Top Threats To the Fitness Industry & How To Adapt To Them

The fitness industry is booming but there are threats to its continued success. From competitive pressures and economic downturns to technological disruptions and pandemics, there are plenty of potential challenges. But knowing about them ahead of time can help you avoid the negative impacts.

In this article, we explore key threats to the fitness industry and how businesses can prepare themselves.

We’ve spent 15+ years working in the fitness industry, from leading gym chains to global equipment manufacturers, so we 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 Fitness Market Research Reports which are available to purchase.

2024 Fitness Industry Report

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

Understanding The Top Threats To The Fitness Industry

Understanding the potential threats to an industry is an essential part of any SWOT analysis. Threats are external factors with the potential to harm a business or industry. They’re challenges or obstacles that might negatively impact performance, growth, or stability.

Worrying about the worst-case scenarios might feel like a negative approach to business. But identifying threats is essential for several reasons…

• Risk Management: Recognizing potential threats allows fitness businesses to develop strategies to mitigate risks and avoid potential pitfalls.
• Market Competition: Understanding competitive threats helps businesses stay alert and adapt to changes in the competitive landscape.
• Customer Retention: By addressing threats, such as changing consumer preferences, businesses can retain customers and maintain their market position.
• Economic Stability: Awareness of economic threats, such as downturns or recessions, enables businesses to plan and prepare for financial challenges.

By identifying and addressing threats, fitness businesses can protect themselves from potential risks and ensure long-term stability and success. So, what are the key fitness industry threats to be aware of?

Competitive Pressure

The fitness industry is highly competitive, with numerous players vying for market share. Whether it’s a disruptive business model or commoditization of pricing, the sheer number of operators can make it a tough industry to succeed in.

New Players and Disruptive Business Models

The entry of new fitness players with disruptive business models adds to the competitive pressure. When budget gym chains first entered the market on mass, many mid-tier clubs struggled to compete. The popularity of boutique studios led to some traditional clubs adapting their offering (and even their interior design) to remain competitive.

The rise of digital fitness platforms like Peloton and Bodi (formerly Beachbody On Demand) have intensified the competition even more. By offering convenient and immersive workout experiences at home, they’ve taken market share from some brick-and-mortar clubs.

Pricing Pressures and Commoditization

With so many options available, price competition has become even fiercer. Many gyms and fitness studios feel forced into offering discounts and promotions to attract and retain members. This can lead to commoditization, where the focus shifts to price rather than the quality of services.

The average revenue per gym member has been declining as more low-cost operators enter the market. Adapting to this shift means adopting a strategic pricing strategy for your gym with a clear value proposition. Understanding your gym’s target market and what appeals to them is also essential to combat new players and business models.

Economic Downturns

History has shown as that economic recessions and downturns can significantly impact the fitness industry. Gym memberships and training services are often considered discretionary spending which means they’re the first things to get cut when money is tight.

Impact on Consumer Spending

The 2008 recession saw a decline in gym memberships as individuals prioritized essential spending. Data shows that the U.S. health club industry experienced slower growth during that period, with many facilities struggling to maintain membership levels.

Long-Term Financial Strain

Economic uncertainty can also lead to long-term financial strain on fitness businesses. Many gyms and studios faced financial challenges during the COVID-19 pandemic, with some unable to survive prolonged closures and reduced memberships. The pandemic-induced recession forced many fitness facilities to adapt quickly or risk going out of business.

Economic recessions tend to happen in cycles with one every 14 years on average. When the going is good, it can be wise to build up a war chest so you have savings to lean on in tough times.

Positioning your gym as an ‘essential’ instead of discretionary can also help during recessions. Creating a community with social bonds and focusing on the priceless health benefits can you avoid the trap of simply selling access to fitness equipment.

Other Fitness Industry Threats

Learn more about the other key threats to the fitness industry in our 2024 research report. Beyond intense competition and economic downturns, there are several other potential challenges for fitness businesses.

Future pandemics, technological disruptions, and changing consumer preferences are all on the horizon. Some operators are already feeling their effects. To combat these challenges, fitness businesses need to understand the threats and plan ahead for how to adapt to the ever-changing market landscape.

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;

• Fitness industry revenue & growth by market segment
• Comprehensive fitness market SWOT analysis
• Gym market size, growth & membership statistics
• Online & virtual fitness market developments
• Financial information for the largest club operators globally
• Biggest & fastest growing fitness franchises
• Insights into the boutique fitness studio & personal training segments
• Latest industry trends & how to capitalise on them
• Growth markets, segments & audiences including Millennials
• Data on fitness tracker, app & equipment segments
• Outlook & evidence-based predictions for the future of the industry
• 14-day money-back guarantee, no questions or hassle.

2024 Fitness Industry Report

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