According to the IHRSA (International Health, Racquet & Sportsclub Association), the $30 billion health and fitness industry in the U.S. has been growing by at least 3 – 4% annually for the last ten years and shows no signs of slowing down anytime soon. If anything, it’s accelerating. Currently about 20% of American adults have a fitness club membership, a number that in my opinion could easily double in the next 10 – 15 years.
What is driving this historic boom?
It’s not just because new clubs are popping up everywhere. That’s true, but that dynamic is being fueled by a number of important – and potentially unexpected – factors. Here are the key elements at play that investors should be aware of if they are looking to invest in the fitness industry.
1. Health insurance costs. Healthy people cost much less to insure, and employers and insurers have finally