Market supply / demand and growth
In 2007, Taiwan Institute of Economic Research released a report on the fitness equipment industry, forecasting a steady growth of the sporting population in the years ahead. At the time many countries’ GNP continues to grow and fitness is becoming more and more important, the sporting population will continue to grow for the future and the fitness equipment market is expected to grow 5% or so in the years to come.
According to the forecast released by International Monetary Fund (IMF), 2011 worldwide economy is expected to grow 4.0%, much lower than 2010. The United States and Euro Dollar District, the major exporting market of fitness equipment, will see their economies grow 1.5% and 1.6%, respectively. China and India, with their growing demands for sporting goods, will see their economies grow 9.5% and 7.8%, respectively. Moreover, the worldwide economy is expected to grow 4.0% in 2012 – 1.8% growth in the United States, 1.1% growth in Euro Dollar District, 9.0% growth in China, and 7.5% growth in India. The report indicated that, with the abovementioned statistics, the worldwide economy will remain sluggish in 2011 and 2012. Faced with the sluggish economy, the general public will reduce their spending in the sporting goods.
United States is the world’s major fitness equipment market, representing more than 60% of the worldwide market. According to the statistics released by the United States Fitness Equipment Manufacturer Association, the United States’ 2010 fitness equipment market size amounted to USD 4.34 billion in which the household market grew 3.98% and commercial market grew 4.37%. Now, the baby boomers are turning into senior citizens. They can afford the expensive and well-designed new products with particular emphasis on the performance and safety of the fitness equipment. With the growing concern about health, the low-burden fitness equipment is expected to become more and more popular as time passes by. Furthermore, females take part in the fitness activities regularly, more aggressively than the males. In recent years, the outstanding achievements made by many female athletes have inspired more and more females to upgrade their physical conditions using CPR fitness machines. As soon as the United States economy picks up, consumers will begin to purchase fitness equipment once again. Therefore, the United States market is expected to grow in the years ahead.