A new report by ukactive highlights the fitness sector’s recent growth and the exciting possibilities this brings. ukactive executive director Steven Ward explains
By Steven Ward | Published in Health Club Management 2016 issue 11
The activity sector
will be worth £7.7bn
by the end of this year
The last 12 months have featured some significant steps forward for the physical activity sector.After nearly 15 years without any listed gym operators, we now have The Gym Group flying the fitness flag on the London Stock Exchange. Although Pure Gym recently had to pull out of its own IPO, when the global markets settle down post-Brexit we could see other chains following the lead of the Gym Group.
When coupled with the high-profile acquisition of Fitness First by DW Fitness, it’s clear to see that investors are alive to the potential of our sector.
This was further evidenced at the launch of ukactive’s new financial report last month, when the leading lights of the City rubbed shoulders with our sector’s shining stars at Legal & General’s London HQ.
A bright future Although long in its gestation, the Rise of the Activity Sector is a very timely report. It spotlights the UK’s fast-changing fitness landscape and predicts that the gym sector’s value will grow by 17 per cent in 2016 – buoyed by a fresh wave of investment and strong market sentiment.
Valuation specialist Mazars and sponsorship expert Nielsen Sports conducted analyses for the report, which estimates the sector will be worth £7.7bn by the end of 2016 (up from £6.6bn last year) as investors are enticed by the sector’s strong growth prospects.
Through a series of in-depth case studies, the report charts the rise of the low-cost sector, led by the likes of Pure Gym and The Gym Group, which have been credited with ‘democratising fitness’. Offering lower prices, 24-hour access and shorter-term contracts, low-cost gyms have played a key role in removing many of the traditional barriers to holding gym membership.
At the other end of the spectrum, the report explores how premium operators such as David Lloyd Leisure, Nuffield Health and Virgin Active have refined their propositions by investing in family-friendly, full-service offerings. It also examines the growing prominence of boutique fitness studios such as Heartcore and Barry’s Bootcamp, which have led the way in offering high-end fitness experiences on a pay-as-you-play basis.
Open for business With more than £1bn added to the sector’s value in just 12 months, we expect the report to serve as a clear signal that the physical activity sector is open for business. Opportunities abound, particularly around the areas of public health, technology and workplace wellness. The report tells the story of our sector to date and fashions a compelling narrative which can serve as the springboard for meaningful and purposeful conversations with investors.
But of course, with great opportunity comes even greater expectation: if we want to attract investment, the onus will fall on all of us to realise the sector’s true potential and make good on our ambitious targets.
Being required to continuously hit demanding growth targets will no doubt bring its own challenges, but if the achievements of the companies featured in the valuation report are anything to go by, our sector is more than capable of delivering lasting success.
Longevitix, a clinical platform for preventive and longevity medicine, has launched its AI-
powered intelligence system to help physicians deliver continuous, personalised longevity-
focused care at scale.
Atmantan Wellness Centre, an integrative wellness destination in Mulshi, near Pune in India, is
expanding its portfolio by adding a new centre in Hyderabad that will launch between 2028 and
2029.
A recent survey by the UK Spa Association (UKSA) into the industry’s approach to cancer care
has revealed that almost half of participating respondents (46 per cent) are unaware that
cancer is a disability and guests with a cancer diagnosis must be given
Mexican operator, Solmar Hotels and Resorts, is hosting a series of events in celebration of
Global Wellness Day, including a Temazcal ceremony at its Playa Grande Resort and Spa in Los
Cabos.
Mandarin Oriental has announced a standalone residence brand, Mansions, which will debut at
Emirates Palace, Mandarin Oriental Mansions, Abu Dhabi, in 2029.
Four Seasons Resort The Nam Hai in Hoi An, Vietnam, has put together a Global Wellness Day
(GWD) agenda with activations rooted in nature and shaped by four pillars of Joy – in
alignment with the day’s theme #JoyMagenta.
The Global Wellness Summit (GWS) will celebrate its 20th anniversary at the 2026 event in
Phuket, Thailand, later this year with the theme: The Science, Art and Soul of Wellness.
Auko, an all-inclusive development, is opening in Phong Nha in Vietnam in Q3 2026, with a
series of 30 tented eco-lodges and wellness hospitality operations by Lumina Wellbeing.
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