Fitness Centers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 32,500 fitness centers in the US provide exercise equipment, classes, and services that allow members to improve their physical fitness. The main source of fitness center revenue is membership fees. Fitness centers also generate revenue by providing athletic instruction, admission fees for non-member usage, and food and beverage. The industry includes independently-owned centers, chains, and franchises.
Seasonality of Demand
Most fitness centers experience higher membership growth right after the winter holidays, when many people resolve to lose weight or exercise more.
Membership Attrition
Maintaining a strong membership base can be a challenge for fitness centers.
Industry size & Structure
A typical fitness center operates out of a single location, employs about 16 workers, and generates about $1 million annually.
- The fitness center industry consists of 32,500 companies that employ about 537,000 workers and generate $39 billion annually.
- The industry includes independently-owned centers, chains, and franchises.
- Large companies include 24 Hour Fitness, Gold's Gym (TRT Holdings), Life Time Fitness, and New York Sports Clubs.
- There were around 68.9 million members of health clubs in the US in 2022, according to the IHSRA.
Industry Forecast
Fitness Centers Industry Growth
Recent Developments
Dec 13, 2024 - Garmin Activity Data Shows Growth in Track Running, HIIT, Pilates
- According to the 2024 Garmin Connect Data report in Athletech News, users are gravitating toward high-intensity interval training (HIIT), pilates, and strength training workouts. Workouts with the highest year-over-year activity growth in 2024 were track running (65%), HIIT (56%), and pilates (42%). Per the report, the pilates surge is notable since Garmin users are not traditionally associated with the mind-body modality. The HIIT increase bodes well for large fitness chains and smaller boutiques offering the classes. A recent Research and Markets forecast mentioned in the report projects HIIT will become the fastest-growing boutique fitness modality in the next five years, driven by its effectiveness for time-constrained exercisers. In terms of steps logged per day, the average Garmin user logged 8,317 steps per day in 2024, well above the worldwide average of 5,000. Outdoor running and walking also posted 7% and 6% increases respectively, in 2024, according to the report. Other activities with increases in 2024 included e-bike riding (38%), indoor rock climbing (31%), strength training (25%), stairclimbing (25%), and breathwork (19%).
- Consumer confidence levels increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled and new cars rose slightly in November 2024 on a six-month average basis.
- According to US News and World Report, about 260 million Americans could be overweight or obese by 2050 per a study in The Lancet journal. Researchers estimate that two in three adults, one in three teens, and one in five children in the US will be obese by 2050. The change is expected to create a crisis of chronic illnesses and serious health conditions in the nation, including diabetes, heart attacks, cancer, and other conditions. The research also showed that people are becoming obese at earlier ages in the US. According to lead study author Emmanuela Gakidou, a professor with the Institute for Health Metrics and Evaluation (IHME) at the University of Washington, “Our analysis lays bare the decades-long failure to tackle the growing overweight and obesity epidemic in the USA.” Obesity rates can be a demand indicator for fitness centers, which court consumers seeking to improve their health as customers.
- The US fitness centers industry is projected to grow at a CAGR of 4.8% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the arts, entertainment, and recreation industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. Price growth, however, is diminishing and likely to stabilize soon near intended rates. According to the forecast, the industry may want to focus on services that serve older people. The Baby Boom generation’s retirement is expected to drive demand for many arts, entertainment, and recreational activities.
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