The State of the UK Fitness Industry Report 2023, unveiled by market intelligence expert Leisure DB and – for the first time ever – made available to everyone free of charge.
State of the UK Fitness Industry Report 2023
© Leisure DB. All rights reserved unless otherwise agreed in advance by Leisure DB. No part of this report may be sold, passed on, communicated, or disseminated in any form.
CONTENTS
LEISURE DB
CONTENTS
LEISURE DB
4
GET TO KNOW US
5
FOUNDER FOREWORD
6
AN INDUSTRY VIEW
TOTAL MARKET
11
UK FITNESS MARKET
16
PRIVATE & PUBLIC SECTORS
17
OPENINGS & CLOSURES
20
UK GYM LOCATIONS
PRIVATE SECTOR
22
DEFINITIONS
23
UK PRIVATE CLUBS
29
TOP 30 OPERATORS
30
TOP 10 OPERATORS
33
OPENINGS & CLOSURES
35
INDEPENDENTS & MULTI-CLUBS
39
LOW-COST CLUBS
PUBLIC SECTOR
47
DEFINITIONS
48
UK PUBLIC GYMS
57
TOP 10 OPERATORS
60
OPENINGS & CLOSURES
ABOUT LEISURE DB
65
WORK WITH US
66
EVOLVE WITH US
67
PARTNER WITH US
68
OUR PARTNERS
71
METHODOLOGY
3
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
GET TO KNOW US
LEISURE DB
FOR THE INDUSTRY BY THE INDUSTRY
Leisure DB is a leading independent data specialist in the UK leisure sector, providing robust market intelligence and analysis that spans the full breadth of the ever- diversifying, ever-evolving fitness industry. For over 30 years, our industry reports have provided UK club operators, suppliers, investors, consultants and government bodies with invaluable business insights and analysis of the trends within, and performance of, the sector. Since its first edition in 2007, our State of the UK Fitness Industry Report has been a flagship publication and go-to resource for the sector. Providing an unparalleled overview of the sector’s evolution over time, the report also shines a spotlight on key growth areas. In turn, the powerful insights that emerge from its cumulative historical data aid due diligence and enable the informed forecasting of trends. Compiled from the most comprehensive annual review of the industry, the State of the UK Fitness Industry Report is based on detailed individual contact with approximately 7,000 private health clubs and public gyms across the UK. Throughout the year, Leisure DB’s dedicated research team audits and captures changes as they occur – including new openings, closures, gym expansions and site/management takeovers – to maintain the highest level of data quality and accuracy at all times. The findings of these ongoing, in-depth audits are then used as the basis for the annual State of the UK Fitness Industry Report, which draws together and evaluates 12 months of data from 1 April to 31 March each year. Of course, while no doubt the most well-known aspect of Leisure DB’s work, the State of the UK Fitness Industry Report is just one part of a highly regarded offering that spans multiple reports, as well as bespoke work for a wide range of clients. Offering everything from site analysis – identifying gaps in the market for competitive advantage – to customer profiling and mapping, we deliver an understanding of target markets and customers, enabling good decision making, better investments, better strategies for success and happier, more loyal customers. Our overarching goal: to provide businesses and individuals with the trusted intelligence they need to confidently make key decisions, leading them through analysis into action, achievement and advantage. And let’s not forget EVOLVE, an event, agenda and movement we initiated two years ago. Conceived as a platform for conversation, collaboration and change, through EVOLVE we harness our data and insights and work together with leaders from across the sector to stimulate growth and diversification into new and untapped markets. It’s an agenda that’s very dear to David Minton, our founder and the heartbeat of our business. Widely considered the most authoritative voice serving the fitness sector, David’s unique industry knowledge, experience and extraordinary connections see him regularly take on speaking opportunities, as well as delivering media commentary and both evidence- and opinion-based consultancy – all supported by Leisure DB’s long-standing team of expert analysts and researchers. We’re proud to not only be the trusted source of data, trends and insight for the UK’s fitness and leisure sector, but also – through EVOLVE and our collaborations with leading journalists and publications – to support and spark debate to fuel the sector’s growth.
Our overarching goal: to provide businesses and individuals with the trusted intelligence they need to confidently make key decisions.
HEIDI BLACKBURN COO, Leisure DB
4
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
FOUNDER FOREWORD
LEISURE DB
FOREWORD
Martin Luther King never once said: ‘I have a nightmare.’ Instead, he gave us his vision, a horizon and an invitation to start the journey with him. I believe all progress requires this sort of positive vision, and I like to think that this report, events like EVOLVE and the ethos of the team at Leisure DB serve to accelerate our own dream: one of collaboration, communication and change within our sector. On a day when I give thanks to the Herculean efforts of the team behind the scenes, auditing all fitness sites across the UK, we publish the results. The data provides the most accurate, granular view of the supply-side to the UK fitness industry. The figures will be adopted by the industry, operators, all levels of government, media, investors and the financial sector. This unique data set also becomes the backbone of our industry-standard supply demand model – just one of our many services developed for the industry, by the industry. The figures this year show fewer sites, but more members than last and the greatest market value this report has observed. Although the devil is in the detail, let me suggest that the pandemic, inflation and higher energy costs will, in the long term, be seen to be good for the industry. The pandemic removed the ‘sleepers’ – a long-term embarrassment – while ‘health as the new wealth’ has encouraged those who remain to value and use the product more. Meanwhile, higher costs legitimised monthly price rises without impacting member numbers; for the first time, a cumulative increase in monthly fees has raised the value of the industry to new heights. Low-cost brands are moving into the mid-market, mid-market brands are moving into premium and we’re seeing the adoption of a new super-premium category – all positive signs of the sector’s long-term resilience. A growth in wellness and health offerings at all levels is also encouraging consumers to spend on aspirational products that promote individual wellbeing. Many encompass new technology that enables long overdue measurement. With it, our sector will achieve far greater transparency, dispelling our illusions but – I strongly believe – without leaving us disillusioned. Measurement will also enable us to weave achievements by members and the wider community into this annual review; there are so many personal achievements that need to be published. And, of course, measurement allows us to quantify our value and contribution to society. Let’s look to the Arts for a great example. Always far more advanced in its embrace of technology than the sports and fitness sectors, newly published independent research found that over 800 Arts organisations secured their future during the pandemic – saving around 220,000 jobs – because they could evidence their worth to government. Armed with this data, heavyweights Richard Sharpe (later to become Chair of the BBC) and Richard Buffini (founding partner of global investment firm Permira) repeatedly went back to the Chancellor, now PM, to secure more funds, leading to the creation of the £1.57 bn Culture Recovery Fund. Sport and fitness had no-one on the inside and could not compete on the data front; the Leisure Recovery Fund was just £100 m. This must change, and through EVOLVE, Leisure DB – together with our partners, suppliers and operators across the industry – is working to spearhead collaboration,
Let me suggest that the pandemic, inflation and higher energy costs will, in the long term, be seen to be good for the industry.
DAVID MINTON Founder, Leisure DB
communication and change within the industry. Join the movement for a fitter, healthier UK!
5
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
AN INDUSTRY VIEW
INDUSTRY COMMENT
THE EXPANSION OF WELLCARE A RECAP ON M&A AND INVESTMENT ACTIVITY It’s no secret that consumers are prioritising their health and wellbeing, constantly searching for products or services that will better them physically and/or mentally. That ambition is what’s driving the global wellness market – and as a result, the industry continues to pique the interest of private equity. As inflation and interest rates play havoc with consumers’ deployment of their disposable income, slower deal volume and nervousness in the market have followed. Fitness remains an area of intrigue for investors, both in terms of scope for growth and personal interest, yet I’m often asked questions such as: ‘What brand should we invest in? What concept is scalable? What’s coming next?’ There is, it seems, a lack of conviction faced with an ever-changing societal and economic environment. Despite that, we’ve seen some positivity. In the UK, United Fitness Brands added Triyoga to its supergroup of boutiques, and this growing consolidation trend has made its way to mainland Europe, too, with a series of similar transactions completing within the last year in Germany, Belgium and Poland. While smaller transactions were fewer and further between, TSG Consumer exited from Sunshine Fitness to Planet Fitness, and Sentinel Capital Partners acquired Bandon Holdings, the largest franchisee of the Anytime Fitness network in the USA. Cycling was prominent at the growth capital level, with Piper’s investment into Wattbike and Active Partners leading a funding round for Classified Cycling, the wireless bicycle transmission system manufacturer. And perhaps unsurprisingly, tech reigned in 22/23, with notable investments into Myzone (BGF), iFIT (L Catterton) and Therabody (North Castle Partners). For the upcoming year – as fitness and wellbeing continues to bounce back and grow with the support of the investment community – my bets are on: ■ The expansion of ‘wellcare’. The convergence of healthcare and wellness is rife. With endless advances in the capabilities of wearables, entrepreneurial brands are strides ahead of fairly outdated regulation (with the caveat that legislation is catching up, so companies operating within the increasingly blurred lines of medicine and wellness should keep active conversations with their advisers to pre-empt changes, particularly if preparing for investment). ■ The rise of the athlete venture capitalist. This trend erupted in 21/22 and doesn’t appear to be slowing: athletes are looking for ways to invest their earnings while supporting the industry, and are investing in young businesses they align with while other investors keep their powder dry. We’re seeing hybrid endorsement and equity arrangements, creating powerful partnerships through innovative contractual modelling. ■ Focus on scalable but sustainable products and concepts. Think personalisation (particularly within the VMS market), fitness racing/competitions (e.g. HYROX) and team training/activities/experiences; and profitability. Expect a continuation of the move towards profit and away from revenue in relation to financial diligence by investors in high-growth brands.
In terms of insights for the upcoming year, my bets are on the expansion of ‘Wellcare’. The
convergence of healthcare and wellness is rife.
SAMANTHA TRELEAVEN Corporate Lawyer, Pinsent Masons
6
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
AN INDUSTRY VIEW
INDUSTRY COMMENT
FINDING ITS FEET THE LEISURE PROPERTY MARKET
The leisure property market is emerging from a challenging period following the pandemic and inflation surge. Rents and tenant demand are recovering. Void levels are decreasing and are currently around 5 - 8% in leisure and retail parks – and gyms and health clubs are among those tenants taking void space. Gyms are, however, competing with big-box leisure users such as adventure parks, mini-golf and virtual reality parks, all of which are expanding rapidly, less impacted by the energy price spikes that have been so acute for food and beverage operators, for example. This is strengthening rents and reducing incentives in the best locations for 8,000 – 25,000 sq ft units. The leisure real estate investment market has suffered due to rental payment problems during the pandemic and rising interest rates, which have caused a large fall of some 30% in leisure values. The market is now stabilising, however – and gyms, hotels and health clubs are among the sectors leading the recovery, with investors keen on their operating strengths. Values have improved for these sectors and investor demand is growing strongly, especially where long leases are on offer to real estate investors. Sale and leaseback deals will be more lucrative, but only where strong financial covenants are on offer. The bottom line: the real estate market for leisure and heath is improving at a slow but steady pace. As inflation and interest rates come down, the recovery should accelerate rapidly.
Gyms are competing with big-box leisure users. This is strengthening rents and reducing incentives in the best locations for 8,000 – 25,000 sq ft units. ASHLEY BLAKE CEO, Otium Real Estate Chairman of the Leisure Property Forum
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
AN INDUSTRY VIEW
INDUSTRY COMMENT
A BRIGHT FITNESS FUTURE EMBRACING WELLNESS & TECHNOLOGY
After enduring challenging years, we find ourselves on the cusp of a golden age of health and fitness. It will not come without change nor hurdles, but the overall expansion of the fitness industry is inevitable for several compelling reasons. First, fitness has transcended its traditional boundaries and evolved into the broader category of wellness, unlocking a far larger market. No longer associated purely with the physical – weight loss or achieving a sculpted physique – now consumers are recognising that fitness plays a vital role in their overall health and wellness, including mental and emotional wellbeing. As they begin to connect the dots, the demand for wellness – including fitness services as a crucial component of holistic health – will surge. Second, with an ageing population, consumers are increasingly taking charge of their own health; the demand for services that promote disease prevention through optimal lifestyles, including exercise and strength training, is on the rise. With this mainstream adoption of fitness and wellness, we can look forward to a future in which we lead longer, healthier lives, inspiring younger generations and alleviating the unsustainable costs currently associated with sick care. Third, technology is revolutionising the way we approach fitness and health, with a plethora of apps, sensors, virtual reality games and online programmes motivating and engaging consumers on new and exciting journeys towards healthier lives. Seamlessly merging the physical and digital realms, these technologies provide enhanced entertainment and behavioural support to encourage people to be more active, both physically and mentally. Moving forward, the continued escalation of technology holds immense potential for innovative business models to expand the fitness and health market with a robust offering of products and services. Finally, we’re seeing growing recognition of fitness and health not only as a tool for personal sustainability, but to enhance the wellbeing of our planet. Mindful consumption of food benefits individuals and the environment. Opting for active transport such as walking and cycling reduces our carbon footprint. By embracing a healthy and fit lifestyle, we can enhance our quality of life and our environment. As consumer awareness of environmental issues and their consequences becomes increasingly mainstream, educating the public about the collective good we can achieve through fitness and wellness is essential. These trends, and indeed more, highlight the tremendous potential of our sector. Of course, to realise this glowing future, we must be ready to adapt to change and challenge; those who do so will realise great rewards, others may suffer irrelevance and decline. Only we can shape this future, so we must recognise the opportunity at hand and seize the moment. By embracing wellness, harnessing technological advancements and emphasising the connection between personal and planetary sustainability, we can propel the fitness industry towards an era of unprecedented growth and impact.
Only we can shape this future, so we must recognise the opportunity at hand and seize the moment. BRYAN O’ROURKE Consultant in Business Consumer Fitness Finance and Technology Trends
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
AN INDUSTRY VIEW
INDUSTRY COMMENT
HOSPITALITY & LEISURE THE FINANCIAL & OPERATIONAL PERSPECTIVE The compounding effects of Covid-19, business operational rethinks and the changing demands of guests, customers and members have presented many issues for leisure-based businesses. Now, there’s a possibility of this leading to opportunities for operators. There is no question that, in many parts of the hospitality and leisure sector, permanent changes have been made, be that cost re-engineering, new staffing propositions, or enhanced awareness of and demand for all aspects of Environmental, Social & Governance (ESG) to be brought to the fore. If asked, many businesses will tell you they’ve had to fight for their lives, and the health and fitness sector was certainly one of the most affected sub-sectors, experiencing limited widescale options for continued trading. The value of the sector became clear to government, however, and some support did come through: a range of solutions to help counter the lack of trade, and the balance to keep the business available to bounce back. We also saw a range of innovative solutions created by operators and banks and launched across the sectors. It was nothing short of incredible. One positive that came out of Covid-19 was that people realised the value of hospitality and leisure. It went up on the scale of personal priorities and appears to remain there. One key change has been the evolution towards working from home, driving local and city-based flexible memberships and inspiring a wider focus on health and fitness. From an operational perspective, businesses are looking at streamlining CRM and data-led solutions to run businesses more efficiently, seamlessly linking with secure payment terms and typically incorporating supplier-friendly options. Meanwhile, the ability to service debt remains crucial – and available cashflow is key, as opposed to lending against a balance sheet value. The sustainable cashflow model proved itself to be the most resilient restructuring tool, and while flexibility and time is slowly enabling a return to ‘business as usual’ trading, it remains a key component between banks and borrowers. Then there’s ESG: a huge and increasingly prominent topic. Any operator that ignores this, at any level, arguably does so at their peril. Whether a PLC or an SME, ‘sustainability strategy’ – be it commentary in audited accounts or references in marketing material – is being monitored more thoroughly and more regularly than ever before. And your clients, customers and guests increasingly expect it. Get it right and it can, and does, lead to greater loyalty as they buy in to the plans you’ve set out. Finally, the wider hospitality and leisure sector appears well-set to break through pre-Covid growth levels – many businesses already have – with investment coming through to help capture this refreshed opportunity. There are and will be casualties, but an open approach to funding and operational options, based on a partnership-led relationship, can only be a positive one.
One positive that came out of Covid-19: people realised the value of leisure. It went up on the scale of personal priorities and appears to remain there.
MIKE SAUL Head of Barclays Corporate Banking
Hospitality & Leisure Sector
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK FITNESS MARKET
TOTAL MARKET
The UK health and fitness industry continues to bounce back following the impact of Covid-19. Despite the number of gyms falling slightly, there are now more members than in 2022, while market value has reached an all-time high.
NO DATA 2020 & 2021 DUE TO COVID-19
2019 2022 2023
Gyms
6,998 0.9 %
7,239 7,063
Members
10.3 m 3.9 %
10.4 m 9.9 m
Market Value
£5.4 bn 11.5 %
£5.1 bn £4.8 bn
Penetration Rate
15.1%
15.6% 14.6%
In the 12 months to the end of March 2023, the total number of gyms in the UK fell to just under 7,000 (-0.9%). However, total UK membership is back over 10 million (+3.9%) and the penetration rate has once more surpassed 15%, without quite reaching 2019’s pre-Covid industry high. The industry market value has also soared, reaching an all-time high of £5.4 bn (+11.5%). In the 12 months to the end of March 2023, the % increases in member numbers and market value were greater in the private than in the public sector: +4.4% and +14.4% for the private sector versus +3% and +3.5% for the public sector. PureGym and GLL remain the UK’s leading private and public operators, respectively, by number of gyms.
£
# %
PureGym and The Gym Group are the only two operators to have added more than 10 gyms in the last 12 months, logging 45 and 23 respectively.
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK FITNESS MARKET
TOTAL MARKET
NO DATA 2020 & 2021 DUE TO COVID-19
Number of Gyms: 2007 - 23
5000
Private Gyms
Public Gyms
4510 4456 4460
4330
4000
4019
3700
3550
3269 3359
3000
3117 3133 3151 3199 3146 3176
2706 2724 2750 2753 2762 2735 2709 2708 2729
2607 2538
2597 2622 2642 2686
2000
1000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 2023
Number of Members: 2007 - 23
12 m
10 m
8 m
6 m
4 m
2 m
0 m
2007 2008 2009 2010 2011
2012 2013 2014 2015 2016 2017 2018 2019 2022 2023
Market Value: 2007 - 23
£6 bn
£5 bn
£4 bn
£3 bn
£2 bn
£1 bn
£0 bn
2007 2008 2009 2010 2011
2012 2013 2014 2015 2016 2017 2018 2019 2022 2023
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK FITNESS MARKET
TOTAL MARKET
NO DATA 2020 & 2021 DUE TO COVID-19
Average Monthly Membership Fee: 2007 - 23
£50
£45
£40
£35
£30
£25
£20
2007 2008 2009 2010 2011
2012 2013 2014 2015 2016 2017 2018 2019 2022 2023
Private Gyms
Public Gyms
UK FITNESS MARKET
SCOTLAND
15.5% Penetration Rate 656 Gyms 874 k Members £393 m Value
NORTHERN IRELAND
10.1% Penetration Rate 192 Gyms 198 k Members £77 m Value
ENGLAND
15.3% Penetration Rate 5,757 Gyms 8.8 m Members £4.7 bn Value
WALES
13.5% Penetration Rate 393 Gyms 433 k Members £189 m Value
LONDON 18.9% Penetration Rate 807 Gyms 1.7 m Members £1.25 bn Value
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
ACTIVE IQ
PREMIUM PARTNER
ABOUT ACTIVE IQ
Active IQ operates globally and is the UK’s leading Ofqual-recognised awarding organisation for the physical activity sector. We are dedicated to working with our approved centres to build and develop high-quality qualifications and resources and with our apprenticeship providers to deliver expert End-point Assessment services. We champion industry standards at the highest level in the UK and Internationally to provide a strong and highly skilled workforce. We develop. We approve. We quality assure. We certificate. We change lives. COMMITTED TO QUALITY At Active IQ, we place quality above quantity, and we value integrity above all else. We provide extensive resources, bespoke solutions and consultancy services, and work hard to develop meaningful partnerships and associations. We are outward-facing and share our time generously on professional advisory panels, including ukactive and CIMSPA. We also support many industry initiatives, including the ukactive Active Uprising Awards and the AoC WorldSkills UK Fitness Trainer competition. WORKING INTERNATIONALLY Active IQ has been making great waves abroad, particularly in the Middle East. In Saudi Arabia, the team has been breaking new ground to help train and recruit Saudi women instructors, all in partnership with Spectrum® Wellness for Women, the first Active IQ training providers in the Kingdom. Active IQ worked closely with Tracy Aldereyaane, VP at Spectrum, to develop resources that support the needs of learners in the region – whether teaching in the community or working with clients in local fitness facilities. BUILDING PARTNERSHIPS Surrounding ourselves with the best in the business and building genuine partnerships is key to what we do. Our partnerships with industry experts include EMD UK, Cathy Brown, Ben Coomber and Max Whitlock. Giving others the benefit of our experience is important, and we are proud that our speakers address colleges as readily as they appear at ukactive events and Elevate. Our knowledge bank is also accessible through our unique Skills Hub, which includes webinars, podcasts, vlogs and training events. MENTAL HEALTH AWARENESS We are particularly proud of our Level 2 Award in Mental Health Awareness, which addresses a problem at the root of our society as well as our industry. Mental health awareness is at an all-time high, but in order to improve things, people must know how to spot the signs and how to give support. Our Mental Health award combines two units – Mental Health Awareness and Mental Health First Aid – to help people recognise mental ill-health and understand the next steps. . END-POINT ASSESSMENT In 2017, Active IQ became approved as an End-point Assessment Organisation (EPAO) – one of the first in the physical activity sector. With our breadth of expertise and experience, we ensure the design and content of the products and services we offer to employers, providers and apprentices is of the highest quality. For more information about Active IQ and to view our prospectus, visit our website at www.activeiq.co.uk
Active IQ champion industry standards at the highest level in the UK and internationally to provide a strong and highly skilled workforce. JENNY PATRICKSON Managing Director, Active IQ
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
PRIVATE & PUBLIC SECTORS
TOTAL MARKET
10.2
PRIVATE SECTOR 2023
% Penetration Rate
Private Clubs
Members
Market Value
Average Fee
4,460 6.98 m £4.04 bn £44.92
4.9
PUBLIC SECTOR 2023
% Penetration Rate
Public Gyms
Members
Market Value
Average Fee
2,538 3.30 m £1.35 bn £31.07
16
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
OPENINGS & CLOSURES
TOTAL MARKET
Number of New Openings: Since 1 April 2022
TOTAL = 169
30
Private Gyms
Public Gyms
25
20
15
10
5
0
April 22 May 22 June 22 July 22 Aug 22 Sept 22 Oct 22 Nov 22 Dec 22
Jan 23
Feb 23 March 23
Number of Closures: Since 1 April 2022
TOTAL = 176
30
Private Gyms
Public Gyms
25
20
15
10
5
0
April 22 May 22 June 22 July 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23
Feb 23 March 23
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
POCKET ROCKET
PREMIUM PARTNER
ABOUT POCKET ROCKET
WHO ARE WE? Pocket Rocket provides high level business and marketing expertise for the health, fitness and wellness sectors. Global marketing matched with straight talking business development enables us to dig deep, identify opportunities for growth and find the gold! With over 30 years combined fitness and leisure sector experience Pocket Rocket Group has worked with a plethora of brands and has been involved in developing businesses from conception right through to working with established companies that require a fresh new approach. WHAT WE DO Working with customers to detail, develop, and deliver business and marketing strategies, implement key management processes and ensure the long term success of clients, our customer centric approach and undeniable work ethic, underpins everything we do. Our ‘check and balance’ service enables us to constructively challenge and make suggestions about observations we see within a business. Customers find this useful when they don’t have time to work ‘on’ the business and instead are continuously called to work ‘in’ the business. Through bespoke workshops the ‘Rockets’ align with clients to map out goals, deliverables and key performance indicators in order to develop the right strategic direction for their business. Once the direction is set, Pocket Rocket helps customers to craft their story, build their sales and marketing assets and educate both internal and external audiences to ensure buy-in from all stakeholders. WHO WE DO IT FOR As well as supporting large global brands such as Life Fitness and Power Plate to provide a fresh approach, Pocket Rocket also works with smaller businesses that require an element of hand-holding as they grow and establish their place in the market. We provide the same level of care and support to bigger businesses as we do for the smaller ones – with many of our clients choosing to work with Pocket Rocket for over 4 years – testament to our relationships and versatile nature. If you would like to learn more about the Pocket Rocket Group, please visit www.pocketrocket.group
We provide the same level of care and support to bigger businesses as we do for the smaller ones – with many of our clients choosing to work with Pocket Rocket for over 4 years.
CHERIEE WALES & NICK MENNELL Directors, Pocket Rocket Group
Our customers include:
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK GYM LOCATIONS
TOTAL MARKET
UK FITNESS MARKET 2023
Gyms
6,998
Members
10.3 m
Market Value
£5.4 bn
Penetration Rate 15.1 %
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
DEFINITIONS
PRIVATE SECTOR
DEFINITIONS PRIVATE SECTOR
PRIVATE CLUBS
All UK private health and fitness clubs with a gym facility that’s available to members of the general public on a pay-and-play or membership basis.
AVERAGE FEE
Monthly peak gym membership fee on the non-contract option, if this is available, or the rolling peak monthly gym membership fee in the absence of a non-contract option.
MARKET VALUE
Private sector market value estimates the annual income at each club based solely on the single adult monthly peak membership fee, multiplied by the number of members at that club. Figures are then aggregated, combining the income of all private sector clubs to estimate total private sector market value. This figure takes no account of the different membership schemes available, nor any secondary spend at clubs.
PENETRATION RATE
Percentage of the UK population that has a gym membership, based on Experian’s mid-2021 UK total population estimate of 68,062,835.
OPERATORS
Top 10/30 operators: Clubs belonging to the top 10/30 operators, as ranked by number of clubs. Where operators are tied in total number of clubs, higher ranking is determined by the greatest total fitness membership. Where an operator has more than one brand, these are listed together – e.g. Everlast Gyms is encompassed within the Sports Direct Fitness club count, while Xercise4Less clubs fall into JD Gyms’ club count. Openings: Clubs that opened between 01/04/2022 and 31/03/2023. Closures: Clubs that closed between 01/04/2022 and 31/03/2023. If a club is taken over by another operator, this is not counted as a closure or a new opening. Independents: Single-site clubs – not part of a larger brand or group of clubs. Multi-club operators: Branded groups of clubs or an owner that operates more than one club. Clubs belonging to a low-cost chain (two or more clubs) where the non-contract membership option across the majority of clubs is usually less than £25 a month. Based on this definition, our report includes clubs from the following operators: 24/7 Fitness, Buzz Gym, Coach Gym, easyGym, Foundry Gym, JD Gyms, Kiss Gyms, Lifestyle Fitness, New Age Fitness, NRG, Pump Gyms, PureGym, Revolution Fitness, Simply Gym, Simply Gym (Bay Leisure), The Gym Group, Vitality Health & Fitness and Xercise4Less. N.B. Active Fitness, énergie Fitness and TruGym are no longer included in the low-cost sector club counts, as they now charge on average more than £25 a month.
OPENINGS & CLOSURES
INDEPENDENTS & MULTI-CLUB OPERATORS
LOW-COST CLUBS
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK PRIVATE CLUBS
PRIVATE SECTOR
OVERVIEW PRIVATE CLUBS
After a tough three years since Covid-19’s crash landing, the last 12 months have brought more positive news for and from the UK’s private fitness sector. We’ve seen a stabilisation in the number of clubs as well as positive growth across all three key metrics: members, market value and penetration rate. The number of clubs and the penetration rate remain below the highs of 2019, but member numbers are now close to pre-Covid-19 levels and market value has reached an all-time high. Across the UK, there are now 4,460 private clubs, up from 4,456 in 2022 – a growth of 0.1% in the 12 months to the end of March 2023. The number of members has also increased, reaching almost 7 million (+4.4%), while market value has passed the £4bn mark for the first time. This represents an increase of over £500m (+14.4%) since our 2022 report. The penetration rate has also bounced back from its Covid-induced fall – the private sector’s first in 10 years. Up from 9.9% in 2022 to 10.2% in 2023, it remains below 2019’s high (10.5%) but is certainly moving in the right direction. PureGym remains the leading private sector operator in the UK, by number of clubs and number of members. Adding 45 locations since our 2022 report, it now operates 345 clubs in the UK and remains the only operator to have more than 1 million members (around 1.4 million). It is followed by The Gym Group, which added 23 clubs to take it to 230 sites and almost 900,000 members. Joining these two low-cost chains are three other private sector operators with more than 100 clubs: Anytime Fitness, Nuffield Fitness & Wellbeing, and David Lloyd Clubs, the latter having passed the 100-club mark for the first time in the last 12 months. There are also five operators with 50–100 clubs: Snap Fitness, JD Gyms, Bannatyne, Sports Direct Fitness and énergie Fitness (see page 29). In total, 1,328 clubs are now managed by the top 10 operators, up from 1,263 (+65 clubs) since 2022. In the process, over the last 12 months, this leading cohort has gained almost 300,000 members and grown its market value by £415m; member numbers and market value are now both higher than pre-Covid-19. The top 10 brands opened 98 brand new clubs in the last 12 months (up from 75 in the previous year), with almost three-quarters of these operated by PureGym and The Gym Group. In the same period, the top 10 closed 35 clubs (up from 14 in 2022). The private sector continues to be driven by the ever-expanding low-cost segment, which operates 80 of the 145 new clubs that opened in the last 12 months. However, total low-cost private club numbers are down (from 741 to 724) as Active Fitness, énergie Fitness and TruGym have all dropped out of this segment altogether; these operators no longer charge under £25, on average, at their clubs. Despite the fall in total number of low-cost clubs, membership numbers within this market segment have increased from 2.74 million to 2.85 million since 2022. This represents 41% of the total private membership, equivalent to over 4% of the UK population. The three largest franchise operators – Anytime Fitness, énergie Fitness and Snap Fitness – now have 327 clubs between them, down from 331 in 2022. Combined membership across the three operators remains at a similar level to 2022.
Private Clubs
4,460
Members
6.98 m
Market Value
£4.04 bn
Average Fee
£44.92
Penetration Rate
10.2 %
23
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK PRIVATE CLUBS
PRIVATE SECTOR
Regional Breakdown
Region
Clubs
Members
Average Fee
317
419 k
£37.92
East Midlands
424
607 k
£44.80
Eastern
563
1.25 m
£69.81
London
176
254 k
£36.53
North East
508
880 k
£37.45
North West
112
100 k
£36.27
Northern Ireland
311
513 k
£43.43
Scotland
700
613
964 k
£51.88
South East
600
565
563
444
552 k
£42.43
South West
500
424
218
275 k
£36.79
Wales
409
400
408
629 k
£37.63 323 317
West Midlands
300
366
532 k
£35.52
Yorkshire & Humber
179
1
200
100
Regional Clubs: 2022 / 2023
0
E. Mids
Eastern London North
700
2022
2023
619
613
600
565
563
508
506
500
444
436
424
419
409
408
400
371
366
323
317
311
304
300
218
205
179
176
200
120
112
100
0
E. Mids
Eastern London North East North West N. Ireland Scotland South East South West Wales
W. Mids Yorks & Humber
2022
2023
UK Average Membership = 1,564 It ranges from: 893 in Northern Ireland (43% below UK average) to 2,221 in London (42% above UK average)
UK Average Fee = £44.92 It ranges from: £35.52 in Yorkshire & Humber (21% below UK average) to £69.81 in London (55% above UK average)
24
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK PRIVATE CLUBS
PRIVATE SECTOR
Gym Station Breakdown
Facility Breakdown
50%
62%
Studio
39%
Sauna
38%
40%
34%
Cycle Studio
31%
Steam Room
29%
30%
29%
Pool
24%
Spa Pool
20%
17%
Sunbed
16%
7%
Squash
11%
4%
Golf
10%
4%
3%
Indoor Tennis
3%
3%
Sports Hall
0%
<20
20-49 50-99 100-149 150-199 200+
0% 10% 20% 30% 40% 50% 60% 70%
Number of stations
Private Clubs Open 24/7
of private clubs open 24/7 31 %
of the total UK population live within 2 miles of a Private Health Club 83.4 %
Want to know where your gym members come from? Why not ask Leisure DB
25
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK PRIVATE CLUBS
PRIVATE SECTOR
1 in 10 people is a member of a private club
Penetration Rate 10.2 %
% of adult* population = 12.5% *Adults aged 15+.
Penetration Rate ■ Pre-Covid-19, the private sector penetration rate had risen steadily, from 7.2% in 2012 to 10.5% in 2019. ■ The last 12 months have seen it recover from its post-Covid-19 dip, rising above the 10% mark once more. ■ While it hasn’t quite reached its all-time high of 10.5% – achieved in pre-Covid 2019 – things are once again moving in a positive direction. ■ Will the next 12 months see private sector penetration reach a new all-time high? UK population = 68.1 million
NO DATA 2020 & 2021 DUE TO COVID-19
Penetration Rate: 2007 - 23
11%
10.5%
10.2%
9.9%
9.8% 9.9%
10%
9.1%
9%
8.5%
7.9%
8%
7.5%
7.4% 7.4%
7.3% 7.2%
7.2% 7.2%
7%
6%
5%
2007 2008 2009 2010 2011
2012 2013 2014 2015 2016 2017 2018 2019 2022 2023
26
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK PRIVATE CLUBS
PRIVATE SECTOR
Regional Penetration Rate: 2022 / 2023
2022
2023
15%
13.8%
13.3%
11.8%
11.6%
10.4%
10.3%
10.3%
9.9%
10%
9.6%
9.6%
9.6%
9.5%
9.3%
9.2%
9.1%
8.9%
8.7%
8.6%
8.5%
8.5%
8.1%
7.7%
5.1%
5.1%
5%
0%
E. Mids
Eastern London North East North West N. Ireland Scotland South East South West Wales
W. Mids Yorks & Humber
LONDON INSIGHT 2022
LONDON INSIGHT 2023
■ 13% of clubs ■ 18% of members ■ 25% of market value
■ 13% of clubs ■ 18% of members ■ 26% of market value Over 1.25 million members 13.8 % penetration rate 1 in 7 people in London is a member of a private club
Just under 1.2 million members 13.3 % penetration rate
1 in 7.5 people in London is a member of a private club
27
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
UK PRIVATE CLUBS
PRIVATE SECTOR
TOP 10 OPERATORS
LOW-COST OPERATORS
2022
2023
2022
2023
1,263 1,328 5.1 %
741
724 2.3 %
Clubs
Clubs
4.02 m 4.31 m 7.2 %
2.74 m 2.85 m 3.9 %
Members
Members
£1.9 bn £2.3 bn 21.7 %
£707 m £782 m 10.7 %
Market Value
Market Value
MULTI-CLUB OPERATORS
INDEPENDENT OPERATORS
2022
2023
2022
2023
2,249 2,282 1.5 %
2,207 2,178 1.3 %
Clubs
Clubs
5.33 m 5.6 m 5 %
1.35 m 1.38 m 1.8 %
Members
Members
£2.8 bn £3.3 bn 16.7 %
£696 m £732 m 5.1 %
Market Value
Market Value
28
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
TOP 30 OPERATORS
PRIVATE SECTOR
Rank Operator
Clubs
Top 3 Operators: 2015 - 23
345
1 PureGym
230
2 The Gym Group
400
2023
177
3 Anytime Fitness
†
2022
2019
114
4 Nuffield Fitness & Wellbeing
2018
101
5 David Lloyd
2017
300
2016
86
6 Snap Fitness
2015
79
7 JD Gyms*
68
8 Bannatyne
200
64
9 Sports Direct Fitness
64
10 énergie Fitness
38
11 Fitness First
100
34
12 Virgin Active
33
13 The VIllage Gym
22
14 YouFit
22
15 LivingWell
0
PureGym The Gym Group Anytime Fitness
19
16 Delta
† 2022 figures include openings in 2020 and 2021.
16
17 Spindles Health & Leisure
■ PureGym further strengthens its position as the UK’s #1 fitness operator – by number of clubs and number of members – after reaching 345 clubs this year. The low-cost chain has added 45 clubs in the last 12 months (and 70 the previous year). ■ Low-cost operator The Gym Group remains in second place with 230 clubs, having added 23 clubs since last year’s report. ■ Mid-market franchise operator Anytime Fitness completes the top three. It has 177 clubs – up from 176 in 2022. ■ These three operators account for 17% of all private sector clubs in the UK. ■ The top 10 operators account for 30% of all UK private sector clubs; the top 30 represent 37%. ■ Mid-market operator Snap Fitness is the only other chain in the top 30 to have added more than five clubs since 2022. It has added eight clubs. ■ The top 30 operators account for 71% of private club members (4.9 million members) and 72% (£2.9 bn) of private sector value.
15
18 Total Fitness
14
19 Vital Health & Wellbeing
13
20 Spirit
12
21 Jetts Fitness
10
22 24/7 Fitness
10
23 GymBox
10
24 HarSpa
9
25 Fitness4Less
9
26 Foundry Gym
9
27 Fitness Space
8
28 Simply Gym
8
29 Third Space
8
30 OneGym Fitness
* Includes the 3 Xercise4Less clubs acquired but still trading under the Xercise4Less brand.
29
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
TOP 10 OPERATORS
PRIVATE SECTOR
2022 Clubs
2023 Clubs
Rank Operator
1,328
Clubs
300 345
1 PureGym
207 230
2 The Gym Group
4.31 m
Members
176 177
3 Anytime Fitness
£2.33 bn
Market Value
114 114
4 Nuffield Fitness & Wellbeing
99 101
5 David Lloyd
£43.45
Average Fee
78 86
6 Snap Fitness
25%
Wet
75 79
7 JD Gyms*
69 68
8 Bannatyne
75%
Dry
68 64
9 Sports Direct Fitness
92
Average Stations
77 64
10 énergie Fitness
* Includes the 3 Xercise4Less clubs acquired but still trading under the Xercise4Less brand.
Top 10 Operators: Market Share
■ The top 10 operators account for 30% of all private clubs, but interestingly, over 60% of total private sector membership and almost 60% of private sector market value. ■ Combined member numbers for the top 10 are up by almost 290,000 (from 4.02 million in 2022 to 4.31 million in 2023) while their combined market value is up by over £415m (from £1.9bn in 2022 to £2.33bn in 2023). ■ Three of the low-cost operators feature in the top 10: PureGym, The Gym Group and JD Gyms. ■ Three of the franchise operators feature in the top 10: Anytime Fitness, énergie Fitness and Snap Fitness. ■ Across the top 10, since our 2022 report, 98 new-build clubs were opened and 17 clubs rebranded post-acquisition.
70%
60%
62%
58%
50%
40%
30%
30%
20%
10%
0%
Clubs
Members
Market Value
30
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
TOP 10 OPERATORS
PRIVATE SECTOR
NO DATA 2020 & 2021 DUE TO COVID-19
Top 10 Operators: Total Clubs in 2019 / 2022 / 2023
345
350
2019
2022
2023
300
300
250
230
230
207
200
177
176
160
159
150
114
114
112
101
99
99
100
86
80
79
78
77
75
72
69
68
68
65
64
64
50
34
24
0
PureGym Gym Group Anytime Fitness Nuffield David Lloyd Snap Fitness JD Gyms
Bannatyne Sports Direct
énergie
■ PureGym, the leading UK operator, has added 45 clubs since 2022 – the biggest growth of any operator. ■ The Gym Group (+23), Snap Fitness (+8), JD Gyms (+4), David Lloyd Clubs (+2) and Anytime Fitness (+1) are the only other top 10 operators to operate more gyms in 2023 than in 2022. ■ The top 10 operators are the same as in 2022, but with a slight change in ranking: énergie Fitness has dropped from 7th to 10th place, with 13 fewer clubs than in 2022. ■ Bannatyne and Sports Direct also have fewer clubs than in 2022 (-1 and -4 respectively).
The top 10 operators are the same as in 2022, but énergie Fitness, Bannatyne and Sports Direct all have fewer clubs.
31
STATE OF THE UK FITNESS INDUSTRY REPORT 2023
TOP 10 OPERATORS
PRIVATE SECTOR
Top 10 Operators: Clubs & Members
PureGym
1.5 m
1.25 m
The Gym Group
1 m
0.75 m
David Lloyd
JD Gyms
0.5 m
Nuffield
Anytime
Sports Direct
Bannatyne
0.25 m
énergie
Snap
0 m
0
25
50
75
100
125
150
175
200
225
250
275
300
325
350
Number of clubs per operator
■ JD Gyms, The Gym Group and PureGym all charge under £25 a month on average. ■ JD Gyms has the highest average number of members per club (over 5,000), while the three franchise operators have the lowest; Anytime Fitness, énergie Fitness and Snap Fitness all have fewer than 2,000 members per club, on average. ■ Of note, PureGym’s average fee is +4.2% compared to 2022, and The Gym Group’s +8.5%; London locations will likely have influenced these figures. Anytime Fitness is +6.7% versus 2022.
■ PureGym, the UK’s #1 operator by number of clubs, also remains the leading operator by number of members, with almost 1.4 million members across 345 clubs. ■ The Gym Group has the second largest membership base (just under 900,000), followed by David Lloyd with over 450,000. énergie Fitness is the only operator in the top 10 to have fewer than 100,000 members. ■ David Lloyd has the highest average monthly membership fee (over £140), followed by Nuffield (over £80).
Top 10 Operators: Average Members & Average Membership Fee Per Club
6 k
JD Gyms
David Lloyd
5 k
PureGym
4 k
Nuffield
Sports Direct
3 k
The Gym Group
Bannatyne
2 k
énergie
Anytime
1 k
Snap
£0 £10 £20 £30 £40 £50 £60 £70 £80 £90 £100 £110 £120 £130 £140 £150 0 k
Average membership fee per club
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STATE OF THE UK FITNESS INDUSTRY REPORT 2023
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