FIBO Report: The fitness world is changing

22.11.2023 7 minutes to read

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Episode 2 | Findings and developments in business, politics and industry representatives.

Impetus for persuading politicians and society: High-ranking representatives of global fitness associations such as FIBO are observing an increasing understanding of the important connections between fitness and health. This means hope for operators and employees of fitness studios and chains worldwide who are committed to providing individual solutions for people's fitness and health at a local level.

In 2019 - shortly before the start of the Covid pandemic - 31-year-old studio operator Tobi Kerger and his wife Jessica took over the local Crossfit Box “Crossfit033” in Connecticut, USA. They had a difficult time in the first few years as entrepreneurs. But they knew how to manage the crisis: with online offers, children's training as a replacement for the canceled school sports, by expanding their offering to include health services and with experienced nutritional advice, the two of them mastered the crisis together with Tobi's father Henning. Financial resources from the state for companies that did not lay off their employees were also helpful. Now, after the end of the Corona crisis, situation has changed again. Their hope for further federal or state support for their fitness offerings, which is so important for people's health, is slim.

Sneak peek into Crossfit 033

© Henning Kerger

How are fitness offerings developing for people in different regions of the world?

Florian Brauer, Global Brand Manager at FIBO, points out that the development status in the world regions and the respective regional and local measures are very different: “China, for example, was particularly hard hit by Corona. Here the studios were the first to be open again. But they were quickly closed again. Many investors have withdrawn their funds from the market. In Singapore, on the other hand, one of the largest buyers in the fitness industry is the state, which acts completely differently than a private investor. The Middle East, especially Saudi Arabia, is developing major activities and a clear agenda. “40% of the population there should be active again in 2030 – even from home.” The main aim of these measures is public health. The population suffers greatly from diabetes and obesity. “Since Saudi Arabia is a large and rich state, there are great financial resources. A lot is happening, especially in residential construction – and in hotels! According to the "Hotelier" Magazine: Almost US$2 trillion hotel and residential projects are in development in the Middle East” says Florian Brauer. Boutique studios and individualized training in particular are still on the rise worldwide. The USA is also recording sustained strong growth in this market segment and he adds: “But boutique concepts, chains and franchisers are now increasingly establishing themselves in Europe and Southeast Asia,” says the FIBO specialist for global markets.

Looking at the German market Prof Thomas Wessinghage, President of the German Employers’ Association of the Fitness Industry (DSSV) said: “The COVID-19 pandemic has undoubtedly brought along severe challenges - for the companies as well as for the members of fitness clubs, who did not have sufficient opportunities to improve their health by regularly working out. The economic damage is still noticeable today, and many fitness clubs are expected to get back to the membership level they had before the pandemic not until the end of 2024. However, we are experiencing how resilient and adaptable the firms in our line of business are. Many facilities have developed innovative solutions to support their customers even in difficult times.”

Hermann Rutgers, FIBO Ambassador, draws his knowledge, among other things, from global studies by industry associations with which he is closely networked. He also identifies major regional differences and a positive trend in the development of the global fitness market: “It is clear that there are major differences in the development of health and fitness worldwide. The most developed are Northern Europe and North America, where fitness penetration reaches double digits, e.g. Sweden with 22% of the total population, 8% in Europe. At the other end of the spectrum are regions such as China and Africa where penetration rates are below 5%. “However, in all parts of the world we are seeing a growing understanding and recognition that physical activity is good for health. Our sector is developing rapidly. Of course, socio-economic and demographic developments also play a major role, as these are very favorable for our industry.”

Does a changing perception of the need for physical fitness also lead to changes in the market?

Overall, the perception of fitness has changed significantly in the recent past, analyzes Dr. Samir Kapoor, Member of Council World Active & Chair Skills (Workforce Committee) and President of the Indian fitness association India-Active, and he specifies: “In many parts of the world, fitness has always been viewed as bodybuilding - but nothing could have been further away of the truth. After the Corona crisis, this perception has completely changed. Countries like the United Arab Emirates, Saudi Arabia, India and the African continent have experienced an enormous change in perception.” Tasks and responsibilities for associations and governments are enormous: “The goal should be to give more people from the lower and middle social classes access to fitness and sports facilities.” There is still a lot to do. But the awareness of the relevance of health and also the efficiency of their work has also increased among industry representatives and their associations - with success: "The understanding of the importance of fitness has already improved significantly across all levels," says Dr. Samir Kapoor.

However, Henning Kerger from Crossfit033 thinks that more could definitely be done: “The state provided good support for “small businesses” like our studio during the Corona crisis. You got financial help if you didn't lay off your employees, which was important during the shutdown."

Unfortunately, there is no fundamental support for people who care about their fitness. Which, for example, could help ensure that members no longer have to pay their own healthcare contributions or can at least receive subsidies for them. “Politicians are pretty silent when it comes to our industry. It would be nice and would help people and with that, improve the overall health of our society if the state, for example, subsidized health insurance contributions or financed discounts as soon as someone eats healthily and takes care of their fitness,” says the committed entrepreneur.

David Stalker, President of EuropeActive, the European association for fitness and physical activity, is optimistic about the future. He sees structural changes coming to the European market: “Data sources at European and global level from Deloitte and 4global indicate a growing consumer demand for personalized health services, especially when it comes to fitness and physical activity. Club operators, equipment manufacturers as well as digital & tech providers have progressively implemented a wide variety of solutions to match this growing need for ultra-personalized fitness experiences. The fitness industry is also growing significantly in terms of professionalizing and upskilling our workforce, which will help boost external investments, build confidence with customers and reposition our sector as a solution partner for public health issues”, said David Stalker. “When it comes to sustainability, several actions and measures have also been adopted by industry players: use of LED lights, water-saving showers, waste and emission reduction across the supply chain, etc. These CSR strategies will keep gaining momentum in the coming years as we aim to become a carbon-neutral, zero-emission industry,” he added.

Will anything change in fitness policy?

IT consultant Henning Kerger, who supports his daughter-in-law Jessica and his son Tobi in managing their CrossfitBox, still has concerns: “If a new Covid wave comes our way or an economic crisis that possibly leads to higher unemployment, this would have a critical impact people's ability to afford a healthy lifestyle. In such a case, spending on fitness is unfortunately always the first to be cut back.” At the moment, however, he is quite optimistic about the situation and does not fear any risk in the medium term. But he continues to think: “It would be great for everyone involved if the state or federal government would ensure that people, even in difficult situations, have the financial opportunity to keep themselves fit and healthy through physical training.” However, his optimism is limited for initiatives like these: “It is certainly very difficult and I see little chance of success for state or federal subsidies for a healthy lifestyle.”

Herman Rutgers assesses the possibilities of the associations rather positively and sees increasing opportunities to promote positive developments through their work: “The Covid crisis has helped to position the associations as a reliable source of information and political advocates for this economic sector.”

EuropeActive's annual EHFMR (European Health & Fitness Market Report) with 11,000 consumers in 19 countries also highlights developments and trends in the market from both a club and consumer perspective. “This research helps to demonstrate the importance of the sector to all stakeholders and potential investors. Next year, Europe Active will publish a new study on the socio-economic value of the sector to further highlight the illustration of our value and importance to society, which can be used by all countries in their political activities.”

David Stalker also sees the development of active associations and their importance on a growth path: “Despite the obstacles and challenges our industry is facing on a global scale such as energy costs, inflation or international conflicts, the sector is on the right track for a positive market development in the coming years. We are confident that EuropeActive’s long-term ambition of getting 100 million members of health & fitness centres by 2030 will be achieved”.

Also Dr. Samir Kapoor believes that the Covid-19 crisis has at least initiated a positive development in political terms: “Representatives of our industry in most countries have realized that their political systems do not understand the benefits of our industry unless they have a unified voice. Around the world, organizations such as AUS Active, Europe Active, India Active and UK Active have come together this year to create World Active, an organization that has representatives from six continents and whose aim is to be the unified voice of the fitness industry.” Even if, according to his observation, the countries are still in different phases of development – in terms of awareness, penetration or even acceptance of the industry. However, he is confident: “We can all learn a lot from each other. Sharing practices and research will help make the world a fitter place.”

Regardless, Tobi and Jessica Kerger, together with their father and the enthusiastic members of their studio, continue to pursue paths that are successful and relevant in their local environment. “All in all, we see the future as positive,” says Tobi Kerger. “After Covid there is more interest in fitness again – and now increasingly in a healthy lifestyle.”

Researches/ Statements:

Interview

Dr. Samir Kapoor (Interview)

President India-Active

Member of Council World Active & Chair Skills

Workforce Commitee World Active

https://www.world-active.com/

https://www.linkedin.com/in/samirkapoor/?originalSubdomain=in

David Stalker (Statements)

President EuropeActive

Chief Executive Officer Myzone

Non Executive Director Lampton Leisure