Health Club Management June 2017

Page 38

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US

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EU

R ES E A RC H

GROWTH

CURVE W

Europe remains the world’s largest health and fitness market

hile some people might associate the number 80 million with the population of Germany or the annual earnings of football star Cristiano Ronaldo, the European health and fitness association, EuropeActive, adopted the figure in 2014, to set a goal for the industry to attain 80 million members by 2025. Three years later, the industry remains on track to reach this target, as total membership in the EU, Norway, Russia, Switzerland and Turkey rose by 4.4 per cent to 56.4 million at the end of 2016, according to the European Health & Fitness Market Report 2017 – produced by Deloitte in partnership with EuropeActive.

€26.3bn total revenues in 2016

IMPACT OF LOW COST FITNESS SECTOR total revenues of €26.3bn in 2016, ahead of the USA at €23.3bn in 2015, according to the IHRSA Global Report. Market size increased by 3.1 per cent in 2016 over 2015 at constant foreign currency exchange rates, with

GLOBAL DOMINATION Europe continues to be the world’s largest health and fitness market, with

TOP EUROPEAN MARKETS BY REVENUE 65% of total European market 5,108

5,050

19%

2,465

9%

UK

DE

FR

2,215

8%

IT

2,171

8%

ES

16% 1,324

1,180

5%

4%

4%

NL

RU

TR

Sources: EuropeActive, Deloitte

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As in 2015, the low-cost segment was again one of the fastest growing segments in 2016, resulting in a decrease in average monthly membership fees in the European health and fitness market of 1.3 per cent at constant foreign currency exchange rates. The more mature Northern and Western European markets also continue to see an increasing number of boutique fitness clubs opening.

MAIN FINDINGS

4,131

19%

Switzerland at +5.8 per cent, Germany +4.6 per cent, Finland +4.0 per cent, Sweden +3.9 per cent and Turkey at +3.4 per cent, showing the highest revenue growth rates. At actual foreign currency exchange rates, year-on-year growth in euros amounted to -0.5per cent due to disruptions in exchange rate effects, most notably in the UK (-11.1per cent), Turkey (-9.9per cent) and Russia (-9.0per cent), for well documented reasons.

healthclubmanagement.co.uk June 2017 ©Cybertrek 2017

1,015

842

842

3%

3%

PL

CH

22 others

Karsten Hollasch, partner at Deloitte and head of Deloitte’s German Sports Business Group, says the major operators continue to be the drivers of growth: “The 30 largest operators had more than 12.7 million members at the end of 2016 – an increase of 15.5 per cent over the previous year’s top 30. “While low cost operators continue to generate the highest organic growth” he continued, “premium and upper midmarket operators like Migros Group, Nuffield Health and DW Sports have made major acquisitions. This underlines

GRAPHIC: SHUTTERSTOCK.COM

Who are the biggest, most profitable fitness operators in Europe, and which countries have the most growth potential? Deloitte’s Karsten Hollasch reveals all


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