AusLeisure

IBISWorld's latest analysis of Australian gyms and fitness centres has confirmed that the global COVID-19 pandemic is significantly impacting industry revenue.

Its Weighed Down report has revealed that the $2 billion industry has found it difficult to recover between outbreaks, with social distancing limiting revenue and shrinking the customer base.

Noting that revenue across the industry is expected fall significantly over the three years through 2021/22 the report noted that periods of lockdowns in various states and territories have required many industry establishments to close for extended periods, particularly in NSW and Victoria, which account for more than half of all gyms in Australia.

As a result, industry profitability is also expected to decline with IBISWorld also predicting a moderate impact on the industry's service segments. Industry operators have had limited success shifting to digital and online services.

Assessing trends over the past five years (2016 to 2021) it advises that revenue “has been volatile”, noting “the industry was growing steadily prior to the COVID-19 pandemic.

“Increasing attendance at gyms and studios, coupled with rising membership numbers, boosted industry revenue over the two years through 2018/19 (while) increasing health consciousness aided growth in gym memberships, as more Australians were encouraged to live active lifestyles.

“However, while more consumers have been willing to spend on health and fitness services, the COVID-19 pandemic has significantly disrupted the industry over the three years through 2021/22.”

As a result, IBISWorld state “industry revenue is expected to decline at an annualised 7.4% over the five years through 2021/22, to $2 billion”.

Looking forward, the Weighed Down report is more positive, adding “as COVID-19 restrictions ease and the economy recovers from the effects of the subsequent downturn, Australians are forecast to mostly return to industry establishments.

“Membership numbers are projected to increase over the period, due to population growth and rising health consciousness.

“Both household discretionary income and consumer sentiment are forecast to rise, boosting demand for gyms and fitness centres over the next five years.”

The report also states that the companies with the largest market share include Fitness and Lifestyle Group TopCo Pty Ltd, Anytime Australia Pty Ltd, F45 Aus Hold Co Pty Ltd and Viva Leisure Limited.

Click here to view the IBISWorld report.

Image: Fitness and Lifestyle Group is acknowledged by IBISWorld for having the gym and fitness centre industry's largest market share. Image shows Fitness First staff adhering to hygiene protocols.

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