The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
New York, NY (PRWEB) February 26, 2014
The Gym, Health and Fitness Clubs industry has strengthened on the back of consumer trends and the proliferation of public health campaigns advocating health improvement and fighting obesity-related health ailments. According to IBISWorld Industry Analyst Sarah Turk, “With the adult obesity rate expected to rise at an annualized rate of 0.5% during the five years to 2014, the Public Health Agency of Canada (PHAC) has increasingly stressed the merits of fitness regimens and healthy lifestyle choices.” According to PHAC, obesity-related healthcare costs, if including chronic illnesses resulting from obesity, put a $7.1 billion strain on the healthcare system over the five-year period. In response, many healthcare providers, health insurance companies and businesses seeking to bolster workforce productivity and lower healthcare costs provide incentives for health club memberships, buoying industry revenue growth. Consequently, during the five years to 2014, industry revenue is expected to grow at an annualized rate of 4.5% to $2.3 billion, including growth of 4.4% in 2014, as industry operators inundate a relatively untapped market composed of individuals that are increasingly aware of health and fitness.
Disposable income slightly declined 0.3% in 2010, as many Canadians slashed their discretionary expenditures, including gym and health club memberships. Nevertheless, small-scale gyms with few amenities have fared well over the period, as many Canadians preferred boutique gyms with local clientele. “Additionally, an increasingly active elderly population and the proliferation of female-only gyms, have kept the industry afloat,” says Turk. While operators had to contend with leisure time declining over the period, the industry benefitted from time-strapped consumers utilizing industry services, such as personal and group trainers, to achieve fitness results in smaller time increments. Industry profit is expected to rise as larger, all-inclusive clubs, which provide more high-margin services like hot yoga classes, grow increasingly popular.
During the next five years, the industry will benefit from increased youth and baby boomer health club memberships. As a result, industry revenue is forecast to rise over the five years to 2019. Industry operators will strengthen their product portfolios to bolster retention rates and generate membership sales via word-of-mouth between consumers.
For more information, visit IBISWorld’s Gym, Health & Fitness Clubs in Canada industry report page.
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IBISWorld industry Report Key Topics
The Gym, Health & Fitness Clubs in Canada industry operates fitness and recreational sports facilities that feature exercise and other active physical fitness conditioning or recreational sports activities, such as swimming, skating or racquet sports. Firms are also involved in facilities management and fitness instruction.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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