How the Industry Changed in 2024

Experts identify the key trends of 2024 and their influence moving forward.

The fitness industry in 2024 was all about momentum. It began January 4 when 100+ industry leaders, including Health & Fitness Association (HFA) President and CEO Liz Clark, rang the opening bell at Nasdaq in New York City to kick off “The Year of Fitness.”

Then, throughout the year, signs kept emerging to support this optimistic prediction.

According to The Global Wellness Institute (GWI), the global wellness market has ballooned to $5.6 trillion and is expected to reach $8.5 trillion by 2027.

Fueling those numbers are results from McKinsey’s Future of Wellness survey that show 82% of U.S. consumers consider wellness a priority, along with 87% in China, and 73% in the United Kingdom.

So, it makes sense that check-ins at fitness facilities in Q1 this year were up 60% over the same period in 2023, and personal trainer usage jumped by 78%, per the ABC Fitness Q1 Wellness Watch.

“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,” says Clark in the 2024 HFA Global Report.

Indeed, the industry is on the move. As it evolves, CBI talked with several experts about key trends this year and their potential implications for 2025. While this isn’t a comprehensive list, it serves as a smart snapshot.

And although it’s early to speculate about next year’s defining theme, we’re predicting it might be acceleration.

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According to The Global Wellness Institute (GWI), the global wellness market has ballooned to $5.6 trillion and is expected to reach $8.5 trillion by 2027.

Consolidation and Growth

One of the biggest business shifts in 2024 was the merger of Orangetheory Fitness (OTF) and Self Esteem Brands (SEB), now one powerhouse with almost 7,000 franchise locations in 50 countries and $3.5 billion in sales.

Other brands have grown via aggressive acquisitions. For example, 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?

"The data indicate that the industry has returned to and even exceeded overall membership levels from Covid," suggests Rick Caro, the president of Management Vision, Inc., and a co-founder of the HFA (then IHRSA). "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."

That also includes analyzing local competitors for changes and opportunities, Caro adds. "Given additional likely reductions in interest rates, gyms should talk to their lenders while exploring capital expenditures."

Wellness as King

Driven by consumer interest, the industry has adopted a holistic approach that encompasses more than just fitness, including recovery, mental health, and longevity.

In Life Time’s annual U.S. Consumer Health and Wellness Survey, 51% of respondents said better health and longevity were more important than improving physical appearance in 2024. And the National Council for Mental Wellbeing indicates that 76% of Americans see mental health as being as important as physical health.

"Fitness is no longer just about physical conditioning, but is linked to mental well-being, nutrition, stress management, sleep hygiene, and other healthy lifestyle behaviors," says Cedric Bryant, PhD, FACSM, the CEO and president of the American Council on Exercise (ACE).

"Health clubs need to evolve from solely physical transformation to recovery rooms, meditation spaces, and stress management and mindfulness programs," adds Allison Flatley, a REX Roundtable chairperson and the CEO of Allison Flatley Consulting.

Consumers today are prioritizing health span, prolonging their functional years of good health, over lifespan, or improving quality of life when living with functional limitations or chronic disease.

"Longevity and healthy aging will be a defining component for the health and fitness industry’s positioning and value proposition," says Bill McBride, the founder, president, and CEO of Active Wellness. "We need to look at 'whole person' lifestyle programming that goes beyond traditional fitness."

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Pew Research estimates that by 2030, one in five Americans will be over age 65.

Integrating with Healthcare

Prompted largely by the pandemic, the HFA is leading the effort to reposition the fitness industry as part of the preventative healthcare system. In February, Clark attended the White House launch of a series of “Get Active” campaigns for communities in need, just one of the numerous events and meetings the HFA advocacy team attended in 2024. Plus, the HFA is aligning with the World Health Organization to improve global health by encouraging physical activity and other healthy habits.

As the number of medical fitness facilities increases, traditional health clubs also may aim to partner with healthcare professionals who are treating patients with prescription GLP-1 and GIP agonists for weight loss.

Startup Head2Toe Total Health has created a plug-and-play national program where clubs can offer members GLP-1 shots and make money with- out an upfront investment. Head2Toe's monthly shots start at $199 a month.

"With over 5% of the adults in the U.S. on these shots for weight loss, it’s a big opportunity for clubs to join in, whether it is offering special training or the shot directly to members," says Karl Kay of Head2Toe Total Health. "At H2T we have over 5,000 doctors plus a 24/7 medical hotline."

Life Time launched its MIORA personalized health optimization services in late 2023, and Xponential Fitness acquired Lindora, a provider of medically guided weight loss and wellness solutions, in January 2024.

"Our industry has started looking at solutions and operational processes to support the continued adoption of GLP-1s," adds Al Noshirvani, managing partner at ALTA Technology Group. "The convergence of health clubs and healthcare can become the most impactful change our industry has seen in a long time."

Inclusivity and Experiences

Inclusivity is also a rising trend. “Multi-generational facilities have a high growth opportunity,” McBride says. “Gyms must develop messaging and programming that resonates with each [generation].”

Among the fastest-growing one is seniors. Pew Research estimates that by 2030, one in five Americans will be over age 65.

“Clubs should create a comfortable, welcoming space for older adults with specialized trainers and programs, along with opportunities to socialize,” Flatley says.

A new option for clubs is the Les Mills THRIVE low-intensity workout for older adults or the deconditioned.

At the other end of the spectrum, gyms also must accommodate Gen Z, which considers wellness a top priority. For them, Les Mills offers its Limited Edition Collection of programs, along with its new PILATES program that helps operators cater to broader communities.

Another way to appeal to Gen Z is through staffing. “Bringing on board the next generation of talent helps young prospects feel welcome in facilities and can ease labor shortages,” points out Sean Turner, the CEO of Les Mills U.S.

The goal of greater inclusivity at gyms will continue to grow in 2025.

“There is a push toward accommodating diverse populations, including people with disabilities or chronic diseases, so fitness professionals should learn to specialize in areas like functional movement, corrective exercise, lifestyle behavior change coaching, and pre-hab and post-rehab,” Bryant suggests.

And for all populations, fitness facilities must be intentional about building community and creating memorable experiences.

"Many people are seeking more meaningful experiences, and human connection is critical to foster engagement and loyalty," says Sara Kooperman, the CEO of SCW Fitness Education and WATERinMOTION.

Turner adds, "The onus is on us to provide inspiring fitness experiences that keep pace with consumer expectations and respond to emerging trends, so members keep coming back."

Bryant agrees. "Whether through in-person classes, online programs, or social media, fostering a sense of belonging and support for members is critical for connection and accountability."

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The goal of greater inclusivity at gyms will continue to grow in 2025.

Technology and AI

One powerful way to enhance the member experience is through technology and artificial intelligence (AI), which can create customized programs, promotions, and recommendations.

"Fitness technology, especially wearable devices and AI-driven platforms, offers personal insights and real-time feedback that allow fitness providers to create hyper-personalized training programs that can integrate with broader healthcare initiatives," Noshirvani observes.

"AI is having a great impact on member engagement, and predictive analytics on consumer behaviors are very helpful in sales and retention," adds McBride.

As technology continues to improve delivery of virtual fitness offerings online and via apps, gyms and fitness professionals should be cautious when using technology. "While technology can improve efficiency, over-reliance on automation risks losing the personal touch that differentiates fitness services," Kooperman says. "Maintaining connections is more important than ever."

Navigating the Tailwinds

Moving forward, Caro recommends thorough preparation. "Create a game plan for 2025, including a detailed budget, a review of programs and services, an analysis of the org chart to shore up weaknesses, and adopting new technologies that improve sales and marketing."

And as the industry grows, Noshirvani encourages participation in the broader landscape. "We are much stronger together, and supporting the HFA's mission to educate, advocate, and promote our industry is a responsibility we all should take seriously."

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

Julie King

Julie King is a contributor to Club Business International.