Market Overview

The number of fitness facilities nationwide totaled to 10,610 as of July 2023. When the number is broken down into each type of business operation, there were 1,147 "large-scale fitness clubs", 2,114 "small-size gyms", 3,141 "24-hour fitness gyms", 1,143 "yoga studios ", and 3,065 "others".

The number of "24-hour fitness gyms", which has been increasing rapidly in the last couple of years, is the largest, representing 29.6% of the total, followed by "others" (which includes personal training gyms) occupying 28.9%. On the other hand, composition ratio of used-to-be-predominant "large-scale fitness clubs", the facilities fully equipped with swimming pool, gyms, and studios, represents 10.8%, indicating this type of facility is barely increasing in numbers.

Noteworthy Topics

770 Fitness Facilities Closed Down Between October 2020 and July 2023

Between the last survey conducted in October 2020 and July 2023, 770 fitness facilities have been shut down. In view of type of business operation, 91 “large-scale fitness clubs”, 238 “small-size gyms”, 145 “24-hour fitness gyms”, 106 “yoga studios”, and 190 “others” closed during the surveyed period.

As one of the industries that were most impacted by the spread of COVID-19, fitness facility operators were deemed to close unprofitable facilities. In particular, small-size gyms with a large number of senior members fell into financial difficulties shut down one after another, as the pandemic prompted seniors to suspend or cancel membership.

By categorizing locations of the shuttered facilities into “station front” facility (within 500m radius of a train station) and “residential area” facility (others), it revealed that the “station front” facilities accounted for 62.9% of the total.

Competition has been intense especially in the busy commercial areas by major train stations. Closure of “station front” fitness facilities was higher than “residential area” facilities across the country, presumably because COVID-19 crisis gave the final blow to facilities that were losing in the competition or to those that could not break even to begin with due to high rent-to-revenue ratio.

Of all the “station front” facilities that closed, “yoga studio” accounted highest at 80.2%, followed by “others” (76.8%), “large-scale gyms” (62.6%), and “small size gyms” (42.0%). As per small size gyms, the closure of “station front” was lower in percentage than in that of “residential area”, indicating the closures were seen almost evenly in “station front” and “residential area”. Small-size gyms closed more than other types of business operation for having a large number of senior members. Since older people were seen as most sensitive to the threats of the COVID-19 virus, they increasingly suspended or cancelled their membership, deteriorating business of facilities that eventually lead to a series of closures.

Future Outlook

While 770 fitness facilities shut between October 2020 and July 2023, many operators also opened new facilities despite the COVID-19 crisis.

The increase in the number of facilities is observed for “24-hour fitness gyms” and “others”, mainly personal training gyms, and this trend is expected to continue hereafter. Of the “24-hour fitness gyms”, "chocoZAP", the fitness gym launched in full-scale in 2022 that targets to casual gym goers, is fast growing both in terms of number of facilities and membership. The number of conventional “24-hour fitness gyms” such as Anytime Fitness is also expanding by attracting the demand of a wide range of gym goers, from casual gym goers to hardcore gym people. Expansion of the number of personal training gyms, represented by RIZAP, owes to lower initial cost compared to that of other types of business operation, and to the increase of brands that have franchised. The “others” is also growing, which includes fitness gyms that specialize in only one or two fitness areas like boxing workouts (“boutique studios”).

Research Outline