The fitness market - Portugal

Since 2020, the global fitness market has faced challenges due to the Covid pandemic, leading to significant contractions in the industry, such as the 13.20% decrease in the gym sector and a substantial decline in gym memberships and fitness club revenues, particularly noted in Portugal with a 40% market value drop between 2019 and 2020. Fitness clubs adjusted by offering discounted memberships and online services, while governments implemented support measures like VAT reductions and financial aids totaling 65 million euros. The market saw a shift in preference towards larger fitness clubs, particularly chain gyms, and a pronounced growth in the low-cost sector and online fitness offerings. Pre-Covid, the Portuguese market was on an upswing with a membership increase of 65% between 2017 and 2019 and a penetration rate improvement from 5.4% to 6.7%. Despite the setbacks, the industry remains poised for recovery given the ongoing digital transformation and sustained governmental support. Major chains, such as Holmes Place with $58.58 million turnover in 2020, Fitness Hut ($51.15 million in 2020), and Solinca ($41.3 million in 2019), continue to dominate the market landscape in Portugal..Growth and Challenges in the Portuguese Fitness Market The fitness market in Portugal has been dynamic, experiencing noticeable growth between 2016 and 2019, with membership increasing by approximately 65% and the penetration rate of physical activity participants climbing from around 5% to nearly 7%. Despite this positive trajectory, the Covid-19 pandemic posed significant challenges, resulting in a substantial contraction of the market. Prior to the pandemic, the goal was to reach a milestone of one million gym members by 2021, indicative of the market's potential for expansion. The demand in this sector is influenced by several factors. Trends show that the majority of fitness club members are women, with the age distribution heavily leaning towards the younger generation aged between 16 and 30 years old, and a nearly equal proportion between 31 and 64 years old. This range could imply a heightened inclination towards health and fitness driven by social media influence and greater affordability. Frequency of gym use is balanced, demonstrating a consistent engagement in fitness activities among the members. Members exhibit preferences for different types of gyms. Larger clubs, particularly those affiliated with chains, are favored because of their extensive facilities. On the other hand, smaller, individual clubs are increasingly preferred for their personalized customer care. Despite the evident gravitation towards more spacious facilities, premium fitness clubs boast higher retention rates as compared to their low-cost and mid-market counterparts. This suggests that while budget-friendly options are appealing, many members prioritize quality and dedicated support. Pricing strategies are pivotal within the market. The average monthly fee for fitness clubs rose substantially from around 35 euros to nearly 40 euros between 2016 and 2018, largely due to increased rates within the premium sector. However, a subsequent decrease in monthly rates across all segments indicates an industry response to attract a broader customer base by making fitness clubs more accessible. Concentration within the fitness market is high, with a few major chains holding a significant portion of the market share. Holmes Place, Fitness Hut, and Solinca together account for roughly 30% of total gym memberships. This emphasizes the competitive nature of the fitness market and the significant influence of leading players. Despite facing setbacks due to the pandemic, the market is poised for recovery with support mechanisms from the government and proactive moves by fitness organizations. The evolving preferences of consumers and the adaptability of market players - as seen through the rise of low-cost options and robust online offerings - suggest a market that is responsive to changing consumer needs and geared for future growth. The potential for growth remains significant,.## Key Contenders Shaping the Portuguese Fitness Landscape ### Holmes Place International Ltd: A Beacon of Wellness As an international chain, Holmes Place stands as a beacon of wellness within the fitness market in Portugal. Renowned for their premium offerings, Holmes Place clubs often feature a comprehensive range of services, including state-of-the-art fitness equipment, group exercise classes, swimming pools, spas, and wellness areas. With a business model that emphasizes a holistic approach to health and fitness, Holmes Place caters to those seeking an upscale experience and more personalized attention. ### Fitness Hut: Accessible Fitness for the Masses Local chain Fitness Hut has made its mark by balancing affordability with quality. Offering a modern take on gym experience, Fitness Hut provides a wide array of fitness options without the high-end price tag. Their clubs are designed to be welcoming and inclusive, allowing a broader clientele to enjoy the benefits of regular exercise, contributing significantly to the growth of the low-cost fitness segment in Portugal. ### Solinca: A Steady Climb to Success Another pivotal player in the Portuguese fitness market is Solinca. This local chain has solidified its presence with an expanding number of clubs. Known for a personalized approach to fitness, Solinca offers various services that bridge the gap between the premium and mid-market segments. With customer satisfaction at heart, Solinca is recognized for its ability to retain members through a balance of quality and value. ### The Code: Crafting Boutique Fitness Experiences The Code represents the boutique fitness studio sector, known for its specialized and high-focus fitness programs. With a more intimate setting, The Code attracts those who prefer a more community-oriented atmosphere and individualized attention. The boutique fitness model has been gaining traction due to the unique and tailored experiences it offers its clientele. ### TimeToFitness24: Round-the-Clock Fitness Convenience On the individual gym front, TimeToFitness24 delivers a unique proposition with its 24/7 operational model. Catering to busy professionals and night owls alike, this gym provides members with unrestricted access to fitness, carving a niche for itself in a market that values convenience and flexibility. In the evolving narrative of Portugal's fitness market, these key players exhibit a diverse range of strategies and services, catering to the varied needs of the population. From high-end luxury to accessible, budget-friendly options, and from the personalized attention of boutique studios to the convenience of round-the-clock access, these companies are the pillars shaping the current and future landscape of fitness in Portugal.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 30/04/2022

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Summary and extracts

List of charts

• Taille du marché mondial du fitness
• Taille du marché européen du fitness
• Size of the national fitness market
• Part de l'année ou les salles de sport ont du rester fermées
• Distribution of members by age
• Frequency of use of fitness clubs
• Retention rate by market segment
• Distribution of gyms by market segment
• Répartition des salles de fitness par type
• Number of gyms per chain
• Evolution of the services offered by the gyms
• Part des centres de fitness proposant des services nouveaux
• Evolution of the average monthly payment for gyms
• Evolution of average monthly payments by segment
• Evolution of the number of members
• Evolution of the penetration rate
• Revenus des applications de fitness au Portugal
• Parts de marché des applications de fitness

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