M&A Report: Why Canada's Fitness Industry is Your Next Big Investment 💪
Introduction
Ah, January—the season of fresh starts, ambitious goals, and the annual spike in gym memberships. For a few glorious weeks, fitness centres are packed, kale sales soar, and everyone suddenly becomes a morning person. If this all sounds familiar, it’s because we’ve been here before. But just like those well-meaning resolutions, some topics deserve a second look—especially when the opportunities keep growing.
This time, we’re diving back into Canada’s fitness centre industry, a sector that continues to bulk up with innovation and demand. From high-end boutique studios to hybrid digital memberships, there’s more to this market than spin bikes and protein shakes. Whether you’re considering investing in a gym or just curious about what’s driving the gains, let’s break it down. 💪
Want to gain early access to free resources? 👀
Sign-up for our newsletter and gain free access to new deals, upcoming livestreams, and other free resources.
Industry Breakdown
Canada's Fitness Landscape: Flexing for the Future 🏋️♀️
The fitness industry in Canada is flexing for growth, with projections showing a 171% increase by 2028. This isn’t just about treadmills and protein shakes—it's the rise of the digital fitness boom, growing at a jaw-dropping 33.1% annually. Meanwhile, traditional gyms are still holding their ground, growing at a steady 7.21% annually as Canadians balance virtual workouts with in-person experiences.
But it hasn’t been all smooth sailing. In 2023, the growth rate for gyms and health clubs dipped by 2.3%, highlighting how the industry can feel the pinch of economic fluctuations and shifting consumer habits. That said, the numbers still show promise: in 2019, the average Canadian gym had 974 members, each contributing about $468 annually to revenue. That’s nearly half a million dollars per location, proving that well-managed fitness centers can be serious moneymakers.
Whether it’s a boutique studio catering to yoga lovers or a fully equipped gym keeping cardio enthusiasts on track, the financial viability of fitness centers is as solid as a deadlift PR—if you play your cards right.
Industry Trends
The fitness industry is ever-evolving, adapting to new technologies, consumer preferences, and societal shifts. Here are some key trends shaping Canada's fitness landscape:
1. Digital Fitness Revolution
The pandemic-induced digital transformation has left a lasting impact on the fitness industry. Virtual workouts, fitness apps, and online coaching have become integral components of fitness routines, catering to individuals seeking flexibility and convenience.
2. Holistic Health Approaches
There's a growing emphasis on holistic health, encompassing not just physical fitness but also mental well-being, active recovery, and social connection. Fitness centers are increasingly offering programs that address these aspects, reflecting a broader understanding of health.
3. Inclusivity and Diversity
The industry is striving to create inclusive environments that cater to diverse populations, ensuring accessibility and representation for all individuals, regardless of age, ability, or background.
4. Technological Integration
Advancements in technology are enhancing the fitness experience, from wearable fitness trackers providing real-time data to sophisticated gym equipment offering personalized workouts. This integration is elevating the effectiveness and appeal of fitness programs.
The Finances
Investing in Canada's fitness industry presents a compelling opportunity, given the projected growth and evolving consumer preferences. Here are some financial considerations for potential investors:
Market Size and Growth: The Canadian gym and fitness industry has experienced a decline at a compound annual growth rate (CAGR) of 3.8% over the last five years, with projected 2024 revenue reaching $4.5 billion.
Revenue per Member: In 2019, there were on average, 973.59 members per gym in Canada, with each person bringing in about $467.87 in annual revenue.
Digital Fitness Growth: The online/digital fitness sector is expected to grow at an estimated rate of 33.1% per year, indicating a lucrative avenue for investment.
Traditional Gym Growth: While slower than digital fitness, traditional gyms are still expected to grow at an annual rate of 7.21%, presenting steady opportunities for investors.
Buy or Bust?
Thinking about investing in the fitness industry? Let’s cut to the chase—it’s a buy, and here’s why. The Canadian fitness sector is lifting more than just dumbbells; it’s lifting revenue potential. With the industry projected to grow by 171% by 2028, and digital fitness platforms flexing their tech-driven muscles, there’s never been a better time to jump in.
But let’s not sugarcoat it. The gym game can be tough—economic dips and changing workout trends can hit your bottom line faster than a sprint on a Peloton. However, for those who can balance in-person facilities with digital offerings, or carve out a niche like boutique yoga or active aging programs, the opportunity is huge. And with the average gym pulling in nearly half a million dollars annually from memberships alone, there’s real money on the table.
The verdict? Buy, but choose wisely. Whether you’re eyeing a traditional fitness center or a hybrid digital model, the key is understanding your market and offering something your competition can’t. With the right strategy, you’ll be benching profits in no time.