EUROPEACTIVE
European Fitness Market in 2014 50.1 million members 48,000 facilices 26.8 billion euro revenues 400,000 employees
The European Health & Fitness Market Report 2015
The European fitness market was worth 26.8bn in 2014, with the top 5 countries representing almost two thirds Top 10 European health and fitness markets (2014) Market size ( m), Share of total market (%) 65% of total European market 6 000 5 000 5 061 4 700 4 234 4 000 Total Revenues ( m) 3 000 2 000 19% 18% 3 121 2 368 2 134 15% 1 000 0 11% 1 300 1 248 1 098 9% 8% 860 702 5% 5% 4% 3% 3% UK Germany Italy France Spain Russia Netherlands Turkey Poland Sweden 18 others Sources: EuropeActive/Deloitte, DSSV/DHfGP/Deloitte, The Leisure Database 4 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
Germany and the UK stand out in terms of membership, Russia and Turkey show a huge potential Top 10 European fitness markets by membership (2014) Total number of members Penetration rate in % of total population 9 080 Germany 11,2% 8 300 UK 12,9% 4 960 France 7,5% 4 891 Spain 10,2% 4 740 Italy 7,8% 2 730 Poland 7,1% 2 700 Netherlands 16,0% 2 700 Russia 1,9% 1 782 Turkey 2,3% 1 600 Sweden 16,6% 10 000 8 000 6 000 4 000 2 000 0 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Sources: EuropeActive/Deloitte, DSSV/DHfGP/Deloitte, The Leisure Database 5 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
Certain correlation between GDP growth and membership development is visible Macro-economic impact of GDP growth on fitness club membership (2014) Growth of Gross Domestic Product (in %), Change in membership (%), Total membership (bubble size) 12% 10% Poland Change in membership (in %) 8% 6% 4% Sweden Turkey Spain Germany Belgium UK 2% Italy France 0% -1% 0% Netherlands 1% 2% 3% 4% -2% Growth of Gross Domestic Product (in %) Above-average membership growth Below-average membership growth Sources: EuropeActive/Deloitte, DSSV/DHfGP/Deloitte, The Leisure Database, Eurostat 6 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
In Denmark and Sweden, the five leading operators own more than 30% of all clubs Market share of top 5 regular operators* by number of clubs 30% and more 20% to 29% 8.1% 10% to 19% Less than 10% 1.7% 22.1% Leading operator by clubs 6.7% 14.4% 2.2% 0.8% 0.7% Note: * Regular operators do not include micro clubs (<200 m²) Sources: Company information, Deloitte analysis 7 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
While McFIT has the largest membership base (c1.3m), high-end operator Virgin Active remains revenue leader Top 20 European health and fitness operators by membership (2014) Total membership (left graph), Total revenues (right graph), Market segment (colour) Segments based on monthly revenues per member: 1 400 Low-cost (less than 30) Medium ( 30 to 60) High-end (more than 60) 1 200 1 000 800 600 400 200 0 McFIT 1 HealthCity/Basic-Fit Virgin Active 1 Health & Fitness Nordic David Lloyd Leisure Fitness World 2 Fitness First Pure Gym SportCity/Fit For Free clever fit The Gym Group 2 Alex Fitness 1 Kieser Training DW Sports 1 INJOY L Orange Bleue Nuffield Health 3 Curves International Mrs.Sporty Holmes Place 1 0 100 200 300 400 500 600 Notes: 1) Estimates based on professional judgement; 2) Estimates based on public company information; 3) Corporate clubs not included in 2014 Sources: Company information, Deloitte analysis 8 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
Six of the top 10 operators increased their membership significantly, both through organic growth and M&A Top 10 European health and fitness operators by membership (2014) Change in membership (in Thousand), Change in membership (in %), Total membership (bubble size) 50% Pure Gym Change in membership (in %) 40% 30% 20% 10% McFIT HealthCity/Basic-Fit David Lloyd Leisure 0% -100-50 0 50 100 150 200 250 Virgin Act. Fitness First -10% HFN SportCity/ Fit For Free clever fit Fitness World -20% Change in membership (in Thousand) Organic growth Organic growth and acquisition of clubs Minimal membership change Divestment of clubs Notes: 1) Estimates for McFIT and Virgin Active based on professional judgement; 2) Estimates for Fitness World based on public company information Sources: Company information, Deloitte analysis 9 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
After a total of 24 transactions in the fitness industry from 2011 to 2013, 19 activities were recorded in 2014 Market consolidation by investor type (2014) Strategic investors Strategic investors Financial investors Financial investors Founders / Private shareholders Private shareholders Sources: Merger Market, Bloomberg, Company information, Deloitte analysis 10 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
Technological development is one of the main forces shaping the health and fitness industry in the future Past and future growth of digital technologies and their role in the fitness industry Total Connected Devices Smartphone Users Internet Users (units) 500 M 10 B 70 B 551million >3billion 500 million ~2.8 billion >7 billion 2000 2010 2020 2010 2020 2000 2010 2020 28% CAGR 18% CAGR 14% CAGR 80m Registered users of MyFitnessPal app $700m Sales of wearables in the U.S. in 2014 Mobile apps Wearables Digital technology in fitness Online fitness Shift in payments 358,000 Registered online fitness users in Germany 25% Pct. of smartphone users making online purchases Source: FIT-C/Netpulse, Forbes, Morgan Stanley - The Internet of Things Is Now 2014, Statista Smartphone Penetration 2015, GSMA - The 2014, HIS NFC Enabled Phones 2014, Deloitte analysis Mobile Economy 11 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
Most European club operators expect to grow in 2015; Polish clubs are the most optimistic, Russians the least Expected increase in revenues for 2015 (in %) Poland 45,5% 36,4% Norway 69,0% 6,9% Finland 59,2% 16,3% Austria 51,5% 21,2% Ireland 58,1% 9,7% Portugal 40,5% 23,8% France 48,0% 9,4% Spain 45,7% 8,7% Netherlands 42,1% 7,9% Italy 47,2% 2,8% Russia 34,9% 7,3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: EuropeActive/Deloitte Increase 2.5-7.5% Increase >7.5% 12 EuropeActive Deloitte - European Health & Fitness Market Report 2015 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
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MARKET PROFILE - FRANCE
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