Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

The German health and fitness market

11.06.2003



The German health and fitness market is the second largest in Europe and it ’s still growing - but what does the future hold?

There are many different facets of the German health and fitness market. It has four different trade associations and generated total sales of just € 3.16bn in 2002 (Source: DSSV), which is less than Porsche AG’s annual turnover.

Until now, there hasn’t been any accurate data of the total size of this market. However, since 1999, Deloitte & Touche has been engaged in this market segment and committed to increasing its transparency by issuing several studies about the current and future market situation.



Deloitte & Touche also provides consulting and auditing services to some of the largest fitness operators in Germany. Therefore, this article aims to give the reader a general overview of the German fitness market, the main players and potential trends.

overall market

The health and fitness industry in Germany, as the second largest in Europe, has experienced continuous growth over the last 10 years.

Overall membership increased by 155 per cent from 1992 to 2002, with a yearly average growth rate of 11 per cent (CAGR). Therefore, at the end of 2002, approximately 5.1m people in Germany were a member of a fitness club, accounting for 6.2 per cent of the total population.

Furthermore, the number of clubs increased from 4,750 in 1992 to 6,500 in 2002, an increase of 36.8 per cent, or a yearly average growth rate of 3.5 per cent (CAGR).

On the one hand, the strong growth reflects the increasing professionalism of the clubs in their operations and their ability to attract new members. On the other hand, it reflects a more general increase in the population’s awareness of the health and fitness market.

However, analysis of the growth over the last three years shows the pace tapering off. The number of clubs remained consistent at approximately 6,500 and although membership increased by 7.5 per cent in 2000 and 8.3 per cent in 2001, this slowed down to a 2.6 per cent increase in 2002.

selected operators

Since 2001, Deloitte & Touche has been issuing a quarterly newsletter with the most recent figures of selected health club operators in the German health and fitness industry.

The large fitness operators (non-franchise and franchise) are growing much faster than the overall market. However, even they have experienced a slower growth rate in the last three years. Whereas the membership of larger operators grew by approximately 41 per cent in 2000, and 34 per cent in 2001, this growth dropped to 22 per cent in 2002. This decline comes hand in hand with significant downward adjustments to their budgeted growth.

The top four players in Germany account for approximately 75 per cent of the total membership of the selected non-franchise studios. The largest fitness operators in Germany are experiencing increased growth in membership figures despite the overall economic downturn. The outlook for 2003 is mostly optimistic and focuses on growth through new club openings or through growth in membership at existing clubs.

In recent years, the German health and fitness market has experienced market consolidation, expressed through the growth of the selected studio operators, which continues to be well above the market average.

Furthermore, growth is generated through existing clubs. This goes hand in hand with a further increase in the average number of members per studio. The trend is exhibited by large clubs, with an average of 1,500sq m to 2,500sq m, with a few clubs over 10,000 sq m. However, the market share of the five largest fitness operators in Germany was only approximately 7 per cent in 2000, less than the market share of the five largest fitness clubs in the UK of approximately 25 per cent. By the year 2005, we forecast the market share in Germany and the UK for the top five players to be approximately 16 per cent and 25 per cent respectively.

trends forecast

We predict that the larger fitness operators will increase their share of the German health and fitness market and, in the long run, consolidation will continue to push the smaller, single site fitness clubs out of the German market. Large fitness operations are well-managed and employ professional staff, and the image of fitness clubs attracting only ‘Schwarzenegger wannabes’ is long gone. The new clubs are clean, equipped with the most recent cardiovascular and resistance machines and attract a totally different type of member.

New requirements relating to bank loans are also making it harder for smaller fitness operators to access external capital, exacerbating what is already a difficult situation for them. Without access to appropriate financing, smaller operators are often poorly managed and cannot effectively compete with the chains. Unable to invest in new equipment and professional staff, often their only solution is to close.

Another important trend in the coming year will be the development of more premium and country clubs in Germany. Clubs in this sector are usually are very large (more than 2000sq m) and most have 25m swimming pools, tennis courts and sometimes even golf courses, targeting the upper-middle to upper class members. In our study ‘The German Health & Fitness Market in the Year 2005’, we forecast that the market share of premium and country clubs will increase from 3 per cent in 2001 to 9 per cent in 2005.

The German health club market will continue to grow and we predict that further consolidation in the industry will be driven by the large operators.

For further information, please contact Karsten Hollasch, head of the health and fitness competence center of Deloitte & Touche in Germany. Details: khollasch@deloitte.de

| Deloitte & Touche
Further information:
http://www.innovations-report.de/images/indwirt/deloitte/deloitte_touche.pdf
http://www.deloitte.de/

More articles from Studies and Analyses:

nachricht Deep Brain Stimulation Provides Sustained Relief for Severe Depression
19.03.2019 | Universitätsklinikum Freiburg

nachricht AI study of risk factors in type 1 diabetes
06.03.2019 | University of Gothenburg

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: The taming of the light screw

DESY and MPSD scientists create high-order harmonics from solids with controlled polarization states, taking advantage of both crystal symmetry and attosecond electronic dynamics. The newly demonstrated technique might find intriguing applications in petahertz electronics and for spectroscopic studies of novel quantum materials.

The nonlinear process of high-order harmonic generation (HHG) in gases is one of the cornerstones of attosecond science (an attosecond is a billionth of a...

Im Focus: Magnetic micro-boats

Nano- and microtechnology are promising candidates not only for medical applications such as drug delivery but also for the creation of little robots or flexible integrated sensors. Scientists from the Max Planck Institute for Polymer Research (MPI-P) have created magnetic microparticles, with a newly developed method, that could pave the way for building micro-motors or guiding drugs in the human body to a target, like a tumor. The preparation of such structures as well as their remote-control can be regulated using magnetic fields and therefore can find application in an array of domains.

The magnetic properties of a material control how this material responds to the presence of a magnetic field. Iron oxide is the main component of rust but also...

Im Focus: Self-healing coating made of corn starch makes small scratches disappear through heat

Due to the special arrangement of its molecules, a new coating made of corn starch is able to repair small scratches by itself through heat: The cross-linking via ring-shaped molecules makes the material mobile, so that it compensates for the scratches and these disappear again.

Superficial micro-scratches on the car body or on other high-gloss surfaces are harmless, but annoying. Especially in the luxury segment such surfaces are...

Im Focus: Stellar cartography

The Potsdam Echelle Polarimetric and Spectroscopic Instrument (PEPSI) at the Large Binocular Telescope (LBT) in Arizona released its first image of the surface magnetic field of another star. In a paper in the European journal Astronomy & Astrophysics, the PEPSI team presents a Zeeman- Doppler-Image of the surface of the magnetically active star II Pegasi.

A special technique allows astronomers to resolve the surfaces of faraway stars. Those are otherwise only seen as point sources, even in the largest telescopes...

Im Focus: Heading towards a tsunami of light

Researchers at Chalmers University of Technology and the University of Gothenburg, Sweden, have proposed a way to create a completely new source of radiation. Ultra-intense light pulses consist of the motion of a single wave and can be described as a tsunami of light. The strong wave can be used to study interactions between matter and light in a unique way. Their research is now published in the scientific journal Physical Review Letters.

"This source of radiation lets us look at reality through a new angle - it is like twisting a mirror and discovering something completely different," says...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

International Modelica Conference with 330 visitors from 21 countries at OTH Regensburg

11.03.2019 | Event News

Selection Completed: 580 Young Scientists from 88 Countries at the Lindau Nobel Laureate Meeting

01.03.2019 | Event News

LightMAT 2019 – 3rd International Conference on Light Materials – Science and Technology

28.02.2019 | Event News

 
Latest News

Bacteria may travel thousands of miles through the air globally

25.03.2019 | Life Sciences

Key evidence associating hydrophobicity with effective acid catalysis

25.03.2019 | Life Sciences

Drug diversity in bacteria

25.03.2019 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>