The 20th State of the Industry Report from LeisureDB has revealed a resilient, expanding and competitive sector, the importance of differentiation and the ongoing challenge of tackling inequalities.

At the launch of the report, the LeisureDB team also announced a rebrand of the company – which was founded by David Minton 45 years ago – to Evolve. The same name as the company's annual conference.

Minton said: “The launch of Evolve reflects a market that has evolved and a business that must evolve with it. Our ambition is to combine four decades of sector expertise with new technology, AI and real-time intelligence to help organisations identify opportunities faster and make better decisions.”

The annual report has been broadened this year. It includes analysis of more than two million member records, demographic profiling, supply mapping, public-private market trends, digital infrastructure, utilisation insights and interviews with operators and industry leaders from across the sector.

Jamie Buck, head of research at Evolve, says the sector has moved beyond previous peaks and established entirely new benchmarks for participation and market value: “Operators are increasingly positioning themselves within broader health, wellbeing and preventative care ecosystems.

"This shift presents significant opportunities for operators, investors and suppliers who understand where the market is heading.”

Report highlights

The 2026 report found that there are 7,463 health clubs in the UK, as well as 12.1 million members and a penetration rate of 17.6 per cent. The total market value was identified as £7.29 billion.

The report says: “Growth has been driven by continued expansion in the private sector, alongside steady recovery in public provision. For operators, this signals a larger and more engaged customer base, but also a more competitive and performance-driven landscape, with growth increasingly driven by utilisation and value, rather than expansion alone.

“Members per gym has risen steadily in the post-pandemic period, indicating that existing facilities are accommodating more users than in previous cycles and operating at higher levels of intensity.”

With gym openings and closures being almost level in 2022 and 2023 and more closures than openings in 2024, the balance has now strongly tipped in favour of openings. In 2025 there were 172 openings and 119 closures. So far this year there have been 205 openings and 82 closures.

With many of the closing sites being more than a decade old, the report points out the importance of evolving, investing and repositioning.

The private sector is almost evenly split between chains and independents, however the independents represent a greater share of closures – 58.2 per cent compared to 41.8 per cent. This shows the structural advantages of larger operators – economies of scale, brand recognition and greater access to capital for investment – and the importance of clear differentiation for independents.

Although membership is growing, the public sector has seen a gradual decline in site numbers, with wet facilities representing a disproportionately large share of closures

New supply in the sector is overwhelmingly focused on dry, gym-based formats with the market moving towards efficient, lower-cost models. The top 10 operators account for around 30 per cent of sites but capture well over half of members and market value, benefiting from national reach, brand strength and more advanced operating models. 

Regional imbalance

Gym usage continues to be regional – provision is weighted towards London and the South East – and still appeals to fairly limited demographics. Engagement is strongest among mainstream, family-oriented and suburban populations. The private sector scoops up many of these memberships.

The public sector better serves the under-represented rural areas which face more barriers including provision, affordability and relevance of offer.

The report says that closing this gap is critical to long-term growth – this will require geographic reach and adapting the product, pricing and environments.

New formats

The evolution of the sector is increasingly shaped by new services and formats, such as reformer Pilates, recovery and wellness spaces. The report says that the sector is still in the experimentation phase as opposed to widespread rollout.

While padel is growing, the current supply is modest – two to four courts, representing a cautious rollout strategy – but the pipeline suggests increasing operator interest. Existing provision is weighted towards outdoor courts, but planned developments show a shift towards indoor formats including outdoor, covered courts. 

Impact on health

The report raises the question of whether the growth of the market is improving public health or if growth is concentrated on improvements within already active segments of the population. 

Results show that participation tends to be in more affluent, already active groups. Many of the segments that under-index – lower-income, rural and transient populations – are under-represented despite making up a substantial share of the UK population.

This is a challenge. The low-cost operators are yet to be well-represented in rural areas and while the public sector is playing a critical role to address inequalities, economics do place a limit. 

Future growth

The market is becoming more competitive – growth in demand has been accompanied by openings, closures and continuous churn and repositioning. The report says this suggests growth is concentrated among operators which are best able to meet evolving performance expectations.

Growth is not determined by expansion alone, but how effectively operators optimise existing assets, such as maximising capacity, improving retention and increasing value per member. 

The role of health, wellness and recovery is expanding, representing opportunities for incremental revenue and differentiation.

“Operators that combine strong positioning, efficient delivery and targeted investment will be best placed to capture the next phase of market growth,” says the report.

You can read the report free at https://weareevolve.io

FOOTNOTE

State of the Industry Report from LeisureDB is the second report this year to track the UK health and fitness market, following the publication of the UK Health and Fitness Market Report 2026 by Grant Thornton for UK Active in April.

The reports use different methodologies, with Grant Thornton using live spending data and LeisureDB estimating spend from its own propretory system which is based on published membership charges.

A comparision is shown below.

2026 reports

Grant Thornton / UK Active

• 5,842 clubs
• 12.2 million members
• 18.0 per cent penetration
• £6.5 billion revenue

Leisure DB

• 7,463 clubs
• 12.1 million members
• 17.6 per cent penetration
• £7.29 billion market value

Difference

• Leisure DB identified 1,621 more clubs
• Grant Thornton identified 100,000 more members
• Grant Thornton identified 0.4 percentage points higher penetration
• Leisure DB estimated £790m higher market value

2025 reports

Grant Thornton / UK Active

• 5,607 clubs
• 11.5 million members
• 16.9 per cent penetration
• £5.7 billion revenue

Leisure DB

• 7,202 clubs
• 11.3 million members
• 16.6 per cent penetration
• £6.5 billion market value

Difference

• Leisure DB identified 1,595 more clubs
• Grant Thornton identified 200,000 more members
• Grant Thornton identified 0.3 percentage points higher penetration
• Leisure DB estimated £800m higher market value

What changed between 2025 and 2026?

Grant Thornton / UK Active

• Clubs up by 235
• Members up by 700,000
• Penetration up by 1.1 percentage points
• Revenue up by £800m

Leisure DB

• Clubs up by 261
• Members up by 800,000
• Penetration up by 1.0 percentage point
• Market value up by £790m

What stands out?

• Membership estimates have become closer, with Grant Thornton showing 200,000 more members in 2025 and only 100,000 more in 2026.
• The penetration estimates remain very close, with Grant Thornton reporting slightly higher penetration in both years.
• Leisure DB continues to identify around 1,600 more facilities than Grant Thornton, indicating less members per facility, and/or more pay-as-you-go members in its sample.
• Leisure DB's market value estimate remains around £800m higher than Grant Thornton's revenue estimate in both years, due to the difference between actual (Grant Thornton) and estimated (Leisure DB) spend.