Uk Health Club Industry

Topics: 2012 Summer Olympics, Health club, Recession Pages: 2 (538 words) Published: June 2, 2012
In 2010, the UK market for health and fitness clubs is expected to increase by a moderate 1% in nominal terms, to a five year peak of £4579 million, representing cumulative growth of 11% compared with 2006. Prior to this, annual growth rates declined from 7% in 2006 to just 1% in 2009. The level of growth is believed to have slowed during the review period reflecting the economic downturn and rising unemployment. Both of which, exerted a downward pressure on disposable income and consumer confidence, reducing demand for health and fitness centres as the money is spent on necessities rather than luxuries. Moreover, annual growth is also believed to have slowed due to increased saturation and competition in the market, which has led to a reduction in membership fees in the private sector. MBD believe the stronger growth of 7% and 6% in 2006 and 2007 respectively, can be attributed to consolidation among the leading operators within the industry, which relieved competition and price pressures. Market Forecast 2011-2015:

Between 2011 and 2015, the UK market for health and fitness is expected to increase, peaking at £5.18 billion (at 2010 prices) in the latter year. Annual levels of growth are projected to remain moderate, particularly during 2011, reflecting slow economic recovery. In 2012, and 2014, stronger annual growth of 3% and 4% is anticipated respectively, reflecting the 2012 London Olympics and 2014 Glasgow Commonwealth Games. Both of these events are expected to positively affect the market, inspiring increased participation in sport and exercise. Overall, the UK market is projected to demonstrate real term cumulative growth of 13% over the five year forecast period. Factors that have hindered stronger market development in recent years, such as increased competition, market saturation and declining membership fees, are likely to continue to impact the market over the next five years. However, anticipated increases in obesity levels and projected growth in...
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