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 .
According to a new IHRSA report , the Asia-Pacific region serves 22 million members at more than 25,000 health clubs . In total , this market generates annual revenues of US $ 16.8 billion ( AU $ 22.15 billion ).
The IHRSA Asia-Pacific Health Club Report ( Second Edition ) was released last month in collaboration with Deloitte and is sponsored by Perfect Gym .
It demonstrates that fueled by growing economies , the health club industry in the Asia-Pacific is robust , with significant potential for continued growth .
Maturity
Only two markets in the region are considered mature : Australia and New Zealand , having the highest penetration rates at 15.3 % and 13.6 %, respectively .
While the fitness market shows signs of rapid growth and professionaliSation 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 %). competition are some of the challenges club operators face in the Asia-Pacific market . However , a favorable economic outlook along with increasing health awareness and demand for group exercise and personalised training are all expected to drive industry growth .
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 .
“ 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 ,” says Alan MacCharles , partner at Deloitte China . “ Overall market penetration is on an upward trajectory , reflecting an increasing awareness of health and club memberships .”
According to MacCharles , the region ’ s fitness market remains stratified due to varying stages of development , which can be categorized into three tiers :
• 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 secondtier ( and under ) cities , however , are dominated by standalone players that are mostly lowerend mom-and-pop shops , due to infrastructure underdevelopment , low purchasing power , and low awareness of personalised training . Underdeveloped regions in these countries demonstrate high growth potential as rapid infrastructure development improves accessibility and connectivity .
Go to ihrsa . org / publications for the full report . AU $ 399 for IHRSA members or AU $ 780 for non-members . Contact us at research @ ihrsa . org for any questions .
The Challenges
Along with such growth opportunities come challenges . Real estate costs , rental availability , infrastructure underdevelopment , need for professionalised services , and increasing
• 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 continue in the future .
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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