Latest Fitness Industry SWOT Analysis: A Snapshot Overview

05.08.2024
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Conducting a fitness industry SWOT analysis is essential for understanding the market landscape and identifying strategies for success. Fitness is a rapidly evolving sector that’s bounced back strongly from the challenges of recent global events. But intense competition and digital technologies are having huge impacts on its development.

In this article, we provide a snapshot SWOT analysis of the fitness industry that covers key strengths, weaknesses, opportunities, and threats.

We’ve spent 15+ years working in the fitness industry, from leading gym chains to global equipment manufacturers, so know the market inside-out. We proactively study the ever-changing landscape, highlight new trends, and analyse the big players, so that you don’t have to. For the last 5 years, we’ve shared this expertise with the wider industry through our Research Reports which are available to purchase.

Fitness Industry Market Report 2024 Cover

2024 Fitness Industry Report

The most comprehensive & up-to-date report on the fitness industry available. Includes revenue, growth, future outlook plus much more.

What’s a SWOT Analysis & Why Use One?

A SWOT analysis is a strategic planning tool used to identify and evaluate the strengths, weaknesses, opportunities, and threats related to an industry, business, or project. It helps organizations understand the market, guiding decision-making and strategy formulation. A SWOT analysis for the fitness industry needs to look at…

Strengths: Internal attributes that give the fitness industry an advantage over others. These could include resources, capabilities, and positive factors that contribute to achieving goals.
Weaknesses: Internal attributes that place the industry at a disadvantage relative to others. These could be areas where it lacks resources, capabilities, or factors that hinder progress.
Opportunities: External factors that the fitness industry can exploit to its advantage. These might include market trends, technological advancements, or changes in the competitive landscape.
Threats: External factors that could cause trouble for the industry. These could include economic downturns, competitive pressure, regulatory changes, or other external challenges.

So, what does this information tell us? A SWOT analysis can be used by fitness businesses to help with…

Strategic Planning: Helps in setting realistic goals, developing strategic plans, and making informed decisions that align with the current market conditions and future trends.
Adapting to Market Changes: The fitness industry is dynamic, with evolving trends and consumer preferences. A SWOT analysis helps businesses stay agile and adapt to these changes effectively.
Risk Management: Recognizing potential threats, such as competitive pressure or economic downturns, enables fitness businesses to develop contingency plans and strategies to minimize the impact of these risks.
Competitive Advantage: By leveraging strengths and opportunities, businesses can gain a competitive edge in the market.
Seizing Opportunities: Identifying external opportunities allows fitness businesses to capitalize on emerging trends, such as digital transformation or personalized fitness programs, to attract and retain clients.
Improved Performance: Continuous analysis and adaptation based on SWOT findings can lead to improved business performance and growth.

By understanding the strengths, weaknesses, opportunities, and threats in the fitness industry, businesses can stay competitive, adapt to market changes, and seize growth opportunities. Here’s a snapshot of the fitness industry SWOT analysis which forms part of our Market Research Report…

Strength: Growing Demand

One of the biggest strengths of the fitness industry is the growing demand for fitness products and services. The industry is growing at an impressive rate of 5.6% per year thanks to multiple market drivers. These include rising health consciousness, aging populations, and lifestyle-related health issues…

Rising Health Consciousness: People are more aware of the importance of maintaining a healthy lifestyle and the benefits of regular exercise and a healthy diet compared to previous generations.
Aging Populations: The World Health Organization estimates that by 2050, the number of adults aged 60+ years will total 2 billion, up from 900 million in 2015. This is creating a substantial market for fitness services tailored to older adults designed to prevent age-related diseases.
Lifestyle-Related Health Issues: The rise in lifestyle-related health issues such as obesity, diabetes, and cardiovascular diseases has also contributed to the growing demand for fitness solutions.

Read more about the other strengths of the fitness industry (coming soon).

Weakness: High Competition

Despite the growing demand, the fitness industry faces significant weaknesses, one of which is high competition. The market is saturated with players, ranging from large gym chains to boutique studios and digital fitness platforms, all vying for a share of the market.

The sheer number of fitness businesses leads to intense competition. There are over 200,000 gyms and health clubs globally, 31,000 of which are in the USA alone. This saturation makes it tough for new entrants to gain a foothold and for existing businesses to maintain their market share.

High competition often leads to pricing pressures, with many fitness businesses competing on price rather than quality. Budget gyms like Planet Fitness offer memberships for less than $20 per month, forcing other gyms to lower their prices to stay competitive. This race to the bottom can erode profit margins and make it harder to provide quality services.

In such a crowded market, standing out becomes crucial but difficult. Fitness businesses need to find unique selling points to differentiate themselves from competitors. Whether it’s offering specialized programs, superior customer service, or leveraging technology, differentiation is key to attracting and retaining members.

Read more about the other weaknesses of the fitness industry (coming soon).

Opportunity: Digital Transformation

Digitalization presents a significant opportunity for the fitness industry. The shift towards online and digital fitness solutions has opened up new avenues for virtual training, online coaching, and e-commerce.

The COVID-19 pandemic accelerated the adoption of virtual training and online coaching. Platforms like Peloton, which offers live and on-demand classes, saw a massive surge in users. This shift has shown that there’s a strong market for convenient, at-home fitness solutions.

Fitness apps and wearable technology are also driving the growth of digital fitness. The global fitness app market is worth $22bn in 2024 and growing at a rate of 14.3%. Almost 1 in 10 people (9.76%) use a fitness app currently and this is expected to increase to 12.2% by 2027.

The rise of e-commerce is also transforming the way fitness products are sold. From workout gear to nutritional supplements, consumers can now easily purchase fitness-related products online. Amazon’s fitness category has seen substantial growth, reflecting the shift in consumer purchasing behavior.

Read more about the other opportunities in the fitness industry (coming soon).

Threat: Competitive Pressure

While digital transformation offers many opportunities, it also brings significant threats, particularly in terms of competitive pressure. The influx of new players and disruptive business models may prove challenging for traditional fitness businesses.

Innovative business models, such as subscription-based fitness platforms and on-demand services, have disrupted the traditional fitness landscape. Companies like ClassPass, which offers access to multiple studios and gyms through a single subscription, have changed how consumers engage with fitness services.

Rapid technological advancements require traditional fitness businesses to continuously innovate and adapt. Many gyms and studios feel pressured to invest in new technologies, such as the latest equipment and virtual reality fitness, to stay competitive. This constant need for innovation can be costly, especially for smaller businesses.

Read more about the other threats to the fitness industry (coming soon).

Detailed Fitness Industry SWOT Analysis

The growing demand for fitness products and services provides a solid foundation for industry growth. However, high competition and pricing pressures pose challenges that businesses must address. Digital transformation offers exciting opportunities for innovation and expansion, yet also brings competitive pressures and the need for constant adaptation.

This snapshot SWOT analysis outlines the top factors influencing the industry but there’s a lot more to it. For a comprehensive SWOT analysis of the fitness industry, get our 2024 Market Research Report. It contains a detailed breakdown of the strengths, weaknesses, opportunities, and threats impacting the market.

2024 Fitness Industry Report

This is the most comprehensive and up-to-date fitness industry research report available. Unlike others, you get extended access to the 2024 edition, including any updates that are made as new market data becomes available. Ideal for business planning and strategic marketing, the 90-page report includes;