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 32,000 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 12 workers, and generates about $1 million annually.
- The fitness center industry consists of 32,000 companies that employ about 464,000 workers and generate $38 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
Apr 15, 2024 - HIIT to Lead Growth in Boutique Fitness Industry
- The boutique fitness industry is expected to increase to a global market value of $54.8 billion in 2029 from $34.3 billion in 2023 as demand grows for personalized fitness experiences and specialized training, according to a new report from Research and Markets in Athletech News. High-intensity interval training (HIIT) is expected to become the fastest-growing boutique fitness modality in the next five years due to time-crunched fitness consumers seeking quick and effective workouts. Barre, yoga, and Pilates hold the highest share of the boutique fitness market. Driving growth for boutique fitness memberships are rising concerns about obesity and chronic disease and a growing appetite for curated and exclusive fitness experiences, per the report. Boutique fitness memberships can also appeal to gym-goers by providing a better sense of community than a large gym and a more inclusive atmosphere for all members' fitness levels.
- Consumer confidence levels were essentially unchanged in March 2024 from February 2024, after a dip in February following three consecutive months of growth, according to data from The Conference Board. The Conference Board’s consumer confidence index was 104.7 in March 2024 from 104.8 in February 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Consumers’ assessment of the present situation improved in March, but they also became more pessimistic about the future.” Peterson added that confidence rose among householders 55 and over but fell for those under 55. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
- Luxury fitness chain Equinox has recently introduced a new program called “GLP-1 protocol” for its members who are taking GLP-1 medication, such as Ozempic and Wegovy, according to CNN.com. The program is designed to assist members in preserving muscle mass and maintaining a healthy body composition, which can be a concern for those taking weight loss drugs. The fitness industry is seeking ways to attract and support a growing group of consumers who are taking weight loss drugs. Some gyms believe the use of these medicines may help them attract first-time gym members who want to continue to stay on a healthy track. Equinox stated that the GLP-1 personal training program was created in response to questions from its members who are taking weight loss medication.
- Starting in April, a new law will allow New Jersey consumers to cancel their automatic gym renewal subscriptions online, according to Athletech News. The new law signed by Gov. Phil Murphy mandates that gym memberships and subscription services entered into online must have an easily accessible and prominently displayed online cancellation option or an option to terminate via an email template. Lawmakers said they passed the bill to provide greater consumer protection after receiving many consumer complaints from those having trouble canceling memberships. The IHRSA, a trade association representing the global health and fitness industry, worked with the state to clarify the bill's language, allowing gyms to potentially save the membership and provide a reminder about final payments before cancellation. According to the IHRSA, the collaboration between lawmakers and the IHRSA can serve as a model for other states to approach legislation regarding membership cancellations.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.