With the recent overturn of the federal mask mandate, each day we inch closer to a pre-pandemic world. However, in many arenas the best we can hope for is comfort with the “new normal” – remote work and education, online shopping and home delivery services, higher standards for cleanliness and personal protection.
The fitness industry has been similarly impacted, and exercise habits have changed drastically since 2019. The majority of fitness centers offer virtual options, up from 25% pre-pandemic. 22% of gyms that had been open pre-pandemic have permanently closed as of August 2021 – which has contributed to a $29.2B overall revenue loss across the entire fitness industry between March 2020 and June 2021.
It is worth considering how the pandemic has impacted the consumer as well. Intriguingly, a 2021 IHRSA study highlights mental wellbeing as the second most important motivator for exercise, behind “being active” as the most important motivator and trailed by “weight loss” as the third most important motivator.
Numerous studies have documented the impact of the pandemic on mental health. The World Health Organization (WHO) reports a 25% increase in prevalence of anxiety and depression worldwide due to COVID-19. It’s unfortunate that mental health treatment remains stigmatized and underfunded – not to mention disrupted by the pandemic – when it is more important now than ever. One bright light may provide some hope, though: independent studies have shown that regular exercise may play a crucial role in maintaining mental health.
The implications of this wellbeing-focused mindset are tremendous. Where an exerciser motivated by weight loss might focus on fat-burning exercises and personal training to maximize efforts, another motivated by mental well-being might prioritize the environment in which they exercise. In the trade-off of whether or not to exercise, the mental well-being-focused exerciser asks questions such as: What amenities does the gym have? Is the staff friendly? Can I join my friends at the same facility? Indeed, fitness clubs – where patrons can socialize – are seeing a rise in visits to near pre-pandemic levels, while home fitness trends such as Peloton – where riders listen but don’t talk or socialize – are seeing losses.
At Maxim Partners, we try to be mindful of consumers’ ever-changing needs and therefore prioritize fitness opportunities that have strong technology components in order to engage customers both in the studio or gym as well as remotely. Similarly, customer safety has become critical for us, and we back platforms that promote safe operations to keep customers healthy.
May 17, 2022