2024 Mid-Year Recap: Key Industry Insights and Trends
As we approach the end of Q2, it’s a fitting moment to reflect on the first half of 2024 and examine key trends and developments in the industry. Here’s a look at what has shaped the year so far: M&A and Consolidation Mergers and acquisitions (M&A) and consolidation have emerged as dominant themes this year. This trend reflects a broader shift towards streamlining operations and combining resources to enhance competitive positioning.
Challenges for At-Home Fitness At-home fitness, particularly connected fitness, continues to face headwinds. Despite initial enthusiasm, the market is still grappling with challenges that impact growth and engagement.
Impact of GLP-1 Medications GLP-1 medications are making a notable impact on the health and fitness industry, arguably surpassing even the influence of artificial intelligence (AI). This development was not widely anticipated at the start of the year.
Member Attraction Struggles The industry continues to struggle with attracting new members. We are still seeing a high level of turnover, with many individuals circulating among a limited number of brands and offerings.
Gyms and Studios as Social Hubs With remote work becoming a permanent fixture for many, gyms and studios are increasingly serving as the new "third place," shifting the role of socialization and community away from traditional coffee shops and offices. As we navigate the rest of the year with some uncertainty, there is still considerable positive momentum in the industry. Innovation is on the rise, consolidation is progressing, and valuations are adjusting to more realistic levels (with AI remaining an exception).
We’d love to hear about your experiences and insights from the first half of 2024. Contact us to discuss how your year has been and what lies ahead.