Trends & News

The Impact of the Economy on the Fitness Industry in 2023.

The global economy has been thrown into disarray over the past year and the fitness industry is no stranger to the effects of the economic crisis. Fitness clubs, gyms, and studios have seen their revenues drop drastically as people have been forced to stay home and social distancing has become the norm. This has had a huge impact on the fitness industry, with many operators forced to close their doors and over one million industry employees losing their jobs in the fitness industry.

The End of Skyrocketing Growth

The fitness industry experienced steady growth from 2009 to 2019, reaching a market size of $96.7 billion in 2019, according to a study. But, with the onset of the pandemic, the industry suffered an estimated 44 percent decline in revenue, from $96.7 billion. This is evidenced by the fact that the US health club industry saw a 58 percent revenue decline in 2020, losing $20.4 billion in revenue. Closures and restrictions also caused 17% of fitness clubs and studios to permanently close, while eight major fitness companies filed for bankruptcy.

The Big Loss of Members

The impact of the pandemic on the fitness industry is far reaching. Job losses have been widespread, with over 1.4 million people losing their fitness jobs in 2020. This has been especially hard on small business owner-operators, executives, instructors, administrative staff, and seasonal workers. The pandemic has also resulted in a lack of access to health and fitness clubs for many Americans. According to a study, health club visits fell by 80 percent in the second quarter of 2020 relative to the same period in 2019.

Finding new Ways in the digital Fitness Space

The pandemic has had a devastating impact on the fitness industry, with many clubs and studios struggling to stay afloat. But the good news is that many operators are finding innovative ways to stay in business, such as offering virtual and outdoor classes, selling online memberships, and expanding their marketing efforts. The industry is also being bolstered by a mini-boom, as consumers who have been missing social interaction and motivation from in-person classes are rushing back to their local gyms.

What will the Future hold for the Fitness Industry?

Going forward, the fitness industry will need to continue to adapt to the changing landscape in order to recover from the pandemic. This will involve finding ways to serve customers safely, creating a new model for operations, and focusing on the customer experience. Fitness clubs, gyms, and studios will also need to rely on their members for support, as well as on government.