Press release featured in The Times.
The total number of gyms in the UK grew just 1.8% in 2024 to 5,030, up from 4,940 in 2023.
This is the lowest annual growth since 2020. After the Covid lockdown ended, the number of gyms grew sharply, with the number of gyms increasing by 10% in 2021 - from 4,000 to 4,400. Growth has since gradually slowed, with an 8% increase in 2022 and 4% in 2023 (see graph below).
A plateau in household spending has contributed to the slowdown. In 2023, leisure spending slowed to a growth of just 1.4%, well below its 4.7% annual growth over the preceding decade*. Several listed gym companies confirmed this slowdown in their financial reports, with their new openings tapering off following their peak in 2021 and 2022.
Priti Mistry, director in our London office, said:
"Consumer spending has slowed significantly and this is now denting the once-rapid expansion of gyms in the UK.
Whilst new gyms are still opening there is more of a churn with closures of gyms keeping a lid on the overall number. There is a sense that many high streets have reached a saturation point in terms of the number of gyms they can sustain.
There was a surge in new gym openings in recent years as they took advantage of increased retail property vacancies on the high street and in shopping centres as more retail moved online. That allowed them to secure prime sites at very competitive rents."
Gyms finding innovative ways to increase revenue as expansion slows
Increased borrowing costs for the sector have also slowed growth. The BoE base rate has risen from 0.5% in 2022 to 4.5% today, making borrowing significantly more expensive. Additionally, rising construction costs – up 26%, on average, in the past five years – have also contributed to the slowdown in gym expansion**.
Priti says this has prompted gyms to explore less leveraged, more service-intensive growth strategies aimed at increasing gym utilisation rates. These include adding custom training, nutrition coaching and more group classes.
“Gyms are now focusing on getting more out of existing venues. The goal is to increase revenue per site instead of opening new locations.”
“Rather than just building new venues, gyms are also finding smarter ways to grow their revenues. They’re successfully remaining attractive to consumers without resorting to lowering fees.”
* ONS. Household Final Consumption Expenditure: Recreation & culture.
** ONS, Construction Output Price Indices. In the five years to 31 December 2024, the index went from 110.7 to 139.4.
