1. Influences on UK Health & Fitness market
Edexcel Pre-Release 2017

2. Market influences
Social trends:
Throughout western countries, and in developing markets such as China and India, the market for health clubs has risen
This is part-economic and part-social
The last 10 years has seen trends towards veganism, a move to organic foods and a huge move towards ‘free-from’ foods – all surrogates for healthier eating and living
Health club membership is part of that
Fitness and Leisure market 2017

3. Changing costs
The direct costs of running a health club are trivial and overall running costs minor – but interest rates are important because the key costs relate to capital investment
So the collapse in interest rates in January 2009 (effectively from 5% to 0.5%) has been a huge issue – lowering a major barrier to entry

4. Membership prices
It’s hard to know what prices are charged by the different full-service clubs – or their trends over recent years …
… but it’d be reasonable to assume that they manage to edge prices up in line with inflation
… but of course we know that some will be switching from £100 a month to £15-£20 a month at the low-cost clubs

5. Market growth, but average revenue falling