WNiF Magazine - Winter 2017 Edition | Page 10

KEY FINDINGS FROM IHRSA’S By Kristen Walsh 2017 GLOBAL REPORT T he global health club industry continued to grow in 2016, according to The 2017 IHRSA Global Report, which was published in May. Total industry revenue reached an estimated US$83.1 billion, as roughly 200,000 clubs served 162 million members worldwide. Leading markets in North America and Europe continued to grow, while markets in Latin America posted strong performance. *currencies have been converted to Australian dollars. will see a widening of the gap between the full-service/low-service options as the ‘need to be different’ segments our industry.” Asia-Pacific In particular, the Asia-Pacific serves 17 million members at 31,000 health clubs in 14 markets (excluding the Middle East). Health club industry revenue totals AU$19.34 billion in this region. Europe The IHRSA Asia-Pacific Health Club Report shows there is room for growth in the Asia-Pacific as the average member penetration rate for the region is just 3.8%. Australia and New Zealand lead all Asia-Pacific markets in penetration rate at 14.8% and 11.4%, respectively. Larger cities in Asia, including Beijing, Shanghai, Kuala Lumpur, and Jakarta, are home to maturing industries, while future growth is anticipated in growing cities as well as the Asia-Pacific, overall. Namely, opportunities for the fitness industry abound in the global economic powerhouses of China and India, which have penetration rates of 0.4% and 0.12%, respectively. China is home to roughly 2,700 health clubs with a total of 3.9 million members. The health club industry in India has roughly 3,800 health club facilities and nearly one million members. In 2017, the Asia-Pacific region will continue to explore the new boutique models becoming popular in the U.S. and Europe, with personal training- oriented studios creating more entrepreneurial opportunities in many countries, and digital communication for better member engagement growing in the region’s many languages, predicted John Holsinger, IHRSA’s Director of Asia- Pacific. “Of clear importance with this boutique growth is the need to execute effective business fundamentals, regardless of the business models being employed, to be well-prepared for future challenges,” he added. “Mature markets 10 In spite of a weakening Euro and challenges in the political landscape, the fitness industry in Europe continues its robust performance. The European health club market serves more than 56 million members as nearly 55,000 health clubs generate AU$39 billion in revenue. The UK and Germany continue to lead all markets in Europe. In the UK, based on research by LeisureDB, 9.7 million members belong to a health club, up from 9.3 million a year ago. Approximately 6,728 facilities in the UK generate a collective AU$8.2 billion in industry revenue. Germany attracts more than 10 million members to 8,600 facilities and generates AU$7.5 billion in revenue. According to The European Health & Fitness Market Report, Europe has strong prospects for growth considering not only the mature, solid markets in Western Europe, but also the potential in Eastern European markets such as Russia, Turkey and Poland. The penetration rates in these three markets are among the lowest in Europe, signifying potential for growth. Middle East & North Africa (MENA) Based on findings gathered by The FACTS Academy, industry experts based in Egypt, approximately 3.4 million members utilise 5,600 health clubs in 10 markets in the Middle East and North Africa. These 10 markets collectively generate roughly AU$2.7 billion in industry revenue. Saudi Arabia leads all markets in this region in revenue with WHAT’S NEW IN FITNESS - WINTER 2017