Professional Documents
Culture Documents
Industry Definition This industry includes individuals that provide personalised diet programs. They
offer one-on-one and small group fitness are typically employed by gyms, fitness
training. Personal trainers may also studios and hospitals, or self-employed.
Industry at a Glance
Personal Trainers in 2013-14
% change
10
4
0
−10 0
−20 −4
Year 06 08 10 12 14 16 18 20 Year 08 10 12 14 16 18 20
Revenue Employment
SOURCE: WWW.IBISWORLD.COM.AU
p. 20
Personal trainers
27.3%
VIC
p. 4
SOURCE:
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 24
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 4
Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive The Personal Trainers industry has growth over the five-year period,
Summary displayed strong growth over the past revenue fell significantly in 2008-09
five years. Demand for personal training following the global financial crisis. This
has been fuelled by rising levels of health was a result of consumers substituting
consciousness in Australia and a growing personal training services for
interest in weight-loss programs and inexpensive do-it-yourself exercise
fitness regimes. In addition, Australia’s methods. Despite this, the industry
economic prosperity and growth has quickly recovered as household income
provided consumers with greater growth remained steady. Also, continued
purchasing power to spend on personal awareness of the need for a healthy
training as their level of discretionary body, promoted through TV programs
income has risen in line with the overall and government initiatives, has helped
economy. Growing levels of obesity have keep the industry’s activities at the
also contributed to industry growth, as forefront of consumers’ minds. Industry
overweight consumers typically prefer revenue is anticipated to grow by 3.9%
personal training to gym memberships in 2013-14.
as these services are more specialised Growth in discretionary incomes and
and results oriented. Obesity in Australia health consciousness are expected to
has been rising due to the ageing continue over the next five years. As a
population, since the likelihood of an result, the industry is projected to reach
individual becoming overweight saturation point as a growing number of
increases with age. Moreover, pressure entrants creates a higher level of
to work longer hours has led to competition among industry operators,
increasingly sedentary lifestyles, further forcing prices down overall.
contributing to growing obesity levels. As Consequently, profit is also expected to
a result of increasing health awareness, drop once these competitive pressures
industry revenue is expected to increase start to affect the industry. IBISWorld
by an annualised 10.9% over the past five forecasts industry revenue to rise at an
years, to total $390.0 million in 2013-14. annualised 2.4% over the next five years,
Although the industry achieved robust to reach $438.1 million in 2018-19.
Key External Drivers Health consciousness Australians have become more aware of
Health consciousness is a measure of the benefits of keeping healthy and
how many people exercise for at least exercising, demand for personal training
100 minutes in a two-week period. As services has grown. In addition, health
16 66.5
12 66.0
65.5
Percentage
8
% change
65.0
4
64.5
0 64.0
−4 63.5
Year 08 10 12 14 16 18 20 Year 05 07 09 11 13 15 17 19
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 5
Industry Performance
Key External Drivers consciousness is also influenced by age, older age groups will become
continued consumer exposure to high-profile increasingly aware of health issues and
sporting events such as the Olympics. In will endeavour to take on greater levels of
2013-14, health consciousness is exercise in order to help extend their life
expected to increase, providing an expectancy. Older people striving to keep
opportunity for industry participants to fit generally require gentle, low-impact
generate revenue. exercises, which the industry can provide
more easily than non-personal fitness
Real household discretionary income services. In 2013-14, the population aged
The level of real household discretionary 50 and older is expected to rise.
income can influence demand for the
industry’s services. When income levels Levels of obesity
are high, consumers have greater Obesity is a rising health issue in
discretionary power and are therefore Australia, largely resulting from an
more likely to spend on personal training. ageing population and more sedentary
On the other hand, consumers are still lifestyles. The increasing levels of
able to engage in physical activity without obesity have helped to drive interest in
spending money on a personal trainer, the industry’s services, particularly as
therefore low discretionary income those who are overweight generally do
growth will pose a threat to industry not exercise regularly and therefore
revenue. Real household discretionary stand to benefit more from specialised
income is expected to fall in 2013-14. personal training services rather than
gym memberships. Levels of obesity in
Population aged 50 and older Australia are expected to increase
As Australia’s population continues to in 2013-14.
Industry Performance
Profit and wages Personal trainers, while often seen to be the distinction between wages and profit
associated with a fitness centre, gym or becomes blurred. Owner-operators, as
other health-related organisation, are the only unit of labour in their business,
nearly always acting independently. They receive all revenue directly, and thus can
are usually not directly affiliated with the either choose to designate a wage for
fitness centre or other institution where themselves, absorb profit as personal
they engage clients. As a result, the expenses, or reinvest their profit into the
industry is largely dominated by owner- business. While IBISWorld expects profit
operators, which typically generate to be 7.7% for 2013-14, this is not entirely
revenue as self-employed individuals. representative of the profitability of the
This highly fragmented, owner- industry. A more appropriate proxy to
operator dominated landscape has gauge profitability is the level of wages,
ramifications of industry operations. For which has risen at an annualised 7.6%
example, when calculating cost structure, over the past five years.
Service locations The industry’s services are based around 3.0% over the five years through 2013-14.
each personal trainer and thus each Industry services are typically provided
employee. This means that industry in exercise-friendly areas, including parks,
services can be conducted nearly beaches and fitness centres. Personal
anywhere that allows for some type of trainers that are associated with a fitness
exercise, with a personal trainer simply centre will typically pay a fee to use their
needed as an instructor, motivator and facilities and have access to their
facilitator. Therefore, establishments for members. In addition, some local councils
the industry are defined as the employees require industry operators to apply and
themselves, since they can provide obtain permit fees to use public park
industry services from wherever they spaces for training purposes. As a result,
happen to be. Industry establishments location is an important concern for the
(and therefore, employment) are industry despite the mobile, convenient
anticipated to increase by an annualised nature of its services.
Growing competition While industry performance is affected when industry revenue dropped away
by the same factors as other fitness significantly in 2008-09 as these
industries, personal trainers are substitute goods continued to provide an
nonetheless competing against other alternative options for exercise, but with
exercise services. Alternative fitness lower cost obligations.
services act as competitive pressures for However, when cost concerns are
the Personal Trainers industry. These removed from the picture, the appeal of
include gym memberships, home exercise the industry’s services lie in their
and sport participation. While these specialisation and the higher quality
activities can be performed in provision of exercise activity. Thus,
conjunction with personal training industry services are used to engage in
services, they provide competition fitness activities with greater efficiency
particularly when paying for exercise and effectiveness. If trainers are able to
becomes a greater concern during tough demonstrate their value in this manner,
economic times. This was particularly then they are likely to succeed in
evident during the global financial crisis, attracting and retaining clients.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 7
Industry Performance
Health-related issues Beyond simple health awareness, the consideration of physical attractiveness,
industry has also received a push from which is increasingly becoming a prime
rising incidences of certain health motivator in today’s society.
problems, which are creating strong Consequently, all levels of government
incentives for many people to get fit. The have been promoting healthier eating and
most obvious of these is the rising obesity living habits to combat this trend. This
level in Australia. The Organisation for promotion is helping raise awareness of
Economic Co-operation and the industry’s services. Thus, the industry
Development estimates Australia to have is able to promote its ability to cater to
the second-highest obesity level per those with differing body types and
capita among developed countries. highlight its ability to offer specific
Awareness of obesity levels acts as an exercise programs to a greater extent than
incentive to raise one’s fitness levels due a regular gym membership or home
to health concerns and the further exercise alternatives.
Health concerns Health consciousness is expected to rise Health Strategy, which is pursuing the
over the next five years as the ageing of goal of decreasing the risk of chronic
the population continues, as rising levels diseases linked to obesity, tobacco and
of obesity continue and as promotion of excessive consumption of alcohol. This
fitness, weight loss and preventative is expected to manifest itself through
health continues. IBISWorld expects many programs, an example of which is
that the popularity of the TV shows like the Measure Up program, which
The Biggest Loser will lead to a greater promotes self-awareness of weight
proliferation of such shows. Government levels. Also included is the Healthy
initiatives are also pushing for greater Communities Initiative, which aims at
awareness of these issues. For instance, delivering effective physical activity and
in 2010 the Federal Government healthy eating programs in a
launched the National Preventative community-focused context.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 8
Industry Performance
Health concerns High levels of health consciousness are of Elevate is aimed at catering towards
continued promoting further interaction between corporate workers and centralising many
the industry and the broader fitness health and wellbeing services together in
sector, as well as interaction between the the one facility. These include
industry and the health sector. Personal physiotherapists, general practitioners,
trainers already assist in some instances dietitians and alternative health therapies
with rehabilitation exercises and many along with personal trainers. This
cater towards niche groups, including the convergence is expected to continue, as
elderly and the disabled. This is expected the overall approach to the health sector
to continue with the ageing of the moves towards promoting preventative
population. Due to this interaction, health measures. Thus, the fitness sector
relationships between personal trainers and personal trainers are being further
and health professionals are starting to incorporated into maintaining general
emerge. For example, the establishment health and wellbeing.
Location costs While personal training activities is expected. Studios are spaces set aside
operate over a range of locations, local specifically for personal training
council prices are set to rise for the use activities (often one-on-one) that can
of outdoor areas, creating a greater help provide a higher level of focus and
incentive for operators to look elsewhere attention than elsewhere.
for possible locations to conduct training However, while the number of these
sessions. While it is possible that some facilities is expected to grow over the next
personal trainers may take their five years, the capital costs to establish
activities back to the gym, one-on-one or studios can be high, particularly for
group sessions in parks or other outdoor owner-operators. The establishment of
areas is more appealing to many personal training studio chains or
consumers than conducting the same franchises is expected to grow in line with
activities inside a gym. Many people see this trend. One of the larger franchises in
gyms as congested, off-putting or the industry, Vision Personal Training, is
overwhelming. Rather, an increase in focused on providing studio facilities for
the number of personal training studios personal training activities.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 9
Industry Performance
Life Cycle Stage High levels of health consciousness
have prompted consumers to invest
more in their health and fitness
Government initiatives aimed at all consumers
have broadened the industry’s appeal
Slowing establishment growth is
expected to prompt innovation among
operators in the industry
10
Quantity Growth
Many new companies;
minor growth in economic
importance; substantial
5 technology change
Personal Trainers
General Insurance
-10
-10 -5 0 5 10 15 20
% Growth in number of establishments
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 10
Industry Performance
Industry Life Cycle The Personal Trainers industry is in the continue to support industry growth as
growth stage of its life cycle. Over the 10 older age groups realise the benefits of
years through 2018-19, the industry’s maintaining their health during old age.
This industry contribution to the economy (industry Establishments are expected to grow
is G
rowing value added) is expected to grow by an strongly during the first half of the
annualised 6.3%, a strong performance 10-year period. However, IBISWorld
when compared with annualised GDP anticipates that establishment growth
growth of 2.5%. This suggests that the will slow considerably as the market
industry is growing at a faster rate than reaches saturation. In addition, the rate
the overall economy. of new clients is expected to slow, an
There are a number of factors driving indication that personal trainers will
the growth phase of the industry. High compete for existing clientele. This will
levels of health consciousness backed by encourage personal trainers to develop
government initiatives have fuelled specialised training programs, targeted
demand for fitness services and encouraged at niche markets. For example,
consumers to invest in their health. pregnancy and postnatal training
Australia’s ageing population is expected to programs are increasing in popularity.
WWW.IBISWORLD.COM.AU Personal Trainers in Australia November 2013 11
Products & Services The Personal Trainers industry offers a training services allows consumers to
range of products and services. Among meet physical fitness requirements
operators, these services are determined economically. For example, during the
by whether the personal trainer operates global financial crisis many consumers
independently, with or without a fitness scaled back discretionary spending.
space, or within a fitness centre. Over the However, IBISWorld expects that group-
past five years, the number of trainers training services have increased their
operating independently significantly share of revenue over the past five years,
outgrew those attached to fitness centres. at the expense of one-on-one services.
This is likely due to the expanded reach This is mainly because group training
of fitness programs, which have been allows consumers to continue engaging
aided by TV programs, such as The in physical training at a reduced cost.
Biggest Loser, which are expected to
have energised interest in maintaining Personal training
physical health. Personal training, or one-on-one services,
typically include assessment and goal-
Group training oriented training. Trainers use
For the budget-conscious consumer, assessment services to determine a
personal trainers also offer group- client’s physical ability before developing
training services. While not quite as a training program. In addition, trainers
specific as one-on-one training, group- incorporate the client’s goals into their
5.0%
Online training
20.7%
Other services
39.9%
Group training
34.4%
Personal training
Products & Services training program, ensuring the result is pregnancy fitness, rehabilitation
continued what the client expects. Demand for assistance and fitness programs and
personal training services has been services that cater to older age groups.
strong. However, as consumers have cut IBISWorld expects these specialty
back spending, this segment has lost services to grow in coming years as the
market share to group training services, industry grows and internal competition
which provide better value for money. promotes product innovation.
Demand Demand for the Personal Trainers industry with the Carbon Tax. The shift in
Determinants relies on practical issues such as consumer concern indirectly led demand
discretionary income, time availability and for personal training services to wane,
trends in consumer preferences (such as due to its discretionary nature. Such
the type and amount of fitness activity shifts in demand illustrate how
required). Growth in discretionary income dependent the industry is on changes in
is the single-largest factor driving demand, consumer behaviour.
as many consumers deem personal Health issues, such as rising obesity
training as a highly discretionary expense levels and an ageing population also
given the range of cheaper alternatives, affect demand for industry services.
such as fitness videos and home fitness Australia has the second-highest level of
equipment. Despite this, personal training obesity, behind the United States,
will still record strong demand, as many according to the Organisation for
consumers prefer the personal motivation Economic Co-operation and
associated with industry services. Development. Moreover, the likelihood
Health consciousness in Australia has of obesity increases with age, which is
grown marginally over the past five years. particularly relevant given Australia’s
A number of factors affect the level health ageing population. The increasing rate
consciousness, the most prevalent of of sedentary lifestyles and the
which is a shift towards other areas of availability of energy-dense nutrient-
concern. For instance, over 2011-12 the poor foods is also to blame for obesity
Federal Government passed the Carbon levels. Consequently, there is a growing
Tax, which came into effect 1 July 1 2012. awareness of the costs associated with
In 2011-12, consumers shifted their focus obesity on the healthcare system, which
from health consciousness to concern all aid in increasing demand for the
over increased costs of living associated Personal Trainers industry.
WWW.IBISWORLD.COM.AU Personal Trainers in Australia November 2013 13
Major Markets The industry’s primary market is the for 34.5% of industry revenue. This age
consumer market, of which more than group represents a significant growth
half are female. This market can be market for the industry as these
broken down into age groups. consumers will typically have well-
established careers and a steady source
People aged 15 to 34 years of income. Personal trainers are
This age group represents the largest beginning to target time-poor, high-
market to the industry, at approximately income earners in this age bracket who
54.6%. Consumers in this market are prefer the convenience of industry
typically more concerned with services in terms of flexible time and
appearance and have greater exposure to location. Furthermore, as adults age and
media and advertising that promotes fit their metabolisms slow, they are more
and healthy lifestyles. Although the likely to demand personal training
younger half of this age group will services and fitness programs. The
generally have lower incomes, they are increasing age that women are choosing
often still financially reliant on parents to have children has also contributed to
and therefore are able to spend a greater increased demand from this market
proportion of their income on over the past five years.
discretionary services such as personal
training. The second half of this group People aged 55 years and over
will typically have steady income streams Representing 10.9% of revenue, this age
that enable them to spend on industry group is another important area of
services. Furthermore, many women in growth for the industry. Australia’s
this age bracket will demand personal ageing population has expanded this
training services after giving birth, due to market as older age groups realise the
the physical stress experienced and benefit of maintaining their health and
weight gained during pregnancy. improving their quality of life. Many
Although demand from this market is personal trainers offer training programs
strong, this segment’s share of revenue and exercises specific to seniors, which
has declined over the past five years as do not create as much strain on the body
other markets have grown. and are therefore increasingly preferred
to non-personal services. Over the past
People aged 35 to 54 years five years, this market’s share of industry
Australians aged 35 to 54 years account revenue has grown.
34.5%
People aged 35 to 54 years 54.6%
People aged 15 to 34 years
International Trade Since personal training activities are some online services enable potential
nearly always linked to personal exports and imports of industry services,
interaction, the industry has little ability IBISWorld estimates that this level of
to internationalise its services. While international trade is negligible.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 15
NT
0.6
QLD
24.3
WA
7.2
SA
7.1
NSW
30.7
ACT
1.8
VIC
27.3
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 16
Percentage
56.9% of the population and 58.0% of
personal trainers. On the other hand, 20
less populous states such as Tasmania
and the Northern Territory represent 10
3.3% of the population and only 1.6% of
industry establishments. Since 0
discretionary incomes are a key driver
ACT
NSW
NT
QLD
SA
TAS
VIC
WA
of the industry, this is also reflected in
the geographical spread of personal
trainers. Areas with higher
discretionary incomes, such as New Personal trainers
South Wales and Victoria, tend to have Population
a greater concentration of industry SOURCE: 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 Since the industry is dominated by owner- Those companies that do have a presence
Concentration operators, this means that there are no in the industry mostly exist as franchises
major players and market share and thus retain little market share of their
concentration is low. Rather, the industry is own. Gyms that employ personal trainers
Level
highly fragmented with personal trainers do not exist on a large scale and so these
Concentration in competing against each other for clientele. players are not significant either.
this industry is L ow
Key Success Factors Easy access for clients Having a good reputation
Locating personal training services close Word-of-mouth promotion is particularly
to densely populated areas is important important in the industry as clients often
IBISWorld identifies in attracting time-poor consumers. refer friends and family members.
250 Key Success
Factors for a Having a good technical Ability to provide services
business. The most knowledge of the product in diverse locations
Due to the nature of the industry, Due to the time constraints of consumers,
important for this
consumers expect personal trainers to personal trainers need to be mobile in
industry are: be highly knowledgeable about fitness order to attract a larger clientele base,
and training-related products offering their services at different
and services. locations and different times.
Cost Structure The industry is characterised by a large trainers are valued for their knowledge of
Benchmarks number of owner-operated businesses, fitness routines and techniques and for
meaning that the industry’s cost structure their customer service skills. As a result,
displays substantial crossover between wages represent 49.0% of industry revenue.
wages and profit. Wages are typically calculated based on the
time that personal trainers spend working
Profit with clients. Overall, the percentage of
As the industry is characterised by a large wages as a share of revenue has decreased
proportion of owner-operators, profit varies as the industry has grown, which has led to
across participants. Personal trainers, enterprises allocating a greater proportion
particularly those that are self-employed, of resources towards non-wage costs.
have high profit margins due to low
overhead costs and no additional wages. Other costs
Owner-operator personal trainers receive Significant cost items not related to
revenue in the form of client fees, which are wages include purchase expenses,
used to cover operating costs or reinvested marketing activities used to promote
back into the business. Personal trainers business operations and rental costs.
may also choose to take wages from this Rental costs are relevant to personal
revenue, leaving the remainder as profit. In trainers that use gyms or parks for
2013-14, industry profit margins are training sessions, as they often have to
expected to account for 7.7% of revenue and pay to operate in such venues.
have varied significantly over the past five Other costs include insurance, which
years as increasing competition has forced allows the industry to retain an income
personal trainers to discount prices. stream in case of possible customer
injuries occurring while exercising, and
Wages franchise fees paid towards a franchise if a
The industry is highly labour intensive due trainer has chosen to conduct their
to its service-based nature. Personal activities under a brand.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 18
Competitive Landscape
Cost Structure
Sector vs. Industry Costs
Benchmarks
continued Average Costs of
all Industries in Industry Costs
sector (2013-14) (2013-14)
100 ■ Profit
10.7 7.7 ■ Rent
2.7 4.3
1.8 2.0 ■ Utilities
80
3.3 ■ Depreciation
9.6 ■ Other
33.1 ■ Wages
■ Purchases
Percentage of revenue
60
51.0
40
49.0
20
20.8
0
3.9
SOURCE: WWW.IBISWORLD.COM.AU
Competitive Landscape
Industry Due to the personal nature of industry the franchise network. However,
Globalisation activities, the industry struggles to industry franchises operations do not
increase its efficiency in service provision usually extend across international
beyond individuals themselves. borders. The most significant example of
Level & Trend However, the existence of personal a franchise that does extend beyond
lobalisation
G in training franchises enables personal international borders is Fitness First,
this industry is trainers to outsource some of their which promotes itself as a fitness centre
Lowand the trend marketing costs and consequently allow first and foremost, and within this
industry brands to grow. Thus, the most franchise there exists a personal trainer
is I ncreasing
globalised component of the industry is franchise as well.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 20
Major Companies
There are no major players in this industry | Other companies
Other Companies Due to the dominance of owner- activities outside of the gyms themselves.
operators, there are no major players For example, Fitness First provides a
within the Personal Trainers industry. personal trainer franchise linked to its
Furthermore, those firms that do gym operations.
represent more than one personal trainer The most prominent specialty personal
are usually franchises, and thus do not training franchise is Vision Personal
directly employ these personal trainers. Training. This franchise, while still linked
Rather, owner-operators pay to use gym to specific locations, uses personal
space and other locations in order to training studios instead of regular gyms or
promote their activities, and thus create public outdoor locations. Each studio is
an illusion of belonging to a gym. used specifically for each personal training
session and thus retains the focus and
Franchises attention that attracts individuals to
Franchises represent a growing segment personal training in the first place.
of the industry. These allow personal
trainers to operate under a strong brand Employed personal trainers
name, which can significantly aid in Gyms and other health-related
promoting their activities. Since the organisations that employ personal
industry’s activities by definition are trainers in a full-time capacity are not
highly personable, the brand name can large in number. Those firms that do
only take a trainer so far and there is still retain full-time personal trainers
a core reliance on strong customer generally charge session fees for each
service, whether associated with a trainer, which are included on top of
franchise or not. their salary. If greater interest in personal
Nonetheless, this segment is expected training activities increases, greater
to grow. Growth is expected to come out competition may force session rates
of already established gyms and health down overall. As a result, this business
centres that are aiming to extend their model could become more attractive.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 21
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
General Insurance
Operating Conditions
Technology & Systems Technology change in the Personal and usually does not alter the delivery
Trainers industry is low. While some of services.
Level personal trainers operate out of fitness An important component of being
centres, it is not their responsibility to successful in the industry is database
The level
of update equipment. As a result, management. As a result, personal
Technology operating out of a fitness centre is an trainers are increasing their uptake of
Change is L ow attractive alternative to operating a hardware and software to enhance
private studio. Regardless of location, communication with clients, manage
the rate of technological change in client profiles, targets and goals and
equipment and training methods is slow increase customer retention.
Revenue Volatility The Personal Trainers industry has illustrates how sensitive the Personal
displayed a moderate level of revenue Trainers industry is to economic conditions,
volatility over the past five years. since many consumers view personal
Level
Fluctuations in household discretionary training services as highly discretionary.
The level of income, health consciousness, population, During times of tough economic conditions,
Volatility is M
edium consumer trends and general economic consumers readily make cuts to their fitness
conditions have affected revenue budgets. Even though discretionary
movements. The onset of the global incomes continued to grow during 2008-09
financial crisis caused revenue to contract due to lower interest rates, consumers
sharply over 2008-09. However, during the chose to reduce debt and spending levels,
following year revenue grew 13.2%. This and increase savings instead.
Regulation & Policy Consumer protection laws, such as the personal training, an indirect way to
Fair Trading Act, primarily regulate the ensure personal trainers qualify for
Personal Trainers industry, as they do the professional indemnity and public
Level & Trend broader fitness sector. The Fair Trading liability insurance. Once formal
he level of
T Act covers issues such as marketing and education requirements are met, industry
Regulation is L ight sales tactics, confidentiality and the use players must then complete a 20-hour
and the trend of consumers’ personal information. placement course in a fitness centre or a
Personal trainers are also required to personal training studio. CPR and senior
is I ncreasing complete certificates in fitness and first aid certification, and registration
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 23
Operating Conditions
Regulation & Policy with industry association Fitness able to begin operating once fulfilling
continued Australia, are also mandatory. educational requirements. For instance,
An area of increasing regulation stems prior to the park licence registration,
from local councils requiring personal industry operators were able to complete
trainers to apply and obtain permit fees to their educational training and begin
use public park spaces for training practising as a certified personal trainer
purposes. For example, from 1 July 2011 almost immediately. Now with the
the City of Yarra, Victoria, implemented licensing regulation in effect, trainers are
legislation that requires trainers to pay an restricted from operating immediately as
annual fee and an additional per person, they must now wait for applications to
per session surcharge. To curb an influx of open and then wait for approval.
applications, the council set applications Moreover, this process could cause
to open only twice a year, in August and competition between those operating out
January. Moreover, the personal training of fitness centres to increase significantly,
sessions must take place during set hours since licence applications will be restricted
and only in a select number of parks and to twice a year.
reserves within the city. While not a major As a lightly regulated industry, there
deterrent for industry operators, the have been calls for stricter regulations,
licence requirement could adversely affect which could lead to increased
the rate at which personal trainers are competition and higher barriers to entry.
Industry Assistance The Personal Trainers industry does not for the Personal Trainers industry.
receive any direct government assistance. Fitness Australia is an industry
However, the Federal Government’s association that provides support to the
Level & Trend $872.1 million to fund preventative Australian Fitness industry, which
he level of
T health campaigns is expected to includes personal training professionals.
Industry Assistance indirectly boost demand for personal The industry association provides support
is L owand the trainers. While there is no direct through a range of services including
incentive for personal trainers in the education courses, partnerships,
trend is S teady fund, the volume of media advertising advocating tax benefit schemes and
discussing the health risks associated ongoing development of industry
with obesity, lack of physical activity and guidelines. On the back of the Federal
poor lifestyle habits, will aid demand for Government’s Healthy Communities
personal trainers (especially from those Initiative, Fitness Australia developed the
with higher discretionary incomes). For Lift for Life program aimed at helping
example, the Measure Up campaign consumers in low socioeconomic
focused on bringing attention to the communities improve their fitness and
health risks associated with waist lifestyles. Through the program, there has
circumference. This campaign is expected been development of information and
to have generated increased demand for training programs for fitness
industry services, particularly from professionals, including personal trainers,
women, who represent the largest market to administer the Lift for Life program.
WWW.IBISWORLD.COM.AU Personal Trainers in AustraliaNovember 2013 24
Key Statistics
Industry Data Industry
Revenue Value Added Wages Domestic
($m) ($m) Establishments Enterprises Employment Exports Imports ($m) Demand
2004-05 209.1 156.4 5,057 4,436 5,057 -- -- 129.7 N/A
2005-06 232.4 165.4 5,004 4,314 5,004 -- -- 134.8 N/A
2006-07 273.2 188.2 5,320 4,508 5,320 -- -- 147.6 N/A
2007-08 276.6 179.2 6,821 6,316 6,821 -- -- 132.8 N/A
2008-09 232.6 150.1 6,268 5,750 6,268 -- -- 132.6 N/A
2009-10 263.4 169.1 6,610 6,009 6,610 -- -- 146.1 N/A
2010-11 288.0 172.7 6,703 6,094 6,703 -- -- 154.1 N/A
2011-12 326.6 190.0 6,985 6,293 6,985 -- -- 171.5 N/A
2012-13 375.3 215.7 7,118 6,355 7,118 -- -- 191.4 N/A
2013-14 390.0 229.1 7,280 6,500 7,280 -- -- 191.1 N/A
2014-15 404.4 244.7 7,189 6,419 7,189 -- -- 190.1 N/A
2015-16 412.5 256.8 7,171 6,346 7,171 -- -- 181.5 N/A
2016-17 425.3 271.4 7,172 6,347 7,172 -- -- 182.9 N/A
2017-18 433.8 283.7 7,272 6,379 7,272 -- -- 177.9 N/A
2018-19 438.1 276.9 7,345 6,443 7,345 -- -- 175.3 N/A
Industry Jargon FITNESSFitness refers to the body’s ability to function OBESITYObesity is a medical condition that refers to
in work and leisure activities effectively, and thus retain someone having excess weight that has an adverse
an overall good level of health. effect on their overall health.
FITNESS CENTREThis is an area that houses exercise PERSONAL TRAINING STUDIOPersonal training
equipment for people to use to increase their fitness studios differ from gyms as studios tend to be smaller
level. and specialise in one-on-one training and small group
training sessions.
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
barriers mean it is easy for new companies to enter an on production; all other operating income from outside
industry. the firm (such as commission income, repair and service
CAPITAL INTENSITYCompares the amount of money income, and rent, leasing and hiring income); and
spent on capital (plant, machinery and equipment) with capital work done by rental or lease. Receipts from
that spent on labour. IBISWorld uses the ratio of interest royalties, dividends and the sale of fixed
depreciation to wages as a proxy for capital intensity. tangible assets are excluded.
High capital intensity is more than $0.333 of capital to INDUSTRY VALUE ADDED (IVA)The market value of
$1 of labour; medium is $0.125 to $0.333 of capital to goods and services produced by the industry minus the
$1 of labour; low is less than $0.125 of capital for every cost of goods and services used in production. IVA is
$1 of labour. also described as the industry’s contribution to GDP, or
CONSTANT PRICESThe dollar figures in the Key profit plus wages and depreciation.
Statistics table, including forecasts, are adjusted for INTERNATIONAL TRADEThe level of international
inflation using the current year (i.e. year published) as trade is determined by ratios of exports to revenue and
the base year. This removes the impact of changes in imports to domestic demand. For exports/revenue: low is
the purchasing power of the dollar, leaving only the less than 5%; medium is 5% to 20%; and high is more
‘real’ growth or decline in industry metrics. The inflation than 20%. Imports/domestic demand: low is less than
adjustments in IBISWorld’s reports are made using the 5%; medium is 5% to 35%; and high is more than
Australian Bureau of Statistics’ implicit GDP price 35%.
deflator. LIFE CYCLEAll industries go through periods of growth,
DOMESTIC DEMANDSpending on industry goods and maturity and decline. IBISWorld determines an
services within Australia, regardless of their country of industry’s life cycle by considering its growth rate
origin. It is derived by adding imports to industry (measured by IVA) compared with GDP; the growth rate
revenue, and then subtracting exports. of the number of establishments; the amount of change
EMPLOYMENTThe number of permanent, part-time, the industry’s products are undergoing; the rate of
temporary and casual employees, working proprietors, technological change; and the level of customer
partners, managers and executives within the industry. acceptance of industry products and services.
ENTERPRISEA division that is separately managed and NONEMPLOYING ESTABLISHMENTBusinesses with
keeps management accounts. Each enterprise consists no paid employment or payroll, also known as
of one or more establishments that are under common nonemployers. These are mostly set up by self-employed
ownership or control. individuals.
ESTABLISHMENTThe smallest type of accounting unit PROFITIBISWorld uses earnings before interest and tax
within an enterprise, an establishment is a single (EBIT) as an indicator of a company’s profitability. It is
physical location where business is conducted or where calculated as revenue minus expenses, excluding
services or industrial operations are performed. Multiple interest 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 Australian companies to customers abroad. ±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
IMPORTSTotal value of industry goods and services
±3%.
brought in from foreign countries to be sold in Australia.
WAGESThe gross total wages and salaries of all
INDUSTRY CONCENTRATIONAn indicator of the
employees in the industry. Benefits and on-costs are
dominance of the top four players in an industry.
included in this figure.
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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