to adopt healthy
lifestyles and maintain their wellbeing.
As a result, yoga classes have risen as a
share of industry revenue over the
five-year period.
Pilates and hybrid classes
Pilates was developed in the 1920s and
focuses on developing core body strength,
posture and alignment. The main types of
Pilates practised in the industry include a
series of stretches and exercises that
create resistance through gravity and
body weight, or by using specialised

Provided to: La Trobe University (2128659532) | 07 April 2018

WWW.IBISWORLD.COM.AU
Products & Markets
Products & Services equipment or weights. Pilates classes
continued range from beginner to advanced level,
with costs varying based on the level,
duration and number of classes
purchased. Other hybrid forms of Pilates
and yoga, such as Yogalates or Yogilates,
incorporate aspects of both disciplines,
and have grown in popularity over the
past five years. Furthermore, Pilates has
been increasingly incorporated into
physiotherapy treatments and included
as extras cover with private health
insurance membership, boosting demand
for classes. As a result, Pilates and hybrid
classes have risen as a share of industry
revenue over the past five years.
Accreditation and training services
The accreditation, professional
development and training of yoga and
Pilates instructors generally cost between
$250 and $5,500 for courses ranging
from weekend courses, to Certificate IV
to an Advanced Diploma. Revenue from
this segment initially grew rapidly over
the past decade, in line with the rising
popularity of yoga and Pilates. However,
this segment has fallen as a share of
revenue over the past five years as the
industry has become more saturated and
overall participation growth has slowed.
Equipment and accessories retailing
The retail segment of the industry
involves the sale of yoga and Pilates
accessories such as clothing, yoga mats,
Products and services segmentation (2017-18)
5.0%
Prenatal and postnatal classes
5.7 %
Equipment and accessories retailing
7.1 %
Accreditation and training services
30.1 %
Pilates and hybrid classes
Total $536.4m
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   13
blocks, workout equipment, straps,
nutritional supplements and food. Retail
sales are generally a means for businesses
to make extra revenue on top of existing
yoga and Pilates classes. These are
generally discretionary purchases that
are contingent on factors such as
consumer sentiment and discretionary
income. Household discretionary
incomes have risen over the past five
years, supporting demand for necessary
and complementary equipment and
accessory purchases for yoga and Pilates
classes. However, volatile consumer
sentiment has resulted in many
participants exercising caution around
spending over the period. Furthermore,
demand from recreational goods retailing
has also fallen over the past five years,
placing downward pressure on
participant spending on yoga and Pilates
accessories. As a result, this segment has
fallen as a share of industry revenue over
the past five years.
Prenatal and postnatal classes
Prenatal yoga classes generally involve a
series of gentle poses and breathing and
relaxation techniques, which help women
maintain a gentle exercise routine
through pregnancy. These techniques
also help women prepare for labour and
motherhood by developing core strength
and good breathing techniques. The
classes often involve a meditation and
relaxation component to help manage the
52.1 %
Yoga classes
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU
Products & Markets
Products & Services stress of pregnancy, childbirth and
continued motherhood. Postnatal classes involve
new mothers practising gentle yoga with
babies under the supervision of an
instructor. A gradual decline in the birth
Demand Health consciousness, real household
Determinants discretionary income, leisure time
availability and seasonal conditions
determine demand for the Pilates and
Yoga Studios industry. The industry is
driven by people’s desires to live
healthy lifestyles. As people become
more conscious of their health and how
to improve it, the number of
enrolments at Pilates and yoga studios
generally increases. The relative cost
associated with other health-oriented
recreational activities and the
availability of private health insurance
cover for classes can moderate the
demand for industry services.
Real household discretionary income
influences demand for Pilates and yoga
classes. When discretionary incomes are
high, people have more money available to
spend on industry services. When
household income falls, people tend to cut
Major Markets Major markets for the Pilates and Yoga
Studios industry can be broken down
according to participation rates of four
key age brackets. The age of customers
can also impact the type of industry
services that may be purchased. Industry
services are appealing across all age
groups due to the low-impact nature of
yoga and Pilates services.
People aged 24 and under
Yoga has also become a popular activity
for health-conscious teenagers and young
adults. For people in this age group,
beyond the perceived health benefits, the
industry’s services are a good social
outlet and stress-relieving activity. Over
the past five years, rising numbers of
consumers in this age group have
accessed yoga and Pilates instruction and
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   14
rate over the past five years has caused
demand for prenatal and postnatal
classes to fall. As a result, this segment
has fallen as a share of industry revenue
over the period.
back discretionary expenses, such as
Pilates and yoga services. Consumer
confidence follows a similar pattern. When
consumer sentiment is high, Australians
are confident in their financial outlook and
are more willing to spend on industry
services. When consumer confidence is
low, people are less confident about their
financial futures and therefore reluctant to
spend on discretionary services, including
those provided by the industry.
The amount of time Australians have
available for leisure affects the level of
demand for industry services. With more
free time, people will have the option to
enrol in Pilates and yoga studios.
However, industry operators are keenly
aware of the time constraints facing
many consumers. As a result, there has
been an increase in operators providing
shorter classes during lunch breaks or
classes before and after working hours.
classes via mobile apps or the internet,
eliminating the need to attend scheduled
classes at studios. As a result, this market
has fallen as a share of industry revenue
over the period.
People aged 25 to 44
This age bracket is the industry’s largest
market as it consists of people that are
generally in full-time work with higher
discretionary incomes. This means they
have a greater capacity to attend regular
yoga and Pilates classes and buy the
necessary accessories. This market is also
the most likely to undertake yoga or
Pilates training and accreditation
courses. People in this age bracket are
also most likely to become parents and
demand post and prenatal yoga classes.
Consumers in this age group often attend
WWW.IBISWORLD.COM.AU
Products & Markets
Major Markets yoga and Pilates classes to make use of
continued their otherwise under-utilised private
health insurance memberships. However,
growing numbers of younger consumers
have reduced or rescinded their private
health insurance memberships over the
period, contributing to falling demand
from this market. Overall, this age
bracket’s share of industry revenue has
declined over the past five years.
People aged 45 to 64
This age bracket generally consists of
people with high discretionary income,
due to the relatively higher rates of
employment and career advancement
that are likely compared with the younger
or older age brackets. Consumers in this
category also have the capacity to attend
regular classes or contemplate
undertaking a yoga or Pilates
Major market segmentation (2017-18)
9.6 %
People aged 65 and over
13.7 %
People aged 24 and under
34.9 %
People aged 45 to 64
Total $536.4m
International Trade The Pilates and Yoga Studios industry is a
service-based industry and international
trade does not apply. The majority of
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   15
accreditation course, perhaps as part of a
career change. Industry services are
relatively low impact, making them
appealing for older consumers wishing to
engage in some form of physical activity.
Participation from this market has
remained stable over the past five years.
People aged 65 and over
This market mainly includes retired and
senior Australians. This market’s share of
revenue has increased over the past five
years, with exercise being encouraged
among older Australians. Industry
participation is expected to be
concentrated mainly in gentle yoga
classes. This market is forecast to grow as
a proportion of industry revenue over the
next five years given the ageing Australian
population and the large amount of baby
boomers moving into retirement.
41.8 %
People aged 25 to 44
SOURCE: WWW.IBISWORLD.COM.AU
operators are locally owned and operated
and earn most of their revenue from
domestic activity.
WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in Australia February 2018   16

Products & Markets

Business Locations 2017-18

NT
0.8

QLD
24.1

WA
9.5

SA
6.0

NSW
31.1

ACT
1.9

VIC
25.4

Enterprises (%)
Cold Zone (<10) TAS
1.2
<25
<50
Hot Zone (<100)
Not applicable

SOURCE: WWW.IBISWORLD.COM.AU

Provided to: La Trobe University (2128659532) | 07 April 2018

WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in Australia February 2018   17

Products & Markets

Business Locations The geographic spread of the industry is

Distribution of enterprises vs. population
closely correlated with population and
income distribution. Pilates and yoga
40
studios are typically positioned in areas
with high foot traffic or in convenient
30
locations for customers. The majority of

Percentage
industry establishments are concentrated
across the densely populated eastern 20
seaboard states, with New South Wales,
Victoria and Queensland accounting for 10
around 80% of industry establishments,
and just over 77% of the population. The 0
number of studios located in these states

ACT

NSW

NT

QLD

SA

TAS

VIC

WA
is larger than their population bases
would indicate. This is largely due to
higher discretionary incomes, as well as
the overall popularity of yoga and Pilates Enterprises
as a form of exercise in these areas. This Population
trend is also evident in the Australian SOURCE: WWW.IBISWORLD.COM.AU

Capital Territory, which accounts for

1.9% of yoga and Pilates studios, and
1.6% of the population.
The trend towards locations in major
population centres is supported by the
importance of market size to the industry.
As such, most establishments operate in
the major cities of Sydney, Melbourne,
Brisbane, Adelaide and Perth where the
bulk of the population resides. Many
studios are also located in suburban areas
and inner-city areas. Some of the more
expensive businesses operate in CBDs
where they can target office workers that
generally have high levels of discretionary
income. This is a lucrative growth area
given the rise in corporate wellness
initiatives, the number of corporate gym
memberships and private health
insurance subsidisation by employers in
major cities.

Provided to: La Trobe University (2128659532) | 07 April 2018

WWW.IBISWORLD.COM.AU
Competitive Landscape
Market Share Concentration  |   Key Success Factors  |   Cost Structure Benchmarks
Basis of Competition  |   Barriers to Entry  |   Industry Globalisation
Market Share The Pilates and Yoga Studios industry is
Concentration characterised by a low level of market
share concentration, with no player
expected to account for more than 5.0%
Level
of revenue in 2017-18. The industry is
Concentration in highly fragmented and is dominated by
this industry is L ow small, individual businesses. Most
operators run a single location, catering
to a narrow local market. Operators do
not typically gain significant advantage
from branding, and gain minimal
economies of scale from multiple
locations, due to the need for skilled
trainers to manage classes. The industry’s
high labour costs and relatively low profit
margins are generally not conducive to
Key Success Factors Easy access for clients
A high-profile and convenient location that
offers easy access and parking for clients
IBISWorld identifies can provide a competitive advantage for
250 Key Success yoga and Pilates services firms.
Factors for a
business. The most Having a good technical
knowledge of Pilates and yoga
important for this
Pilates and yoga studios rely on skilled
industry are: and experienced instructors and staff
members to lead training sessions,
including group classes and individual
workouts. Quality instructors help
attract and retain customers.
Cost Structure The Pilates and Yoga Studios industry is
Benchmarks primarily engaged in providing instructed
yoga and Pilates classes. As a result, wage
costs dominate the cost structure of most
operators. The large number of small
operators ensures that cost structures are
relatively uniform across the industry.
Profit
Profit is expected to account for 7.8% of
industry revenue in 2017-18. Industry
profit margins are tight as high
competition among players minimises
opportunities for greater profit. Industry
profit has declined as a share of revenue
over the past five years. Low entry
barriers and high competition have
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   18
opening multiple locations across a wide
geographic area.
The industry’s market share
concentration has declined over the past
five years. More forms of specialised yoga
and Pilates have become available, while
barriers to entry remain low. These
factors have allowed sole-traders to set
up quickly wherever an active market for
their services exists. Large operators in
the industry come in the form of
diversified gym chains, providing yoga
and Pilates classes alongside free weight,
sauna, spa and fitness facilities. These
business generally have low yoga and
Pilates class numbers.
Provision of appropriate facilities
Providing and regularly maintaining
appropriate equipment is essential to
attract and retain yoga and Pilates
customers. Doing so will likely drive
revenue growth.
Effective product promotion
Being able to promote a yoga and Pilates
services business effectively increases
awareness and attracts greater
membership and local patronage.
Effective promotion can contribute to
revenue and profit growth.
hindered the industry’s ability to increase
prices in line with higher operating
expenses. The popularity of Pilates and
yoga over the past decade has resulted in
more players entering the industry,
which has heightened competition and
subsequently hurt profit margins.
Wages
Accounting for the largest share of
industry revenue, wage costs dominate
the cost structure of yoga and Pilates
businesses. This is despite the average
wage for instructors being relatively
low. The industry spends most of its
revenue on wages, due to its reliance on
trained and experienced employees to
WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in Australia February 2018   19

Competitive Landscape

Cost Structure instruct classes. The industry also has Purchases

Benchmarks some requirement for untrained staff,
such as for reception and support work
continued
for clients. Wages have decreased as a
share of revenue over the past five
years, due to a large number of new
instructors entering the industry,
which has limited average wage growth
per employee.
Rent
Rent costs account for a significant share
of revenue, due to the industry’s reliance
on large spaces for classes. Many
companies tend to rent, rather than
own, facilities. Operators have also
sought to rent locations in high-traffic
areas to increase customer convenience.
While this trend has pushed rent costs
higher over the past five years, operators
have been willing to rent non-prime
locations within these areas such as
second floor locations. Overall, rent has
increased as a share of revenue over the
past five years, due to increased
competition and higher rental costs in
the property market.
The industry’s purchase costs are
relatively small, as classes do not require
many direct inputs. Operators have
aimed to capitalise on their network of
health-conscious clients by purchasing a
range of equipment, food, beverages and
other products for resale at studios. The
industry is highly reliant on teachers and
instructors, with purchases being small
compared with teacher compensation.
Purchase costs have fallen as a share of
industry revenue over the past five years.
Depreciation and utilities
The industry’s depreciation expenses are
relatively minor, as minimal amounts of
low-value equipment are required for
studios. Reformer Pilates requires
specialised equipment for clients to use,
which can be depreciated. As a result,
depreciation costs have increased
slightly as a share of revenue over the
past five years. Utilities include
electricity, gas and water. Utility costs
have also increased as a share of
industry revenue over the five-year

Sector vs. Industry Costs

Average Costs of
all Industries in Industry Costs
sector (2017-18) (2017-18)
100 n Profit
9.6 7.8 n Rent
3.6 1.8 9.3 n Utilities
80
4.7 3.4 n Depreciation
3.6 n Other
9.2 n Wages
n Purchases
Percentage of revenue

60
50.5

40
62.5

20 21.8

8.0 4.2
0
SOURCE: WWW.IBISWORLD.COM.AU

Provided to: La Trobe University (2128659532) | 07 April 2018

WWW.IBISWORLD.COM.AU
Competitive Landscape
Cost Structure period. This increase can be partly
Benchmarks attributed to the increasing popularity of
Bikram yoga (also known as Hot Yoga),
continued
which requires operators to heat their
premises to high temperatures over long
periods of time.
Other
The industry’s other costs include
insurance, communications, marketing,
Basis of Competition The Pilates and Yoga Studios industry
faces a moderate level of competition.
Industry participants compete based on
Level & Trend price, service quality and offering,
 ompetition
C in marketing, size of operations and
this industry is reputation. The industry is also subject to
Mediumand the external competition from other forms of
exercise and gyms and fitness centres.
trend is I ncreasing
Internal competition
Yoga and Pilates studios compete
significantly on the basis of price. Many
consumers regard industry services as
relatively homogenous and are willing to
change studios if more competitive
pricing is available elsewhere. However,
profit margins within the industry are
low, limiting the degree to which
operators can lower prices. As a result,
operators have sought to differentiate
their offering to retain customers. This
differentiation can occur through offering
a variety of class types to entice
customers, including power yoga,
prenatal yoga and children’s yoga.
Operators have also sought to
compete on the basis of service quality,
relying on seasoned and highly skilled
instructors. Better instructors may
provide a more enjoyable experience for
customers, encouraging repeat business.
Consequently, industry operators also
compete for high-quality instructors to
help drive business growth. Some firms
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   20
certification, travel, training, contract
services, and administrative services.
Other costs have grown as a share of
revenue over the past five years due to
higher insurance premiums and the
increased use of contractor services, such
as for cleaning and security.
Administration services include
accounting and auditing costs, which are
often carried out by outside firms.
highlight brand strength and invest in
accreditation as a signal to potential
clients that their services are of high
quality. Such accreditation often also
allows operators to provide services
subsidised by health funds. Such
affiliations can help firms save on
overhead costs, in particular
marketing expenses.
Industry players can attract customers
by offering clients a variety of clean
facilities, such as showers and yoga mats,
as well as onsite parking. Furthermore,
studios that provide easy-to-use online
booking systems for clients will have a
competitive advantage. Being located in
a high-traffic, convenient location is
also important.
External competition
The industry faces external competition
from other forms of exercise. Other
activities such as jogging or walking are
often cheaper for participants and may be
more attractive to price-conscious
consumers. Furthermore, individuals
may access free online yoga and Pilates
tutorials via mobile apps or Youtube,
rather than attending a studio in person.
The industry also faces competition from
gyms. Many individuals view gyms as a
direct substitute for industry activities,
with a range of other fitness and exercise
classes available for members.
WWW.IBISWORLD.COM.AU
Competitive Landscape
Barriers to Entry Entry barriers to the Pilates and Yoga
Studios industry are low. This is largely
Level & Trend due to the minimal capital needed to
establish operations within the industry.
 arriers to Entry
B A new entrant can rent studio space in
in this industry are order to lower capital requirements.
Lowand S  teady Furthermore, the equipment required to
provide many Pilates and yoga services
are available at relatively low cost.
High fragmentation within the
industry demonstrates that entry
barriers are minimised for new firms.
The brand strength of existing firms does
not pose a significant hurdle to these
players. While there is some brand
recognition within the industry, a new
entrant that offers high quality service at
a competitive price can build its own
brand recognition in its area. As such,
new entrants do not face any significant
disadvantage in terms of brand
recognition. However, established
providers and a lack of word-of-mouth
recommendations can make it difficult
Industry Although some companies with
Globalisation international arms operate in the
industry, the Pilates and Yoga Studios
Level & Trend industry has a low level of globalisation.
The majority of firms operate on a local
 lobalisation
G in this level, earn most of their revenue from
industry is L owand domestic activity, and are owned and
the trend is S  teady operated by small business owners.
Globalisation is also low as international
trade is not applicable to the industry.
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   21
Barriers to Entry checklist
Competition Medium
Concentration Low
Life Cycle Stage Mature
Capital Intensity Low
Technology Change Low
Regulation & Policy Light
Industry Assistance Low
SOURCE: WWW.IBISWORLD.COM.AU
for new businesses to attract clients.
This is due to geographical limitations
for industry firms and people tending to
remain loyal to existing yoga and
Pilates instructors.
Low training requirements contribute
to low entry barriers. New entrants would
typically be required to take a short course
in order operate as a qualified instructor.
The cost of training is also low compared
with many other professions, with courses
ranging from $250 to $5,500.
The level of industry globalisation is
expected to remain stable over the next
five years. Limited economies of scale
exist for Australian Pilates and yoga studio
operators to expand overseas or for
international companies to enter the
Australian market. However, the industry
is significantly influenced by methods,
training techniques and trends originating
abroad, including various forms of yoga.
WWW.IBISWORLD.COM.AU
Major Companies
There are no major players in this industry
Other Companies The Pilates and Yoga Studios industry is
highly fragmented and no one operator
controls a significant portion of the
market. However, several specialist yoga
and Pilates providers have entered the
industry over the past five years, such as
Peak Physique Hot Yoga and Power
Living Australia, operating out of small
studios. These new entrants have
provided some competition for
traditional gyms that run classes as part
of a full gym service.
Goodlife Operations Pty Limited
Estimated Market Share: 1.7%
Goodlife Operations Pty Limited,
operating as Goodlife Health Clubs
(Goodlife) was established in 2002 and
has grown to a network of 77 gyms for
more than 200,000 members across
Australia. The chain was purchased by
Ardent Leisure Group (then Macquarie
Leisure Trust Group) in 2007. Goodlife
was subsequently divested by Ardent
Leisure Group in 2016 to Quadrant
Private Equity. Goodlife offers members
cardio and weight equipment, swimming
pools, saunas and an extensive range of
group fitness classes. Goodlife
participates in the industry by providing
yoga and Pilates classes to members,
including Bikram yoga, virtual yoga,
virtual Pilates and hybrid classes.
Anytime Australia Pty Ltd
Estimated market share: 1.1%
Anytime Australia Pty Ltd (trading as
Anytime Fitness) is a global budget gym
chain offering cardio and weight
equipment, personal training sessions,
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   22
some group fitness classes and 24-hour
access to all Anytime Fitness gyms for
members. Anytime Australia operates
approximately 490 gyms with around
500,000 members across Australia.
Anytime Fitness operates in the industry
through group training classes, which can
include yoga and Pilates.
Fitness First Australia Pty Limited
Estimated market share: 1.0%
Fitness First Australia Pty Limited
commenced operating in Australia in
2000 and is now one of the country’s
largest operators of full-service gyms,
with over 240,000 members across over
70 clubs. Quadrant Private Equity
acquired the company in 2016. Most
Fitness First gyms provide free- and
loaded- weight facilities, saunas, steam
rooms, swimming pools and group
fitness classes. The company’s clubs also
provide several yoga and Pilates
options, including flow yoga, Bikram
yoga and Pilates.
YMCA Australia
Estimated market share: Less than 0.5%
YMCA Australia consists of a federation
of 19 Member Associations across
Australia, which employ over 12,000
staff. YMCA Australia is affiliated with
the World Alliance of YMCAs, which is a
confederation of national YMCA
movements. YMCA Australia provides
yoga and Pilates services at its various
gyms and centres. There are
approximately 5 million participations in
a sports program provided by the YMCA
each year across Australia.
WWW.IBISWORLD.COM.AU
Operating Conditions
Capital Intensity   |   Technology & Systems   |   Revenue Volatility
Regulation & Policy   |   Industry Assistance
Capital Intensity
Level
The levelof capital
intensity is L ow
Tools of the Trade: Growth Strategies for Success
New Age Economy
Recreation, Personal Services,
Health and Education. Firms
benefit from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labour skills are key to
product differentiation.
Labour Intensive
Health Insurance
Yoga Studios Gyms and Fitness Centres
Physiotherapy Services
Sports and Physical Recreation Clubs
Traditional Service Economy
Wholesale and Retail. Reliant
on labour rather than capital
to sell goods. Functions cannot
be outsourced therefore firms
must use new technology
or improve staff training to
increase revenue growth.
The Pilates and Yoga Studios industry
exhibits a low level of capital intensity.
The industry is highly reliant on skilled
employees and has little need for
equipment and production plants. Most
of the industry’s capital investment
involves specialised equipment for
reformer Pilates workouts and premises
with robust heating capabilities for
Bikram yoga. However, the equipment
required is relatively minimal. Studios
typically operate as an open space,
providing maximum area for clients to
train. As a result, the industry spends
most of its revenue on attracting and
maintaining a group of talented
instructors to provide high-quality
service and entice repeat customers.
For every dollar spent on industry
wages in 2017-18, an expected $0.06
will be spent on capital costs. The
industry’s capital intensity has
Pilates and
Toy and Sporting Goods Wholesaling
Change in Share of the Economy
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in AustraliaFebruary 2018   23
Capital intensity
Capital units per labour unit
0.5
0.4
0.3
0.2
0.1
0.0
Economy Arts and Pilates and
Recreation Yoga Studios
Services
Dotted line shows a high level of capital intensity
SOURCE: WWW.IBISWORLD.COM.AU
increased over the past five years, due
to greater investment in capital
equipment for some yoga and Pilates
classes and industry wages declining as
a proportion of industry revenue over
the period.
Investment Economy
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Capital Intensive
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labour abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialise
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in AustraliaFebruary 2018   24

Operating Conditions

Technology & Systems The industry is subject to a low level of yoga mats and exercise balls. Forms of
technological change, as technology yoga, such as Bikram, which requires a
Level requirements across most yoga and moderated room temperature, have
Pilates studios are generally minimal. higher technology requirements.
The level
of There have been some slight Installing heating, ventilation and shower
Technology developments in yoga and Pilates facilities mean set-up costs can be higher
Change is L ow equipment over the past five years. In for these types of establishments.
addition, more industry operators have Pilates have slightly higher technology
embraced technology by streaming requirements. Most exercises require
classes online for participants. However, physical equipment, which can be
technology change in the industry has expensive for operators seeking to open a
focused on the effectiveness or durability new business. The most widely used
of existing technology, rather than apparatus in Pilates is the Reformer: a
developments of new equipment. sliding chair on a wooden or metal base,
Technological change is expected to with leather straps for resistance. Other
continue to remain low over the next five forms of equipment typically used in a
years in line with current trends. Pilates studio include exercise balls, the
Yoga classes are often performed using Cadillac, Wunda Chair, ladder barrel and
little or no equipment as most exercises high chair. However, small studios can
are conducted using only the participant’s readily operate without substantial
body weight as resistance. Necessary investment in equipment, with these
equipment rarely extends beyond simple products typically found in larger studios.

Revenue Volatility The Pilates and Yoga Studios industry is Over the past five years, fluctuations in
characterised by a low level of revenue consumer sentiment introduced instability
volatility. While the discretionary nature in participant spending and industry
Level
of Pilates and yoga can cause some shifts revenue. However, a large portion of the
The level of in revenue from year to year, consistent population engage in some physical
Volatility is L ow demand for exercises and health-related activity via gyms. Yoga and Pilates studios
services has provided stability for the have been able to capture a portion of this
industry over the past five years. Yoga market, smoothing the effects of uncertain
and Pilates have risen in popularity over economic conditions. Competition within
the past five years as consumers the industry has smoothed revenue
increasingly focused on their health. volatility to a degree. With operators

A higher level of revenue Volatility vs. growth

volatility implies greater
industry risk. Volatility can 1000 Hazardous Rollercoaster
negatively affect long-term
Revenue volatility* (%)

strategic decisions, such as 100

the time frame for capital
investment.
10
When a firm makes poor
investment decisions it Pilates and Yoga Studios
may face underutilised 1
capacity if demand
suddenly falls, or capacity 0.1 Stagnant Blue Chip
constraints if it rises –30 –10 10 30 50 70
quickly. Five-year annualised revenue growth (%)
* Axis is in logarithmic scale
SOURCE: WWW.IBISWORLD.COM.AU

Provided to: La Trobe University (2128659532) | 07 April 2018

WWW.IBISWORLD.COM.AU
Operating Conditions
Revenue Volatility mainly competing on price and service
continued quality, the industry has been unable to
increase prices substantially. This has
Regulation & Policy The Pilates and Yoga Studios industry is
subject to a light level of regulation, with
the trend remaining relatively steady.
Level & Trend Regulation for operators includes
 he level of
T consumer protection laws, accreditation
Regulation is requirements for instructors and local
Lightand the council permits for the location of a
studio. Consumers are protected under
trend is S
 teady
the Competition and Consumer Act 2010
and other fair trading acts in most states
for issues regarding the disclosure of
membership contracts, especially if they
attend yoga and Pilates classes at gyms
or fitness centres. These acts protect
consumers against misleading
communications, and ensure
confidentiality and information privacy.
Operators in the industry must also
follow work health and safety laws
recently developed by the Federal
Government, which consolidated the
former occupational health and safety
laws of all the states and territories.
Instructors have a duty of care to workers,
students and themselves to minimise the
risk of potential dangers such as the safe
provision and monitoring of equipment,
incense and essential oils. This also
includes cautious teaching and
monitoring difficult and intricate poses or
exercises that entail a high risk of injury.
Industry Assistance There is no specific provision of
government assistance for the industry.
Operators can source information,
Level & Trend training and advice from many industry
 he level of
T organisations. These organisations
Industry Assistance include Yoga Australia, the
is L owand the International Yoga Teachers
Association, Satyananda Yoga Teachers
trend is S teady
Association, BKS Iyengar Yoga
Association of Australia, Yoga Alliance,
Australian Association of Yoga in Daily
Life, Australian Fellowship of Yoga
Teachers, the Australian Pilates Method
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in AustraliaFebruary 2018   25
ensured that industry revenue has
remained relatively stable over the past
five years.
Yoga and Pilates instructors are
required to meet certain requirements in
order to become accredited teachers. For
yoga teachers, this includes completing
the required training and experience to
obtain a Yoga Australia membership.
Yoga Australia provides provisional
membership upon the completion of
200 hours of training, and full
membership once 350 hours of training
have been completed. The recognised
instructor level of qualification then
increases in proportion with the
subsequent hours of teaching.
Fitness professionals are required to
obtain recognition from Yoga Australia
by demonstrating a minimum of 200
teaching hours. Once members,
instructors must then abide by the rules
of Yoga Australia, the associations code
of ethics, have an up-to-date first aid
certificate and invest in personal
development training. Pilates instructors
must also complete an accreditation
course and a minimum of 200 teaching
hours in order to take classes. Pilates
instructors generally need to have first
aid and CPR certificates. Membership to
these bodies is required in order to
provide health-insurance funded services
as part of injury-management routines.
Association, Pilates Alliance Australasia
and other related organisations.
Several industry associations offer
additional services to members and
people interested in pursuing a career in
teaching yoga or Pilates. Services include
training courses, codes of conduct,
conferences, exhibitions, retreats, and
workshops. While some of these
organisations offer a broad range of
services and information about all types
of yoga and Pilates, others focus on
specialist services, such as Iyengar yoga.
WWW.IBISWORLD.COM.AU Pilates and Yoga Studios in Australia February 2018   26

Key Statistics
Industry Data Industry
Revenue Value Added Wages Domestic
($m) ($m) Establishments Enterprises Employment Exports Imports ($m) Demand
2008-09 456.2 354.0 2,980 2,510 7,793 -- -- 296.9 N/A
2009-10 447.5 341.2 2,985 2,513 7,724 -- -- 286.5 N/A
2010-11 421.3 316.2 3,100 2,608 7,727 -- -- 273.8 N/A
2011-12 439.8 330.4 3,176 2,671 8,038 -- -- 280.1 N/A
2012-13 462.7 347.5 3,206 2,695 8,351 -- -- 293.9 N/A
2013-14 498.2 366.5 3,270 2,747 7,730 -- -- 316.5 N/A
2014-15 525.8 392.8 3,308 2,778 8,354 -- -- 332.2 N/A
2015-16 542.6 404.3 3,416 2,867 8,903 -- -- 341.8 N/A
2016-17 539.2 401.6 3,504 2,939 9,116 -- -- 339.6 N/A
2017-18 536.4 396.4 3,598 3,017 8,824 -- -- 335.0 N/A
2018-19 542.4 397.7 3,683 3,086 8,940 -- -- 335.9 N/A
2019-20 561.4 410.5 3,772 3,159 9,209 -- -- 344.7 N/A
2020-21 569.1 413.2 3,871 3,241 9,207 -- -- 346.2 N/A
2021-22 568.3 409.2 3,969 3,321 9,054 -- -- 342.0 N/A
2022-23 569.8 407.0 4,069 3,403 8,994 -- -- 339.3 N/A

Annual Change Industry Domestic

Revenue Value Added Establishments Enterprises Employment Exports Imports Wages Demand
(%) (%) (%) (%) (%) (%) (%) (%) (%)
2009-10 -1.9 -3.6 0.2 0.1 -0.9 N/A N/A -3.5 N/A
2010-11 -5.9 -7.3 3.9 3.8 0.0 N/A N/A -4.4 N/A
2011-12 4.4 4.5 2.5 2.4 4.0 N/A N/A 2.3 N/A
2012-13 5.2 5.2 0.9 0.9 3.9 N/A N/A 4.9 N/A
2013-14 7.7 5.5 2.0 1.9 -7.4 N/A N/A 7.7 N/A
2014-15 5.5 7.2 1.2 1.1 8.1 N/A N/A 5.0 N/A
2015-16 3.2 2.9 3.3 3.2 6.6 N/A N/A 2.9 N/A
2016-17 -0.6 -0.7 2.6 2.5 2.4 N/A N/A -0.6 N/A
2017-18 -0.5 -1.3 2.7 2.7 -3.2 N/A N/A -1.4 N/A
2018-19 1.1 0.3 2.4 2.3 1.3 N/A N/A 0.3 N/A
2019-20 3.5 3.2 2.4 2.4 3.0 N/A N/A 2.6 N/A
2020-21 1.4 0.7 2.6 2.6 0.0 N/A N/A 0.4 N/A
2021-22 -0.1 -1.0 2.5 2.5 -1.7 N/A N/A -1.2 N/A
2022-23 0.3 -0.5 2.5 2.5 -0.7 N/A N/A -0.8 N/A

Key Ratios Revenue per Share of the

IVA/Revenue Imports/Demand Exports/Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2008-09 77.60 N/A N/A 58.54 65.08 2.62 38,098.29 0.03
2009-10 76.25 N/A N/A 57.94 64.02 2.59 37,092.18 0.02
2010-11 75.05 N/A N/A 54.52 64.99 2.49 35,434.19 0.02
2011-12 75.13 N/A N/A 54.72 63.69 2.53 34,846.98 0.02
2012-13 75.10 N/A N/A 55.41 63.52 2.60 35,193.39 0.02
2013-14 73.56 N/A N/A 64.45 63.53 2.36 40,944.37 0.02
2014-15 74.71 N/A N/A 62.94 63.18 2.53 39,765.38 0.02
2015-16 74.51 N/A N/A 60.95 62.99 2.61 38,391.55 0.02
2016-17 74.48 N/A N/A 59.15 62.98 2.60 37,253.18 0.02
2017-18 73.90 N/A N/A 60.79 62.45 2.45 37,964.64 0.02
2018-19 73.32 N/A N/A 60.67 61.93 2.43 37,572.71 0.02
2019-20 73.12 N/A N/A 60.96 61.40 2.44 37,430.77 0.02
2020-21 72.61 N/A N/A 61.81 60.83 2.38 37,601.82 0.02
2021-22 72.00 N/A N/A 62.77 60.18 2.28 37,773.36 0.02
2022-23 71.43 N/A N/A 63.35 59.55 2.21 37,725.15 0.02

Figures are in inflation-adjusted 2018 dollars. SOURCE: WWW.IBISWORLD.COM.AU

Provided to: La Trobe University (2128659532) | 07 April 2018

WWW.IBISWORLD.COM.AU
Jargon & Glossary
Industry Jargon BIKRAM YOGAA popular form of high-impact intense
yoga. It involves completing yoga postures in a room
heated to 37 degrees Celsius.
CADILLACA Pilates exercise product that includes a
trapeze swing, arm and leg springs and push bars fitted
to a metal frame above a padded bench.
HATHA YOGAA philosophy focusing on the physical
aspects of yoga. It is the main form of contemporary
yoga in Australia with many derivatives. It is also
considered a gentle type of yoga.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that
new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.
CAPITAL INTENSITYCompares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labour. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity.
High capital intensity is more than $0.333 of capital to
$1 of labour; medium is $0.125 to $0.333 of capital to
$1 of labour; low is less than $0.125 of capital for every
$1 of labour.
CONSTANT PRICESThe dollar figures in the Key
Statistics table, including forecasts, are adjusted for
inflation using the current year (i.e. year published) as
the base year. This removes the impact of changes in
the purchasing power of the dollar, leaving only the
‘real’ growth or decline in industry metrics. The inflation
adjustments in IBISWorld’s reports are made using the
Australian Bureau of Statistics’ implicit GDP price
deflator.
DOMESTIC DEMANDSpending on industry goods and
services within Australia, regardless of their country of
origin. It is derived by adding imports to industry
revenue, and then subtracting exports.
EMPLOYMENTThe number of permanent, part-time,
temporary and casual employees, working proprietors,
partners, managers and executives within the industry.
ENTERPRISEA division that is separately managed and
keeps management accounts. Each enterprise consists
of one or more establishments that are under common
ownership or control.
ESTABLISHMENTThe smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.
EXPORTSTotal value of industry goods and services sold
by Australian companies to customers abroad.
IMPORTSTotal value of industry goods and services
brought in from foreign countries to be sold in Australia.
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%.
Provided to: La Trobe University (2128659532) | 07 April 2018
Pilates and Yoga Studios in Australia February 2018   27
IYENGAR YOGAA type of yoga that focuses on precise
movements, sequences and timing.
REFORMER PILATESA type of Pilates that uses a
reformer bed with springs and rope pulleys to provide
resistance while stretching.
YOGALATESAn exercise system that combines the
yoga and Pilates practices and techniques.
INDUSTRY REVENUEThe total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the firm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industry’s contribution to GDP, or
profit plus wages and depreciation.
INTERNATIONAL TRADEThe level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%; medium is 5% to 20%; and high is more
than 20%. Imports/domestic demand: low is less than
5%; medium is 5% to 35%; and high is more than
35%.
LIFE CYCLEAll industries go through periods of growth,
maturity and decline. IBISWorld determines an
industry’s life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industry’s products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENTBusinesses with
no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.
PROFITIBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a company’s profitability. It is
calculated as revenue minus expenses, excluding
interest and tax.
VOLATILITYThe level of volatility is determined by
averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
±3%.
WAGESThe gross total wages and salaries of all
employees in the industry. Benefits and on-costs are
included in this figure.
www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com

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