Region:Middle East
Author(s):Akshit Goel
Product Code:KR990
Click Here for Updated Report on KSA Fitness Services Market Outlook to 2025F
Analysts at Ken Research in their latest publication "Saudi Arabia Fitness Services Market Outlook to 2025- By Market Structure (Organized and Unorganized), By Revenue Stream (Membership, Personal Trainer and Supplementary Services), By Regions (Riyadh, Jeddah, Dammam, Al Khobar, Makkah and Madinah and others), By Subscription (3 months, 6 months, 1 year and others), By Gender (Male and Female), By Age (Below 18 years, 19 to 30 years, 31 to 60 years and above 60 years) and By Income Group (Below SAR 38,000, SAR 38,000 to SAR 94,000, SAR 94,000 to SAR 150,000 and above SAR 150,000)" observed that the Saudi Arabian Fitness Services Industry is currently at the Growth Stage, with rise in Women Gyms, Increasing Needs for Fitness by Youth in the Kingdom and supportive Government measures, aiding steady growth of the industry in the previous few years. The report further details out the different operating segments in the industry, along with overall customer perspective with respect to different fitness services present in the country. The report provides a detailed viewpoint of the major fitness brands operating in the industry, and a bird’s eye view into the various revenue streams operated by fitness players in the Kingdom. It also covers the future outlook for the overall industry, and also enumerates certain recommendations for new entrants and existing players in the industry, keeping the future landscape in mind.
There are close to 28+ organized fitness center brands operating in the Kingdom along with unorganized fitness centers. While the overall industry has been identified at a high growth stage, the competition in the industry is witnessed to be fragmented in nature, in terms of number of players. A high degree of fitness centers in the Kingdom are unorganized and independent, while the presence of organized fitness center brands is limited to major cities such as Riyadh, Jeddah, Dammam, Al Khobar, Makkah and Medinah. Players compete on the basis of Price, Membership Offers, Center Facilities, Personal Training, Ambience, Services Offered and Locations.
The unorganized segment largely dominates the industry, penetrating smaller regions such as Tabuk, Jubail, Safwa and others. Moreover, the lower fees charged by unorganized centers, allows them to generate a wider customer base. Majority of the fitness centers in the country are concentrated in the cities of Riyadh, Dammam, Jeddah, Al Khobar, Makkah and Medinah, largely due to the high population in these cities and their status of being major commercial, industrial and religious hubs. Customer have been identified to prefer 3 months and annual memberships plans in fitness centers, due to the fee-based discounts offered by fitness center operators along with the additional services such as complimentary account freezing provided. While the male segment was identified to dominate the customer profile for fitness services in the kingdom, the female segment is strongly growing on the back of a rapid increase in the number of women fitness centers and a growing fitness awareness among the women in the Kingdom.
There has been a remarked focus on developing women centers in the Kingdom, spurred by the favorable judgment from the General Authority of Sports. Many fitness players are now focusing a large part of their future strategies on capitalizing on the growing Female Fitness segment, by opening female gyms. As part of the Vision 2030 plans, the Saudi Government launched the National Transformation Plan, which focuses on promoting health and wellness among people in the country and improving the number of physically active people in the Kingdom, from 13% to 40% by 2030. There has been a focus on specialized and concept fitness centers, with Crossfit, Kickboxing, HIIT and Zumba leading the exercises in demand by fitness center members in the country. A heavy spread of awareness among the normally physically unfit Saudi population, is resulting in high demand for fitness services, particularly by people from the age of 20 years to 45 years.
KSA is an emerging country in terms of industry competition, making it a fierce battlefield for new and existing fitness-center brands trying to operate/succeed and to make profits. Major existing fitness center players hold brand loyalty especially among professionals, due to safety concerns associated with using fitness equipment. This makes it difficult for new players to enter the market. Establishing a large fitness center that provides all services including spa, pool, steam bath, lockers, showers, Jacuzzi along with gym services has also prevented companies from scaling their businesses over a certain geographic limit. The three factors that mainly contribute to the high cost of establishing a fitness center have been the cost of acquiring land, cost of hiring trained and certified fitness professionals and cost of buying gym equipment. This has been discouraging new players with low capital from entering the market. A gradual consumer shift towards brand acceptance and new demand for female specific fitness centers has encouraged service providers to explore and probably convert this demand in their favor.
A special focus must be laid on penetration of the relatively nascent women fitness segment in the industry in Saudi Arabia. Inclusion of customized workouts, with growth in adoption for personal training programs is expected to come into effect in a few years from now. Provision of value-added services such as free membership freezing, couple discounts, locker room facility, free showers, sauna, spa will ultimately aid fitness brands to target a wider chunk of the customer segments and increase the fitness services penetration rate in the country. Expansion plans of many fitness centers will be put on hold, for a while as the Covid situation hits the short-term and long-term business sustainability for gyms in the Kingdom. In future, the Saudi Arabia Fitness Services Industry is expected to grow at a CAGR of ~10.7% during the period 2019-2025.
By Market Structure
By Revenue Stream
By Regions
By Subscription
By Gender
By Age
By Income Group
Fitness Brands Covered:
2.1. Market Definition
2.2. Abbreviations
2.3. Market Sizing and Modeling
General Approach-Market Sizing
Market Sizing – Saudi Arabia Fitness Services Market
Sample Size Inclusion Table
Variables (Dependent and Independent)
Multifactor Based Sensitivity Model
Regression Matrix
Limitations
Final Conclusion
7.1. By Organized and Unorganized, 2019
By Number of Fitness Centers, Members and Revenues, 2019
7.2. By Regions (Riyadh, Jeddah, Dammam, Al Khobar, Makkah & Madinah and Others), 2019
7.3. By Subscription (3 months, 6 months, 1 Year and Others), 2019
7.4. By Customer Profile in Saudi Arabia (Gender, Age and Subscription Fee), 2019
By Gender, 2019
By Age, 2019
By Income, 2019
Government Supported Initiatives Assisting the Market Growth
Focus on Opening-Up More Women Fitness Centres
Change in Consumer Behavior Spurred by Change in Demographics
High Intensity Interval Training (HIIT)
Increase in Lifestyle Disease in Saudi Arabia
Entry of International Brands in Fitness Services Industry in Saudi Arabia
Workplace Fitness Promotion
Group Training
Wearable Technology
Body Weight and Strength Training Exercises
Investing in Building Customer Awareness and Trust
10.1. Customer Decision Making Parameters, 2019
10.2. Pain Points of Customers
12.1. Competition Scenario (Market Nature, Bargaining Power, Entry Barriers, Market Positioning and Competition Parameters), 2019
12.2. Competitive Landscape of Major Players, 2019
11.1.1. Fitness Time (Leejam Sports)
11.1.2. Profile of Other Players (Body Masters, Fitness First, NuYu, Gold’s Gym and Glamour Fitness) in Saudi Arabia Fitness Market
12.3. Strengths and Weakness of Major Players in Saudi Arabia Fitness Services Market
12.4. Market Share of Major Organized Fitness Service Players by Revenue, 2019
12.5. Market Share of Major Organized Players By Membership Share, 2019
12.6. Market Share of Major Organized Players By Number of Centers, 2019
14.1. Future Market Segmentation By Market Structure (Organized and Unorganized), 2025E
14.2. Future Market Segmentation by Subscription (3 months, 6 months, 1 year and Others), 2025E
14.3. Future Market Segmentation by Regions (Riyadh, Jeddah, Dammam, Al Khobar, Makkah & Madinah and Others), 2025E
14.4. Future Market Segmentation by Gender (Male and Female), 2025E
Focus on Developing Women Fitness Center Base
Space & Capacity
Pricing Strategies & Discounts
Location Play
Fitness Equipment Procurement Strategies
More Diversified Services Portfolio
Marketing Strategies
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