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
Jul 17, 2024 - Inflation Up While Employment Grows
- Producer prices for fitness and recreational sports centers increased during the first five months of 2024, according to data from the US Bureau of Labor Statistics (BLS). Producer prices were mostly unchanged in May 2024 compared to the previous month. Fitness centers industry employment grew during the first five months of the year. Average wages for nonsupervisory employees in the industry fell slightly year to date through May, when wages per hour were $20.82, per the BLS.
- Nearly a third of adults globally did not meet the recommended levels of physical activity in 2022, according to a report recently released by the World Health Organization (WHO). Approximately 1.8 billion adults worldwide did not meet the recommended levels of 150 minutes of moderate exercise per week. If this trend continues, global levels of physical activity are projected to grow to 35% by 2030, up from 26% in 2010. Physical inactivity among women globally is 34% compared to 29% for men, and people over 60 also have higher levels of physical activity. About 80% of adolescents are not meeting the recommended levels of physical activity. The WHO has a target of lowering physical inactivity in adults and adolescents by 10% by 2025 and 15% by 2030, from the 2010 baseline. The economic cost to public health care systems of physical inactivity is expected to reach $300 billion by 2030 if levels of inactivity are not reduced.
- The number of check-ins at fitness businesses globally was up significantly in Q1 2024 compared to the same period a year ago, according to the Q1 Wellness Watch Report from ABC Fitness. Check-ins were 60% higher in traditional gyms and 22% in fitness studios and boutiques in Q1 year over year. In the US alone, 184 million gym check-ins occurred in Q1, nearly doubling the pre-pandemic levels. The number of net new joins grew 11% in fitness studios and was flat in traditional gyms, with Gen Z accounting for 29% of new joins. Per the report, Gen Z respondents typically spent between $21 and $69 monthly for membership dues. Use of personal training services continued to increase in Q1, with 38% of Gen Z and 29% of the total population using a trainer or coach. The ABC Trainerize platform revealed a 78% increase in new personal training clients in Q1 year over year. The report used data from third-party US consumer research and data from ABC Fitness’s platforms.
- The health and fitness industry is responsible for $22.4 billion of economic activity based on nearly 55,300 health club and studio locations in the US, according to a new report from John Dunham & Associates commissioned by the Health & Fitness Association. The report also showed that the industry created 432,942 direct jobs in the country and paid $10.7 billion in direct wages. In addition, the Health & Fitness Association recently revealed several membership statistics from its 2024 US Health and Fitness Consumer Report. Per the report, the US has more than 72 million health club and studio members, who pay an average of $59 monthly for membership. About 41% of facility users pay $25 or less monthly per membership.
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