The fitness industry has seen substantial changes in recent decades, becoming a multi-billion dollar market that is impacting the lives of millions. The way we approach fitness has evolved with various important factors. Moving forward, the future of fitness looks promising, thanks to exciting new technological advancements and developments expected in 2023.
Whether you’re someone who is passionate about fitness or just want to know a little peak of the business side of the fitness industry. In this article, we will explore the latest fitness spend trends that are shaping the fall of 2023 and beyond.
The fitness spending is increasing across various categories, driven primarily by three key segments:
While on-demand fitness subscriptions constitute the smallest share of fitness spending (6%), these convenient online and app-based workout options are experiencing the fastest growth compared to other fitness categories. On-demand fitness spending has surged by 58.7% since 2018 and nearly 130% since 2017.
Despite the rapid expansion of fitness disruptors, traditional gyms still dominate the majority of fitness spending (72%) and have seen an overall spending increase of 3.1% since 2018. Meanwhile, boutique studios represent the remaining 23% of expenditure and have witnessed a 5.1% year-over-year growth.
Notably, individuals who opt for studio memberships exhibit a higher willingness to invest in their fitness, with an average monthly spending of approximately $136. Comparatively, consumers typically spend about $59 and $48 per month on traditional gym memberships and on-demand fitness services, respectively.
Recognizing the crucial window of opportunity during the initial months when motivation is high, health and fitness retailers can strategically time their incentives and programs to retain customers and re-energize those at risk of dropping off.
A significant portion of millennials and Gen Z individuals have set their sights on health and fitness as part of their New Year’s resolutions, surpassing the broader population in this regard. However, this heightened focus on wellness is leading these groups to rely on credit cards to support their fitness endeavors. Approximately 38% of millennials and 41% of Gen Z have either encountered or are currently grappling with debt as a result of expenses linked to their fitness pursuits.
Traditionally inclined toward investing in experiences rather than material possessions, millennials align with this trend. While prioritizing one’s health and well-being is undoubtedly commendable, it is crucial to strike a balance and ensure that these pursuits do not compromise one’s financial stability.
When we consider the “fitness industry,” we often envision traditional gym settings, yoga studios, and wearable technology. However, maintaining a healthy lifestyle doesn’t necessarily require strict workout regimens. People can find joy in sports, dance, cycling, or even incorporating physical activity into their daily routines. This realization opens up a multitude of opportunities for businesses and policymakers to promote a more inclusive approach to fitness, reaching beyond the affluent urban and suburban populations, the younger generation, and those already focused on their health.
Here are some global models that US policymakers and businesses could examine for inspiration:
When it comes to the world of physical activity, the US stands out for its notable contributions and market leadership. Here are five key ways in which the US maintains its prominent position:
Recognizing the diverse demographics engaging with fitness services is vital for the industry to tailor its offerings effectively.
The recent surge in fitness adoption across diverse demographics, compounded by the pandemic’s influence, has accelerated the industry’s growth. Digital platforms have played a pivotal role, enabling individuals worldwide to access fitness services conveniently from their homes.
Surveys indicate that a significant barrier to regular exercise and a leading cause of workout abandonment is the struggle to balance daily responsibilities, leisure, and fitness routines. This challenge often stems from a lack of time, reminders, and motivation.
This highlights the significance of improving the user experience of fitness apps, ensuring that they cater to individual goals and have the ability to motivate consistency. Data shows a 5% growth in consumer expenditure on connected fitness equipment (equipment that integrates with an app) in 2021, coupled with a 10% increase in spending on paid apps.
Mere calorie tracking and workout duration monitoring are no longer sufficient. Today, apps must offer precise measurement and meticulous tracking to meet the evolving needs of users.
Although spending on athletic gear, game tables, and exercise equipment saw a notable increase in 2021, the proportion of consumer units making these purchases slightly decreased. In 2021, these purchases accounted for 1.6 percent of all consumer units, down from 1.7 percent in 2020.
When it comes to health and fitness, the Western States in the US take the lead as top spenders. On average, individuals in this region invest about $122,711 throughout their lifetime, which exceeds the national average by $10,711. The national average spending stands at $111,554.
Oregon stands out as the most indulgent state for health and fitness, with a significant tendency to spend in higher price brackets. Monthly, around 13% of the population invests over $100 in their overall health and fitness routine, while over a quarter (26%) allocate more than $81 for gym attire. Additionally, nearly a quarter (21%) shell out over $100 for personal trainers or workout plans.
In 2022, consumer spending in the healthcare industry showcased a notable emphasis on specific segments, with weight loss and fitness, mental health, and women’s health solutions taking the forefront. Notably, European consumers allocated more than $500 million toward health and fitness, as well as medical apps listed in app stores during the same year.
A substantial portion of patients or consumers demonstrated a willingness to invest in weight loss services (43%), closely followed by mental health services (40%), and fitness services (35%).
In contrast, the majority (67%) of digital health decision-makers favor the subscription-based payment method as the most effective pricing model. This pricing approach is widely adopted across various industries, including the digital health sector, with pricing structures differing across different segments of the digital health market.
Within the digital health market segment, patients have the option to select either out-of-pocket payments or pursue reimbursement through health plans or employers. In the digital diabetes market, for example, subscription pricing has emerged as the dominant model.
The future of the industry looks promising, thanks to technological advances, consumer-focused innovations, and a growing emphasis on overall well-being. The fitness industry is continuously working towards promoting accessibility, diversity, and holistic approaches to fitness. These efforts will contribute to a healthier and more active global population, ensuring a positive upward trend for the industry.
Q: What are the current trends in the fitness industry in 2023?
Some notable trends in the fitness industry include the increasing popularity of virtual workouts, the incorporation of wearable technology, and a strong emphasis on community-based exercise. These trends align with the broader health and wellness movement and contribute to the industry’s continued growth. Mental health and self-care have also become focal points within this context.
Q: What percentage of individuals will be engaged in workouts in 2023?
Almost half of adults in the US, 46.9% to be exact, meet the recommended guidelines for aerobic physical activity.
Q: What is the outlook for the fitness business in general?
The future of the fitness industry looks bright, as innovative technologies are changing the way people approach and achieve their health and fitness goals. These advancements have opened up opportunities in lucrative niches such as boutique studios, online training, and wearable technology.