New Report Highlights Where Fitness Is Losing Revenue
Krissy Vann | Host, All Things Fitness and Wellness
A new report is putting structure around a challenge operators have been feeling for years.
The Fitness Membership Divide, released by Fitness Industry Technology Council and developed by Datagonist, examines how Americans engage with fitness and wellness and where that engagement breaks down commercially.
The findings point to a clear disconnect. Participation in fitness and wellness is widespread, but paid membership is not. The report outlines a $128.4 billion direct spend opportunity across the ecosystem, with the majority of that spend concentrated among active members.
Current members remain the financial engine of the industry, accounting for $95.6 billion in annual spend. They are the most engaged across fitness, wellness, recovery, and digital categories, with nearly two thirds using digital fitness technology weekly and close to 80 percent participating in wellness and recovery offerings. Their behavior reflects a hybrid model that blends in person, at home, and outdoor activity, raising expectations around variety and personalization.
At the same time, this group is not immune to churn. Younger and more transient, current members require ongoing engagement strategies that extend beyond access to equipment or classes. Programming, technology integration, and ecosystem depth are increasingly tied to retention.
Where the report becomes more instructive for operators is in the gap between participation and membership among non members.
Former members represent a $27 billion reactivation opportunity, with tens of millions of Americans indicating they are likely to rejoin a fitness facility. This is not a disengaged group. Many continue to exercise regularly, often outside the gym, with meaningful adoption of digital tools and ongoing use of wellness services.
Their exit from memberships is largely tied to value perception. Cost, access to free alternatives, and limited usage continue to drive cancellations. For operators, this reframes the challenge. The issue is not awareness or motivation, but whether the product justifies ongoing spend. Flexible pricing, hybrid access, and clearer onboarding and engagement models are likely to play a larger role in winning this group back.
Never members present a different type of opportunity. While the long term potential is significant, this segment is less responsive to traditional membership models. Skewing older and lower income, many face barriers that extend beyond cost, including lack of enjoyment, uncertainty about where to start, and limited exposure to fitness environments.
Engagement for this group tends to happen outside of facilities, with activity concentrated at home or outdoors. Participation in structured fitness, wellness services, and digital tools remains comparatively low. As a result, converting this segment will likely require approaches tied to healthcare, community programming, and education rather than immediate membership acquisition.
Across all segments, one pattern holds. Fitness activity is not the issue. Monetization is.
Spending is heavily concentrated among current members, while former and never members gravitate toward free options, pay per use services, or digital tools that do not require long term commitment. This creates a widening gap between how consumers engage with fitness and how operators capture revenue.
For the industry, the implication is a shift in focus. Growth is no longer defined solely by new member acquisition. It depends on how effectively operators expand their role within a broader fitness and wellness ecosystem.
Current members require deeper engagement to maintain retention. Former members offer a near term path to growth if value and flexibility improve. Never members require a longer term strategy centered on accessibility and trust.
The demand for fitness is not in question. The challenge is converting that demand into sustainable revenue.
The full report can be accessed here: http://www.fittechcouncil.org/fitness-membership-divide
