Resilience and Reinvention: A 2025-2026 Outlook for Australia's Fitness Industry

AUSTRALIAN FITNESS INDUSTRY MARKET ANALYSIS 2025-2026: RESILIENCE, SEGMENTATION, AND STRATEGIC OUTLOOK 

Australian fitness industry demonstrates resilience amid economic headwinds. The core "Gyms and Fitness Centres" sector is a significant economic contributor.The industry is projected to generate $3.7 billion in revenue for the 2025-26 period

HIGHLIGHTS:

■Australian fitness industry

■Australian fitness Segmentation 

■Final Word

AUSTRALIAN FITNESS INDUSTRY 

The Australian fitness industry, valued at $3.7 billion in 2025, is a dynamic sector navigating post-pandemic recovery and evolving consumer demands. Despite recent revenue pressures, the underlying fundamentals are strong, characterized by rising health consciousness and a proliferation of diverse business models, from boutique studios to budget gyms . This article provides a comprehensive analysis of the market size, key segments, competitive forces, and growth drivers shaping the industry's trajectory through 2026 and beyond, drawing on the latest commercial market research and official government insights.

1. MARKET SIZE AND CORE PERFORMANCE INDICATORS 

The Australian fitness industry demonstrates resilience amid economic headwinds. The core "Gyms and Fitness Centres" sector is a significant economic contributor.

A. FITNESS INDUSTRY MARKET SIZE 

2025 Market Size: The industry is projected to generate $3.7 billion in revenue for the 2025-26 period .

Recent Performance: Revenue has faced recent pressure, declining an estimated 1.3% in 2025 following a -1.6% compound annual growth rate (CAGR) from 2020-2025. This is largely attributed to intense competition and cost-of-living constraints affecting household discretionary spending .

Future Outlook: Improving economic conditions and sustained health trends are expected to return the industry to growth over the next five years .

B. INDUSTRY INFRASTRUCTURE 

The sector's foundation is robust,with a growing number of businesses and significant employment.

Number of Businesses: There are an estimated 7,702 businesses operating in 2025, representing steady growth .

Employment: The industry provides jobs for approximately 34,328 individuals.

2. FITNESS INDUSTRY SEGMENTATION 

The market is not monolithic; performance and growth prospects vary significantly across different segments.

A. TRADITIONAL GYMS AND HEALTH CLUBS 

This core segment includes full-service clubs and budget 24/7 models.While facing saturation in the low-cost tier, it remains the largest segment by revenue, estimated at AUD 2.9 billion in 2024 . Competition is fierce, with price being a primary battleground, especially among budget operators .

B. BOUTIQUE AND SPECIALISED STUDIOS 

This is a high-growth area focused on community and specific modalities(e.g., HIIT, functional training, yoga, Pilates). The yoga and Pilates sector alone reached an estimated AUD 5.1 billion in 2024 and is forecast to grow robustly . These studios compete on experience and specialization rather than price .

C. SUPPORTING SECTORS 

Home Fitness Equipment: Sales spiked during the pandemic and have settled into steady growth, with a projected 2.5% CAGR from 2025-2034.

Fitness E-commerce: This channel is crucial, with online fitness equipment sales expected to reach AUD 736.1 million by 2025.

3. COMPETITIVE LANDSCAPE AND MARKET CONCENTRATION 

The Australian gym market is moderately concentrated, with a mix of international chains and strong local players.

A. MAJOR MARKET PLAYERS 

The competitive landscape is led by a few key operators.Based on 2026 revenue projections:

Anytime Fitness leads the market with an estimated revenue of $781.9 million.

Viva Leisure follows with projected revenue of $403.7 million.

Fitness and Lifestyle Group is another major player with revenue of $294.7 million.

B. COMPETITIVE STRATEGIES 

Major Chains: Leverage economies of scale, compete on price and national branding, and diversify services .

Boutique Studios: Compete through deep community engagement, premium experiences, and niche programming .

Strategic Imperative: For all players, differentiation is key. Successful operators are integrating wellness services (offered by 60% of gyms) and enhancing the overall member experience to drive retention .

4. Consumer Behavior and Demand Drivers

Understanding the modern fitness consumer is critical for future growth.

A.KEY DEMOGRAPHIC AND BEHAVIORAL SHIFTS 

Primary Motivation: A fundamental shift has occurred: consumers are now "playing sport to get fit, not getting fit to play sport". Fitness is an end in itself.

Demographic Influence: Women are a dominant force, comprising 54% of fitness memberships and driving demand for wellness-focused activities like yoga and Pilates .

The Hybrid Model: The blend of in-gym and at-home workout is entrenched. Notably, 75% of virtual fitness users also attend in-person classes, seeking flexibility without abandoning community 

B.MACRO DEMAND DRIVERS 

Official analysis from Sport Australia identifies several interconnected trends fueling the industry:

1. The Personal Touch: Demand for personalised fitness solutions and tailored experiences is rising.

2. Holistic Health: Fitness is viewed as part of a broader pursuit of optimal physical and mental well-being.

3. Convenience is King: Consumers expect flexible, accessible, and time-efficient solutions.

5. STRATEGIC OUTLOOK AND FUTURE PROJECTIONS 

The industry stands at an inflection point, with short-term challenges giving way to medium-term optimism.

A.GROWTH CATALYSTS FOR 2026 AND BEYOND 

Economic Recovery: As inflation eases and discretionary incomes stabilise, spending on gym memberships and fitness services is poised to recover .

Policy Recognition: Governments, including Australia's, are increasingly recognising fitness as "vital to public health," which may lead to more supportive policies and healthcare integration .

Technology Integration: The use of AI for customer engagement, personalised digital training, and smart operational tools will be a key differentiator .

B.CHALLENGES AND OPERATIONAL REALITIES 

Cost Pressures: The cost-of-living crisis continues to make consumers price-sensitive, squeezing profit margins .

Retention is Critical: With significant competition, operators must focus on reducing member churn through community building, exceptional service, and value-added experiences .

FINAL WORD 

The Australian fitness industry, while navigating a period of economic adjustment, is fundamentally healthy and evolving. Its $3.7 billion market is fragmenting into specialised, consumer-driven segments. Success for operators through 2026 will depend on moving beyond price competition to instead offer differentiated, convenient, and holistic health experiences that meet the modern consumer's demand for both personalisation and community.

REFERENCES  

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3. Belousoff, J. (2025). Boutique studios dominate Australian fitness market [LinkedIn post]. LinkedIn. Retrieved from `https://www.linkedin.com/posts/judson-belousoff-33215631_fitness-industry-insights-boutique-activity-7389090160086286336-NZGW`[citation:8]

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5. Sport Australia (ASC). (2025). Market trends & Growth of the fitness industry. Australian Sports Commission. Retrieved from `https://www.ausport.gov.au/`[citation:3][citation:7]