Tightening up: Falling average membership fees have subdued industry revenue growth

The Gyms and Fitness Centres industry has expanded over the past five years, following significant structural change. The rising popularity of 24-hour budget gym chains has been the main driver of industry growth. Budget gyms, such as Jetts Fitness and Snap Fitness, are able to offer consumers affordable memberships, flexibility and convenience. These benefits have attracted many new consumers who were previously unable to pay for expensive full-service gym memberships, or who could not attend a gym during regular opening hours. Rising discretionary incomes and positive consumer sentiment have also encouraged increased expenditure on industry services over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Budget gym popularity and increasing discretionary incomes have boosted industry revenue
  • Rising health consciousness has boosted demand for gym memberships, increasing industry revenue
  • Membership numbers are projected to continue rising over the next five years
  • Industry Report - Starting a New Business Chapter

    The Gyms and Fitness Centres industry has moderate barriers to entry, and this trend has remained stable over the past five years. The main factors preventing firms from entering the industry include initial capital requirements and potential franchise fees. Some brands require an initial capital base upwards of $100,000 to qualify as a franchise owner. However, some branded chains may offer in-house finance or other financial aids to help with initial start-up fees. Smaller players also face extensive start-up costs, including interior fit-outs, marketing, permits, insurance and the cost of equipment.Cashflow is another entry barrier, as it can take a while for a gym or fitness centre to gain a membership base large enough to break-even. Fre...purchase to read more.

    Additional Insights for the Gyms and Fitness Centres Industry

    IBISWorld has determined the most important Key Success Factors for the Gyms and Fitness Centres are:

  • Ensuring pricing policy is appropriate
  • Easy access for clients
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Real household discretionary income in the Gyms and Fitness Centres industry impact industry performance..

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    What's in this report

    What is the Gyms and Fitness Centres in New Zealand Industry?

    Industry firms operate health clubs, fitness centres and gymnasiums. The industry provides a range of fitness and exercise services.

    Industry Products
  • Memberships
  • Fitness classes
  • Personal training
  • Other products and services
  • Industry Activities
  • Fitness centre operation
  • Gymnasium operation
  • Health club operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Real household discretionary income
  • Consumer sentiment index
  • Levels of obesity

  • Current Performance
  • Consumer demand
  • Budget and premium gyms
  • Industry participation
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry demand
  • Profit
  • Industry structure
  • Table: Gyms and Fitness Centres Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gyms and Fitness Centres Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand
  • Sports and Physical Recreation Clubs in New Zealand

  • Key Selling Industries
  • Electricity Retailing in New Zealand
  • Health Insurance in New Zealand

  • Products & Services
  • Memberships
  • Fitness classes
  • Personal training
  • Other products and services
  • Chart: Gyms and Fitness Centres Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 15 to 34
  • Consumers aged 35 to 54
  • Consumers aged 55 and over
  • Chart: Major Market Segmentation for the Gyms and Fitness Centres Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gyms and Fitness Centres

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gyms and Fitness Centres Industry

  • Industry Globalization
    Les Mills Holdings Limited, Duval Limited, CityFitness Group Limited, Lift Brands New Zealand Limited,
  • Table: Les Mills Holdings Limited - financial performance
  • Table: Duval Limited - financial performance
  • Table: CityFitness Group Limited - financial performance
  • Table: Lift Brands New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gyms and Fitness Centres Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gyms and Fitness Centres Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Circuit Training
  • An exercise program that involves performing and repeating several exercises over a short time period.
  • Crossfit
  • A rounded exercise program provided by gyms that focuses on improving strength and conditioning.
  • Pilates
  • A physical fitness system that focuses on improving flexibility, core strength and endurance.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gyms and Fitness Centres in New Zealand market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gyms and Fitness Centres in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gyms and Fitness Centres in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gyms and Fitness Centres in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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