Companies in this industry operate fitness and recreational sports facilities that offer fitness equipment, exercise classes, swimming pools, and fitness instruction services. Major companies include 24 Hour Fitness, Equinox, Gold's Gym, Planet Fitness, and Life Time Fitness (all based in the US), along with Fitness First and Virgin Active (both based in the UK), Konami Sports & Life (Japan), and McFit (Germany).
Worldwide, fitness centers generate about $84 billion in annual revenue, according to the International Health, Racquet & Sportsclub Association (IHRSA). More than 180,000 fitness clubs across the globe attract nearly 145 million members. Countries with the most fitness club memberships include the US, Germany, the UK, and Brazil.
The US industry includes about 30,000 fitness and recreation centers with combined annual revenue of about $27 billion. Most companies operate just one establishment.
Demand is partly linked to income levels and partly to market demographics. The profitability of individual companies depends on good marketing. Large companies have economies of scale in advertising and in buying equipment. Small companies can compete effectively if they have favorable locations or meet customer demands for personalized service and friendly atmosphere. The industry is fragmented in the US: the 50 largest companies account for about 30% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include space and equipment for aerobic exercise (commonly referred to as cardio) and weightlifting. Facilities may also include basketball courts; tennis or racquetball courts; racetracks; swimming pools, hot tubs,...