The $30 billion health and fitness business in the United States has been expanding by at least 3 to 4% yearly for the past 10 years, based to the IHRSA (International Health, Racquet & Sportsclub Association), and there are no immediate signs that this growth will stop. It’s actually accelerating. About 20% of American adults already belong to a fitness club, a percentage that, in my opinion, could easily quadruple in the ensuing 10 to 15 years.
It’s not only that there are more clubs opening up all the time. That is true, but a number of significant – and possibly unanticipated – elements are contributing to this dynamic. If investors are considering making an investment, they should be conscious of the following crucial factors:
1. Health insurance costs.
Each company’s bottom line will be affected by the ongoing increase in health care spending, which is great news for those that stand to benefit from the incentives. Employers and insurers are now aware that encouraging healthy lives can reduce insurance costs because healthy people are far less expensive to insure.
As long as an employee can demonstrate that they actually use a health club membership or studio sessions, many companies and insurers now pay for them. This market area is expanding very quickly; while it typically isn’t big enough to sustain a fitness club or studio’s profitability on its own, it has developed into a highly valued source of extra income in the sector.
Demand from consumers has been shifting away from industrially produced processed food in recent years in preference for healthier, more natural, and/or organic alternatives. This change is making individuals more aware of what they consume across the nation, which has increased interest in fitness as a side consequence.
Consumers naturally begin considering additional ways to improve their health as they begin to carefully consider the nutritional choices they make. figuring out a way to be more physically active, which may require joining a gym or fitness center.
Many of the cellphones we use every day, such the Fitbit, Apple Watch, Garmin, and others, are putting millions of people’s unique biometric health statistics at their fingertips. People are becoming much more aware of how their bodies function and how they might enhance their health as a result of being able to monitor their daily steps, calories burned, heart rate, and blood pressure.
Incorporating individualized health data into everyday activities is still a popular trend.
4. Streaming exercises classes.
For a long, workout sessions have been streamed here and there, but they are now finally becoming popular. That’s fantastic news for those of us who lead hectic lives, which pretty much sums up to all of us.
People who couldn’t find that hour to make it to the gym probably just wouldn’t exercise before there were adequate streaming options. But today, before having to send the kids off to school, someone may stream a workout session into the TV in their living room. or during lunch. maybe after midnight…and on it goes.
Contrary to popular belief, virtual exercisers frequently also keep their memberships at a health club or studio. You would believe that those who stream exercise sessions have disintermediated the gym itself. It makes sense because this mixture offers them diversity, promotes social interaction, and keeps them active for a longer period of time.
Boutique fitness studios and “high-value, low-price” (HVLP) health clubs have been primarily responsible for the fitness industry’s recent rise in both the number of facilities and members.
HVLP gyms are gaining members as a result of their affordable membership fees, which are often in the $10 to $20 per month range, and their value for money in terms of amenities, classes, and equipment. Budget gyms have been around for a while, but this new generation of HVLP gyms often outperforms the more seasoned budget competitors in terms of the variety of exercise machines and classes they offer, as well as the all-inclusive pricing structure.
Traditional cheap gyms typically provide a sizable club with a wide range of equipment as well as some other perks like tanning, hydro massage loungers, dry saunas, and several other advantages. In addition to providing all the identical amenities as the “low price” category, the HVLP category also provides a wider selection of exercise equipment, group fitness courses, small group training, and personal training. It’s hardly surprising that HVLP clubs are rising to the top of the health club market given their superior value proposition.
People are thoroughly enjoying the preparation for and competitiveness in these races, as well as the feeling of collaboration and personal accomplishment that come with finishing one, and the events have attracted sizable crowds. Since they now come in all different levels, from novice to expert, these races—which have been gaining popularity for many years—have increased their appeal by offering various distances and levels of difficulty.
The fitness business is expanding more quickly than it ever has thanks to a combination of all these causes. There are currently 32,000 health and fitness facilities in the United States, but there are probably numerous boutique studios that haven’t been counted. Expect that number to significantly increase and even double.