Health and Fitness Association Global Report shows a buoyant and resilient fitness industry

The Health and Fitness Association’s 2024 HFA Global Report shows that despite ongoing macro-economic challenges, the fitness industry has rebounded from the pandemic and is well placed for future growth.

The 112-page reports includes data from 19 countries, covering 2023 and early 2024, with more than 92% of respondents expect revenue growth through the year, with penetration rates and memberships growing around the world.

Commenting on the findings, Liz Clark Chief Executive and President of the Health and Fitness Association (HFA - the former IHRSA), stated “who would have guessed four years ago that the health and fitness industry would be where it is today - strong, expanding, embracing wellness and technology, and working together.”

Consolidation and Growth
Charting some of the bigger developments of the year, the HFA report notes the merger of Orangetheory Fitness (OTF) and Self Esteem Brands (SEB), now one powerhouse with almost 7,000 franchise locations in 50 countries and US$3.5 billion in sales.

Other brands have grown via aggressive acquisitions. For example, Canada’s Genesis Health Clubs now has 72 locations after buying gyms from New York to Florida, and The Bay Club snapped up several facilities to grow to 26 locations and 10 campuses.

The high value-low price (HVLP) segment also is on fire, mainly through franchising and led by Planet Fitness, Crunch, and EōS Fitness. Many of these are designated HVLP 2.0 after expanding offerings to include recovery products and services.

At the same time, high-end and luxury brands - such as Life Time’s Premium membership and Equinox's $40,000-a-year Optimize by Equinox membership - are thriving as well.

Taken together, this has squeezed mid-tier clubs, who are contending with imprecise differentiation on price and offerings.

What does this mean for 2025?
Rick Caro, President of Management Vision, Inc., and a co-founder of the HFA, advised "the data indicate that the industry has returned to and even exceeded overall membership levels from Covid.

"So, clubs and studios need to reinvest regularly by changing their facilities, services, and equipment - whether it's recovery areas, pickleball courts, or nutrition services - to meet members’ increasing expectations."

Fitness and Preventative Health
The HFA report notes that a positive to come out of the pandemic has been the consumer recognising the value of health and the perception of fitness changing from a leisure activity to a necessary, preventative health activity.

Despite this, the World Health Organization reports that one-third of adults worldwide did not meet the recommended physical activity levels in 2022 and this number is projected to rise.

Alongside obesity, mental illness is an escalating global health problem, with the Lancet Psychiatry reporting that half of the global population is at risk of suffering from depression and anxiety by the age of 75.

However, the data on the benefits of physical activity on mental health is building, with research published in The British Medical Journal asserting that exercise is as good as therapy or drugs for mild to moderate depression.

Mental wellness continues to be a leading concern for younger generations and a motivator for joining a gym, while seniors are recognising the value of healthy ageing and taking out memberships.

Of those health club operators surveyed for the report, 86.8% expect membership to increase in 2024 and 92.6% expect revenue growth.

Trends
GLP-1 is one of the most discussed current trends. According to Morgan Stanley, sales reached US$6 billion worldwide in 2023 and are estimated to reach between US$105 billion and US$144 billion by 2030.

A William Blair survey found that these weight loss medications could boost health club membership, with people who take the drugs reporting improved motivation, mobility and energy levels after taking the medication.

Having been impacted less than other parts of the sector by the pandemic, franchising is continuing to worldwide growth.

AI is being increasingly embraced to aid personalisation, expand the market and reduce costs.

Inclusivity is another talking point, with diversity both in employment and membership presenting a challenge.

Home fitness companies are struggling, as people lives return to normal and seek more social ways to work out.

Pickleball participation in the US has increased by 224% over the last three years and is also growing quickly in China, Australia and Europe. Fitness facilities are increasingly converting spaces devoted to other racquet sports into pickleball courts.

Working spaces within gyms are tipped as a burgeoning trend, with Life Time in the USA and Wello Works in Australia active in this area.

Regions
The Middle East offers significant tailwinds as a result of the high-growth economies. Saudi Arabia is the largest economy in the GCC with independent chains making up 74% of the market. Women-only gyms are an important segment and a lack of nearby facilities has been reported as a barrier for this demographic.

Leejam/Fitness Time is the market leader in the Middle East, with more than 180 sites and 396,000 members. In 2023 it ranked among the top 25 operators globally in terms of revenue at US$353 million.

Other operators include Sports Club Company (55 units, 112,000 members), Kun Sports (50 units, 44,000 members) and Armah Sports Company (12 sites, 13,000 members).

Anytime Fitness, Fitness First Middle East and PureGym each have a growing presence.

Australia: Despite a tightening economy, record numbers of people are joining gyms for social and motivational reasons, as opposed to using online programmes.

Increased media coverage about the benefits of exercise for physical and mental health conditions is helping to drive this, with many new joiners being female and older clients.

Pilates and strength training are the fastest growing modalities.

China was home to more than 36,000 health clubs in 2023. The report says that the fitness industry is poised for further segmentation and diversification. Those facilities offering efficient services, short-term payment options, personalised programming, community-focused experiences and professional services will do best.

Click here to view the HFA Global Report report available to buy from the HFA website at US$399.

Images: Active ageing is one of the reasons penetration rates are rising globally (top), the merger of Orangetheory Fitness and Self Esteem Brandsand was one of the bigger business developments of the year (middle) and the HFA has identified the growth pickleball (below).