Fitness services (Russian market)

2023

The volume of the Russian fitness market for the year increased by 29% to 372.7 million visits

In 2023, the number of visits to fitness classes in Russia reached 372.7 million, which is 29% more compared to 2022. Such significant growth is facilitated by the popularization of a healthy lifestyle and the increasing attention of people to their health. Market analysis is provided in the BusinesStat review published on June 21, 2024.

It is noted that in the Russian Federation there is a stable increase in the number of fitness facilities. These are swimming pools, biathlon complexes, cycle tracks, velodromes, rowing bases and canals, indoor sports facilities with artificial ice, ski bases, arenas, flat sports facilities, facilities for shooting sports, gyms, stadiums, etc. According to estimates, in the period from 2019 to 2023, the number of such facilities rose by 12.1% - from 322.8 thousand to 361.9 thousand. At the same time, ensuring the quality and availability of services in the field of physical culture and sports is one of the priority areas of the country's economic development.

In 2019, the number of visits to fitness classes in Russia was about 349.3 million. In 2020, against the background of the COVID-19 pandemic, there was a sharp decline: the figure collapsed by 47.4% - to 183.8 million visits. Under quarantine conditions, fitness clubs were forced to suspend work, and customers were afraid of contracting coronavirus and attended classes less often even after partial lifting of restrictions.

In 2021, the industry began to recover: attendance rose by 49.2%, reaching 274.2 million. In 2022, an increase of 5.4% was shown - up to 289.1 million. The main reason for the restrained demand was the acceleration of inflation caused by the violation of supply chains and the complication of payments on foreign economic transactions. In addition, the real incomes of Russians have decreased. The departure of Western companies from the Russian market in connection with the sanctions led to a decrease in the number of corporate clients of fitness centers.^[1]

Fitness services market growth by 18% to RUB 214 billion

At the end of 2023, the volume of the Russian fitness services market is estimated at 214 billion rubles. This is approximately 18% more compared to the result for 2022, when the industry turnover was about 181 billion rubles. Such data are given in a study by FitnessData, the results of which were published at the end of December 2023.

The head of FitnessData Maxim Borovikov notes that the growth in monetary terms is explained by two main reasons - an increase in the cost of club services (by an average of 12% on an annualized basis) and the expansion of the client base. Several other factors contribute to the development of the industry: this is the emergence of clubs in the 15-minute accessibility zone, the redistribution of household incomes in favor of the consumption of products and services within the country and the inflow of budget funds (payments to participants in the SVO, employees of defense plants, etc.). At the same time, the average profitability of the fitness business does not exceed 5-7%.

The volume of the Russian fitness services market is estimated at 214 billion rubles

According to FitnessData estimates, in 2023, approximately 550 new commercial fitness facilities were opened in Russia, and the volume of investments in them amounted to 10.5 billion rubles (excluding the construction of new buildings). By the end of 2023, approximately 6.5 million people are engaged in fitness in the Russian Federation, which is 6.6% more than in the previous year. Engagement rose from 4.2% to 4.5% of the country's total population. For comparison: in the countries of the European Union, 14-15% of residents are fond of fitness as of 2023.

In 2024, revenue in the Russian fitness services market is expected to rise by 16% year-on-year, reaching 250 billion rubles. About 20 major players have planned to open at least 100 new facilities, it said. In particular, DDX Fitness intends to launch 50 clubs, XFit - 35, World Class - eight. At the same time, an increase in prices for services by 7-12% on an annualized basis is not excluded.^[2]

2022

Domestic fitness industry grew by 15.6% from 2018 to 2022

TISBI revealed the growth of the domestic fitness industry despite the pandemic and sanctions.

Despite the crisis events, the industry has experienced 15.6% growth over the past five years.

Roman Frolov, a researcher at the TISBI University of Management, conducted a comprehensive study of the state of the Russian fitness industry in the period 2018-2022.

The fitness industry is currently at the stage of development and remains attractive for investment, despite the fact that its growth rate in 2019-2021 has noticeably decreased. Almost all areas of Russian business suffered as a result of the coronavirus pandemic, and the fitness industry was no exception, - said Roman Frolov.

According to the Center for International Trade, the number of fitness centers in Russia has grown from 290.9 thousand in 2018 to 335.9 thousand in 2022. At the same time, the number of full-time staff increased - by 64.5% over five years. However, in 2020, the growth rate slowed down significantly due to the pandemic, and in 2022 - due to partial population migration.

A study conducted by the NAFI think tank showed that coronavirus restrictions significantly affected attendance at fitness centers. The number of Russians regularly involved in sports clubs decreased by 26.2% to 14.4 million people. At the same time, about 28.5 million citizens switched to independent sports. This is also confirmed by attendance statistics: if in 2019 more than 34% of customers visited a fitness center 70-79 times a year, then by 2021 this figure decreased to 33%.

According to the study, anti-Russian sanctions led to an increase in the costs of fitness centers by more than 20% due to an increase in the cost of maintaining premises and advertising. About 78% of industry representatives note a lack of working capital, and 58% are on the verge of a decrease in profitability. The issue of licensed group programs was especially acute - the withdrawal from the Russian market of brands such as Zumba and Les Mills significantly affected group training programs.

According to the results of the study, we observe an interesting trend in the income structure of fitness centers, - said Roman Frolov. - While earlier the main profit was brought by season tickets, now there is an active diversification of sources of income: online training is developing, classes in mini-groups, rental of sports equipment is offered.

According to the first half of 2022, the total revenue of the fitness services market in Russia increased by 3%, which in monetary terms amounted to 2.5 billion rubles compared to the same period in 2021. However, as noted in the study, industry revenues are still 15.8% behind the pre-crisis level, or 13.2 billion rubles compared to 2019.

An integrated approach is needed to accelerate the recovery of the industry, the researcher emphasizes. - On the one hand, fitness centers need to introduce new work formats and use innovative technologies to increase customer loyalty. On the other hand, state support is extremely important in the form of a reduction in VAT and customs duties on sports equipment, as well as access to preferential lending.

The number of regular visitors to fitness clubs and sports sections in Russia increased by 6.8%

In 2022, the number of regular visitors to fitness clubs and sports sections increased by 984 thousand people, or 6.8%, and reached 15.4 million. Analysts of the audit and consulting network FinExpertiza published such figures on the basis of Rosstat survey data on February 6, 2023.

However, this is only a fifth of those who stopped systemic sports in 2021. At the same time, training at home or on the street in 2022 was abandoned by 5 million people. One in six engaged independently, and one in nine attended sports clubs or sections with discipline, the study said.

The strongest growth in 2022 was the flow of visitors in sports clubs in Tuva Kaliningrad region and (three times more), Novgorod Penza regions and (Altai twice as much), as well as Karelia (by 85%), (Mordovia 76.1%), (Kirov 75.5%), Orlovskaya (70%) and (60.5 Amur regions %).

In 20 regions, the number of regulars of fitness clubs and sports sections, on the contrary, has decreased. The number of trainees in the Chukotka Autonomous Okrug decreased especially noticeably (local gyms were empty by 72.9%), Yamal-Nenets Autonomous Okrug (-55.2%), (Ulyanovsk region -40.9%), (- Pskov region 39.3%), (- Jewish Autonomous Region 31.8%), Ryazan region (-31.7%), (- Krasnoyarsk Territory 30.8%), (-30.7 Sakhalin Oblast %), (-30.3% North Ossetia) and (-26.7 Sverdlovsk region %).

Regarding the population, the greatest preference for club sports in 2022 was given by residents of Chechnya (21.1% of the republic's residents were engaged in the hall, that is, every fifth), the Nenets Autonomous Okrug (19.3%), Sevastopol (18.4%), St. Petersburg (17.7%), Moscow (17.3%), Khabarovsk Territory (16.2%), Astrakhan region (15.6%), Karelia (15.5%), Magadan (15.3%) and Novgorod region (14.4%).^[3]

13% decrease in attendance at fitness centers

The volume of the Russian fitness market in 2022 amounted to 238 million visits, which is 13% less than a year earlier. Such data in January 2023 leads BusinesStat analysts.

According to them, the announcement of a special military operation in February 2022 suspended the sale of season tickets, and mobilization contributed to a further reduction in the market volume. In a situation of uncertainty, people began to save money: customers of fitness clubs refused to renew cards and season tickets or attended classes less often. The demand for services from corporate clients also decreased - this was due to the departure of Western companies that suspended operations and stopped investing in Russian business, the study said.

If we compare with 2019, when 313 million visits to fitness centers were recorded per year, the market decline in 2022 amounted to almost a third - 31%.

The number of fitness trainers has also decreased: according to the Ministry of Sports, in 2018-2020 in Russia the number of staff at fitness clubs increased from 29.4 thousand to 41.8 thousand people (+ 42.2%), in 2021 the figure fell by 3.8%, and in 2022 - by another 1.8% (up to 39.5 thousand people). Analysts also call mobilization the main reason for the reduction in personnel last year.

Together with the fall in demand for paid fitness services in 2022, the authorities consistently allocated money for the construction of state gyms and smart sports grounds - 12 billion rubles were allocated for these purposes to the regions. It is planned that such infrastructure will help attract citizens to sports and a healthy lifestyle.

At the end of July 2022, the head of the National Fitness Community, Elena Silina, said that about 78% of fitness business representatives "feel a working capital deficit, and about 58% are near the profitability zone."^[4]

Market growth by 12%, to 145.3 billion rubles

In 2022, the volume of the Russian fitness services market reached 145.3 billion rubles, which is 12% more than a year earlier, when the indicator was measured at 130 billion rubles. Such figures at the end of December 2022 were named by the president of the National Fitness Community (NFS, unites 2,000 fitness clubs from 80 regions) Elena Silina.

The 12% growth of the fitness services market in the Russian Federation in 2022 was confirmed to Vedomosti by the president of the Association of Fitness Industry Operators of Russia (AOFI, which includes 1,500 companies from 76 cities of the Russian Federation) and the head of World Gym in Russia Olga Kiseleva. At the same time, the market volume has not yet returned to pre-pandemic levels: in 2019, when there was no COVID-19 coronavirus pandemic, the NFS estimated the cost of fitness services in Russia at 167 billion rubles.

Fitness services began to recover from the pandemic

In the first year of the pandemic, the indicators of players in this sector fell by 30%, according to the data of the FitnessData analytical agency Kiseleva. 35% of players were able to return to the 2019 turnover or surpass it, says Silina. According to her, despite the crisis, companies are growing at a high pace that have adapted to new audience requests for "short products" - monthly, weekly, and sometimes minute passes. The development of the sharing economy also helped this. According to Silina, instead of issuing a club card, the consumer now acquires a monthly subscription from the aggregator company with the ability to visit various fitness facilities. The profitability of this business, as Kiseleva says, remains low - it varies from zero to 2-3%.

The position of players in the fitness industry varies greatly in different regions of the country, said Anastasia Yusina, CEO of Orange Fitness and City Fitness chains. In addition, according to her, it was not easy for those who relied on corporate clients.

The year was very ragged, hard, a lot of things happened that unsettled, "she added.[5]

Imports of fitness equipment in 2022 decreased by 33% to $69.3 million

In total, in 2022 Russia , equipment was imported for $69.3 million. USA In terms of supply volumes, the market returned to 2016, even in the covid years, imports did not fall so much. As expected, the share China Taiwan of and increased - 79% of imports in monetary terms and more than 91% in kind.

2020: Loss of 65 billion rubles in revenue due to work restrictions during COVID-19

Russian fitness clubs in 2020 lost 65 billion rubles in revenue due to work restrictions imposed in connection with the COVID-19 coronavirus pandemic. Such data were provided by the President of the National Fitness Community (NFS, unites 1.7 thousand clubs) Elena Silina.

Only during the lockdown period, which in different regions of the country lasted for fitness clubs from three to five months, the industry lost 51.38 billion rubles. So, in the second quarter of 2020, according to the NFS, the drop in revenue in the industry amounted to 41.75 billion rubles, in the third quarter - 9.63 billion rubles, the Russian Information Agency reports to TASS.

According to Elena Silina, in 2020 the number of personnel in Russian fitness centers decreased by 20%, or by 768 thousand employees, and the number of clubs decreased by 30%, to 140 thousand. The market is adapting to the current situation, she said.

Russian fitness clubs lost 65 billion rubles in revenue in 2020

During the pandemic, most fitness clubs offered customers free online classes. This has led to hybrid products that combine online and offline activities. Fitness clubs also diversified the line of club cards in terms of their validity, expanded a number of services that are provided as a gift to club customers.

Fitness industry... conducts a new recruitment, looks for ways to agree with partners and finds new opportunities for the implementation of the tasks set for the industry by the President of the Russian Federation - by 2030 to bring the share of Russians engaged in physical education to 70%, - said the President of the National Fitness Community.

Earlier, the National Fitness Community appealed to the head of the Ministry of Health Mikhail Murashko with a request to include rehabilitation programs for COVID-19 patients in fitness centers in the methodological recommendations of subordinate institutions. They expect that this will allow clubs affected by the pandemic to occupy the niche of rehabilitation centers. ^[6]

Notes