Fighting fit

Shaping up to 2022 in fitness – what are the trends? Check out this market report.

Will the onset of digital programs and apps significantly change the fitness landscape? The pivoting required by gym chains during pandemic lockdowns saw a swift adoption or extension of all things digital to keep businesses trading.

And in revealing its predictions for the year ahead, the Australian Institute of Fitness (AIF) listed online training as its third most important trend.

Steve Pettit, Australian Institute of Fitness CEO, says, “A combination of old meets new will become the norm as technology continues to drive evolutions in gym and PT offerings. Increasingly, we will likely see the fitness industry tailor bespoke programs, experiences and services to consumers’ individual wants and needs through a mix of in-gym, online and hybrid models.”

He suggests flexibility and choice will be crucial to consumers; fitness operators will need to respond with diversification, personalisation and the ability to provide training opportunities where consumers want to workout.

“We will also likely continue to see fitness shift further beyond aesthetics and weight loss towards deeper areas of holistic health and wellbeing. The key role that fitness can play in broader health outcomes – especially mental health, chronic disease prevention and management, and evolving conditions like Long Covid recovery – will all be key areas for Australia’s fitness industry to engage with,” he says.

There have been new and young players determined to make their mark in an increasingly competitive marketplace as fitness has become more polarised, with niche and boutique businesses vying for attention with the old established order.

The customers’ search for connection has been particularly noticeable after lockdown with Australians seeking more of a bond through greater interaction at their gyms, which they find in the personality of a dynamic instructor or the more personal touch of a boutique gym.

Attracting customers

According to IBISWorld, in the Gyms and Fitness Centres in Australia report published in September 2021, functional fitness, yoga and Pilates will drive profitability.

However, report author Ross Dean suggests the growth of a business may not translate into more customers in the gym space; the existing pool of gym goers may simply be recycling their commitment between one brand and another – something that will allow brands to expand in an increasingly saturated market but won’t bring in a new wave of customers to the overall fitness space.

CHALLENGES AHEAD

High level of competition Capital costs for equipment Wages Rents

MUSCLE MEMORY - flashback to 2021

It’s been a tough two years for the fitness industry. And Ross Dean believes the industry has been weighed down by the Covid challenges and seen an inevitable decline in revenue.

Budget vs premium

In the pandemic, budget models needed to bring in staff to deploy Covid rules. They may not have a sense of community that customers are seeking. However, premium gyms recovered market share from budget gyms because they could more easily pivot their businesses.

Mergers and acquisitions

In 2021 the global Lift Brands, which owns Snap Fitness and 9Round, took a 30 percent share in Aussie functional fitness chain Fitstop. In 2020 Viva Leisure bought Plus Fitness and F45 was acquired by Crescent Acquisition Corporation.

Who was using the gym?

Not so many of the 15–34-year-olds. As a share of revenue this has declined as more young Aussies turn to organised sports.

What was trending?

Boutique fitness and classes

FITNESS FORECAST

• Expect to see a bounce back in 2022–23 • Revenue will rise 4% through to 2027, to $2.4 billion • Royalty fees a growing share of industry revenue • Membership numbers will rise • Staffing demands will reduce as Covid rules lessen • Most new entrants will be boutiques and small gyms – inexpensive equipment boosts profitability

Source: Gyms and Fitness Centres in Australia, September 2021, IBISWorld

AUSTRALIAN INSTITUTE OF FITNESS:

top 10 fitness trends for 2022

1. Wearable technology 2. Exercise as medicine 3. Online training 4. High intensity interval training (HIIT) 5. Health and wellness coaching 6. Hybrid gyms 7. Functional fitness training 8. Mobile exercise apps 9. Outdoor activities 10. Mind and body training

EXTERNAL DRIVERS 2022-27

3.8%

lift in household discretionary income

2.8%

growth in obesity levels

0.7%

consumer sentiment to fall but remain positive

0.4%

rising health consciousness

-0.1%

average weekly hours worked