From pumping iron to powering the economy, Australia's gym industry is flexing impressive financial muscle, having rebounded to a staggering $2.4 billion valuation in 2023 while inspiring nearly 9 million members to get active.
Key Takeaways
- In 2023, the Australian gym and fitness industry was valued at AUD 2.4 billion, reflecting a compound annual growth rate (CAGR) of 4.8% from 2018 to 2023.
- The gym industry in Australia employed approximately 38,000 full-time equivalent workers as of 2023, up 3.2% from the previous year.
- Australia's fitness sector contributed AUD 1.8 billion to GDP in 2022, accounting for 0.07% of national GDP.
- Gym memberships in Australia hit 8.9 million in 2023, equating to 35% penetration of the adult population.
- Active gym members increased by 4.7% to 7.2 million in 2023 from 2022.
- Average gym membership fee rose to AUD 28.50 per week in 2023, a 5.1% hike.
- Total gym revenue from memberships reached AUD 1.9 billion in 2023, 78% of total industry revenue.
- Personal training services generated AUD 450 million in revenue across Australia in 2023.
- Group fitness class revenue totaled AUD 320 million, up 6.2% from 2022.
- 45% of gyms adopted hybrid fitness models (in-person + virtual) by 2023.
- Wearable tech integration in gym apps reached 65% adoption among members in 2023.
- Functional training class participation grew 28% year-over-year to 40% of classes in 2023.
- Women aged 25-34 made up 28% of gym members in Australia in 2023.
- 41% of gym-goers in urban areas like Sydney and Melbourne were millennials in 2023.
- Males aged 18-24 represented 22% of total memberships, with high PT usage at 65%.
The Australian gym industry is thriving with strong growth in revenue, memberships, and innovative services.
Demographics & Behavior
- Women aged 25-34 made up 28% of gym members in Australia in 2023.
- 41% of gym-goers in urban areas like Sydney and Melbourne were millennials in 2023.
- Males aged 18-24 represented 22% of total memberships, with high PT usage at 65%.
- Regional Australia saw 15% higher participation rates among 35-54 year-olds in 2023.
- 52% of female members prioritized weight loss, versus 38% of males in 2023 surveys.
- Gen Z (born 1997-2012) gym penetration reached 48% in capital cities in 2023.
- 67% of members cited health improvement as primary motivation in 2023.
- Low-income earners (<AUD 50k) had 12% membership rate, up from 9% in 2020.
- 75% of gym members exercised for mental health benefits according to 2023 polls.
- NSW hosted 32% of Australia's gym members, totaling 2.8 million in 2023.
- Baby boomers (55-64) gym usage up 16% for low-impact classes.
- High-income earners (>AUD 100k) had 55% membership rate in 2023.
- Indigenous participation in gyms reached 18% in targeted programs.
- Urban dwellers visited gyms 4.1 times weekly vs 2.8 rural.
- 58% of members used gyms for social interaction in 2023.
- LGBTQ+ inclusive programs boosted retention by 20% in 2023.
- Parents with children under 12 had 25% lower attendance rates.
- Migrants from Asia showed 35% gym adoption in first year.
- Evening peak hours (5-8pm) saw 65% of daily footfall in 2023.
- 49% of members tracked progress via apps for motivation.
Demographics & Behavior Interpretation
While everyone says they join for their health, Australia's gyms in 2023 revealed a nation sculpting its biceps and its social lives, with urban millennials and Gen Z leading the charge, women strategically targeting weight loss, men leaning on PTs, and nearly everyone secretly treating the treadmill as cheap therapy and a place to be seen.
Financial Performance
- Total gym revenue from memberships reached AUD 1.9 billion in 2023, 78% of total industry revenue.
- Personal training services generated AUD 450 million in revenue across Australia in 2023.
- Group fitness class revenue totaled AUD 320 million, up 6.2% from 2022.
- Merchandise and retail sales in gyms amounted to AUD 85 million in 2023.
- Average gym operator profit per club was AUD 180,000 in 2023.
- Cost of wages accounted for 42% of total gym operating expenses in 2023.
- Rent expenses for gym facilities averaged 15% of revenue, totaling AUD 360 million nationally.
- Digital subscription revenue grew 25% to AUD 120 million in 2023.
- Corporate wellness contracts contributed AUD 210 million to gym revenues in 2023.
- Utility costs rose 12% to AUD 95 million industry-wide due to energy prices in 2023.
- PT sessions per member averaged 12 annually, generating AUD 65 per session.
- Group class revenue per participant was AUD 18 weekly in 2023.
- Equipment rental fees added AUD 25 million to supplementary income in 2023.
- Online coaching packages sold AUD 75 million worth in 2023.
- Marketing expenses averaged 8% of revenue, AUD 192 million total.
- Insurance costs for gyms rose 10% to AUD 65 million in 2023.
- Vending and cafe sales per gym averaged AUD 15,000 annually in 2023.
- Franchise fees contributed 6% to chain revenues, AUD 144 million.
- Debt servicing costs were 4.2% of expenses post-COVID recovery.
- Childcare services revenue hit AUD 40 million in family-oriented gyms.
Financial Performance Interpretation
Australia’s gym industry is a finely tuned machine where members pay billions to chase their better selves, while operators sweat just as hard over razor-thin margins, rising costs, and the eternal hope that you’ll buy both a protein bar and a personal training package on your way out.
Market Overview
- In 2023, the Australian gym and fitness industry was valued at AUD 2.4 billion, reflecting a compound annual growth rate (CAGR) of 4.8% from 2018 to 2023.
- The gym industry in Australia employed approximately 38,000 full-time equivalent workers as of 2023, up 3.2% from the previous year.
- Australia's fitness sector contributed AUD 1.8 billion to GDP in 2022, accounting for 0.07% of national GDP.
- Between 2020 and 2023, the industry recovered 92% of pre-COVID revenue levels, reaching AUD 2.3 billion by end-2023.
- The number of gym businesses in Australia stood at 5,800 in 2023, a 2.1% increase year-over-year.
- Market concentration in the Australian gym sector is low, with the top four chains holding 18% of market share in 2023.
- Export revenue from Australian gym equipment manufacturing reached AUD 45 million in 2023.
- The industry's profit margin averaged 12.4% in 2023, driven by premium membership models.
- Total assets of the gym sector were valued at AUD 4.1 billion in 2023.
- Industry growth is projected at 3.5% CAGR from 2023 to 2028, reaching AUD 3.1 billion.
- New South Wales had 1,920 gym facilities in 2023, 33% of national total.
- Victoria's gym sector revenue reached AUD 680 million in 2023, 28% of national.
- Queensland gyms averaged 1,450 sqm per facility, largest regionally in 2023.
- South Australia's industry grew 5.8% to AUD 180 million revenue in 2023.
- Western Australia saw 4.2% increase in gym numbers to 620 facilities in 2023.
- Tasmania's gym penetration rate was 29%, below national average in 2023.
- Northern Territory gyms generated AUD 35 million, with high per capita spend.
- ACT had the highest membership penetration at 42% of adults in 2023.
- Low-cost chains like Anytime Fitness held 25% market share in 2023.
- Premium gyms like Fitness First contributed 15% to revenue despite 8% facilities.
Market Overview Interpretation
While Australians are clearly lifting both weights and the economy, the industry's real flex is surviving a global plague only to emerge leaner, wealthier, and still somehow mostly made of small businesses sweating it out for a modest profit.
Membership & Participation
- Gym memberships in Australia hit 8.9 million in 2023, equating to 35% penetration of the adult population.
- Active gym members increased by 4.7% to 7.2 million in 2023 from 2022.
- Average gym membership fee rose to AUD 28.50 per week in 2023, a 5.1% hike.
- 62% of Australians aged 18-64 held a gym membership at some point in 2023.
- Casual visit rates to gyms surged 15% in 2023, totaling 120 million visits annually.
- Membership retention rate averaged 68% across Australian gyms in 2023.
- Women comprised 52% of total gym memberships in Australia as of 2023.
- Multi-club membership usage grew to 22% of members in 2023.
- Average frequency of gym visits was 3.2 times per week for members in 2023.
- Youth memberships (18-24) increased by 8.3% to 1.4 million in 2023.
- Pre-paid annual memberships accounted for 18% of total sign-ups in 2023.
- No-contract flexible memberships grew to 35% of new sales in 2023.
- Corporate gym memberships rose 11% to 850,000 in 2023.
- Student discounts boosted youth memberships by 9% in universities in 2023.
- 24/7 access gyms saw 55% of total memberships in 2023.
- Churn rate dropped to 22% industry average due to better engagement in 2023.
- App-based check-ins used by 78% of members daily in 2023.
- Family memberships increased 14% to 420,000 packages in 2023.
- Senior memberships (65+) grew 7.5% to 650,000 in 2023.
- Trial passes converted 28% to full memberships in 2023 campaigns.
Membership & Participation Interpretation
Australia seems locked in a love-hate relationship with its gyms: we're paying more, attending with casual enthusiasm, and juggling memberships like a fitness-themed timeshare, all while an undeniable majority of us flirt with the idea of getting fit at least once a year.
Trends & Innovations
- 45% of gyms adopted hybrid fitness models (in-person + virtual) by 2023.
- Wearable tech integration in gym apps reached 65% adoption among members in 2023.
- Functional training class participation grew 28% year-over-year to 40% of classes in 2023.
- AI-driven personalized workout plans were used by 32% of premium gyms in 2023.
- Boutique studio segment expanded by 7.2% with 1,200 new openings since 2020.
- Sustainability initiatives, like eco-friendly equipment, adopted by 55% of gyms in 2023.
- Virtual reality fitness experiences launched in 18% of large chain gyms in 2023.
- Recovery and wellness services (saunas, cryotherapy) revenue up 19% to AUD 150 million.
- Mobile app engagement averaged 2.5 sessions per member weekly in 2023.
- HIIT classes accounted for 35% of total group fitness sessions in 2023.
- Yoga and Pilates studios grew 12% in class offerings in 2023.
- Contactless payments adopted by 92% of gyms by end-2023.
- Wellness retreats hosted by 25% of resorts tied to gyms in 2023.
- Gamified fitness challenges engaged 45% of members via apps.
- E-sports fitness hybrids emerged in 5% of urban gyms in 2023.
- Nutrition coaching integrated in 60% of PT programs in 2023.
- Outdoor bootcamps post-COVID held 18% market share of classes.
- Smart gym tech like auto-adjusting machines in 22% facilities.
- Mental health-focused classes up 30% to 15% of offerings.
- CrossFit affiliates numbered 450, steady growth of 3% in 2023.
Trends & Innovations Interpretation
The Australian gym scene has officially become a high-tech, hybrid wellness bazaar where members are now just as likely to be chasing digital dragons in a VR headset as they are lifting weights, all while their watch judges them and their gym quietly turns green.
Sources & References
- Reference 1IBISWORLDibisworld.comVisit source
- Reference 2AUSACTIVEausactive.org.auVisit source
- Reference 3DELOITTEdeloitte.comVisit source
- Reference 4STATISTAstatista.comVisit source
- Reference 5ABSabs.gov.auVisit source
- Reference 6ROYMORGANroymorgan.comVisit source
- Reference 7CLUBINDUSTRYclubindustry.com.auVisit source