The COVID-19 pandemic negatively impacted all in-person businesses, and the fitness industry was no exception. Between 2019 and 2022, the total number of gym locations across the US declined 25% as they experienced unprecedent closures. Despite these challenges, the fitness sector has demonstrated resilience and witnessed a promising resurgence in recent years. By 2023, total gym memberships had increased to 73 million, marking a 6% growth from the previous year.
In this report from L.E.K. Consulting and Lincoln International, we analyze the upward trend in gym popularity post-pandemic. Within the fitness industry, High-Value Low-Price (HVLP) gyms and premium gyms have outperformed the broader market. HVLP gyms have attracted customers with affordable monthly fees and premium memberships offering enhanced amenities. Furthermore, they have benefited from reduced competition following gym closures during the pandemic. The utilization of Glucagon-Like Peptide-1s (GLP-1s) for weight loss could present an opportunity for gyms, as strength training plays a crucial role in preserving muscle mass while undergoing such treatment.
These emerging trends indicate potential for further growth in the in-person fitness sector. Customer satisfaction with gym memberships remains high, with many perceiving them as providing excellent value for money. The popularity of strength training is on the rise, and gyms are expanding their equipment offerings for this type of workout beyond what most individuals would have access to at home.
Read the article at lincolninternational.com or download the analysis.
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