India has one of the highest number of people in the working age group. With the average age of the country expected to be around 29 by 2020, it can be safely inferred that there exists a huge opportunity for the Fitness segment in India. Also, significant changes in lifestyle related to lack of physical activity (more of desk jobs) and increased consumption of fast food among both affluent and working class population has led to greater need for exercising and maintaining healthy lifestyles.
The Fitness industry in India is highly fragmented with only a handful of global players. While the total retail market for fitness category is worth Rs. 4,579 Crores, and is growing at around 20 per cent per annum, it is expected to cross Rs 7,000 crore by 2017. Modern retail currently constitutes around 30 per cent of this market, and is expected to grow by 22-27 per cent. Organised fitness services account for merely 25% of the overall fitness industry.
The Fitness market predominantly comprises fitness products and fitness services. Products are being sold but more through Business to Business or institutional sales and mostly to the service providers. Since these products require that they should be used under expert supervision, they are found to be present more in the fitness centres, compared to homes.
The services component is witnessing an exponential growth – evident through an increasing number of yoga centres, health centre, and gymnasiums and slimming centres. To facilitate these services, services relevant products and equipment are being used.
There is a marked shift in the fitness segment in India. The industry, till a decade back, belonged to the elite and the upper strata of the society. Today, it has effectively embraced the ambitious middle class, and even the villages which are on the periphery of urbanisation. The last ten years have seen a tremendous shift in the Indian fitness segment - from being a non-existent upper middle class dominated industry that only reached a certain category of people, to being embraced by the middle class with its highly disposable income and newfound consciousness about health. The market of fitness is still in its nascent stages today, with a lot of potential to see an unprecedented growth in the coming years.
The organised fitness market is concentrated in the top eight cities of India (Delhi NCR, Mumbai, Bangaluru, Chennai, Kolkata, Pune, Hyderabad, and Ahmedabad). These eight cities account for more than 60 per cent of outlets of top dozen chains located in these cities. However, in future, while the market will continue to grow in these cities (which are still under penetrated), given the high real estate costs in these cities, large as well as small players will increasingly be looking at tier 2 and 3 cities for growth. Demand from tier 2 and tier 3 cities, coupled with lower real estate costs is expected to yield higher growth in the premium and mid-end of the market.