US Wellness Industry Outlook 2023 Reveals Surprising Insights on Physical Activity
Krissy Vann | Host, All Things Fitness and Wellness
In the wake of the COVID-19 pandemic, the importance of physical activity in maintaining overall health and well-being has taken center stage. According to the recently released US Wellness Industry Outlook 2023 report by Redwood Advisors, while the benefits of exercise are well established, a staggering 75% of Americans did not meet the recommended threshold for physical activity in 2020. This revelation underscores the untapped potential in the wellness industry.
Despite this concerning statistic, there is a silver lining. The report highlights that in the decades leading up to the pandemic, Americans displayed a growing awareness of the need for physical activity. Between 2000 and 2019, the number of US gym and health club memberships more than doubled, even as the overall population grew by less than 20%. This growth trend suggests that as the benefits of exercise continue to be validated and expanded, the physical activity segment may see accelerated growth.
One striking finding from the report is that exercise, even at relatively low intensities, was found to be more effective in treating depression than many common pharmaceutical prescriptions. This has led the study's authors to advocate for health authorities to consider exercise as a prescription for depression.
The report also sheds light on the intersection of healthcare and fitness. Insurers like UnitedHealthcare are now offering reimbursements for customers' gym memberships and classes, marking a significant step towards integrating healthcare and physical activity. This trend is not limited to private insurers; tax-advantaged healthcare savings accounts can now be used for doctor-prescribed exercise, and 98% of Medicare Advantage plans allow older adults to participate in fitness programs like SilverSneakers.
The pandemic had a significant impact on the gym and health club segment, with roughly a quarter of establishments going out of business. However, as pandemic restrictions eased, there was a surge in demand, with monthly gym visits in 2022 up by approximately 13% compared to pre-pandemic levels in 2019. Established chains like Planet Fitness and Life Time have managed to regain profitability in recent quarters.
One of the unexpected consequences of the pandemic was the availability of real estate once occupied by struggling retail businesses. Landlords are now actively seeking gym tenants to fill these vacant spaces, potentially revitalizing the fitness industry.
The rise of boutique gyms has been another notable trend. Even before the pandemic, boutique gym memberships grew by a staggering 121% between 2013 and 2017, far outpacing traditional gyms. This trend, driven by millennials and Gen Z urbanites seeking community and specialized coaching, continues to gain momentum. Boutique studios are not only thriving but are also able to charge premium prices for their services.
However, the report also highlights challenges within the fitness industry. Middle-tier gyms, which traditionally charged membership fees between low-cost and luxury gyms, have struggled to distinguish themselves and justify their price points. As a result, they are facing tough competition from both value gyms and luxury fitness establishments.
Contrary to early pandemic predictions, at-home fitness equipment has not replaced the gym experience. Gyms are offering a social and identity value that many consumers find lacking in remote workouts. Companies like Peloton, which experienced a surge in popularity during the pandemic, have faced challenges as in-person fitness options have rebounded. The social aspect of gym attendance, including the sense of camaraderie and accountability, is something that remote workouts often lack.
In conclusion, the US Wellness Industry Outlook 2023 report by Redwood Advisors paints a complex picture of the fitness landscape in the United States. While challenges remain, there is significant potential for growth, especially as healthcare and fitness become more integrated. The report highlights the resilience of the fitness industry and the enduring appeal of in-person fitness experiences, even in the age of at-home fitness equipment and technology.
Sources:
CNBC
Statista
Census
Washington Post
MyUHC
Optum
Medicare Advantage
Club Industry
NYTimes
Fitt Insider
Fast Company
Les Mills
Degruyter
Taylor & Francis Online
Pew Research
McKinsey
Business Insider
The Verge
Engadget
Elevate Your Expertise: Tune in to Our YouTube Channel for Exclusive Podcasts with fitness and wellness Industry Titans and Game-Changers
