By Majella Mark
- The gym, health and fitness club industry reached $33.25B in 2021
- Owning a gym can be very lucrative for entrepreneurs due to the nearly 48% of African-American adults who are clinically obese
The most popular resolution is getting fit, but maybe it should be growing your wealth. When it comes to the January workout warriors they are typically short lived, with 14% of them quitting by February, and 80% quitting within the first five months. However, millennials will spend over $100,000 in fitness related purchases including gym membership in their lifetime. Since $1.8 billion are spent on unused gym memberships annually, you can have a gym with little foot traffic and still make money.
Why This Matters: By 2030 half of the adult population, nearly 115 million in the U.S. will be obese, so the need to get and stay physically fit has become urgent. Especially when you consider that among African-American adults, nearly 48% are clinically obese, according to the American Psychological Association. So opening a gym by franchising or taking the boutique route can be lucrative and hopefully contribute a solution to the health epidemic in minority communities. The minimum cost of opening up a franchise gym is $730,000, but if you were to open up your own boutique gym, it can cost as little as $65,000.
Millennials will spend over $100,000 in fitness related purchases including gym membership in their lifetime
In 2020, the market size of the gym, health and fitness club industry in the United States was estimated at over $32 billion. The sector was forecast to reach $33.25 billion in 2021. There is an increasing demand to stay physically active with the support of a structured facility. We see this due to the nearly 40,000 fitness facilities already established across the country. Brazil comes in second to the U.S. with roughly 30,000 fitness facilities. At least 20% of the U.S. population has a gym membership with an average membership monthly fee of $58 or $696 a year.
Situational Awareness: There are many black owned health clubs and gym facilities that have made a name for themselves such as Gymnetics Fitness, Trap Fitness and Spiked Spin. So while you are trying to stick to your health kick resolution for the year, maybe you can start a business helping others do the same. This is a revenue stream that could do some good for the well being of everyone. Whatever reason someone goes to the gym is not the concern here, but that reason making a monthly payment into your bank account is an opportunity you shouldn’t sleep on.
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