European Health & Fitness Market Report 2019 European Health & Fitness Market | Report 2019 Introduction 04 The European Fitness Market at a Glance 06 Executive Summary 08 Top 30 Operators – Rankings 12 Top 30 Operators – Profiles 19 Other Operators – Short Profiles 52 Recent Mergers & Acquisitions 56 Perspectives on the Market 65 Humphrey Cobbold 66 Christophe Collinet 70 Jacob Fatih 74 Sondre Gravir 78 James Hurrell 82 Trends and Drivers in the European Fitness Market 86 The View from Brussels 93 Snapshot of the Equipment Industry 97 Top Markets – Overview 106 Top Markets – Profiles 119 Appendix 158 About EuropeActive 159 EuropeActive Event Calendar 160 About Deloitte Sports Business Group 161 Methodology 162 Glossary 164 03 The European Fitness Market at a Glance Mergers and Number of acquisitions Global net sales fitness club of leading members equipment manufacturers Clubs Membership growth E illion illion 24 Penetration rate 15.4 Market share of Average gross top 30 operators by membership fee per month illion membership € 0 Total revenues Members of tot top 30 operators EUR 27. illion E 1 06 European Health & Fitness Market | Report 2018 Mergers and Number of acquisitions Global net sales fitness club of leading members equipment manufacturers Clubs Membership growth E illion illion 24 Penetration rate 15.4 Market share of Average gross top 30 operators by membership fee per month illion membership € 0 Total revenues Members of tot top 30 operators EUR 27. illion E 1 07 Market growth is again primarily driven by a 4.6 % increase in the number of clubs across all countries, driving a total increase in members of 3.5 % to 62.2 million. 08 European Health & Fitness Market | Report 2019 Executive Summary In terms of revenue, the European health fragmented. With respect to membership, and fitness market grew by 1.2 % to EUR the 30 largest operators increased their 27.2 billion in 2018. In addition to the 28 Eu- combined market share by 1.3 percentage ropean Union member countries, this figure points to 24.8 % and their membership also includes Norway, Russia, Switzerland, by 1.5 million (+11.2 %) to 15.4 million from Turkey and Ukraine. The revenue develop- 2017 to 2018. ment was, however, negatively affected by exchange rate effects in Turkey (-27.8 %), This development was predominantly Sweden (-6.1 %), Ukraine (-5.8 %), Switzer- driven by low-cost operators, as Basic-Fit land (-3.7 %), Norway (-2.8 %), UK (-0.9 %), (+316,000 members), McFIT GLOBAL Denmark (-0.2 %) and Poland (-0.1 %). At GROUP (+220,000), VivaGym Group constant foreign exchange rates, the year- (+142,000), The Gym Group (+117,000), FitX on-year growth rate was 3.4 %. (+100,000), clever fit (+100,000), Fitness World (+88,000), PureGym (+85,000), Keep Market growth is again primarily driven by Cool (+80,000) and EASYFITNESS (+60,000) a 4.6 % increase in the number of clubs to were the ten fastest-growing companies 61,984 across all countries, driving a total in terms of absolute membership. The increase in members of 3.5 % to 62.2 million. German operator McFIT GLOBAL GROUP Thus, 7.8 % of the 796 million people living in (1.95 million members), Netherlands-based the European Union, Norway, Russia, Switzer- Basic-Fit (1.84 million) and British market land, Turkey and Ukraine were members of leader PureGym (1.01 million) thereby also a health or fitness club, with a penetration solidified their positions as the top 3 Euro- rate of 9.4 % for people aged 15 years and pean operators in terms of membership, older. At the same time, average monthly while The Gym Group (724,000) and FitX membership fees remained relatively stable (650,000) made leaps to fourth and sixth in at constant currency across the European the overall ranking. market, as price decreases in some coun- tries (driven by the continued expansion of While these growth figures largely rep- low-cost operators) were offset by increas- resent organic growth, some companies ing membership fees in other markets. such as VivaGym Group (acquired Fitness Hut), The Gym Group (easyGym), Fitness As shown in the chapter on the leading World (basefit.ch), PureGym (Soho Gyms) operators, the top 10 European fitness and Keep Cool (Feel Sport) were also operators, as measured by revenue, involved in M&A transactions as highlighted achieved total revenues of EUR 3.3 billion in the merger and acquisitions section of in 2018. While their market share increased this report. Overall, health and fitness club from 11.7 % to 12.1 %, the European fitness operators remained highly attractive to market nonetheless remains relatively investors from both inside and outside the 09 industry, as the 24 major M&A transactions This report also provides profiles of the in 2018 represent the highest number ever largest national fitness markets in Europe. reported in all six annual editions of this Together, the 18 countries analysed report. have 56.4 million members (90.8 % of the European market), revenues of EUR 25.6 In terms of revenue, UK-based premium billion (94.2 %) and 52,630 clubs (84.9 %). operator David Lloyd Leisure (DLL) retained first place by a considerable margin with Depending on the development of the revenue of EUR 545 million in 2018, which US market, which reported revenues of represents an increase of almost 13.0 % EUR 26.6 billion (USD 30.0 billion) in 2017 compared with 2017. DLL further expanded according to the 2018 IHRSA Global Report, its international presence in 2018 with the the European fitness market (EUR 27.2 addition of its first clubs in France and Ger- billion) could again be the largest fitness many. Ranking second was Basic Fit (EUR market in the world. 402 million), driven by 108 club openings in 2018. Switzerland- based Migros Group As shown in Figure 1, Germany and the (383 million) ranked third, followed by United Kingdom remain the two largest McFIT GLOBAL GROUP (EUR 355 million) national fitness markets in Europe with and Scandinavian market leader SATS total revenues of about EUR 5.3 billion Group (EUR 339 million). The top 10 by each. While the German market increased revenue contain five low-cost operators, by 2.5 % in 2018, the UK market grew by namely McFIT GLOBAL GROUP, Basic-Fit, 4.3 % at constant currency and by 3.3 % in PureGym, Fitness World and clever fit. Euro. When combined with France (EUR 2.6 billion), Italy (EUR 2.3 billion) and Spain (EUR In addition to its focus on club operators, 2.3 billion), the five leading countries ac- this report also provides a snapshot of the count for 65 % of the total European health global fitness equipment industry, high- and fitness market. lighting the position and development of leading fitness equipment suppliers. 2018 In terms of membership, Germany remains was yet another year of strong growth for the largest market in Europe with a total the global commercial fitness equipment of 11.1 million members (+4.5 %), followed industry, increasing to an estimated global by the UK (9.9 million), France (6.0 million), market size of EUR 2.95 billion. Thereof, Italy (5.5 million) and Spain (5.3 million). As EUR 0.87 billion are estimated to relate to shown in Figure 2, Germany and France the European market. The selected leading also displayed above-average membership manufacturers, which account for 75 % of growth rates in 2018, largely driven by the the total commercial equipment market, continued expansion of low-cost operators increased their commercial net sales by in both countries. 2.9 % to EUR 2.2 billion in 2018. 10 European Health & Fitness Market | Report 2019 At the same time, considerable differences Fig. 1 – Top 10 European fitness markets by revenue in million EUR and between the individual markets remain. share of the European market (2018) Markets such as Sweden (21.6 % penetra- tion rate) and the Netherlands (17.1 %) rep- resent medium-sized countries with high o tot rope ret membership figures relative to the popu- 6,000 lation, largely due to the high proportion ,330 ,22 of physically active people, relatively high ,000 urbanisation rates and the presence of 4,607 large fitness operators in these countries. At the same time, markets such as Turkey 4,000 still display considerable market potential with a penetration rate of 2.6 %. 3,000 20% 19% 2,6 2,304 2,291 This report is the most comprehensive 17% piece of research on the European health 2,000 and fitness market to date, but it is still only 1,360 a step towards more transparency and 9% 8% 8% 98 892 knowledge in this industry. Obtaining relia- 1,000 823 818 5% ble data on the development of individual 4% 3% 3% 3% national markets and leading fitness oper- 0 ators of the European health and fitness DE UK ITFR ES NL PL CH TR SE 23 others industry remains challenging. Sources: EuropeActive, Deloitte Fig. 2 – Total membership, membership growth and penetration rate of top 10 European fitness markets (2018) 9 8 urke 7 6 erae roth o Frane eran 4 top arkets iterlan 3 olan tal Meership roth pain een 2 UK 1 etherlans 0 0 10 1 20 enetration rate o total population Note: Bubble size represents total membership as of 2018 Sources: EuropeActive, Deloitte 11 Fig. 67 – Leading regular Fig. 68 – Leading concession Spain operators by number of clubs operators by number of clubs +15 -1 Market insights In Spain, it is estimated that 5,330,000 members exercise at one of 4,650 fitness 34 clubs, which is equivalent to a penetration Serviocio/ BeOne rate of 11.4 % of the total population.