HFA’s 2024 Global Report Spotlights Emerging Fitness Markets
Japan & Saudi Arabia are two areas to watch, as fitness brands like The Bar Method, Pure Barre, YogaSix, and GymNation see massive potential
It’s not just the U.S. that is pivoting towards health and fitness, according to the Health and Fitness Association’s (HFA) 2024 Global Report. In the last year, the U.K., Japan, and Spain have enjoyed record membership numbers and penetration rates, underscoring the optimism of the global health and fitness industry.
The report is comprehensive, but here are a few noteworthy takeaways from the 2024 HFA Global Report.
Japan Welcomes Boutique Fitness Brands
For 2023, Japan’s penetration rate reached 4.5% (approximately 5.6 million members) and a 21.4% increase from the year prior — a strong indicator that there’s a strong demand and commitment to fitness that is likely to continue, according to HFA.
Boutique brands have identified Japan as ripe with potential. The Bar Method, which was acquired by Self Esteem Brands in 2019 and offers the ultimate trifecta of yoga, Pilates and strength training, is opening its first Tokyo studios early next year following an agreement with Fast Fitness Japan (FFJ), which acquired the master franchise rights to the Barre brand.
“We are excited to introduce this exceptional exercise program to a wider audience in Japan, particularly women, to increase Japan’s fitness participation rate and promote the adoption and establishment of exercise habits,” said FFJ CEO Kio Yamabe of the deal. “We are confident that this will be an exciting fitness experience for the Japanese people.”
Boutique fitness and wellness franchisor Xponential Fitness is also making moves in Japan, with at least 50 Pure Barre and YogaSix studios expected to open following a master franchise agreement with Sunpark Co. Ltd., a StretchLab master franchisee and franchisor of restaurants, entertainment concepts, and fitness centers.
Saudi Arabia Emerges as Fertile Fitness Ground
In the Middle East — specifically Saudi Arabia — the penetration rate may be below 7%, but the HFA indicates growth potential, considering 74% of the fitness market consists of independent gyms and 26% is comprised of fitness chains. The report highlights that women-only gyms offer untapped potential, with 25% of women reporting a lack of nearby fitness centers.
While The Bar Method plans to head to Japan, the brand could potentially be a big hit in Saudi Arabia as well, according to Sander van den Born, executive vice president of international for Self Esteem Brands. In an interview earlier this year with Athletech News, he noted the changing landscape in the region.
“The females in the GCC (in particular, Saudi Arabia) there’s been quite an evaluation in the way they’re being seen in the community,” Born explained. “They can drive now. They have far more freedom than they used to have. They go out and are interested in sports, health and wellness. So we do feel that some of our offerings (especially The Bar Method) are very suitable for the female population in Saudi Arabia.”
GymNation, a well-known affordable GCC fitness chain, announced record-breaking demand ahead of its first six clubs in Saudi Arabia this summer, with over 120,000 people registering to show their interest and 12,000 memberships selling out in under 72 hours, setting a new pre-opening sales record in the Middle East.
“Selling such a high number of memberships in just three days highlights the strong demand and interest among citizens and residents to enhance their physical and mental health across the Kingdom,” GymNation’s founder and CEO Loren Holland said.
Holland added that the pipeline for new GymNation locations throughout Saudi Arabia is “exceptionally strong.”
“With support from our investment partners Tricap Investments and Ruya Partners, we anticipate a period of significant growth,” Holland added.
HVLP Gyms Head Overseas
While Japan and Saudi Arabia are expected to see immense growth, the HFA paints an overall rosy picture for the future of the fitness industry. The majority of club and studio operators (86.8%) expect membership growth in 2024, with over two-thirds expecting increases of over 5%. Similarly, 92.6% of operators project revenue growth.
High-value, low-priced gym operators Crunch Fitness and Planet Fitness are also planning to expand internationally. Crunch Fitness onboarded former Xponential Fitness chief international development officer John Kersh this past spring to drive domestic and international growth.
As for Planet Fitness, the big box gym giant opened its first European club in Barcelona this summer. The first several Planet Fitness locations will be a joint venture with a franchisee partner, while the remainder will be franchised, according to the gym brand.
“We see strong growth potential in Spain and are working tirelessly to build a solid, long-term foundation within the country,” said Vicente Bañobre, who is overseeing Planet’s expansion in Spain. “We’re thrilled to offer an affordable fitness solution and best-in-class member experience to the Sabadell community.”
The 2024 HFA Global Report is available here.
