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
Mar 18, 2025 - Tariffs Expected to Impact Equipment Costs
- 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 report in CBS News. 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.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- 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.
- Health and fitness are a top New Year’s resolution for Americans in 2025, with 88% seeing fitness facilities as important to achieving their goals though cost can be a problem, according to a recent survey by the Health and Fitness Association (HFA). Nearly 60% of those surveyed plan to maintain existing fitness memberships, and 23% plan to join a fitness facility. However, Americans said the top challenges to reaching their goals include difficulty staying motivated (40%), time constraints (38%), and the cost of gym memberships or fitness programs (32%). According to HFA President and CEO Liz Clark, “Americans are entering the new year with strong ambitions to improve their health and fitness, but financial strain is a real obstacle for many. This represents both a challenge and an opportunity to explore strategic solutions that can make fitness more accessible to everyone.” The survey was conducted online by Kantar on behalf of the HFA.
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