A recent report by professional services firm PwC suggests that there is opportunity for continued growth in the UK’s £5bn low-cost gym market, with room for roughly double the current number.
Estimates in the report ‘UK Low Cost Gyms’, commissioned by the Gym Group, project “an overall opportunity” in the UK for 1,200-1,400 new low-cost gyms.
The market has been growing at about 4% annually over the last five years, with identified opportunities including catchments where there are no existing low-cost gyms and catchments with space for additional gyms.
Also used are international benchmarks from Belgium, Germany and the Netherlands to “sense check” PwC’s results, the report states.
According to the report, the number of low-cost gyms has “increased tenfold” between March 2011 and December 2018 from a start point of around 60 to 654.
“High levels of rollout have resulted in increased levels of competitive intensity, but there has also been a broadening of locations in which low-cost gyms operate,” the report said.
The number of low-cost gyms in population catchments above 100k was 76% in 2014, compared with 69% in 2018, the report elaborates.
In addition to the Gym Group, companies in the low-cost market include Sports Direct Fitness, Xercise4Less, energie Fitness, and PureGym.
For the more information on the full report, click here.
Click here for more information on the Gym Group