Shaping up for business; Australia's healthy obsession with gyms
It’s a competitive marketplace but as these figures show, there’s plenty of room to add weight to the franchises in the gym space.
The fitness market is increasingly crowded, with new brands emerging almost monthly. Yet as these statistics show, there’s plenty of opportunity for established brands to increase their market share, and for fresh-faced fitness firms to muscle in on the action.
High energy fitness junkies are still getting their fix at the gym, but today there are more average Aussies looking to find a way to get and stay healthy. And the depth and breadth of the sector is ensuring there’s something for everyone - and every investor.
So if you’re considering running a fitness franchise yourself, check out these vital statistics...
Evidence shows that the health and fitness industry has grown significantly in Australia over the last five years, with a predicted slow in expansion indicating the sector is moving into a stage of maturity.
External factors such as health consciousness, average weekly hours worked, real household discretionary incomes, consumer sentiment and levels of obesity will continue to drive the market forward, presenting opportunities to motivated entrepreneurs.
For prospective franchisees, the light industry regulation and low technology change allows for simplified entry into business ownership, however certain cost and competitive barriers do exist.
With over 4000 gyms and fitness studios across the country, Australian consumers are spoilt for choice, making the industry highly competitive for operators.
One method for overcoming the competitive barrier is specialisation, with female-orientated, functional fitness and personal training specific gym models growing in stature as consumers search for something different.
Additionally, the industry has a medium level of revenue volatility and capital intensity, brought on by the evolving trend towards the latest equipment, machines and studio features.
While the level of globalisation remains light, projected domestic growth reveals that consumer demand for gyms and fitness studios remains steady. Take a look at the services in high demand and the demographics driving growth in the gym space.
Source: Gyms and Fitness Clubs in Australia, May 2018, IBISWorld