Read for Free: 2024 State of the UK Fitness Industry Report

The State of the UK Fitness Industry Report 2024, 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 2024

CONTENTS

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

WELCOME TO LEISURE DB’S STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INTRODUCTION FOUNDER FOREWORD

PUBLIC SECTOR DEFINITIONS

INDUSTRY VIEWS

UK GYMS – OVERVIEW

104

UK GYMS – BY REGION

Leisure DB is the leading independent data specialist in the UK leisure sector, providing robust market intelligence and analysis across the full scope of an increasingly diverse industry. For over 30 years, our reports have provided UK operators, suppliers, investors, consultants and government bodies with invaluable analysis of sector performance and trends. The data and insight we provide enables businesses across the sector to make strategic decisions with precision and confidence – suppliers and operators, independents and multi-site operations, public and private, direct and through leisure consultancies. We believe deeply in the importance of our sector. We’re here to help grow it. Find out how we can help your business achieve its potential – see page 135. We are for the industry, by the industry.

TOTAL MARKET UK FITNESS MARKET

106

OPENINGS & CLOSURES

108

SECTOR TRENDS

PRIVATE & PUBLIC SECTORS

109

MANAGEMENT MODELS

OPENINGS & CLOSURES

116

TOP 10 OPERATORS

UK GYM LOCATIONS

LEISURE DB REPORT METHODOLOGY

PRIVATE SECTOR DEFINITIONS

125

127

REPORT PARTNERS

UK CLUBS – OVERVIEW

132

OUR EXPERT TEAM

UK CLUBS – BY REGION

135

WORK WITH US

OPENINGS & CLOSURES

SECTOR TRENDS

TOP 30 OPERATORS

TOP 10 OPERATORS

INDEPENDENTS & CHAINS

LOW-COST OPERATORS

NEW TO THIS YEAR’S REPORT

New to this year’s report are operator and thought leader interviews, for insight into the story behind the statistics.

TARA DILLON – CIMSPA

FINANCIAL SUMMARY - PUREGYM

DAVID STALKER – EUROPEACTIVE

ANDY THOMPSON – ANYTIME FITNESS

COLIN WAGGETT – THIRD SPACE

FINANCIAL SUMMARY - THE GYM GROUP

DEEPESH THAKRAR & VALENTINA KRISTENSEN – OAKNORTH

SARAH WATTS – ALLIANCE LEISURE

111

PETER BUNDEY – GLL

JUSTIN MUSGROVE – FITNESS FIRST

120

DUNCAN JEFFORD – EVERYONE ACTIVE

Our thanks go to everyone for their time and willingness to share their expertise and experiences.

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

We provide the data that lets you make decisions with confidence Important business decisions should never be based on guesswork. For the UK’s fitness and leisure industry, Leisure DB is the trusted, independent provider of clarity. However large or small your business, and whatever your sector, we unlock the power of data to help you make better decisions, better investments, better strategies for success. ● Imagine pinpointing the precise, perfect location for your next gym. ● Imagine having a directory of businesses most likely to purchase from you. ● Imagine really knowing your target audiences and exactly where they are.

CUSTOMER PROFILING

Who does your facility most appeal to, where can you find more of these individuals locally – and how many more – and what can you say to interest them?

SITE ANALYSIS Have you found the perfect site for your new facility – will you get enough members and should you proceed? Have you really hit maximum membership at your existing club?

MARKET DATA What’s happening in your market right now? Where are the opportunities for your brand? What are the trends and the success stories? How do you grow?

INDUSTRY REPORTS How big is your sector, what is it worth, how are key players performing, what are the market trends – and what do the experts think?

Leisure DB’s unparalleled market intelligence unlocks all of this – and more.

We can answer all these questions, and many more. Let us help you make strategic decisions with confidence. leisuredb.com

FOUNDER FOREWORD

GOAL GETTERS MAKE NO EXCUSES.

DEMOCRATISING DATA

In 2019, Elon Musk announced the release of all of Tesla’s patents, as part of an effort to fight climate change. In the same open-source spirit, Leisure DB is now making its flagship State of the UK Fitness Industry Report available free of charge, as part of our effort to improve the health of the nation. This annual report, established for almost 20 years as the industry bible, has been used by operators, suppliers, financiers, media and politicians to evidence the key metrics of the industry: market value, size of membership, number of sites, penetration rates, average prices, regional variations, types of facility, leading public and private operators, to name but a few of the hundreds of data points. The data comes from Leisure DB’s relational database, which uniquely audits fitness sites across the UK, whether available to the public via membership or pay and play. The database is updated daily by a team of researchers, with many thousands of phone calls made to sites each year. A growing number of brands also self-report. Our intelligent audit uses bots and other digital sources to monitor changes, while a growing number of ambassadors report on site visits. This detailed supply data is complemented by demand data at the most granular level allowed: the geo-demographic profiles of millions of monthly direct debit members. The devil is in the detail, and we have that level of detail to help you understand your current and potential customers, respond to location-specific trends and conduct due diligence at a level of data that’s truly unique. You can read more about our consultancy services on page 135. Now, against this backdrop of granular data, we need examples of best practice to bring to life the vital role of the UK’s 7,009 fitness sites; throughout this report, operators and thought leaders express the desire for a central directory of great programmes that can be replicated. We also, crucially, need to go much further in sharing our data. As David Stalker says in his interview on page 36: “How can we prove we deliver anything we say we do if we don’t bring our data together? It’s an absolute priority, whether you’re public or private sector. Now, more than ever, is the time to collaborate and show the impact our great industry has on the health of the nation.” This is the rationale behind the Workforce Observatory, as Tara Dillon explains in her interview on page 26, and the reason why Leisure DB is making this report free to all. It’s also why, over the next 12 months, Leisure DB will nurture data-sharing among its growing body of partners, collate developments that evidence the sector’s impact, and continue to publish thought-provoking articles on the health and growth of the entire industry. Let’s usher in a new era of data democratisation!

Leisure DB is making the State of the UK Fitness Industry Report available free of charge, as part of our effort to improve the health of the nation

DAVID MINTON Founder, Leisure DB

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

POSITIONING FOR HEALTH OPPORTUNITIES EXIST FOR OUR SECTOR IF WE THINK ‘INTEGRATION’

Health. It is the future of our sector and we are well, if not yet optimally, placed to deliver on it. But one thing is for sure: with a national debt profile of £2.65trn – 96.5 per cent of the UK’s GDP – and spending of £1.4bn on public sector leisure, our cap- in-hand approach must give way to far more creativity in how we deliver services. So, what do we do? I talk about ‘positioning for health’, as I’m not a fan of the term ‘pivot’ in this context. Going back a couple of decades, I managed leisure centres where we ran all sorts of amazing programmes, including NHS-supported initiatives focusing on mind, exercise and nutrition, alongside smoking cessation. We have always fostered wellbeing as a sector. Many such initiatives have since fallen by the wayside, not prioritised for funding, but we mustn’t lose sight of the benefits we already bring: £9.5bn of social value in health improvements delivered through our 3,000 public sector leisure facilities (Moving Communities), 66 per cent of cancer prehab and rehab taking place in UK leisure centres, health inequalities tackled and the economic wellbeing of communities enhanced… But there is a next step, and that’s to become even more serious about our role in public health, going beyond co-location to become part of an integrated wellbeing future. At Alliance Leisure, we’ve embraced this collaborative agenda and are rising to the challenge, the new Harrogate and Knaresborough Leisure and Wellness Centres just one example. As we move forward, we believe leisure centres will be transformed into active wellness hubs, operating alongside locally-based services and activities, with increased support for community-based activity. Meanwhile, leisure services are starting to be formally recognised as part of Primary Care Networks (PCNs). And in a bid to reduce the health inequalities that arise from workforce shortages in general practices, PCNs are using the Additional Roles Reimbursement Scheme to fund 12 roles – one of which is a health and wellbeing coach. This is a perfect opportunity for integration with healthcare, as we could very feasibly mobilise our own skilled workforce to fill that gap. We’re also seeing a new undercurrent that plays in our favour. While it’s true that 55 per cent of councils report the need to find cost savings in their sport and leisure service provision (LGA survey, February 2024), we’re also seeing a number of regions amalgamating multiple local authorities into one, and along with other partners, they have a clear mission in doing so: to improve the health and wellbeing of their communities. When you have local authorities committing to that as their future direction, it bodes well for our sector – provided we can step up and make a gear change.

The next step is to go beyond co-

location to become part of an integrated wellbeing future

JAMES FOLEY Commercial Director, Alliance Leisure

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

THE FUTURE IS ‘WELLCARE’ MEDICAL HEALTH & PHYSICAL WELLBEING ARE FINALLY COLLIDING

SLIMMER PICKINGS GYMS FACE NEW COMPETITION IN THE LONDON PROPERTY MARKET

In last year’s report, my bets were on the expansion of ‘WellCare’. Time to consider whether I was right… It’s no surprise that demand for holistic wellness took a front seat in the last financial year, with consumers considering medical health and physical wellbeing as a combined entity. It is well established that nutrition, exercise and sleep are instrinsically linked to illness, injury, stress and other health conditions; it’s hard to believe these two sectors haven’t collided in such a big way sooner. As expected, there’s been a continued focus on data-driven, science-backed health and wellness solutions, with businesses that straddle healthcare and wellness shining through as investor favourites. The focus for consumers and investors is now firmly on life improvement and enrichment. The female health data gap has been acknowledged, with extensive data continually being uncovered about previously neglected conditions such as endometriosis and PCOS. Innovation around personalised solutions – from menopause management and hormone tracking to fertility, contraception and data-assisted IVF – is attracting investors. Against an economically challenging backdrop, there were fewer deals in 2023, but the average size of WellCare deals reportedly rose – particularly within women’s health, and specifically FemTech. Investors’ and insurers’ piqued interest, combined with wider societal buy-in to tackling taboos, have resulted in a slow but steady increase in investment levels. MenTech has seen a similar upward trend, with sexual health, fertility and hair loss high on the agenda. There’s continued interest in wearables, with one interesting deal from 2023 being the acquisition by insurance provider MACSF (Mutuelle d’Assurances du Corps de Santé Français) of a stake in RDS SAS – a company engaged with miniature, connected, wearable medical strips for real-time monitoring of several key cardiac and respiratory parameters. Corporate wellness platforms have also flourished as employee wellbeing programmes have been re-evaluated. The old-school £20-a-month gym membership contributions have made way for holistic services that span mindfulness, doctor-on- call, mortgage advice lines… even a virtual tooth fairy! One notable recent deal in this area: eGym’s acquisition of Archway Fitness/Hussle. Whether provided by employers or subscribed for personally by consumers, mobile apps – from Calm and Headspace to MyFitnessPal, Strava, Runna and Flo – are still plugging the gaps between the wellness industry and the healthcare system. My view is that WellCare is nowhere near its peak, and the message is clear: knowledge is power. Consumers will continue to challenge existing systems to gain a more in-depth understanding of their health status and overall wellness. The goal now has to be an even more personalised approach, with cross-sector collaboration to embrace and analyse all aspects of physical, mental, financial and medical health. It appears investors agree. Watch this space.

London is an interesting and now highly competitive market for gym operators. We focus on office blocks and residential developments, where landlords increasingly allocate significant space for a range of amenities. However, where fitness would previously have been the first and sometimes only choice, there are now more options – and landlords are considering them all. Say you have a 15,000–20,000sq ft space. That would suit a big box gym. But increasingly, these opportunities are also being targeted by ‘competitive socialising’ – things like virtual cricket, virtual clay pigeon shooting, football, Formula 1 driving simulators, even new-look funfairs. Some of these businesses turn over £100k–200k a week once F&B is factored in, so they can afford to pay £30–40 per square foot. Gyms generally aim for £20–30 per square foot. In central London, and indeed within the M25, they’re being priced out of spaces they would previously have dominated. The boutique model is also a challenger, as multiple studios can fit in the same footprint as one full-service club – and generally, each will pay higher rent per square foot than a big box. In one current residential project, we’ve had four separate, single-discipline fitness studios take space next to each other. In addition to higher rent for the landlord, this brings more variety for the consumer. To compete, big box clubs wanting this space must cater for all these different interests. In residential projects, they must also consider the cost and time implications of the new building safety regulations. There is still room for big box gyms, as many landlords remain keen to offer wellbeing, but the market has slimmed down massively. You have to be the best in the game now, and the market has polarised: Anytime Fitness maintains a good presence, but generally it’s either the leading low-cost operators – PureGym and The Gym Group – or high-end brands such as Third Space, and even more super-premium, on landlords’ radar. If landlords are going to be tempted by an independent business, it’s likely to be one that brings something different to the table: health services, physiotherapy and so on. Certainly, with the economic climate meaning landlords have to put more into these projects themselves, the choice tends to come down only to established brands with covenants and finances that can be relied upon. And then it’s a case of saturation. How many gyms can each brand support, and is there a risk – as hybrid working continues – that new central London openings could cannibalise other sites that aren’t even yet back to capacity? Other landlords are building their own gyms to offer tenants a finished product; while a boutique may still thrive in that area, big boxes may not, as building occupants will likely use on-site facilities. However, the main dynamic is now fitness vs competitive socialising – and landlords are certainly weighing up all the options.

My view is that WellCare is nowhere near its peak, and the message is clear: knowledge is power SAMANTHA TRELEAVEN Senior Associate, Pinsent Masons

The main dynamic is now fitness vs competitive socialising, and landlords are weighing up all the options STEVEN STEDMAN & WILL BROWN Central London Retail Division, CBRE

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

PROGRAMMING FOR GEN Z INNOVATION THAT MEETS NEW CONSUMER & INSTRUCTOR NEEDS

The UK fitness sector is being shaped by key macro trends such as hybrid working and the rise of Gen Z, who combined with Millennials now account for over 80 per cent of all gym joiners. We must deliver what Gen Z wants from a fitness experience, while still catering for existing members. And what this generation craves is community and connection, guidance and coaching. They expect fitness brands to be kinder, positive and joyful, offering fitness experiences that incorporate variety, personalisation, progression and education. These are the trends to which Les Mills is responding with new programming innovations to help operators stay relevant. Now, alongside our Signature Collection – iconic programmes such as BODYPUMP™ and RPM™ – operators can also harness the power of our In-House Boutique and Limited Edition Collections. In-House Boutique brings the boutique experience into big box clubs, allowing operators to leverage this trend to enhance their existing facilities. The collection includes athletic training concept Les Mills CEREMONY™, boxing-based Les Mills CONQUER™, and immersive cycling experience Les Mills THE TRIP™. At Bannatyne Dunfermline, CEREMONY classes hit 80 per cent occupancy within three weeks, with a quarter of attendees brand new to group training. With its premium look and feel, great music, fantastic instructors and new releases every month, CEREMONY is bringing people from the busy gym floor into the studio, helping to manage footfall and boost retention. It will now be rolled out across the Bannatyne estate. Meanwhile, the Limited Edition Collection is about one-off ‘box sets’ of six to 12 workouts that respond to the very latest trends – the things Gen Z are seeing online and expecting in-club – to bring excitement to studio timetables. It includes Les Mills Strength Development™ – a progressive 12-week programme that teaches people how to strength train; Les Mills Shapes™ – a six-week programme that takes the best of pilates, barre and power yoga for a low-impact, high-intensity strength workout; and Les Mills Functional Strength™ – a workout series featuring the best of heavy compound lifting and functional strength training. Addressing Gen Z’s desire for variety and innovation, Limited Edition combines on-trend music with new ways to train, led by a coach who’s there to motivate, improve technique and deliver results. Which brings us to the needs of the new instructor workforce – also Gen Z. Investment in staff education is a very positive industry trend, but we must recognise that Gen Zs want to do things differently. Limited Edition is therefore quicker to learn: we’ve streamlined the education journey to half a day, augmented with pre- and post-learning to maintain high standards. Crucially, it’s also about the way Gen Z instructors want to teach, forging closer connections with the customer. It’s vitally important that we remember this, responding not only to new consumer needs, but also to those of the emerging workforce.

It’s vitally important that we respond not only to new consumer needs, but also to those of the emerging workforce

MARTIN FRANKLIN CEO – Europe, Les Mills

ARE YOU READY TO GIVE YOUR MEMBERS THE FUTURE OF STRENGTH? Demand for strength workouts is insatiable. It’s Gen Z’s favourite way to workout 1 and is the most-wanted training program for all age groups 2 . That’s why we’re injecting variety and challenge into the category with LES MILLS FUNCTIONAL STRENGTH ™ . Help your members take their training to the next level, with a full-body workout combining heavy compound lifting and tempo-focused supersets. Inspired by sports conditioning and performance training, FUNCTIONAL STRENGTH offers an entirely new way to strength train that builds power and improves athleticism and stability.

1 Civic Science, 2 Mindbody Classpass Lookback Report (2022)

lesmills.com/uk/limited-edition WANT TO LEARN MORE?

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

SUSTAINABILITY & AFFORDABILITY HOW UK GYMS HAVE BEEN SWEATING THEIR ASSETS

From market data and conversations with operators, it’s clear the UK fitness sector is back and firing on all cylinders. But it’s been a rough ride, with many businesses struggling financially since the pandemic. It’s meant operators have wanted to sweat their assets more than ever. We’ve stepped in to enable that, refurbishing quite a lot of equipment that we’ve then put back into the same gyms. Take Spin bikes, for example. The metal frame itself lasts a lifetime, so really it’s about how the frame looks and the other components that can wear over time. With the facilities to shotblast and powder-coat in-house, as well as laser printing logos, we can make customers’ existing equipment look as good as new – and in many ways even better, as it’s bespoke branded and in their colour scheme. We also source our own pedals and bearings rather than getting these spare parts from the manufacturers; it saves our customers a lot of money without any compromise in the product quality. We can also 3D print a number of plastic parts in-house, such as chain guards. An example: we had a customer with 30 bikes, so we took 15 at a time and totally refurbished them. Instead of purchasing new bikes for £2,000 each, they spent £200–300 on each existing bike and got probably four or five more years out of them. This is also the green solution, of course – ticking another box for operators – as is the fact we manufacture our own Core Gym Equipment plate-loaded strength range in Britain, using British steel and British-made components. British manufacturing addresses another pain point for operators, too: the long lead times, often 12–16 weeks, for many new equipment orders. For Core Gym Equipment, the lead time – including bespoke colours and upholstery – is around four weeks. Finally, operators told us they wanted servicing to be simpler and more honest. So, that’s what we do. If there are products we know we find hard to maintain, we say so, but the basic promise is that we can look after every piece of kit that isn’t under warranty, whatever the brand, with a goal of 90 per cent first-time fix. We’ve become a one-stop shop for asset management, with a system that identifies every piece of kit, tracks its history – if something keeps breaking down, we know and can suggest it’s replaced – knows when other equipment in the gym is coming out of warranty and into our contract, and allows the customer to access this data. It makes the whole process easier and more transparent for operators, as well as helping them plan future investment: assets sweated just the right amount before being traded out to maintain a good member experience.

We’ve become a one-stop shop for asset management, with a system that makes the whole process easier and more transparent for operators GRAHAM BERTRAND Founder, PSLT

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

RETENTION MATTERS MORE THAN EVER WHY CUTTING ATTRITION IS KEY TO DRIVING SUSTAINABLE GROWTH Is member acquisition a distraction in your gym’s quest for growth? Consistently signing up new members is important, but – for individual businesses and the industry as a whole – keeping existing members is the key to sustainable growth, increased profitability and more people being more active. It’s why we published our attrition research in September 2023, drawing on analysis of over 300,000 UK gym members who cancelled a Direct Debit membership between January 2017 and April 2023. The research highlighted many opportunities to keep more members coming back for longer, with one key opportunity being better data capture, particularly visits and activity tracking. In our research, a concerning 20 per cent of all members didn’t have any visit tracking data, without which it’s almost impossible to identify when people stop using their membership. Meanwhile, 52 per cent of cancellations were silent, with over 75 per cent of these happening after a payment failed or was cancelled through the bank. Clubs must get ahead of this curve, harnessing data to identify and address issues that might otherwise arise further down the line. Access control systems that make it easy and necessary to check in are key, providing operators with the data they need to more easily identify at-risk members; Xplor Gym can even flag them. The club can then intervene, building re-engagement strategies and approaches to get members back to activity before it’s too late – using our automated re-engagement workflows, for example, with personalised, targeted messages going out at key moments. Interestingly, our research showed an average of five months between when a member stops visiting and when they cancel their membership. That’s a decent window in which to re-engage them – although notably, Xplor Gym’s member drop-off alerts can extend that window. Unsurprisingly, our research found members are most likely to leave if they aren’t making use of their membership; helping people build and maintain a habit of regular visits is critical. This might seem obvious, yet it’s alarming how many operators still don’t prioritise ongoing member engagement. Regular, meaningful touchpoints are required throughout the member journey, not just in the first few weeks. Again, much of this can be automated using Xplor Gym, with proven email schedules and templates designed by experts to make it as easy as possible for clubs to weave into their businesses. Member apps with community-building features can also help sustain motivation and engagement. It’s important to be transparent around payments, too, making it easier for members to have tough conversations without having to worry about speaking to a gym owner/manager. This is where our experienced, professional, empathetic UK contact centre team comes in, taking the burden of these conversations away from the club and working to get members back in the club, fast. This essentially leaves our customers free to concentrate on what they do best: delivering an outstanding member experience.

Clubs must get ahead of the curve, harnessing data to identify and address issues that might otherwise arise

DAVE ALSTEAD Commercial Director, Xplor Gym

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

Partner up to increase your membership retention

FUTURE-PROOFING THE SECTOR WHY THE FITNESS INDUSTRY MUST NOW FOCUS ON HEALTH In an ever-evolving landscape, the fitness industry is continually challenged to adapt, innovate and ultimately prove its essential status within the communities it serves. Post-pandemic, that means focusing on health. The importance of this transition cannot be overstated. As society grapples with an increasing prevalence of sedentary lifestyles, chronic diseases and mental health challenges, the role of the fitness industry extends far beyond the confines of any gym. It is – or certainly can be – a vital ally in the collective pursuit of a healthier, happier population. Already, we’re seeing forward-thinking operators embrace this agenda – the likes of Life Leisure within GM Active, for example, which is itself doing fantastic things around active wellbeing across Greater Manchester. David Lloyd and a host of independents such as Code Fitness, FTC Gym and OnePT also deserve a mention. Prioritising holistic wellbeing over physical aesthetics, these operators are no longer confined to the traditional boundaries of ‘fitness’. They are highlighting their relevance and increasing their impact by catering to a significantly broader demographic, delivering ‘health’ in ways that appeal to the wider population. They are future-proofing their businesses by offering essential services where they can prove their effectiveness. Key to this transformation is the strategic implementation of advanced technologies such as TANITA body composition analysis. Enabling a multifaceted approach to health monitoring, these technologies allow fitness operators to deliver tailored experiences that cater to individual needs and goals. From comprehensive body assessments to personalised health improvement plans, these integrated solutions empower both operators and members to track progress effectively and make informed decisions regarding their health journeys. Such accurate measurement is critical to the delivery of health, in turn enabling the industry to expand its reach far beyond the traditional 15 per cent market saturation. Operators embracing this shift are poised to connect with a diverse array of individuals seeking to improve their wellbeing. By embracing a health-centric model, operators also have the opportunity to cultivate lasting relationships with their members and other local health providers – relationships built on trust, support, knowledge and impact. I hear frequently that building a sense of community and belonging is essential for the long-term success of any facility; members tend to stay significantly longer when they experience this. The future of the fitness industry lies in its ability to prioritise health and fully embed itself in the communities it serves. Through the integration of technologies such as TANITA, operators can position themselves as leaders in the pursuit of a healthier society. The data justifies your impact, and measurements such as metabolic age drive engagement beyond a focus on weight or body fat alone. If we genuinely want to remain relevant and be seen as a viable and essential provider of health interventions, we must embrace a much wider approach, looking collaboratively both inside and outside the walls of our buildings.

Forward-thinking operators are future- proofing by offering essential services where they can prove their effectiveness

Industry leading health monitoring and body composition analysis solutions, powered by TANITA. Working with a number of partners, alongside our own software solution, there is something to suit every type of

health and fitness facility. Whether your focus is:

SIMON WILKINSON Fitness & Sport Lead, TANITA UK

• Better engagement to support members’ health goals, resulting in improved retention • Increased revenue through paid for measurements and health checks

TANITA offers you Japanese precision for accuracy, and the most flexible product selection on the market.

For more information please contact Simon Wilkinson, Fitness and Sport Lead, TANITA UK on 07795 278733 or simon.wilkinson@tanita.eu

UNPARALLELED GUARANTEE WORLD NO. 1 FOR NEW HEALTH INSIGHTS

JAPANESE TECHNOLOGY

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INDUSTRY VIEWS

More than ever before, gym members and prospective members are focusing on goals of health, wellness and longevity – an interesting trend for us at Performance Health Systems/Power Plate, as these now top-of-mind principles have been the foundation of our expertise and products from the very beginning. Many people think of Power Plate® as a fitness tool, and it certainly delivers great fitness benefits, improving strength, cardiovascular performance, flexibility and recovery, as well as supporting disciplines such as yoga and massage. It’s why leading professional and national sports teams globally have incorporated it into their training and rehab/recovery programmes for decades. But Power Plate goes far beyond fitness. We’re on a mission to optimise people’s health, taking the pressure off the NHS by empowering gym and health club operators to deliver the fundamentals of healthcare within their own environments. As our sector looks to open doors within the UK’s healthcare system, it’s vitally important that it has the independently-verified evidence to make a compelling case. We’re committed to providing this, with an exceptional library of independent scientific research and clinical evidence – and applied case studies – to demonstrate Power Plate’s positive impact across a wide range of populations and health conditions. This evidence has already given our customers the data they need to secure NHS contracts. Having the right equipment is also critical, and our growing range of products actively supports broad-based health and wellness. Alongside our world-leading whole body vibration platforms, the new Power Plate REV® vibrating indoor cycle is currently used primarily in elite sports, including for rehab, but is ready to roll out across multiple market segments, while our targeted vibration devices are simple but effective mobilisation and recovery tools. We also have the world’s leading osteogenic-loading technology to promote and improve skeletal health, countering the onset of osteopenia and osteoporosis – a major concern in the UK today. We call it bioDensity®. As clubs embrace the trend towards dedicated in-club recovery spaces, we are therefore a go-to partner, working collaboratively as we believe 360° wellness is best delivered in partnership. Bannatyne, for example, is partnering with Power Plate and TRX to create Activation & Recovery Rooms at its Bannatyne Just Fitness clubs. We expect to see demand for such concepts grow dramatically and quickly, helping more members feel and move better – with less pain, soreness and internal inflammation – which studies show improves overall physical and mental health. In turn, gyms will benefit through higher levels of members satisfaction. From menopause support to mobility, special population programmes to recovery and rehab, we give gym operators the products, services and partnerships they need to bring health and wellness to life across an unparalleled range of populations. We’re here to help gyms embrace a more health-centric agenda, to truly change people’s lives. A NEW AGENDA EMPOWERING CLUBS TO DELIVER BROAD-BASED HEALTH & WELLNESS

We’re here to help gyms embrace a more health-centric agenda, to truly change people’s lives

STEVE WRIGHT Vice president – EME, Power Plate

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

UK FITNESS MARKET

TOTAL MARKET

Overall, the UK health and fitness industry is performing strongly, with our data showing member numbers, market value and penetration all surpassing pre-pandemic levels and reaching all-time highs. Our research also identified a slight rise in the number of gyms, although the total remains below the highs of 2019. Of note, while the private sector is forging ahead on all measures, challenges remain for the public sector: the number of gyms has fallen, and member numbers and penetration have risen but not yet to previous highs. It is only in the measure of market value that an all-time high has been achieved. The operator and thought leader interviews throughout this report explore the challenges and opportunities across the various segments of the industry.

NO DATA 2020 & 2021 DUE TO COVID-19

2019 2022 2023

2024

Gyms

7,009

7,239 7,063

6,998

0.2 %

Members

10.7 m 4.1 %

10.4 m 9.9 m 10.3 m

Market value

£5.9 bn

£5.1 bn £4.8 bn £5.4 bn

9.7 %

Penetration rate

15.9%

15.6% 14.6% 15.1%

In the 12 months to the end of March 2024, the total number of UK gyms is back over 7,000 (+0.2%). Total UK membership has risen to 10.7 million (+4.1%) and the penetration rate has rocketed to 15.9%, surpassing 2019’s pre-pandemic high.

The industry market value has increased to £5.9bn in 2024 (+9.7% since 2023 and an all-time high).

In the 12 months to the end of March 2024, the % increases in member numbers and market value were greater in the private than in the public sector: +5.1% and +10.9% for the private sector versus +1.9% and +6.2% for the public sector.

PureGym and GLL remain the UK’s leading private and public operators, respectively, by number of gyms.

PureGym, SLM (Everyone Active) and JD Gyms are the only three operators to have added 10 or more gyms in the last 12 months, logging 34, 12 and 10 respectively.

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

UK FITNESS MARKET

TOTAL MARKET

NO DATA 2020 & 2021 DUE TO COVID-19

Number of gyms: 2007 - 24

Average monthly membership fee: 2007 - 24

8000

Private gyms

Public gyms

£50

2729

£45

2607 2538 2496

2708

2709

6000

2762 2735

2753

£40

2686 2706 2724 2750

2597 2622 2642

£35

4510 4456 4460 4513

4000

4330

4019

£30

3550 3700

3359

3117 3133 3151 3199 3146 3176 3269

£25

2000

£20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 2023 2024

Private gyms

Public gyms

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 2023 2024

Number of members: 2007 - 24

UK FITNESS MARKET

SCOTLAND

12 m

10 m

16.5% penetration rate 657 gyms 907 k members £427 m value

8 m

NORTHERN IRELAND

6 m

4 m

11.3% penetration rate 189 gyms 217 k members £85 m value

2 m

ENGLAND

0 m

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 2023 2024

16.0% penetration rate 5,778 gyms 9.1 m members £5.2 bn value

Market value: 2007 - 24

£6 bn

WALES

£5 bn

£4 bn

14.0% penetration rate 385 gyms 437 k members £197 m value

£3 bn

LONDON 19.9% penetration rate 826 gyms 1.8 m members £1.38 bn value

£2 bn

£1 bn

£0 bn

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 2023 2024

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INSIGHT & ANALYSIS

Power and impact are hyper-local. If we work smarter at a local level, we will slowly turn the national policy tanker

Incidentally, active wellbeing is the term we need to get used to using. We can’t use ‘leisure’ – to a lot of people that’s 10-pin bowling and eating out – and ‘fitness’ can sometimes feel divisive. What we do is active wellbeing, using activity to positively impact the physical and mental health of individuals and communities. And here’s the crucial point: active wellbeing doesn’t need to be part of healthcare. We don’t have to change who we are and call ourselves ‘health’. We don’t have to become clinical exercise physiologists, physiotherapists, occupational therapists. Our role is to be a partner: an essential, expert, specialist support service provider that offers an overwhelmed healthcare sector simple, easy, local solutions that help prevent so many people needing it in the first place. How do we make this a reality? One of the biggest challenges is public perception, and the fact that how and where people see and feel they can engage with our sector inevitably shapes their thinking. We need to better showcase all the opportunities for people to get active, and the diverse range of provision that’s available, so those who don’t feel they want to attend a leisure centre or gym can be introduced to activity they feel more comfortable with.

We also need to be more proactive, not simply waiting for the call to come to ask for our help; there are already some great examples around the UK, from GM Active to Abbeycroft Leisure and more. Probably more than any other sector, we have the insight and data that backs up our purpose, and with so many challenges in the health sector, there are huge opportunities for us to seize by showing more people the impact of the great work that’s happening. We also need to take a local approach, and this is the change I’ve begun to see in our sector. We are now place-based. Large national operators are tailoring their provision on a regional, county and town-by-town basis, delivering what that locality and community needs now and into the future. We still need central government to get it, but power and impact are hyper-local. If we work smarter at a local level, if we focus on the individual communities we’re responsible for helping, we’ll become greater than the sum of our parts and will slowly turn the national policy tanker. That’s where local partnerships and collaborations – such as those we’re seeing through Local Skills Accountability Boards – are so important. They’re making stronger connections between our sector, local authorities, health

Local authorities, trusts and management contractors are making active wellbeing their fundamental purpose, says Dillon

TARA DILLON

COVID forced the sector to mature, but there’s still work to do to fulfil our potential, starting with hyper-localised collaboration. The CEO of CIMSPA shares her thoughts.

New audiences will come if they see gyms as places of rehab and therapy

What are you seeing in the sector? Coming out of COVID, I observed a lot of soul-searching, not only in our sector but in many. In our case, I believe it’s created a sector that is responsibly revisiting its purpose and impact. For a long time, we’ve thought about and discussed what we want and need our sector to be, but we’ve sometimes struggled to translate that into scalable action. We were already discussing a pivot to health when I joined the sector in 1987, yet we’ve become stuck with certain demographics and communities failing to engage, and we’ve found it challenging to address that.

COVID forced us to think differently and take a more mature approach. We’ve recognised the need to not holler into our own echo chamber about what we should be doing, but to describe what we do more expertly and sagely, being much clearer in our identity and our purpose, not only to those within the sector but perhaps more importantly, to those beyond it. That is now happening. The local authorities, trusts and management contractors aren’t just talking about a pivot any more: they’re making active wellbeing their fundamental purpose. And on a local level, allied professionals and those managing and operating services outside of the sector are hearing it.

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INSIGHT & ANALYSIS

What comes next? We need to be much more co-ordinated in the way we share data across the sector. It is only by doing this that we will quantify the difference we’ve made and, following the advice in the Treasury’s Green Book , put our sums into Wellby – the Treasury’s portal to measure social impact – to in turn secure funding. With this in mind, we secured funding from the UK Research and Innovation fund to create the Sport and Physical Activity Workforce Observatory – a knowledge transfer programme in collaboration with universities including Cardiff Met, as well as data insight experts across the sector and beyond. It will collate research and insight about our sector. We can ask it any question. It’s agnostic, with a body of academics committed to validating the integrity of the data and enabling consistent, reliable outputs.

service and education providers. They’re sharing examples of impact, which is helping spread the word across regions, driving forward these ways of working at a greater pace. Data is key to this, including showing ICTs (Integrated Care Trusts, formerly the PCTs) that working with us will deliver on their objectives by supporting prevention and management of chronic conditions, rehabilitation and recovery, mental health and community engagement. Tell us more… We work best with local authorities when we collaborate and address their challenges. We meet and we ask what their biggest priorities are. Potholes? We can’t help with that, what’s next on the list? They might then tell us their mental health budget is under pressure from huge demand. Great, that’s something we can help with. We’ll go into these meetings fully prepared: we’ll know they overspent on their mental health budget last year; we’ll present evidence that working with us – with occupational therapists on-site in our centres, for example – can bring a £58 return on every £1 spent; and we’ll tell them it will cost them nothing. They just have to commit to pointing patients to us at the earliest stage of their diagnosis, and in a year’s time, we’ll show how much we’ve saved them. All of a sudden, the local authority wants to know what else we can do to help, and the ICT will pitch in too, perhaps identifying a problem – not enough qualified personnel to deliver diabetes prevention programmes, for example – which we can help with by introducing new training and additional expertise to our existing workforce.

The Skills and Post-16 Education Act 2022 brought about important changes in adult skills provision. Specifically, there must now be a proven local requirement for the skills that any educational curriculum being offered will deliver. This is hugely welcomed. It’s leading to greater collaboration between education providers and employers, ensuring the latter have a stronger voice in ensuring any local learning opportunities lead to the skills they need. We secured funding from Sport England to initially set up 15 Local Skills Accountability Boards to manage the creation of Local Skills Improvement Plans. There are now 37 of these Boards across the country. We’ve helped colleges, universities and training providers to create relevant curricula and get those learning and skills development opportunities into the system, so our sector can begin to address the gaps identified – the need for people who can deliver diabetes prevention, for example.

The National Sector Partners Group played a key role in securing Treasury investment in the swimming pool support fund

We don’t have to change who we are and call ourselves ‘health’. Our role is as a partner that helps prevent so many people needing healthcare in the first place.

If we want to make a case, we can ask the Workforce Observatory for data to prove our argument and speak with one voice

A new approach to skills development will help us meet local needs – more diabetes prevention programmes, for example

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

INSIGHT & ANALYSIS

We need to better showcase all the different activities we offer, says Dillon

POWERING THE FUTURE OF PHYSICAL ACTIVITY The UK's largest annual trade event dedicated to physical activity, health and performance.

We outlined some impacts our sector can have, and described to government the types of intervention and support they could give to help us achieve them

Now, if we want to make a case, we can ask the Workforce Observatory for data to prove our argument. Rather than everyone going to local or national government with different data sets and different messages, we can speak with one voice. But it does rely on the whole sector sharing its data. We also need to bring together examples where we’re positively impacting people’s health. There are some great case studies from across the UK, where people who normally wouldn’t dream of going to one of our centres are doing so because they see them as places of rehab and therapy. If we can bring these case studies together into a compendium of brilliance, we can use this to help turn the political tanker. The National Sector Partners Group (NSPG) is also crucial to having one united voice. It includes CIMSPA, ukactive, Sport England, the Sport & Recreation Alliance, Youth Sport Trust, Active Partnership Network, Local Government Association and the Sports Development Coalition – and together, we represent our sector to government.

Now, if government has a question for the active wellbeing sector, it comes to the Group. Collectively, we can make a difference – for example, with the Treasury’s investment in the swimming pool support fund. The NSPG also produced a report – Unlocking the Potential – in which we outlined some short-, medium- and long-term impacts we believe our sector can have, and described to government the types of intervention and support they could give to help us achieve them. So, we’re driving greater understanding within government, but it’s a pincer movement, with the sector also taking accountability for shouting louder about the great collaboration and innovation going on around the country. Challenges remain within the sector and, with a General Election imminent, at a government level we may not see progress in the short-term. However, we’re determined to still keep pushing and challenging government to commit to further change.

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STATE OF THE UK FITNESS INDUSTRY REPORT 2024

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