HFA Research: A Growing, More Diverse Industry

If there’s one constant in the global fitness industry, it’s nonstop change. While technology, product design, and other innovations continue to revitalize much of the industry’s equipment and services, consumer trends follow their own patterns, broadening participation among different demographics, while expanding the choices consumers demand when managing their own fitness and wellness.

The Health & Fitness Association (HFA) catalogued these and other emerging story lines with its recent publications: the 2024 U.S. Health & Fitness Consumer Report, 2024 HFA Global Report, and 2024 Latin America Fitness Consumer Survey done in partnership with ABC Fitness. For readers of the 2025 HFA Buyer’s Guide, these evolving trends may impact how you invest in your business going forward.

Let’s review the major takeaways from this exclusive research.

More Members, More Revenue, More Units

The major headlines in all of the HFA research reports are positive, as membership, revenue, units, and participation have either held firm or increased over the last year. According to the Global Report, 87% of facilities expect membership will increase over the next year, and more than two-thirds of those surveyed estimate that membership will grow by more than 5%.

Drilling down into the details of the U.S.-centric Consumer Report showed a similar trend. In 2023, the U.S. fitness industry hit an all-time high, with 72.9 million Americans reporting having a fitness facility membership—23.7% of the population aged six and older. This reflects the enduring importance of fitness facilities in helping Americans stay active and healthy. Membership grew by 5.8% year-over-year, marking the fastest growth rate since 2017 and highlighting the industry’s resilience and expansion.

These increases will also lead to greater economic contributions made by the industry in employment growth. According to the Global Report, more than 50% of those surveyed believe that they will increase their number of employees (61%), while a majority expect to keep facility count steady (56%).

Overall, investment and growth continued to approach pre-Covid levels.

Jon Canarick, managing director of North Castle Partners, who manages investments in the healthy, active, and sustainable living sectors, among other interests, wrote in the Global Report:

"Health club and studio operators had to prove their businesses had recovered from the pandemic shutdowns. And prove they did. Therefore, it is probable that 2024 will see more acquisitions—although to date we have yet to see a large number. But I expect to see private equity firms upping their investments in the industry through acquisitions or expansions now that they can see a year or two of stability. Overall, the industry is very healthy."

In fact, 76% of global operators expected an increase in EBITDA for 2024, with 61% expecting improvements surpassing 5%, according to survey results collected for the Global Report.

Studio Memberships Lead to More Consumer Options

Another common theme of recent research shows a marked increase in entrepreneurial activity in the studio space. In the U.S., studio membership grew by 3.2%, and the Global Report found a similar movement globally. Leading the way are Pilates, barre, HIIT, and other franchise concepts that continue to attract new fans.

The audience for studio membership is younger (the average age is 29 years old, according to the Consumer Report) and skews female, with gender differences reflected in the choice of activity. Says the report: "Male members were more likely to join boxing, martial arts, and MMA studios, where they made up 62.3% of the membership. In contrast, female members gravitated toward yoga, Pilates, and barre studios, accounting for 61.7% of members in these categories."

Yoga remains the top activity choice in the studio space, with 20.2% of members participating in a spectrum of yoga workouts. The continuing popularity of yoga has convinced more traditional fitness facilities to include yoga-themed classes in their schedules.

In addition, mind-body disciplines have taken root in the mainstream fitness industry. Mental wellness has become a priority, especially for younger demographics, and this need to address mood elevation and psychological stability is now intrinsically tied to overall health maintenance.

Fitness center operators recognized this need and invited more mind-body services, such as massage, recovery, spa services, and others, into their overall programming. Operators also are placing a greater emphasis on social connections, reaching out to local communities to build networks that provide “third place” destinations for those who no longer are part of workplace, religious, or civic groups.

Industry partner members of the HFA also recognized these trends, and such companies as Matrix Fitness, WellnessSpace Brands, Technogym, and others actively promote mental wellness and community building as part of their service proposition. Expect more companies to do the same in 2025.

Global Operators Make Gains Amid Challenges

As evidenced by the success of such HFA-connected events like the 2024 European Congress, ChinaFit/HFA China Management Forum, and Fitness Brasil Expo, global businesses continue to approach prepandemic participation and revenue levels, with some improving on previous numbers. Still, challenges remain in this overall positive environment.

In Europe, penetration levels still lag behind U.S. numbers, but success stories such as Netherlands-based Basic-Fit show that fitness facilities have a long runway for further growth. Private equity investment in companies such as German-based LifeFit Group displays the potential that exists throughout the continent.

Overall, membership rose 4.3% throughout Europe from 2019 to 2023, though it lagged behind the U.S. increase of 13.5% (see graphic below), according to the Global Report.

Recent research from ABC Fitness and the HFA on Latin America, compiled in the recently released 2024 Latin America Fitness Consumer Survey, found that “72% of Latin American consumers in major metro areas use fitness facilities or trainers at least a few times monthly, with 54% doing so multiple times weekly.” This report also found that:

• 69% of active consumers in Latin America belong to a health or fitness facility, with members skewing younger and more affluent.

• Of those who have never been members, 53% are likely to join a fitness facility within the next 12 months, signaling substantial growth potential.

Again, the fitness industry in Latin America, like other regions, is primed to grow in 2025.

The Asia-Pacific region is also trending on a growth trajectory. In Australia, 6.8 million Australians took part in fitness or gym activities in 2023, roughly 34% of the population aged 15 and older (source: AusPlay). Nearby New Zealand is buzzing, with 13.6% of the population belonging to a health club or studio in 2023, and the country has approximately 1,200 health clubs and studios that make up a market size estimated at US$396 million (according to the Global Report).

The world’s most populous countries, India and China, are also enjoying steady growth. China was home to over 36,000 health clubs in 2023 (not including studios). And while the participation rate is only 0.7% in India, its population of 1.4 billion indicates that the potential market in the country is significant.

Healthcare Integration Offers More Growth Potential

By now, the industry has embraced and promoted its place in the healthcare continuum. The essential role of the global fitness industry in overall health management is more recognized by political leaders, lawmakers, and healthcare professionals than before and during the pandemic.

Much of this long-overdue repositioning of the industry is the result of work by the HFA and fitness business leaders who have made important alliances with global health groups and policymakers in promoting access to fitness services to help battle obesity, chronic disease, mental health disorders, and other lifestyle-related issues.

This is all leading to a stronger partnership with healthcare groups and providers, including insurance companies and even pharmaceutical firms. Drugs such as GLP-1 weight-loss and diabetes-management treatments (e.g., Wegovy, Ozempic) should be paired with a structured fitness routine to manage potential side effects (such as muscle loss) and to help patients maintain healthy lifestyle habits. The continuing use of these treatments (with more related pharmaceutical products soon coming to market) may lead to billions of dollars for the fitness industry, according to some estimates.

Many fitness facilities are now receiving healthcare referrals and are becoming part of the healthcare insurance reimbursement system.

In addition to being able to address a range of patients' assessment, exercise, and nutrition programming needs, establishing strong referral partnerships can be a key part of a strategy for accessing new members who might not otherwise come to a club.

The bottom line: All of these data points should provide global operators and suppliers with plenty of optimism for 2025, and fuel more innovation in the products and services provided by HFA industry partners.

Download the HFA Reports for More Information

To go deeper into the data about the global fitness industry, download the full 2024 U.S. Health & Fitness Consumer Report, the 2024 HFA Global Report, and the 2024 Latin America Fitness Consumer Survey at healthandfitness.org/publications.

This article originally appeared in the December 2024 issue of Club Business International. View the full digital version of the issue online.