Growth Isn’t Enough: McKinsey Outlines What Fitness Companies Must Do Next
Krissy Vann | Host, All Things Fitness and Wellness
The fitness and wellness sector continues to grow at a steady clip, but a new report from McKinsey & Company suggests that momentum alone will not be enough for long-term success. In A Turning Point amid Tailwinds for Fitness and Wellness, McKinsey partners Eric Falardeau and Jeff Rudnicki argue that while demand is strong, the industry is undergoing significant structural change and companies that fail to respond may be left behind.
Consumer appetite for wellness is at an all-time high. The report notes that 84 percent of U.S. consumers now consider wellness a top or important priority in their daily life. Over half say they are prioritizing it more than they did one year ago. This heightened interest has attracted investor attention and opened the door to growth. But alongside that growth, a wave of consolidation is rapidly reshaping the market.
In the United States, the five largest gym operators now hold over 40 percent of memberships, compared to just 25 percent five years ago. The European market is experiencing a similar shift, with the top five fitness chains now accounting for over 10 percent of memberships and growing at more than double the market rate. The trend is not limited to fitness clubs. Similar consolidation is taking place in studios, aggregator platforms, equipment manufacturing, and software. The report describes this as a fundamental shift in industry structure, not a passing phase.
To stay competitive, McKinsey highlights three priorities. First, companies must refine and commit to a clear value proposition. Rather than trying to appeal to everyone, successful operators are focusing deeply on who they serve and what they offer, building brand loyalty through consistent delivery and a strong emotional connection.
Second, businesses must invest in capabilities that set them apart. This includes improving operational efficiency, using advanced tools for revenue management, enhancing digital engagement, leveraging data for community-building, and developing talent strategies that elevate coaching with thoughtful use of technology. These capabilities are becoming essential for navigating a more competitive market.
Third, mergers, acquisitions, and partnerships should be approached strategically. The report emphasizes the advantage of programmatic M&A, with frequent targeted deals that fill specific gaps in a company’s offering. Companies that acquire with purpose, rather than size alone, tend to outperform their peers.
The report also draws a parallel to the evolution of the coffee industry. As that category matured, major players like Starbucks scaled rapidly, but smaller specialty brands like Blue Bottle carved out loyal followings through clear positioning and focused experiences. McKinsey suggests a similar pattern is playing out in fitness and wellness, where both large-scale players and niche operators can succeed if they are strategic.
Ultimately, the report presents a call to action. The next phase of growth will not be won by those who sit back. It will belong to those who refine their value, strengthen their capabilities, and move intentionally in a rapidly changing environment.
The full McKinsey & Company report, A Turning Point amid Tailwinds for Fitness and Wellness, by Eric Falardeau and Jeff Rudnicki, is available at mckinsey.com.
