Let's get physical

The New Year brings many resolutions to adopt healthier lifestyles, and this often involves joining a gym. 

Currently 6% of people in the UK are members of a gym and the UK gym market is estimated to be worth £5 billion annually. However, it has undergone rapid change in recent years as new budget operators and premium franchises fragment the landscape.

Established chains like Nuffield Health, David Lloyd Leisure, PureGym and The Gym Group now face rising competition from a variety of new formats. Microgyms, which are smaller, specialised facilities focusing on specific training methodologies or activities (e.g., CrossFit boxes or yoga studios), have gained popularity. These microgyms often offer a more personalised experience and foster a strong sense of community among members.

In terms of pricing options, the market has seen a shift towards flexibility and customisation. Many gyms now offer tiered membership plans, allowing customers to choose between basic access, premium services, or pay-as-you-go options. This flexibility caters to diverse consumer needs and preferences, creating a more inclusive environment.

Budget disruptors
Brands like The Gym Group, PureGym (the UK's largest private gym operator, both by number of gyms and members), and EasyGym have proven the viability of a low-cost gym model with affordable monthly rates around £20. Their 24/7 unmanned facilities, lack of long contracts, and signups via user-friendly apps are expanding the target demographic. The Gym Group alone added more than 20 new locations in 2022 through franchising deals to keep pace with demand. Industry giants are feeling the pressure to cut prices. As younger gym goers tend to prioritise affordability, flexibility, and efficiency when it comes to fitness, budget and mid-tier gyms leverage these elements to compete for Millennials and Gen Zs.

Luxury brands
At the other end of the spectrum we have the emergence of upscale fitness franchises like Third Space, and Equinox in luxury London locales. Offering premium amenities, social events, instructor-led classes, and an elite community, these fitness brands cater to high-income fitness enthusiasts. But at over £120 per month, they limit themselves to affluent neighbourhoods in metropolitan areas. These affluent customers tend to be more lifestyle focussed, interested in exclusive services such as cafes, saunas, and social spaces.

Boutique studios are another format of gyms focusing intently on one workout genre. F45 Training, Barry’s Bootcamp, Frame, Psycle, Boxercise, and SoulCycle have cultivated devoted followings. Catering to shorter attention spans, they provide more focused, results-driven experiences than generalised gyms. Apps like MyFitApp allow boutiques to modernise booking, tracking, community features and help convert trial-goers into long-term members.

As individuals kickstart their New Year resolutions, the UK gym market is undergoing a transformation marked by new entrants, disruptors, evolving formats, and diverse pricing options. The industry's landscape is becoming more fragmented, reflecting a shift towards specialised and personalised fitness experiences. The influence of overseas models, combined with changing consumer preferences, will likely continue to shape the future of the UK gym market. Whether it's the rise of boutique studios, the impact of digital platforms, or the emergence of unique microgyms, the industry is in a dynamic phase, offering exciting opportunities and challenges for both operators and fitness enthusiasts.

Shayan Idrees