There is good news for fitness companies coming in 2025 according to DelMorgan and Co., the California-based Investment Banking professionals who have worked on over $300 billion in successful transactions in over 80 countries.
Now DelMorgan and Co. anticipates strong growth and increased investment opportunities in the fitness sector, driven by evolving consumer preferences and emerging trends, setting the stage for a dynamic 2025.
Indeed, the fitness market continues to expand as demand for health and wellness grows. With an increasing focus on health and fitness in the post-pandemic world, consumers are prioritizing wellness as a key lifestyle choice. The evolving fitness landscape presents ample investment opportunities, driven by both in-person services and the continued rise of digital wellness solutions. DelMorgan and Co’s prediction highlights key trends shaping the fitness market in 2025, including the impact of the “Make America Healthy Again” (MHA) initiative and the ongoing digital fitness boom.
Fitness Market Outlook: Demand for Health and Wellness is Stronger Than Ever
As Fitness continues to become a core part of American culture, more consumers are committed to improving their health. Several factors are driving this surge in demand, including growing awareness of the long-term benefits of physical health, a stronger emphasis on mental wellness and the continued rise of fitness technologies. These trends have led to increased consumer interest in both gym memberships and digital wellness platforms. As employees return to in-person office environments following work-from-home (WFH) policies being rescinded, gyms and fitness studios are seeing a surge in memberships, particularly in urban areas.
This is also a prime time for innovation in the fitness sector, with new opportunities emerging for both digital and brick-and-mortar services. Whether through technology-driven services, on-demand workouts or new fitness studio formats, the fitness market is experiencing a revitalization that presents exciting opportunities for investors.
Macro Drivers of Fitness Market Growth
Several macroeconomic factors are fueling the growth of the fitness industry. The rollback of WFH policies and the return of employees to offices is driving a rise in local fitness memberships. As consumers once again prioritize in-person workouts, gyms and fitness providers are seeing an uptick in foot traffic, particularly in markets where remote work has decreased.
Moreover, the increasing focus on public health is shaping the fitness industry. The “Make America Healthy Again” (MHA) initiative, which advocates for improved access to fitness facilities, healthier food options and government-funded wellness programs, is gaining traction. This comprehensive push toward health and wellness aligns with the growing consumer shift and is attracting investors looking to capitalize on policy-driven opportunities in the fitness landscape.
The Digital Fitness Boom: A Permanent Shift
While in-person fitness is making a resurgence, digital fitness solutions remain a key component of the market. The pandemic accelerated the adoption of virtual fitness services, and many experts believe this trend will persist long-term. Consumers now expect on-demand fitness services, such as virtual workouts, wellness apps and remote consultations. The convenience and accessibility of digital fitness platforms make them an integral part of the overall fitness ecosystem.
Furthermore, AI-powered fitness platforms, wearables and personalized nutrition plans are revolutionizing the industry. These technologies offer businesses the ability to scale quickly and efficiently while delivering a highly personalized experience for users. Digital fitness companies that incorporate social features, gamification and real-time tracking are seeing a boost in user engagement, making them attractive targets for strategic acquisitions.
Investment Opportunities: Strong Capital Flow Ahead
As the fitness market gains momentum, private equity and venture capital firms have ample opportunities to invest in growth-stage companies. We expect significant activity in the M&A space, particularly among companies that combine digital platforms with traditional fitness services. Whether through fitness app developers, platform-based companies or gym chains, the potential for returns in this sector is robust.
Favorable macroeconomic conditions, including relatively low interest rates, provide an ideal environment for investment in fitness and wellness companies. The continued rise in health-conscious consumers, along with shifts in workplace dynamics, ensures that demand for fitness services will remain strong. These factors combine to create a dynamic market that is ripe for investment.
Spotlight: Mighty Pilates
This ongoing trend can be seen in the case study of Mighty Pilates, a leading California-based Pilates chain capitalizing on the expanding fitness market. Recently, DelMorgan & Co. successfully represented Mighty Pilates in its sale, bringing in an acquirer that was keen to professionalize and grow the business into new cities and geographies. As consumers continue to prioritize health and fitness, Mighty Pilates and its new ownership stand as a prime example of the opportunities emerging within the fitness sector.
