Health and Fitness Clubs - UK - June 2014

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK health and fitness club market, 2009-19
Market factors
Figure 2: Trends in inflation and average weekly earnings, January 2009-April 2014
Companies, brands and innovation
Figure 3: Leading UK health and fitness club operators, by number of members, 2014
The consumer
Consumers and their BMI
Figure 4: Consumers’ BMI, April 2014
Health and fitness club usage
Figure 5: Health and fitness club usage, April 2014
Health and fitness club payment methods
Figure 6: Health and fitness club payment methods, April 2014
Health and fitness club brand usage
Figure 7: Health and fitness club brand usage, April 2014
Health and fitness club brand consideration
Figure 8: Health and fitness club brand consideration, April 2014
Health and fitness club brand attributes
Figure 9: Health and fitness club brand attributes, April 2014
Interest in new products/services from health and fitness chains
Figure 10: Interest in new products/services from health and fitness clubs, April 2014
Amount consumers are willing to pay for additional products/services
Figure 11: Amount consumers are willing to pay for additional products/services from health and fitness clubs, April 2014
Attitudes towards health and fitness clubs
Figure 12: Attitudes towards health and fitness clubs, April 2014
What we think
ISSUES AND INSIGHTS
Are the days of the mega-clubs over?
The facts
The implications
How much further can the budget sector grow?
The facts
The implications
How can clubs increase revenues from existing members?
The facts
The implications
How can clubs generate revenue from non-users?
The facts
The implications
TREND APPLICATION
Trend: Life Hacking
Trend: Make it Mine
Mintel futures: Access Anything, Anywhere
MARKET DRIVERS
Key points
Signs of progress on obesity?
Figure 13: Trends in BMI of adults in England, by gender, 2009-12
Children’s BMI levelling off too
Figure 14: Trends in BMI of children in England, by gender, 2009-12
Economic recovery in the air
Figure 15: Trends in quarterly GDP, Q1 2008-Q3 2014
Household budgets still under the cosh
Figure 16: Trends in inflation and average weekly earnings, January 2009-April 2014
Utility price rises put pressure on margins
Figure 17: Average price of fuels purchased by non-domestic consumers in the UK*, 2009-13
Figure 18: Carbon emissions of leading health and fitness club operators, 2011/12 and 2012/13
Digital devices transform the fitness landscape
Figure 19: Electronic products/services have at home, September 2012 and December 2013
Youth unemployment falls but still an issue
Figure 20: Unemployment rates, by age band (seasonally adjusted), 2009-14
Physical activity removed from QOF
WHO’S INNOVATING?
Key points
Further cycling studios launched
Fitness technology moves forward
Train Fitness customises service and cost
Pay less the more you go
Clubbing made good for you
AIF targets Millennials with Snapchat
MARKET SIZE AND FORECAST
Key points
Growth stalls at households feel the income squeeze
Figure 21: UK health and fitness club value market size, 2009-19
Figure 22: UK health and fitness club volume market size, 2009-14
Forecast
Figure 23: Forecast UK health and fitness club market (value), 2009-19
Figure 24: Forecast UK health and fitness club market (volume), 2009-19
SEGMENT PERFORMANCE
Key points
Membership and joining fee discounting more prevalent
Figure 25: UK health and fitness club market, by sector, 2010-14
Average spend per member is £42 per month
Budget sector growth continues to outstrip rest of market
MARKET SHARE
Key points
Budget club merger creates market leader
Figure 26: Leading UK health and fitness club operators, by number of clubs and members, 2014
Leading budget operators
Figure 27: Leading UK budget health club operators, by number of clubs, 2011-14
COMPANIES AND PRODUCTS
Industry structure
Figure 28: Number of health and fitness clubs in the UK, 2009-14
Figure 29: Number of health and fitness clubs* in the UK, by region, March 2014
Figure 30: Trends in the number of health and fitness clubs in England & Wales, March 2011-March 2014
Figure 31: Trends in the number of health and fitness clubs in Scotland, February 2012-April 2014
David Lloyd Leisure
Figure 32: Financial performance of David Lloyd Leisure Limited in the UK, 2009-13
Figure 33: Financial performance of Next Generation Clubs Limited in the UK, 2009-13
Figure 34: Financial performance of Harbour Club Limited in the UK, 2009-13
Virgin Active
Figure 35: Turnover of key Virgin Active UK health club businesses, 2012
Figure 36: Key financial performance of Virgin Active UK health club businesses, 2012
Fitness First
Figure 37: Financial performance of Fitness First Clubs Ltd, 2009-13
Dave Whelan Sports (DW Sports Fitness)
Figure 38: Financial performance of Dave Whelan Sports* Ltd, 2011-13
MOP Acquisitions (LAF) (LA fitness)
Figure 39: Financial performance of MOP Acquisitions (LAF) Ltd, 2009-12
Pure Gym/The Gym Group
Figure 40: Financial performance of Pure Gym Ltd, 2011/12-2012/13
Figure 41: Financial performance of The Gym Limited, 2011 and 2012
Nuffield Health
Bannatyne Fitness
Figure 42: Financial performance of Bannatyne’s Fitness Ltd, 2009-13
 OTHER OPERATORS
De Vere Group Ltd
Club Company Holdings Ltd
Energie Global Brand Management Ltd
Fitness 4 Less (Holdings) Ltd
TruGym
Xercise4Less
Active4Less Ltd
FitSpace Ltd
Anytime Fitness UK
CONSUMERS AND THEIR BMI
Key points
Mintel’s research finds that almost half of adults are overweight or obese
Figure 43: Consumers’ BMI, April 2014
HEALTH AND FITNESS CLUB USAGE
Key points
Numbers using health and fitness clubs remain steady
Figure 44: Health and fitness club usage, April 2014
Figure 45: Health and fitness club usage, by gender and age, April 2014
Current users
Potential re-joiners
Potential new users
The relationship between club usage, education and income levels
Figure 46: Health and fitness club usage, by socio-economic group, education and income level, April 2014
The relationship between club usage and BMI levels
Figure 47: Health and fitness club usage, by BMI levels, April 2014
HEALTH AND FITNESS CLUB PAYMENT METHODS
Key points
Four in 10 still pay annually
Figure 48: Health and fitness club payment methods, April 2014
Affluence dictates choice of payment method
Figure 49: Health and fitness club payment methods, by socio-economic group and household income, April 2014
HEALTH AND FITNESS CLUB BRAND USAGE
Key points
Budget clubs rise to prominence
Figure 50: Health and fitness club brand usage, April 2014
Brand usage by sector by age group
Figure 51: Premium health and fitness club brand usage*, by age, April 2014
Figure 52: Mid-market health and fitness club brand usage*, by age, April 2014
Figure 53: Budget health and fitness club brand usage*, by age, April 2014
Brand usage by household income group
Figure 54: Health and fitness club brand usage*, by household income, April 2014
HEALTH AND FITNESS CLUB BRAND CONSIDERATION
Key points
Mid-market brands still have strong brand equity
Figure 55: Health and fitness club brand consideration, April 2014
Brand consideration by age group
Figure 56: Health and fitness club brand consideration, by age, April 2014
HEALTH AND FITNESS CLUB BRAND ATTRIBUTES
Key points
Clear differentiation between most of the leading brands
Figure 57: Health and fitness club brand attributes, April 2014
David Lloyd brand attributes
Virgin Active brand attributes
LA fitness brand attributes
The Gym brand attributes
Fitness First brand attributes
INTEREST IN NEW PRODUCTS/SERVICES FROM HEALTH AND FITNESS CHAINS
Key points
Good potential for products and services outside the club environment
Figure 58: Interest in new products/services from health and fitness clubs, April 2014
Fitness-monitoring equipment of particular interest to current users
Figure 59: Interest in new products/services from health and fitness clubs, by health and fitness club usage, April 2014
AMOUNT CONSUMERS ARE WILLING TO PAY FOR ADDITIONAL PRODUCTS/SERVICES
Key points
Fitness equipment and PT offers biggest opportunities for incremental revenues
Figure 60: Amount consumers are willing to pay for additional products/services from health and fitness clubs, April 2014
ATTITUDES TOWARDS HEALTH AND FITNESS CLUBS
Key points
All-inclusive format most popular but customisation finds favour
Figure 61: Attitudes towards health and fitness clubs, April 2014
Potential users attracted by pay-as-you-go
Figure 62: Attitudes towards health and fitness clubs, by health and fitness club usage, April 2014
APPENDIX – MARKET SIZE AND FORECAST
Figure 63: UK health and fitness clubs forecast scenarios (value), 2014-19
Figure 64: UK health and fitness clubs forecast scenarios (volume), 2014-19
APPENDIX – BMI LEVELS
Figure 65: BMI levels, by demographics, April 2014
APPENDIX – HEALTH AND FITNESS CLUB USAGE
Figure 66: Health and fitness club usage, by demographics, April 2014
APPENDIX – HEALTH AND FITNESS CLUB PAYMENT METHODS
Figure 67: Health and fitness club payment methods, by demographics, April 2014
APPENDIX – HEALTH AND FITNESS CLUB BRAND USAGE
Figure 68: Most popular health and fitness club brand usage, by demographics, April 2014
Figure 69: Next most popular health and fitness club brand usage, by demographics, April 2014
Figure 70: Other health and fitness club brand usage, by demographics, April 2014
Current users
Figure 71: Most popular health and fitness club brand usage, by demographics, April 2014
Figure 72: Next most popular health and fitness club brand usage, by demographics, April 2014
Figure 73: Other health and fitness club brand usage, by demographics, April 2014
Past users
Figure 74: Most popular health and fitness club brand usage, by demographics, April 2014
Figure 75: Next most popular health and fitness club brand usage, by demographics, April 2014
Figure 76: Other health and fitness club brand usage, by demographics, April 2014
APPENDIX – HEALTH AND FITNESS CLUB BRAND CONSIDERATION
Figure 77: Most popular health and fitness club brand consideration, by demographics, April 2014
Figure 78: Next most popular health and fitness club brand consideration, by demographics, April 2014
Figure 79: Other health and fitness club brand consideration, by demographics, April 2014
APPENDIX – HEALTH AND FITNESS CLUB BRAND ATTRIBUTES
Figure 80: Health and fitness club brand attributes, by health and fitness club usage, April 2014
Figure 81: Health and fitness club brand attributes, by BMI levels, April 2014
Figure 82: Most popular health and fitness club brand attributes – David Lloyd, by demographics, April 2014
Figure 83: Next most popular health and fitness club brand attributes – David Lloyd, by demographics, April 2014
Figure 84: Other health and fitness club brand attributes – David Lloyd, by demographics, April 2014
Figure 85: Most popular health and fitness club brand attributes – Virgin Active, by demographics, April 2014
Figure 86: Next most popular health and fitness club brand attributes – Virgin Active, by demographics, April 2014
Figure 87: Other health and fitness club brand attributes – Virgin Active, by demographics, April 2014
Figure 88: Most popular health and fitness club brand attributes – LA fitness, by demographics, April 2014
Figure 89: Next most popular health and fitness club brand attributes – LA fitness, by demographics, April 2014
Figure 90: Other health and fitness club brand attributes – LA fitness, by demographics, April 2014
Figure 91: Most popular health and fitness club brand attributes – The Gym, by demographics, April 2014
Figure 92: Next most popular health and fitness club brand attributes – The Gym, by demographics, April 2014
Figure 93: Other health and fitness club brand attributes – The Gym, by demographics, April 2014
Figure 94: Most popular health and fitness club brand attributes – Fitness First, by demographics, April 2014
Figure 95: Next most popular health and fitness club brand attributes – Fitness First, by demographics, April 2014
Figure 96: Other health and fitness club brand attributes – Fitness First, by demographics, April 2014
APPENDIX – INTEREST IN NEW PRODUCTS/SERVICES FROM HEALTH AND FITNESS CLUBS
Figure 97: Interest in new products/services from health and fitness clubs, by BMI levels, April 2014
Figure 98: Most popular interest in new products/services from health and fitness clubs, by demographics, April 2014
Figure 99: Next most popular interest in new products/services from health and fitness clubs, by demographics, April 2014
Figure 100: Other interest in new products/services from health and fitness clubs, by demographics, April 2014
APPENDIX – AMOUNT CONSUMERS ARE WILLING TO PAY FOR ADDITIONAL PRODUCTS/SERVICES
Figure 101: Most popular attitudes towards health and fitness clubs, by demographics, April 2014
Figure 102: Next most popular attitudes towards health and fitness clubs, by demographics, April 2014
APPENDIX – ATTITUDES TOWARDS HEALTH AND FITNESS CLUBS
Figure 103: Attitudes towards health and fitness clubs, by BMI levels, April 2014
Figure 104: Most popular attitudes towards health and fitness clubs, by demographics, April 2014
Figure 105: Next most popular attitudes towards health and fitness clubs, by demographics, April 2014