India Fitness Center Market Forecast
The relevance of research
The fitness industry, as an established state of business in India, is relatively young. The industry began its formation about 20 years ago. Interest in this type of service is shown not only by young people, but also by business people who want to be in shape and lead a healthy lifestyle.
Purpose of the study
Analyzing the state of the fitness center market in India, assessing the market size, analyzing competitors, and identifying factors affecting the fitness center market in India
Content
Chapter 1. Key Components of the Fitness Center Market
1.1. Market size
1.2. Growth rate of the fitness center market
1.3. Fitness Center Market Trends
1.4. The main problems of the industry
1.5. Life cycle stage of the fitness center market
1.6. Estimation of the number of buyers and their financial capabilities
1.7. Estimated consumption per capita
1.8. Analysis of sectoral indicators of financial and economic activity
1.9. Price analysis
Chapter 2
2.1. Economic components
2.2. Social Components
2.3. Technological components
2.4. Political Components
2.5. STEP-analysis of the fitness centers market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
3.2. Number of competitors and relative market shares of the largest competitors
3.3. Compact location of industry companies in certain regions
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
4.2. Analysis of the impact on the state aid industry at the current date
4.3. Assessment of the extent of the impact of the crisis on the analyzed market. Barriers Existing in the Fitness Center Market
4.4. Prospects and growth drivers for the fitness center market
4.5. Forecast for the development of the fitness center market in the context of the current economic crisis
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
5.2. Sources of information for forecasting
5.3. Timing of forecasting
Research excerpt
Chapter 1. Key Components of the Fitness Center Market
1.1. Market size
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Based on the general social focus on a healthy lifestyle, it seems fair to say that the sphere of physical culture and sports has significant economic, educational and health-improving potential.
At the end of 2021, the market volume amounted to … billion Rs., however, according to the AOFI, over …% of fitness clubs suffered losses. The industry also records the debt load of fitness clubs.
By the end of 2021, according to expert estimates, up to …% of clubs operating in India in 2019 were closed. There was also an active change of club owners, as well as the transition of some brands to others.
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1.2. Growth rate of the fitness center market
For 2017–2019 the volume of the fitness center market in India increased by …% (by … billion Rs.).
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The pandemic brought down the market in March 2020, when many fitness clubs, mostly small market players, were forced to close. The lockdown lasted from three to five months, depending on the region. During this period, the Indian market has lost about … billion Rs. The crisis in the offline segment exacerbated the outflow of customers to online platforms (…% of the market) and then, in the summer, to open areas.
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The dynamics since October 2020 has become positive, a gradual increase in sales began, but the growth rate did not allow us to approach the 2019 figures.
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Diagram 1. Dynamics of the market size of fitness centers, 2017–2021, billion Rs.
1.3. Fitness Center Market Trends
Let's highlight the main trends that affect the fitness center market:
- Comprehensive health care. Citizens are beginning to take more comprehensive care of their health. In addition to gyms, proper nutrition, a change in the psychology of attitude to life, etc. are in demand;
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The geopolitical events of recent months, caused by a special operation, as well as massive sanctions against India, have seriously affected the stability of the fitness industry. As of May 2022, negative trends are observed against the backdrop of the Ukrainian crisis:
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1.4. The main problems of the industry
Among the main problems of the industry are:
- The relative high cost of fitness services;
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1.5. Life cycle stage of the fitness center market
The fitness center market is at the stage of life cycle maturity. The maturity stage is the longest of all life cycle stages. It is built on the popularity and wide representation of the service, which ensures a stable level of sales over a long period.
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1.6. Estimation of the number of buyers and their financial capabilities
During 2014–2017 India's population has shown a positive trend. However, in 2018, the vector changed – the population decreased due to the natural population decline in 2016–2019.
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In general, according to the assessment of the Cabinet of Ministers, the population of India will decrease over the next four years, and positive growth rates are expected only in 2030. The total population of the country, according to the document, for 2020-2024. will decrease by more than 1,2 million people.
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The economic situation in 2022 is mainly influenced by geopolitics. As the key rate rises, so does inflation. Growing inflation leads to a fall in real disposable money incomes of the population.
1.7. Estimated consumption per capita
Estimation of per capita consumption volume was made by GidMarket analysts based on the ratio of the fitness center market size to the population of India.
The volume of consumption of fitness services during 2017–2019 showed steady growth: from … Rs. in 2017 to … Rs. – in 2019. The growth in the consumption of services per capita is associated primarily with the growing popularity of the service, the growth in the number of people involved in sports. In addition, the increase in the indicator was influenced by the rise in prices for services. The dynamics of the indicator indicates the prospects of the considered market segment, despite the drop in consumption in 2020.
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Diagram 2. The volume of consumption in the market of fitness centers per capita, 2017–2021, Rs./person
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1.8. Analysis of sectoral indicators of financial and economic activity
Gross margin of the fitness center industry throughout the study period, except
2020 was significantly higher than the level for all industries as a whole.
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Table 1. Gross margin of the fitness center industry compared to all industries in India, 2017-2021, %
At the same time, profitability before tax in the fitness center industry in 2017–2021 was not only lower relative to all sectors of the Indian economy, but also in the zone of negative values. At the end of 2021, the indicator was minus ""...%.
Current liquidity characterizes the extent to which all short-term liabilities of the enterprise are secured by current assets. Shows how many rupees of current assets account for a unit of short-term liabilities.
The estimated indicator of current liquidity of a normally operating solvent legal entity must be at least one, that is, it is necessary that the total value of current assets be greater than the amount of short-term liabilities.
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1.9. Price analysis
GidMarket analysts believe that consumer price indices in the fitness centers market are similar to price indices for classes in general physical training groups. Thus, for the period 2017–2021. the average annual consumer price index for fitness amounted to …%.
Table 2. Consumer price indices in the fitness center market in India in 2017–2021, %
Prices for club cards in fitness centers depend on the included programs and additional services, the time of visits. Morning and afternoon programs are cheaper than evening and weekend workouts. Cards to fitness clubs, including visits to a massage therapist, a solarium and a pool, will cost much more than just subscriptions to classes.
Chapter 2
2.1. Economic components
- India GDP
GDP is a macroeconomic indicator that reflects the market value of all final goods and services produced in a year in all sectors of the economy on the territory of the state for consumption, export and accumulation. The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
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- Dollar rate
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Chart 5. Monthly dynamics of the US dollar against the rupee, 2017-May 2022, Rs. for 1 US dollar
The real value of the rupee is currently impossible to estimate, as India is in the midst of a strategic change in the structure of the world economy.
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2.2. Social Components
- Healthy lifestyle
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Being engaged in a fitness room, a person improves his general physical condition, increases strength and endurance, develops coordination of movements, flexibility, joint mobility, and improves posture. Regular training helps to get rid of excess weight, the figure becomes toned and embossed, metabolism and metabolic processes are accelerated, muscles become stronger and stronger.
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- Seasonality
The business of fitness centers has a pronounced seasonal character. As a rule, the maximum demand is reached during the period from September to December and from February to May. During the summer months, people prefer to spend more free time in nature or go on vacation. As a result, demand drops sharply.
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2.3. Technological components
- Online Learning
In addition to online classes, it is possible to do fitness with video lessons. On YouTube, Instagram has a large number of workout options.
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- Introduction of new technologies
Most of the technologies for the fitness industry appear among applications, fitness gadgets, home equipment with virtual and online workouts. Video analysis is often used, artificial intelligence is integrated. New technologies are also helping to create devices for post-workout recovery.
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- New formats
In July 2021, X-Fit, a -hour fitness club without employees, opened. To become a member of the club, you need to install a mobile application. Booking and payment for training is also carried out online. In the application, you can sign up for a group or individual lesson, there is a separate chat for clients.
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2.4. Political Components
- Sports support
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Under the project “Sport is the norm of life”, mass sports are promoted and developed, and conditions for physical activity for all Indians are created and improved.
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- professional standard
From February 15, 2021, Order No. 24.12.2020n of the Ministry of Labor and Social Security of India dated December 950, “On the Approval of the Professional Standard “Fitness Services Promotion Specialist” came into force.
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- Tax deduction
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2.5. STEP-analysis of the fitness centers market
According to the results of the performed STEP-analysis, macro-environment factors have a negative impact on the development of the fitness center market to a greater extent.
Table 4. STEP analysis of factors influencing the fitness center market
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Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
In the fitness center market, local competition is most pronounced. More and more people who care about their health and physical fitness give preference to clubs of a ""home"" format, located within walking distance.
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3.2. Number of competitors and relative market shares of the largest competitors
Conducting a competitive analysis in the fitness centers market is complicated by the fact that networks are represented by several legal entities, individual entrepreneurs, as well as franchised enterprises are included in the network, but belong to separate legal entities.
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The fitness center market in India is characterized by a low level of concentration (large number of operators with relatively small market shares, Herfindahl-Hirschman HHI <1000 - low concentration market).
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Diagram 6. Shares of the largest competitors in the fitness center market in 2021, %
The study of the dynamics of total revenue is indicative from the point of view of the analysis of growth trends. The total revenue of the TOP-5 market players until 2019 showed growth. At the end of 2020, total revenue decreased by …% due to the coronavirus pandemic.
In 2021, the largest players increased their revenue by …% compared to 2020, which indicates the strengthening of their positions in the chain fitness clubs market.
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Chapter 4 Industry Forecasts
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List of diagrams
Diagram 1. Dynamics of the market size of fitness centers, 2017–2021, billion Rs.
Diagram 2. Industry life cycle stage
Diagram 3. Population dynamics in India, as of 01 Jan. 2013–2022, million people
Chart 4. Dynamics of real incomes of the population of India, 2013–1 quarter 2022, %
Diagram 5. The volume of consumption in the market of fitness centers per capita, 2017–2021, Rs./person
Chart 6. Profitability before tax (profit of the reporting period) in the industry of fitness centers in comparison with all sectors of the Indian economy, 2017-2021, %
Diagram 7. Current liquidity (total coverage) for the fitness centers industry for 2017–2021, times
Chart 8. Dynamics of India's GDP, 2013–Q1 2022, % to the previous year
Chart 9. Monthly dynamics of the US dollar against the rupee, 2017-May 2022, Rs. for 1 US dollar
Diagram 10. Shares of the largest competitors in the fitness center market in 2021, %
Diagram 11. Dynamics of the total revenue of the largest operators of the fitness centers market (TOP-5) in India, 2017–2021, billion Rs.
Diagram 12. Compactness of location of companies in the industry in certain regions, May 2022, %
Diagram 13. Forecast of the size of the fitness center market in 2022–2026, billion Rs.
List of tables
Table 1. Gross margin of the fitness center industry compared to all industries in India, 2017-2021, %
Table 2. Absolute liquidity of the fitness center industry compared to all sectors of the Indian economy, 2017-2021, times
Table 3. Consumer price indices in the fitness center market in India in 2017–2021, %
Table 4. Average prices in the market of fitness centers by Union Territories
Table 5. Expert forecasts for the decline in real GDP in India in 2022, %
Table 6. STEP analysis of factors influencing the fitness center market
Table 7. Main companies participating in the fitness center market in 2021
Table 8. Assessment of the impact of recent crises on the industry
Table 9. Analysis of the impact on the industry of the state assistance proposed as of May 13.05.2022, in connection with the spread of coronavirus infection
Table 10. Analysis of the impact of the state aid proposed as of August 13.05.2022, under sanctions
Table 11. Forecast indicators of the development of the Indian economy
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