Asia-Pacific ... only two markets in the region are considered mature : Australia and New Zealand , which have the highest penetration rates at 15.3 % and 13.6 % respectively .. continue in the future
generate roughly $ 2 billion in revenue . Saudi Arabia leads all markets in this region in revenue with nearly $ 620 million generated at 1,100 health clubs , which attract more than 800,000 members . In terms of club count and memberships , Egypt leads all MENA markets with 1,680 facilities and 957,500 members .
Despite conflicts in several MENA countries , there is a demand for fitness as consumers seek to exercise and reap the benefits of an active lifestyle . Successful international fitness operators — including Fitness First , Gold ’ s Gym , and World ’ s Gym — have expanded into the Middle East . In less than 10 years , Fitness Time , based in Saudi Arabia , grew to 100 club locations , highlighting the opportunity in this region .
Asia-Pacific
The Asia-Pacific region serves 22 million members at more than 25,000 clubs . In total , this market generates annual revenues of $ 16.8 billion ( USD ), excluding the Middle East , according to The IHRSA Asia-Pacific Health Club Report .
Fueled by growing economies , the health club industry in the Asia-Pacific is robust , with significant potential for continued growth . Only two markets in the region are considered mature : Australia and New Zealand , which have the highest penetration rates at 15.3 % and 13.6 %, respectively . While the fitness market shows signs of rapid growth and professionalization in Hong Kong ( 5.85 %), Singapore ( 5.8 %) and Japan ( 3.3 %), opportunities for growth remain in the Philippines ( 0.53 %), Thailand ( 0.5 %), Indonesia ( 0.18 %) and India ( 0.15 %).
Driven by the momentum of economic growth , the fitness market in the Asia- Pacific region has shown steady growth with a positive outlook going forward . Overall market penetration is on an upward trajectory , reflecting an
increasing awareness of health club memberships . However , the region ’ s fitness market remains stratified due to varying stages of development , which can be categorized into three tiers :
Tier 1 : Australia ( 15.3 %) and New Zealand ( 13.6 %) are relatively established markets , with higher penetration rates than their neighbors . However , the mature and professionalized markets in these countries indicate limited growth potential ; labor and real estate costs have also constrained growth here .
Tier 2 : Hong Kong ( 5.85 %), Singapore ( 5.8 %), Japan ( 3.3 %) and Taiwan ( 3.0 %) belong to the fast-expanding and maturing second-tier markets . This segment features gradually professionalizing services , expanding consumer bases , and high concentration of leading players . With room for growth , already fierce competition is expected to
Asia-Pacific ... only two markets in the region are considered mature : Australia and New Zealand , which have the highest penetration rates at 15.3 % and 13.6 % respectively .. continue in the future
Tier 3 : The remaining Asia-Pacific
markets are still in a comparatively early stage , as a result of slower economic development and low awareness of personal health . Malaysia ( 1.04 %), China ’ s top 10 cities ( 0.97 %), Philippines ( 0.53 %), Thailand ( 0.5 %), Vietnam ( 0.5 %), Indonesia ( 0.18 %) and India ( 0.15 %) comprise the emerging markets . The fitness industry in these countries is typically concentrated in the capital and first-tier cities , where markets are mainly led by commercial fitness club chains .
The markets in second-tier ( and under ) cities , however , are dominated by standalone players that are mostly lower-end “ mom-and-pop ” shops , due to infrastructure underdevelopment , low purchasing power , and low awareness of personalized training . Underdeveloped regions in these countries demonstrate high growth potential as rapid infrastructure development improves accessibility and connectivity .
Conclusion
The outlook of the health club industry is bright and promising . As leading economies continue to improve , the industry is expected to thrive in the global marketplace , serving consumers with a variety of health and fitness needs . Offering access to fitness amenities , instructors , trainers and coaches , club operators are wellpositioned to lead a healthier world .
Visit ihrsa . org / research-reports to access any of the IHRSA publications cited in this article .
ABOUT IHRSA
Founded in 1981 , IHRSA – International Health , Racquet & Sportsclub Association – is the industry ’ s global trade association , representing more than 10,000 health and fitness facilities and suppliers worldwide . Locate an IHRSA club at www . healthclubs . com . To learn how IHRSA can help your business thrive , visit www . ihrsa . org . John Holsinger , IHRSA ’ s Director , Asia Pacific , can be contacted at jwh @ ihrsa . org or on mobile 0437 393 369 .
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