Health Clubs and Leisure Centres

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Health Clubs and Leisure Centres

Report price : $ 1 620
Publication date : January 2009

The UK has over 5,750 indoor facilities for keeping fit. They are divided mainly between health clubs in the private sector and public leisure centres, owned by local authorities. The health club industry is still fairly fragmented, but there are now ten large chains including David Lloyd Leisure, Fitness First, Virgin Active and LA Fitness.

Membership of a health club or a gym has grown over the long term because of a consumer shift away from playing sports and games towards 'pure fitness’. People now prefer activities such as working out in the gym, aerobics or yoga, swimming or cycling, as a means of keeping healthy. The public sector has encouraged this through government departments and local authorities — because of the worrying indicators of unfitness and obesity in the population.

One third of adults used a fitness facility of some sort in 2008 although a much lower proportion (12%) are members of private health clubs or gyms requiring subscription. How much they spend is hard to quantify but Key Note estimates the market to be worth £3.4bn in 2008, comprising subscriptions and ad hoc fees for gym use. This represents a relatively small share of consumer leisure spending, totalling £63.8bn in 2008 and including a £28bn spend on alcohol.

Ownership of health club chains has been consolidating. Bannatyne Fitness bought LivingWell in 2006 and Virgin Active bought Holmes Place in 2007, as the market becomes more saturated. Unusual players involved in the market now include Nuffield Hospitals, owner of the Cannons chain, and JJB Sports, the sports shop retailer with a rapidly growing collection of health clubs.

Forecasts must be cautious given the credit crunch and the commitment required for annual subscriptions to premium health clubs. However, underlying demand for fitness is strong, and supported by both private and public sectors. Budget clubs and franchised clubs could do well during the downturn, and there are government initiatives to encourage participation with free and subsidised admissions to leisure centres and pools

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

By Size

By Facilities

By Revenue Source

MARKET TRENDS

Long-term Trends

Current Trends

ECONOMIC TRENDS

Population

Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007

Gross Domestic Product

Table 2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2003-2007

Inflation

Table 3: UK Rate of Inflation (%), 2003-2007

Unemployment

Table 4: Actual Number of Unemployed Persons in the UK (million), 2003-2007

Household Disposable Income

Table 5: UK Household Disposable Income Per Capita (£), 2003-2007

MARKET POSITION

The UK

Table 6: Consumer Expenditure on Leisure Outside the Home by Sector at Current Prices (£m), 2006 and 2008

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: Consumer Expenditure on Sports and Fitness Participation (£m), 2004-2008

Figure 1: Consumer Expenditure on Sports and Fitness Participation (£m), 2004-2008

BY MARKET SECTOR

By Size and Facilities

By Revenue Source

OTHER SPENDING ON SPORT

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

EMPLOYMENT

REGIONAL VARIATIONS IN THE MARKETPLACE

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ASSOCIATIONS

Fitness Industry Association

Leisure Management Contractors Association

Sports and Recreation Trust Association

Public Organisations

4. Competitor Analysis

THE MARKETPLACE

Non-Profit Providers

Public-Private Providers

Private Sector Sub-Contractors

Hotels

MARKET LEADERS

Table 8: Leading UK Health Club Operators (ranked by members), 2008

David Lloyd Leisure Group

Company Structure