International expansion will target low-penetration regions such as India, Japan and Saudi Arabia
The 2025 HFA Global Report, which looked at almost 30 markets, shows that around the world more people are joining gyms and seeing fitness as essential, despite rising living costs.
After surviving economic slowdowns and a global pandemic, the fitness industry is gaining a reputation as a long-term investment target, especially since club offerings have expanded into mental wellness, recovery and longevity. Ninety-one per cent of respondents anticipate growth in 2025 and 51.3 per cent foresee membership increases.
Fitness industry: stand-out trends
■ Massive growth opportunities remain in emerging markets where penetration rates are below 1 per cent, such as India, while developed markets are approaching or exceeding 20 per cent.
■ Hybrid models have become the industry standard.
■ Millennials and Gen Z are driving growth, while higher-income segments dominate memberships and create premium opportunities.
■ Retention requires better onboarding and engagement, as 50 per cent of new members cancel within six months.
■ Corporate wellness is a significant opportunity and medical integration offers health-care partnership potential.
■ Consumers increasingly demand personalisation
■ Government-led preventative health strategies offer a platform to elevate fitness as essential to wellbeing.
■ There has been a shift away from pandemic behaviours of outdoor and at-home fitness back to facilities, with a renewed appreciation for community.
■ Search trends reflect a growing interest in longevity and healthspan rather than aesthetics, with fitness increasingly viewed as medicine.
■ Recovery and wellness services – such as cryotherapy and red-light therapy – are becoming standard expectations.
■ The surge in strength training has reshaped club design, with modern facilities dedicating 42 per cent of floor space to strength versus 20 per cent traditionally, while cardio areas have fallen from 34 to 12 per cent.
■ Pickleball remains the world’s fastest-growing sport, expanding 223 per cent in the US in three years, with Life Time targeting 1,000 courts by the end of 2025.
■ Technology integration is accelerating, with AI used to improve operations and personalise experiences. Yet 47 per cent of consumers report inaccurate or irrelevant AI data, raising reliability questions.
Increases in funding
The fitness industry is attracting strong equity investment. Notable funding rounds include US$800m securitised financing for Planet Fitness and around US$1.8bn in new capital for Equinox.
This investment is being driven by robust results from public companies, the longevity trend and the post-COVID wellness boom, especially among younger consumers.
Challenges include inflation affecting discretionary income, rising interest rates, construction and labour costs, supply-chain issues and staffing shortages. Trading uncertainty in the US as a result of Trump’s tariffs is also a concern for both suppliers and operators, due to the potential impact on the cost of equipment.
The market in Europe
Europe combines mature and emerging markets, showing both stability and growth. The UK, Switzerland, Germany, Austria and Spain all saw gains in 2024, and 90 per cent of European companies expect growth in 2025, with half of them planning expansion.
The UK has the highest penetration in central Europe at 16.9 per cent. Despite inflation and cost pressures, metrics are rising. With a Labour government focused on health and economic growth, the industry is lobbying for a key role.
Austria overtook Germany in penetration at 13.9 per cent, with strong growth among under-30s and over-50s. Personalisation and digitalisation are rising, while yoga and free-weight strength are the fastest-growing modalities.
Spain reached record highs, with membership up 8.8 per cent and penetration at 13 per cent. It is now a leading European market, with expansion by VivaGym, Synergym, Metropolitan and David Lloyd into regional cities. Boutique studios are also spreading beyond Madrid and Barcelona, supported by rising disposable income among younger members.
France surpassed 10 per cent penetration, driven by women under 30. The over-60s remain underrepresented at 6 per cent with a 40 per cent cancellation rate.
Germany’s penetration rose to 13.8 per cent. Despite cost-of-living pressures, wellbeing remains a priority. The DSSV’s Quality Offensive aims to position fitness as a legitimate part of public health and automation and AI are being used to improve efficiency in the sector.
The market in Asia Pacific
The Asia Pacific market is highly diverse. WHO estimates South Asia’s physical inactivity at 48 per cent, while Oceania’s is just 14 per cent.
Australia’s penetration is around 23 per cent, with 48 per cent of adults active at least three times a week. Strength training is growing, particularly among older demographics.
New Zealand’s penetration stands at 21 per cent. Inflation and slow growth created headwinds in 2024, but operators responded with leaner models and targeted offerings.
Participation among older adults is increasing, though youth engagement has plateaued. Health inequalities persist among Māori, Pacific and rural communities.
In China, long-term pre-paid memberships are giving way to more flexible, affordable models. Outdoor, low-cost fitness alternatives remain popular, prompting gyms to innovate and justify pricing. The ageing population offers opportunities for senior-focused services.
India’s penetration is only 0.8 per cent but growing fast, with government initiatives, such as the Fit India Movement, driving awareness. Market leader Curefit reports strong growth in the luxe and boutique segments, fuelled by affluent, fitness-conscious consumers.
In Japan, Pilates is on the rise, and 24-hour self-service gyms represent the most promising segment. Consolidation and M&A activity are expected, alongside smaller, concept-driven facilities.
The market in Latin America
Latin America offers vast potential but remains fragmented, with many clubs still collecting payments in cash. It is dominated by homegrown brands, led by Smart Fit with 4.8 million members across 15 countries, soon to open its first club outside the region in Morocco.
The fundamentals are strong, with rising health awareness and willingness to invest in wellbeing despite economic constraints. Operators must embrace technology and improve the member and employee experience to thrive.
The market in the Middle East
With favourable economic conditions, health initiatives backed by government and rising interest in wellness, the Middle East shows strong potential.
Although WHO data shows high inactivity rates, fitness is growing rapidly in Saudi Arabia and the UAE. Leading operators include Leejam/Fitness Time, Holmes Place, Kun Sports, Saudi Sports Club Company, Gymnation, Armah Sports and Trifit.
UK and US brands such as 9Round, F45, UFC Gym, Fitness First, World Gym, Powerhouse, Gold’s Gym, Purpose Brands and Xponential Fitness are expanding across the region.
In Saudi Arabia, competition is intensifying as local and international players scale up, with demand growing for quality strength and Pilates offerings.
In the UAE, bio-hacking, functional medicine and personalised services are trending, driven by expat demand. With economic stability and government support, the fitness industry is set to flourish.
The market in North America
North America continued to expand in 2024, with the US reaching a world-leading penetration rate of 24.9 per cent and Canada around 15.5 per cent. Both offer strong infrastructure and room for growth, although WHO data shows 30 per cent inactivity.
High-value, low-price gyms are leading, while boutique studios and premium concepts thrive through personalisation and community.
The Fitness Industry Council of Canada is prioritising fitness incentives, affordability and partnerships to tackle chronic disease, with new collaborations between operators, governments and healthcare.
In the US, hopes are high for national policies to support the sector through the Make America Healthy Again initiative, which positions wellness as a national priority. However, tariff uncertainties could reduce investment confidence.
Digital subscriptions have declined as consumers return to physical facilities. Demand for recovery is strong, and AI adoption continues to enhance operations and personalisation. With growing demand, a shift toward preventative health and investor confidence, the US fitness market is well-positioned for sustained growth.
HFA predictions
The momentum of high-value, best-price models will continue globally. Community building will be critical for retention, AI integration will deepen, and wellness and longevity services will strengthen.
International expansion will target low-penetration regions such as India, Japan and Saudi Arabia.
Success will depend on balancing traditional fitness with expanded wellness services and thoughtfully integrating technology while maintaining human connection.
More: www.HCMmag.com/HFAglobal25
Huge opportunities exist in emerging markets, while Millennials and Gen Z are driving growth across the whole industry, says the HFA Global Report
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