The European Health & Fitness Market Report Karsten Hollasch

Transcription

1 The European Health & Fitness Market Report 2018 Karsten Hollasch European Health & Fitness Forum, 11 April 2018

2 European Health & Fitness Market Report 2018 Our annual market study represents the most comprehensive analysis of the European health and fitness industry to date Content of the European Health & Fitness Market Report 2018 Selected chapters Operators Rankings/Profiles Recent Mergers & Acquisitions Perspectives on the Market Snapshot of the Equipment Ind. Market Rankings/Profiles 30 operator profiles 20 identified transactions 6 expert interviews Focus on leading manufacturers 19 market profiles 2

3 Markets Operators M&A Trends Outlook

4 Markets

5 Markets Since 2014, the European health and fitness market has grown at a CAGR of 3.7% at constant currency European health and fitness market by revenue, in bn; Indicative market growth at constant currency % Note: Total revenues from the European Health & Fitness Market Report 2018 cannot be compared to total revenue figures from prior reports due to exchange rate effects as well as restatements. The indicative market development illustrated above was calculated retroactively based on the 2017 market value and using 2015, 2016 and 2017 year-on-year growth rates that exclude effects from exchange rates and restatements. Source: EuropeActive, Deloitte analysis 5

6 Markets Germany and the UK are the two largest markets in Europe, with Germany as the market leader for the first time in 2017 Top 10 European health and fitness markets by revenue, 2017 in bn; Change in revenue at constant currency 6 83% of total European market 17% DE UK FR IT ES NL PL CH SE RU 23 others Constant currency growth rates: + 3.0% + 6.8% + 2.0% + 1.3% + 2.9% + 1.6% + 0.9% + 4.9% + 3.4% n/a Note: No year-on-year development could be derived from the available information for Russia. Source: EuropeActive, Deloitte analysis 6

7 Markets Market growth was driven by a 3.2% increase in number of clubs and an increase in the average membership per club of 0.7% Drivers of the European health and fitness market, 2017 Change in revenue and change in revenue per member at constant currency Number of clubs 59, % Total membership 60.0 million +4.0% Members per club 1, % Total revenues 26.6 billion +3.8% Revenue per member 36.9 / month -0.2% Source: EuropeActive, Deloitte analysis 7

8 Markets In many European markets, we observe decreasing average revenue per member while membership continued to grow Development of key market drivers in top European markets, 2017 % change to 2016 Change in number of clubs 6% 4% 2% 0% 3.5% 4.6% 5.0% 0.0% 1.9% 2.6% 1.6% 5.4% 3.8% DE UK FR IT ES NL PL CH SE Source: EuropeActive, Deloitte analysis Change in membership per club Change in average revenue per member at constant currency 2% 0% -2% 2% 0% -2% -4% 1.7% 0.5% 1.3% 0.8% 1.1% 0.5% (0.4%) (0.4%) (0.9%) DE UK FR IT ES NL PL CH SE 1.7% 0.2% 0.5% 0.0% (0.5%) (1.7%) (1.0%) (2.2%) (2.5%) DE UK FR IT ES NL PL CH SE 8

9 Markets The Nordic countries as well as the Netherlands show the highest penetration rates in the European fitness market Penetration rate by country, 2017 Fitness club members in % of total population 8.0% 7.5% 7.0% 7.6% 7.3% Penetration rate total Europe 17% - 21% 10% - 15% 5% - 9% Less than 5% Source: EuropeActive, Deloitte analysis 9

10 Operators

11 Operators In the last three years, membership growth among the leading operators was primarily driven by the budget segment Membership development of top 30 European operators by segment, # in m CAGR % % Budget Others 2017 Source: EuropeActive, Deloitte analysis Budget Others 11

12 Operators The six leading budget operators accounted for a membership growth of more than 2.6 million members from 2014 to 2017 Membership development of leading budget operators, # in k 1,800 1,600 1,400 McFIT Group Basic-Fit Growth ,200 1, Pure Gym clever fit The Gym Group FitX Note: Membership of McFIT Group (partly) and FitX based on professional judgement. Source: EuropeActive, Deloitte analysis, company information

13 M&A

14 M&A Of the 20 transactions identified in 2017 twelve represented a sale to a strategic investor underlining market consolidation Market consolidation by investor type, 2017 Number of transaction by investor type sell-side buy-side Strategic investor Strategic investor Financial investor 5 6 Financial investor Founders / Private shareholders 12 2 IPO/ Private shareholders Source: Merger Market, company information, EuropeActive, Deloitte analysis 14

15 M&A From November 2015 to March 2018, share prices of Benefit Systems and Technogym more than doubled Indexed stock price development of selected companies since November % 150% Brexit 23 June % IPO Technogym 3 May 16 50% 0% -50% -100% IPO Basic-Fit 10 June 16 IPO Actic Group AB 7 April 17 Nov15 Mar16 Jul16 Nov16 Mar17 Jul17 Nov17 Mar18 29/03/2018 The Gym Group Basic-Fit Actic Group Benefit Systems Technogym Note: Benefit Systems IPO was on For illustration purposes, indexed stock prices are only presented from November 2015 Source: Yahoo Finance, The Wall Street Journal, Deloitte analysis 15

16 Trends

17 Trends According to our research, budget, functional fitness, as well as group exercise, represent the major trends in the market Impact of key trends in the European fitness market, 2017 (1 = none, 5 = very high) Budget Functional fitness Group exercise Personal training (1-on-1) Personal training (small groups) Yoga Indoor cycling Fitness apps Boutique studios / micro gyms Wearables Premium concepts Pilates Women-only clubs Online fitness EMS Note: Based on the information of 34 country experts consulted in the context of the EHFMR Source: EuropeActive, Deloitte analysis 17

18 Trends Functional fitness is relevant for various stakeholders in the multifaceted fitness ecosystem Ecosystem of the European fitness industry Functional fitness can be done everywhere by everyone at any time. Henrik Gockel, CEO of PRIME TIME fitness It is an advantage that the sports and fitness industry is highly diversified and offers a lot of different options to the consumers. That s one of the reasons why the industry is consistently growing and attracts so many people. Jan Middelkamp, exercise scientist, researcher (PhD) in health behaviour change and Development Director at HDD Group Source: EuropeActive, Deloitte analysis 18

19 Outlook

20 Outlook Projecting an annual membership growth of 4.0%, the European fitness market is on pace to reach 80 million members by 2025 Projected membership development of the European fitness market, # in m 90 Projection +4.0% % Source: EuropeActive, Deloitte analysis

21 Outlook According to market experts, the European health and fitness market will continue to grow in the future The European health and fitness market in 2017 and beyond European fitness market on pace for 80 million members in 2025 Budget segment represents the main driver behind current market growth in Europe Increasing market consolidation Emergence of non-stationary and hybrid fitness models Health & fitness as a megatrend 21

22 The European Health & Fitness Market Report 2018 Karsten Hollasch European Health & Fitness Forum, 11 April 2018 Questions