Fitness Centers NAICS 713940

Apr 17, 2025 - Higher Growth Forecast

• The US fitness centers industry is projected to grow at a CAGR of 4.5% between 2025 and 2029, faster than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer confidence is expected to improve in the forecast period, which bodes well for the arts, entertainment, and recreation sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Consumer expenditure for membership clubs, sports centers, parks, theaters, and museums drives much of the revenue for the sector. While this spending dropped severely during the pandemic lockdown, recovery has gradually occurred, and real spending for membership clubs and participant sport centers saw gains of 7.8% in real spending in Q3 2024.
• Fitness center membership renewals may be affected by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.

• New Trump administration tariffs on imports from China as well as steel and aluminum imports are expected to impact the prices of gym equipment, sports equipment, and other essential supplies used at fitness centers, according to a CBS News report. Some gym and sports equipment manufacturers may have stockpiled some materials in anticipation of the tariffs, which would allow them to hold off on price increases for a period, per Stanford professor Layna Mosely. According to Reuters, gym and sports equipment is one of the top 10 product groups hit by the steel tariffs. Fitness centers may find it more expensive to purchase new equipment or replace existing machines; gym owners face reduced profitability if they absorb the higher costs, or they may raise membership prices to cover the costs. Supply chain disruptions for fitness equipment makers may result in shortages or delays in equipment availability.
• Fitness clubs are taking the trend of cold plunges seriously, with Life Time Fitness adding the recovery tool to 70 of its clubs in 2025, according to Club Solutions. Life Time expects to add the cold plunges to its clubs nationwide by summer 2025. Cold plunges involve immersing in cold water at a temperature range of typically 50 to 60 degrees, which advocates say offers health benefits such as boosting energy, aiding recovery, and lessening inflammation. Life Time has been investing in its recovery offerings in recent years, with rejuvenation suites containing saunas, steam rooms, and whirlpools, and dedicated recovery spaces with compression boots, hydromassage, and cryotherapy beds.