The fitness industry is bulking up. With consumers of all ages increasingly focusing on incorporating some physical activity into their daily routine, health clubs and boutique fitness centres are growing in number, as the industry continues to witness significant growth…
The fitness industry is bulking up.
With consumers of all ages increasingly focusing on incorporating some physical activity into their daily routine, health clubs and boutique fitness centres are growing in number, as the industry continues to witness significant growth in membership, year on year. Last year, over 200,000 health clubs, worldwide, recorded an overall membership of 162 million, and generated revenue exceeding $83.1 billion, according to IHRSA’s global report on the health club industry.
Given the growth within the different areas of the fitness industry, private equity firms have been aggressively investing in boutique fitness chains, alongside traditional gyms and health clubs. Firms such as L Catterton, North Castle Partners and Roark Capital Group have all been making investments in fitness, over the past few years.
The American College of Sports Medicine conducted a global survey to identify the health and fitness trends that would dominate 2017. Published in ACSM’s Health and Fitness Journal, the report surveyed over 1,800 fitness professionals, including personal trainers, wellness coaches, physiologists, and academicians. The findings highlighted that high-intensity interval training such as Pilates and CrossFit, and group training activities like indoor cycling and yoga are gaining popularity alongside the usual gym routine. Pilates, SoulCycle, PureBarre, and Orangetheory are all fitness trends that will flourish in 2017, the survey revealed.
This year, TPG Growth acquired a stake in Club Pilates, which is one of the largest chains of Pilates studios in the United States, while Bain Capital Double Impact made an investment in the Planet Fitness franchise. TPG had earlier acquired a stake in Life Time Fitness, in 2015. In the same year, L Catterton bought a majority stake in PureBarre, the largest barre fitness chain in the United States, and Boston-based Great Hill Partners acquired YogaWorks from Highland Capital. In 2016, Roark Capital group invested in fitness franchise, Orangetheory.
According to investment firm, Piper Jaffray & Co, boutique fitness chains have added new studios at a rate of 450% per year between 2010 and 2014. Successful boutique fitness studios are receiving significant growth capital from financial partners, which is accelerating expansion plans, making boutique fitness chains one of the fastest-growing segments of the U.S. health-club industry.
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