
Data indicates changing consumer behavior, pointing to an evolution in the fitness industry
The fitness industry, like many other industries driven by the on-demand mentality, has become more accessible. Today, fitness customers are flooded with options of in-gym or at-home workouts. COVID lockdowns drove trends toward at-home options, but with the economy reopening, customers are returning back to in-person facilities. Undoubtably, the pandemic has brought volatility in consumer behavior.
A lot of the leading gyms, in class studios, connected fitness brands, and digital subscription fitness services are investing heavily in acquiring new customers, retaining existing customers, and growing their market share in a shrinking economy .
Despite the uncertainty in the industry, many companies are making critical business decisions without consulting consumer data to inform their decisions. These brands lack insight into customers’ wallet, preferences, and where they spend their money.
COVID’s impact on In-Gym and At-Home Fitness trends
In the three years prior to COVID-19 (Q1 2020), the fitness industry was growing steadily, with in-gym taking over 92-98% of both spend and unique customers compared to at-home alternatives.
Comparatively, at-home spend has grown to 15% in Q1 2022, mostly driven by expansion in connected fitness spend . Interestingly, as the economy reopened and more gyms welcomed back customers in-person, the connected fitness spend did not forfeit its newly won share of dollars.
Although several companies moved quickly to capitalize on the trend, the undisputed winner was Peloton. Their subscribers and subscription dollars appeared to grow exponentially during the early years of the pandemic, challenging other industry players to keep pace.
The rise of Peloton, the demise of others
Many gyms and class-based studios are asking themselves, how is Peloton affecting my new customer acquisition? Are my gym goers and class attendees buying connected fitness products, and should I be concerned for an associated loss of business?
According to our data, the connected fitness companies are mostly winning new customers to the fitness world, and not necessarily taking customers away from in-gym or in-class spend.
Analyzing data by components of spend yields insights into consumer behavior.
About our data
M Science’s Corporate Fitness data helps strategy, analytics, and market intelligence teams in the Fitness industry track consumer spend across all sectors. Our clients employ this data for benchmarking, market research, product marketing, and positioning their offerings for success through data-driven decision making.
How M Science can help
M Science is a global data-driven research and analytics firm, with nearly 20 years of experience uncovering new insights for some of the world’s largest corporations and financial institutions. We revolutionize research by discovering new datasets and pioneering methodologies to provide actionable intelligence. Learn more at: mscience.com/corporate intelligence. M Science is a portfolio company of Leucadia Investments, a division of Jefferies Financial Group Inc. (NYSE: JEF).
Interested in talking to a member of our sales team for a demo of our solutions? Reach out to our team!
####
Important Disclosures
© 2022 M Science LLC. All rights reserved.
All material contained in this blog post is the property of M Science LLC (“M Science“) unless otherwise indicated. All trademarks, service marks, logos and trade names used in this blog are proprietary to M Science or other respective owners. All research notes, blogs, data and other information obtained from M Science are proprietary to M Science and may not be redistributed to or shared with any individual, company or entity without the express prior written consent of M Science. All such information obtained from M Science is the property of M Science unless otherwise indicated and no portion may be directly or indirectly copied, published, reproduced, modified, displayed, sold, transmitted, or redistributed in any medium without the express prior written consent of M Science. Specifically, and without limitation, such information may not be disclosed to members of any sell-side research team, within or outside of your organization. M Science monitors and takes seriously our responsibility to protect the assets and value of our products and services.
This blog is intended for informational purposes only. Under no circumstances is this blog to be considered as an offer to sell or solicitation of an offer to buy any securities of any company. M Science provides the information and data contained herein on an “as is,” “as available” basis, without representations or warranties of any kind whatsoever, expressed or implied. The information in this blog may be incomplete and may not contain all material information relating to the subject matter of the blog. M Science has no authority whatsoever to give any information or make any representation or warranty on behalf of the company or companies that are the subject of this blog, any of its shareholders or any other person in connection therewith and this blog has not been authorized or approved by said company or companies.
This blog is provided solely to clients or potential clients of M Science. The recipient assumes all risk and liability with regard to any use or application of the data included herein. The data provided herein is not intended to be used as the primary basis for investment decisions and nothing contained herein is, or is intended to be, predictive of the movement of the market prices of the securities of the company or companies discussed in the blog. Nothing in this blog is, or should be construed to be, designed to meet the particular investment needs of any investor. This blog is being furnished on a confidential basis and is provided for information and discussion purposes only and is not, and may not be relied on in any manner as, legal or tax advice. It is the responsibility of each recipient of this blog to satisfy itself that its receipt and use of this blog is in full compliance with the laws and regulations of the relevant jurisdiction(s) and, if in doubt about such compliance, to seek appropriate legal advice.
All proprietary analyses provided by M Science in this blog are derived from M Science’s analytic expertise, market knowledge, and use of the data it collects and licenses.
This blog reflects the results of our research as of the date of this blog. Our research results are subject to change at any time as new or additional data and information is received and analyzed. M Science undertakes no obligation to update this blog, or to provide supplemental information to any client receiving this blog, absent a specific arrangement to the contrary between M Science and individual clients. Specifically, M Science provides custom research blogs to certain of its clients which may be distributed on different frequency schedules from syndicated research blogs. Such custom blogs may provide different depths of analysis or a different specific focus and more frequent updates based on levels of service and fees selected by clients. Furthermore, these custom research blogs may reach conclusions that differ from this blog which could impact the price of a security.
Any opinions, forecasts or estimates in this blog may present a possible outcome on the basis of assumptions set out herein and represent only one possible outcome and are the independent view of the author(s) of this blog only. These opinions, forecasts or estimates are subject to risks, uncertainties and assumptions and there can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates.
This blog is not directed to, nor intended for distribution to or use by, any person or entity (1) that is not a client or potential client of M Science or (2) that is a citizen or resident or located in any locality, state, country, or other jurisdiction where such distribution, publication, availability, or use would be contrary to law or regulation or which would subject M Science or its affiliates to any registration or licensing requirement within such jurisdiction.