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
Oct 16, 2024 - Prices Up 2% Year Over Year
- Prices for other recreational services, including fitness centers, were 2.1% higher in September 2024 compared to the previous year, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Prices for other recreational services were down 0.7% from the previous month. Producer inflation for fitness and recreational sports centers rose 2.4% in July 2024 compared to a year ago, according to BLS producer price data. Employment by fitness centers increased 3.7% in July 2024 year over year. Average wages for nonsupervisory employees at fitness centers climbed 3.3% in July 2024 compared to a year ago, reaching $20.24 per hour, according to the BLS. Consumer spending, a key indicator for the industry, grew 2.6% in June 2024 compared to a year ago and increased 0.2% from the previous month, according to the Bureau of Economic Analysis.
- 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.
- A new survey by Forbes Health and Talker Research shows which wellness segments Americans are willing to invest in to live a longer life, according to Athletech News. Over 80% of respondents said they would be willing to spend money on increasing their longevity, with an average person valuing an additional year of healthy life at $5,285. Gen Z said they would spend the most ($7,856) for an extra year, while Baby Boomers were ready to spend the least ($3,734). Respondents reported spending on healthy foods ($68 per month), talk therapy ($59 per month), personal trainers ($56 per month), and fitness classes ($50 per month). People also said they could give up certain habits to be healthier, such as fast food (68% would give it up), soda (65%), and ultra-processed foods (62%) while fewer were willing to give up meat, cigarettes, or alcohol. Healthy segments that people said they did not spend funds on were personal trainers (67%), nutritionists (64%), and gym memberships (58%).
- According to recent American Time Use Survey data from the US Bureau of Labor Statistics (BLS), 21.3% of Americans participated in sports, exercise, and recreation activities per day in 2023, an increase over the 20.1% who participated in 2022. Of that segment, respondents spent 1.49 hours per day engaged in the activity (1.66 hours per day for men, 1.29 hours per day for women). Per the BLS, producer prices for fitness and recreational sports centers grew during the first five months of 2024.. Fitness centers industry employment grew during the first five months of the year while average wages for nonsupervisory employees in the industry fell slightly year to date through May.
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