We believe the fitness market will reach one billion users by 2025.
We’re currently undertaking research into the size and shape of the health and fitness market around the world – and that’s no small task, because what we’re measuring is constantly changing as technological developments continue at pace.
However, at this stage in the research we’re fairly confident in saying there are currently 360 million digital fitness users around the world – whether devices, apps or both. We define users not just as people who’ve bought a device or downloaded an app, as many people stop after a few months, but who use the technology at least once a week to help them with their fitness.
Meanwhile, IHRSA estimates the global health club market to service 155 million members. We think that figure is a bit low: there are over 12,000 CrossFit locations globally, plus yoga studios and so on.
Of these members, ACE research suggests one in five also use digital fitness technology – although that percentage is likely to increase. In terms of digital adoption, all population groups will see growth – it’s just a case of when and how, which will depend above all on disposable household income. You can’t assume adoption rates based on demographics any more: almost 40 per cent of wearables are owned by 35- to 54-year-olds. The early adopters might be younger, but this then matriculates through the population. And with a little over two billion smartphones out there, of which 32 per cent have some sort of health and fitness app on them, the growth potential is huge.
NEW EXPERIENCES
When you look at this picture, it’s clear it isn’t just about gyms any more. It’s about customers having their health and fitness needs serviced, with market growth driven by the evolution of fitness offerings to meet these needs. Digital is going to grow the market by helping people experience fitness in a different way.
As a result, traditional bricks and mortar will diminish as a percentage of delivery, although clubs will retain a role; Amazon and the online retailers still account for only around 12 per cent of total sales. The brands that do survive and thrive in the fitness sector will be the hybrids that integrate physical and digital delivery, and even more importantly that create a true customer experience – brands like Barry’s Bootcamp and SoulCycle. Aesthetics and facility design will be more important than ever.
A combination of factors will lead to further growth. Fitness as lifestyle (as a status symbol) will be a key driver, while artificial intelligence will broaden the appeal of fitness devices by morphing them into virtual coaches. Digital will also enable a variety of apps, wearables, hybrid models and medically integrated platforms to serve many more people more effectively, while ‘private pay’ integrated wellness will see huge growth. Finally, mindfulness will become a trillion dollar industry in the next few years.