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
Jan 14, 2025 - Gym Costs Can Be Challenge to Meeting Fitness Goals: Survey
- 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.
- Chatmeter released its 2025 Gym Reputation Ranking Report, with EoS Fitness, Snap Fitness, and Crunch Fitness being named customer favorites for their welcoming atmospheres, customer service, and cleanliness, according to Club Solutions. The report, which used AI to analyze the top 10 largest fitness chains in the US based on customer reviews, noted that reviews focusing on a gym’s vibe were up 35.6% year over year. More than 60% of consumers said they felt gyms were overpriced, with 30% saying they would cancel their membership if the price were increased. More than half of those surveyed said they were not willing to pay more than $19.99 a month for a membership. Reviews that mentioned a welcoming vibe increased 24.7% while complaints about crowded spaces dropped by over 20%. Cleanliness is the third most influential factor in joining a gym, after price and convenience. Nearly 30% of those surveyed said they would cancel a membership over unclean facilities, 19% said they would cancel if the gym were too crowded, and nearly 10% said they would cancel over poor customer service. Nearly two-thirds of Gen Z and Millennials surveyed said 24/7 gym access would likely make them likely to join a gym or remain a member of their gym. These generations also expressed interest in having open space to create their own workouts, wtih 41% of Millennials and 39% of Gen Z expressing interest.
- 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 declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 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, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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