Yoga Industry Snap Shot-2016
Yoga participation in the United States is at an all-time high. There are now 36.7 million American adults practicing yoga, that’s up from 20.4 million in 2012 according to Yoga Journal and Yoga Alliance. That’s a staggering 80% increase! When compared to other similar forms of indoor exercise, yoga’s growth dwarfs the competition.
According to IBIS World’s research, the booming Yoga industry generates $9.1 billion in revenues and over $1.2 billion in profit for an industry profit margin of 13.2%. The yoga industry is projected to continue growing at 4.9% per year until 2020, when sales are projected to reach $11.5 billion. The yoga industry revenues come from yoga studios, yoga schools and training programs, yoga clothing, yoga equipment, yoga apps, yoga videos and TV channels, and yoga related dietary supplements.
In 2015, IBIS estimated there were 31,301 Pilates and yoga studios in the United States. The number of yoga studios is expected to grow at an annualized rate of 4.1% to 36,761, as many yoga entrepreneurs expand into relatively untapped markets like the Southeast and Great Lakes regions. Currently, Pilates and yoga studios are concentrated in the Western region, which accounts for 21.6% of all studios, followed by the Southeast (20.1%), Mid-Atlantic (18.3%) and the Great Lakes (10.4%). The states with the highest concentration of yoga studios include California (12.1% of total establishments), Texas (8.2%), New York (6.2%) and Florida (6.1%).
The yoga industry’s strong growth is due to four macro factors, including its appeal to an aging population, continued geographic expansion, increased awareness of different types of yoga programming, and improved awareness of the health benefits of yoga for people of all ages. Furthermore, 44.4% of Americans considered themselves “aspirational yogis,” or individuals
interested in trying yoga.The yoga industry is expected to remain very attractive to investors.
Buyers and investors like the yoga industry because of its recession proof nature and long-term macro drivers which suggest that the yoga industry’s growth will continue to be above average for the next 10 years. In addition, the consumer demographics for the yoga industry are very attractive. According to Yoga Journal, over 30% of their readers have a household income of over $100,000 and over 70% of yoga participants are college graduates.
The yoga and Pilates industry is highly fragmented, and made up of many small yoga and Pilates studios. CorePower Yoga Inc., Body & Brain, YogaWorks,
If you are interested in buying or selling a yoga studio, yoga school or yoga related business please contact Sports Club Advisors for a free consultation at (224) 513-5142.