Health and Fitness Clubs - US - June 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Membership shifts from non-profit to commercial clubs
• Rapid gym expansion nears saturation point
• Private club landscape remains highly fragmented
• Ancillary revenue growing faster than membership dues
• Consumers want to look and feel better
• Friendlier fitness for aging Boomers
• Younger consumers more likely targets for long-term contracts
• Marketers should turn focus toward value-doubters and active outsiders
• Market Size and Forecast
• Club expansion outpaces membership growth
  • Figure 2: U.S. health and fitness club membership and number of locations, 2002-06
• Rapid growth may slow as market shows signs of saturation
  • Figure 3: Health and fitness clubs total revenues, at current prices, 2002-12
  • Figure 4: Health and fitness clubs total revenues, at inflation adjusted prices, 2002-12
• Competitive Context
• Exercise outside of health clubs
  • Figure 5: Physical fitness venues, by household income, May 2006-June 2007
• Troubled sales of home fitness equipment manufacturers
• A home fitness fad for geeks
• Hotel gyms improve facilities
• Segment Performance
• Commercial gyms gain at expense of non-profit
  • Figure 6: Memberships in health and fitness clubs, by segment, 2004 and 2006
  • Figure 7: Share of U.S. health and fitness club members, by segment, 2000-06
  • Figure 8: Number of health club members, by segment, 2002-12
• Market Drivers
• Friendlier fitness for aging Boomers
  • Figure 9: U.S. population and projections and usage of health and fitness clubs, by age, 2002-12
• Consumers want to look and feel better
  • Figure 10: Reasons for working out, April 2008
• Nation is becoming more health conscious
• Saturation of health club leads to highly competitive pricing
  • Figure 11: Number of health clubs and revenue per member, 2002-06
• Ancillary revenue growth outpaces membership dues
  • Figure 12: Indexed revenue streams at Life Time Fitness health and fitness clubs, 2003-07
• Leading Companies
• Industry remains highly fragmented
• Leading chains generate higher revenue per club
  • Figure 13: Sales per unit of leading health and fitness club chains, 2006
• Industry news
• Brand Qualities
• Gold' s Gym makeover for Boomers
• Curves' success inspires men-only clubs
• Innovation and Innovators
• Gyms take encouragement to the next level
• New classes beyond aerobics keep it interesting
• Fitness equipment with iPod integration
• Bally-branded products sold in online drugstore
• Advertising and Promotion
• Overview
  • Figure 14: Media expenditures for major health and fitness club campaigns, 2005-06
• Key themes
• Bally Total Fitness
  • Figure 15: Bally Total Fitness: Total Body Class television ad, January 2008
  • Figure 16: Bally Total Fitness: Man' s stomach television ad, February 2008
  • Figure 17: Bally Total Fitness: Summer sale television ad, June 2007
• 24 Hour Fitness
• Gold' s Gym
• Life Time Fitness
  • Figure 18: Life Time Fitness television ad, January 2008
• Marketing to women
• Curves Fitness
  • Figure 19: Curves for Women: Heart television ad, December 2007
  • Figure 20: Curves for Women: Legs television ad, December 2007
• Lucille Roberts
  • Figure 21: Lucille Roberts: Summer sale television ad, July 2007
• Health Club Usage
• Key points
• Participation in fitness regime
  • Figure 22: Incidence of exercise and private health club usage, May 2006-June 2007
• Health club membership status
  • Figure 23: Health club membership status, April 2008
  • Figure 24: Health club membership status, by age, April 2008
  • Figure 25: Health club membership status, by household income, April 2008
  • Figure 26: Health club membership status, by race/ethnicity, April 2008
• Membership Types
• Key points
• Types of health club memberships
  • Figure 27: Types of health club memberships, by gender, April 2008
  • Figure 28: Types of health club memberships, by age, April 2008
  • Figure 29: Types of health club memberships, by household income, April 2008
• Exercise Habits
• Key points
• Regular workout times
  • Figure 30: Regular workout times, April 2008
• Change in exercise frequency
  • Figure 31: Change in exercise frequency, by gender, April 2008
  • Figure 32: Change in exercise frequency, by age, April 2008
• Health Club Amenity Usage
• Key points
• Equipment and services used
  • Figure 33: Equipment and services used at health or fitness club, by gender, April 2008
  • Figure 34: Equipment and services used at health or fitness club, by age, April 2008
  • Figure 35: Equipment and services used at health or fitness club, by household income, April 2008
• Motivations for Working Out
• Key points
• Reasons for working out
  • Figure 36: Reasons for working out, April 2008
  • Figure 37: Reasons for working out, by gender, April 2008
  • Figure 38: Reasons for working out, by age, April 2008
• Shunning the Health Club
• Key points
• Reasons for not joining a health club
  • Figure 39: Reasons not to join, April 2008
  • Figure 40: Reasons not to join, by gender, April 2008
  • Figure 41: Reasons not to join, by age, April 2008
  • Figure 42: Reasons not to join, by household income, April 2008
• Additional Attitudes
• Key points
• Attitudes toward health and fitness clubs
  • Figure 43: Attitudes toward health and fitness clubs, April 2008
  • Figure 44: Attitudes toward health and fitness clubs, by gender, April 2008
  • Figure 45: Attitudes toward health and fitness clubs, by age, April 2008
• Appendix: Other Useful Consumer Tables
• Fitness club membership
  • Figure 63: Health club membership status, by gender, April 2008
• Regular workout times
  • Figure 64: Regular workout times, by gender, April 2008
  • Figure 65: Regular workout times, by age, April 2008
• Reasons for working out
  • Figure 66: Reasons for working out, by household income, April 2008
• Attitudes towards the gym
  • Figure 67: Attitudes toward health and fitness clubs, by household income, April 2008
• Appendix: Trade Associations