1985-2010 Fitness Industry

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GLOBAL OVERVIEW

Charles Carolan

International Business Analyst

Power Plate International

Fitness growth between 1985 and 2010


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In 2009 IRHSA reported memberships in the US:

1980: 17,351Mil. out of 245Mil. (7% penetration rate)

2006: 42,685Mil. out of 299Mil. (14.27% penetration rate)

In the last 26 years, the number of club members and the

penetration rate more than doubled.


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US membership growth between 1987 and 2006Source: IHRSA, 2006 Health Club Trend Report_Health Club Membership


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IHRSAs annual health club membership survey indicate that health club memberships in

the Unites States totaled 45.5 million in 2008. IHRSA reports that membership decreased

from 2007 to 2008 by 2.4 percent, with a survey margin of error of 4% making the decrease

in membership statistically insignificant, although it is evident that membership growth has

stalled.

Nearly 22%, or over 10 million, of the 45.5 million health club members are new, having

joined a health club for the first time. The ability of fitness clubs to attract new members

helps position the industry for success through the current challenging economic times,

indicated Rollauer.

We estimate there were 45.5 million U.S. health club members in 2008. A separate 7.8million non-members used health clubs last year.


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US membership growth between 1987 and 2000Source: IHRSA, 2001 Global Report


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WELLNESS MARKET

A MARKET SHOWING CONTINUAL GROWTH

In 2006, the number of fitness facilities increased globally by 6%. The number of fitness

facilities increased to 98.000 and total revenue from the industry reached

approximately 44 billion Euros. Of this, the Western European market accounted forapproximately 20 billion Euros and the American market accounted for approximately

13 billion Euros. The American market has had a 140% growth in membership since

1987. The Western European market has also shown strong growth during that period

(Source: IHRSA).


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Market penetration, i.e. the percentage of the population connected to an health club,

differs markedly in different countries of the world. In Europe, average market

penetration is 7% while USA has an average penetration of 16%. In some American cities,

market penetration is as high as 25%.

The average market penetration with the European Union is 8%. The number of active

fitness facility members is on the rise. The percentage of the population that is a member

in some form of health club varies from 18% in the Netherlands to 0.1% in India.


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Three thousand private fitness clubs in 1978 grew to almost 20,000 by 2002.

Membership skyrocketed from 1.7 million in 1972 to 42.7 million by 2006 (see Fig. 1). Club

sales and receipts climbed from $227 million in 1972 to almost $8 billion in 1997.

Between 1972 and 1978 alone, membership in these clubs rose from 1.7 to 13 million,

reaching 17.3 million by 1987, and 24.1 million by 1995.


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IHRSA trend

report April 2001

Until 1997, there had been a

corresponding increase in the

number of frequent home

exercisers.

Since then, however, the number

of frequent home exercisers has

decreased from 18.5 million to

17.3 million. The 1999 figure is

up by an impressive 153 percent

over the 1987figure of 11.3 million. Still, this

percentage increase pales by

comparison to the health club

number.


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In an earlier study done for IHRSA by ASD (Why and Where People Exercise), it was foundthat young adults (age 18-34) exercise primarily to improve their appearance, with weight

loss being essential to that objective. Beginning at age 35, the average Americans

purpose for exercising begins to change from looking good to feeling good. It follows that

Americas aging population has shifted its exercise goals from appearance-centered

weight loss to improving overall health.

A p r i l 2 0 0 3

V o l u m e 1 0

N u m b e r 2


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Opportunity based on primary and secondary research


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Opportunity based on primary and secondary research


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New health club members and lost members 2007 and 2008Source: IHRSA, research

The leakybucket

There were an estimated 10.3

million new health club

members in 2008. To counter

balance this around, 11.4

million members were lost,

creating the small decrease inoverall membership.

This represents a churn rate

of 24% (i.e. around 1 in 4

members will leave each

year). This Calculation is

based on asking therespondents of this years

survey if they were members

in 2007 and 2008.

1985-2010 Fitness Industry

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