Pharma
Fitness industry in upheaval: Weight-loss medications put gym concepts to the test
The fitness industry is undergoing a radical transformation: With the increasing popularity of weight-loss medications and the rising demand for strength training, studios are faced with the challenge of rethinking their business models and adjusting their offerings.
With an expected annual revenue of around 50 billion US dollars, the so-called GLP-1 medications are already among the best-selling drug classes worldwide. Estimates suggest that the market could grow to 130 billion dollars by 2030. Pharmaceutical companies like Novo Nordisk and Eli Lilly benefit from this development, but for many other industries, including fitness studios, the prospects for success of these weight-loss medications present a significant challenge.
Just a decade ago, gyms were mostly equipped with treadmills, steppers, and ergometers. Classic strength machines and dumbbells were usually found on the edges of the training areas—used mainly by male strength athletes. However, the pandemic and the increasing spread of fitness apps have fundamentally changed fitness behavior. Customers are increasingly focusing on strength training and seeking individual support. The demand for free weights, kettlebells, and exercise mats has risen sharply, and many gyms have moved their cardio equipment to the periphery to make room for open training areas and personalized programs.
The demand for strength training spaces has increased enormously," said Colleen Keating, CEO of the publicly traded fitness chain Planet Fitness, in August. Peloton, known for its intense cardio equipment, is currently testing an app that specializes in strength training.
The trend towards less cardio training and more strength training is likely to be reinforced by the new weight-loss medications. Patients taking GLP-1 medications like Ozempic tend to experience nausea and stomach issues, which can make intense cardio workouts difficult. Nevertheless, the demand for fitness options remains: studies show that these medications can lead to a reduction in muscle mass in addition to fat. This often results in decreased physical stability and problems such as sagging skin – the so-called "Ozempic butt.
Strength training is increasingly recommended as a remedy to prevent muscle loss and maintain physical fitness. "It's no longer just about health and fitness, but about holistic well-being," explains Eleanor Scott, a partner in leisure strategy at PwC. "This means a more holistic approach to healthcare.
Many gyms, however, face a financial challenge: the cardio equipment traditionally tied up in long-term lease agreements is expensive and hard to dispose of, while acquiring new strength training equipment requires a significant investment. This leads to a slow adaptation process and uneven utilization of training areas – which increasingly causes frustration among customers.
Nevertheless, many fitness chains are experiencing strong growth. According to data provider Placer.ai, the membership numbers of Crunch Fitness and EoS Fitness in the USA increased by double digits compared to the previous year. Since the beginning of 2023, Planet Fitness has gained 2.7 million new members and improved its profit margins.
The growing importance of strength training could also help gyms win back older target groups who have been reluctant to visit fitness studios since the pandemic. Studies show that 80 percent of "baby boomers" are physically active, but only 42 percent of them are members of a gym. In comparison, 74 percent of active Generation Z and Millennials are members of a fitness club.