Tills ringing from focus on fitness
WELLINGTON: A growing obsession with health and wellness is the muscle behind momentum in the $60 billionayear global industry, as everything from gyms to wearable devices generates big profits.
Nikko Asset Management global equities portfolio manager Johnny Russell said gym companies were benefiting from an increased focus on wellbeing.
‘‘There is a bull market out there for people wanting wellness and wanting to look after their health,’’ he said.
‘‘Look at the companies that are taking costs out of the healthcare systems, because government budgets are getting stretched, because we’re all living to an older age. So, healthcare costs are going to go up, but the ability to pay for them is difficult,’’ he said.
Several companies were benefiting from the health craze, while some established names were repositioning themselves to seize the opportunities.
‘‘The likes of Philips, that used to make TVs, used to make light bulbs. That’s all changed. They’re now focused on personal care and healthcare wearables, helping people to monitor their health.’’
New Zealand’s health and wellness industry was also running hot, and the fitness industry grew 3% last year to $567 million.
Larger chains made up 30%40% of the industry, compared with just 10% 15 years ago.
Exercise New Zealand chief executive Richard Beddie said the desire to look good used to be the main reason people belonged to a gym, but not any more.
‘‘There’s been growth for the last 1015 years consistently, yearonyear, even during the global financial crisis,’’ he said. That growth was at present between 2% and 5% a year.
‘‘Generally speaking, younger persons would go to the gym, whereas nowadays, you couldn’t find a gym in the country that didn’t have someone over the age of 80.’’
There was big growth potential, as New Zealand lagged behind global rates of physical activity.
‘‘The need to do something, whether that be join a gym, go to yoga class, do some physical activity, is increasing by the day.
‘‘So we expect that to continue to . . . be the beneficial thing for the exercise and gym industry in New Zealand.’’