4 Reasons Why Fitness Is Booming in the Business World
Today, the gym and fitness industry is one of the most booming industries across the world. Healthcare has become one of the largest sectors in the business world, both in terms of employment and revenue. According to the IHRSA (International Health, Racquet & Sportsclub Association), the health and fitness industry in the U.S. was worth $30B in 2018 and has been expanding by at least 3% each year for the last ten years. This growth is not expected to decelerate anytime soon.
There’s never been a better time to invest in the fitness industry than now. Fitness franchises are among the fastest growing businesses in the world. There are over 36K health clubs, gyms and fitness franchises in the USA. According to the IHRSA, about 20% of American adults had a fitness club membership in 2018, and that number is expected to double in the next 10-15 years. Here is how growth in the retail fitness industry may look different in the next five to ten years, according to a report by National Real Estate Investor, written in collaboration with F45.
Technology
Almost everything we do is run by technology these days, fitness being one of them. We now have wearable technology that can help people track their fitness and health targets. In the next few years, health clubs and fitness studios will make it possible for consumers– particularly Millennials who have embraced wearable technology such as Apple Watches and Fitbits–to interact with the services they have to offer by integrating technology.
Hybrid establishments
We have already seen some health clubs and fitness centers offer food items such as protein bars, smoothies and other snacks at their establishments, or integrating an eatery or casual dining franchise into their business offering. As Millennials continue to promote nutritional health and clean eating, we can expect to see even more hybrid stores that not only offer a fun, challenging training session but also provide nutritious and energizing meals. These hybrid establishments could turn into one-stop shopping destinations with things like meal planning services and dietary advice also being made available.
New location strategies
Demographics, such as an aging generation who is turning to fitness and other wellness services to enhance its longevity and quality of life, could impact the number of freestanding fitness centers in the next 10 years. As a result of this, fitness centers might need to think of new location strategies. There is a possibility that more health clubs may partner with mixed-use and lifestyle real estate developments instead of just with retail centers as we know them.
Health insurance costs
Employers and insurance companies have realized that they can cut insurance costs by encouraging a healthy lifestyle through incentives, as healthy people cost much less to insure. Many companies and insurers now take care of the costs of a health club membership or studio classes. While this fast-growing segment of the market is not big enough to drive the profitability of a fitness studio on its own, it will continue to become an extremely valued source of supplemental revenue in the industry.
While the timeline of these trends is not definite, there is no denying that fitness is one of the biggest things in the business world right now. As the fitness sector’s landscape changes as a result of technological enhancements, investors are in a good position to capitalize on this expanding industry.
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