5 Key Asia-Pacific Health Club Industry Insights

The health club industry in the Asia-Pacific region is robust—with room for growth—according to IHRSA’s recently released Asia-Pacific Health Club Report (Second Edition), which observed 14 markets.

Since the report is full of in-depth analysis and statistics, industry stakeholders and enthusiasts can take away at least five key insights into the Asia-Pacific region.

1. Fourteen markets in the Asia-Pacific generate a combined $16.8 billion in revenue.

Led by China, Japan, and Australia, the Asia-Pacific region totaled an estimated $16.8 billion in revenue in 2017. China and Japan led all markets with $3.9 billion each, while Australia was third with $2.8 billion.

2. Roughly 22 million consumers belong to a health club in the Asia-Pacific region.

In 2017, 14 markets in the Asia-Pacific region collectively attracted 22 million members. China and Japan led all markets in the region with 4.52 million and 4.24 million members, respectively. South Korea was third with 3.75 million members.

3. More than 25,000 health clubs, gyms, and studios serve the Asia-Pacific fitness industry.

The total number of health and fitness centers in 14 Asia-Pacific markets exceeded 25,000 in 2017, led by South Korea, home to 6,950 facilities. Japan and India were third with 4,950 and 3,813 locations, respectively.

4. The average member penetration rate in the Asia-Pacific is 4.28%.

Although the average member penetration rate was 4.28% in 2017, the rate varies widely across the 14 markets observed in the report. Australia and New Zealand led the way at a respective 15.3% and 13.6%.

On the other hand, Indonesia and India had the lowest penetration rates. Only 0.18% of the Indonesian population belong to a health club, while only 0.15% of Indians are health club members.

5. The Asia-Pacific health club industry can be categorized into three market tiers.

Considering the various economies and cultures across the Asia-Pacific, the development of the health club industry varies significantly across the region. As a whole, the industry can be categorized into three tiers.

• Tier 1 is characterized by established, mature markets like Australia and New Zealand, which have the highest member penetration rates in the region. The health club market landscape in Australia and New Zealand is dynamic, consisting of various fitness offerings, including 24-hour clubs, studios, and full-service facilities.
• Tier 2 belongs to rapidly-expanding markets such as Singapore, Japan, and Taiwan, where fitness facilities and instruction are increasing in demand and professionalization, along with a growing concentration of leading players. The member penetration rates in these markets are close to the overall average in the Asia-Pacific.
• Tier 3 is embodied by emerging markets with potential for growth and includes Indonesia, India, and China. In these markets, the industry is concentrated in densely populated cities, while areas outside of these major metros are underserved. Tier 3 markets have the lowest member penetration rates in the region.

For more on the Asia-Pacific health club market, be sure to get your digital copy of the IHRSA Asia-Pacific Health Club Report (Second Edition).