Japan

Country Insights

A New Growth Phase as Structural Change Accelerates

By Takenori Furuya, Editor and Publisher, Fitness Business Japan

Industry Performance and Market Dynamics

The story of Japan’s fitness market in recent years is not simply one of “recovery.” While traditional full-service clubs face pressure from aging business models, high fixed costs, and declining profitability, new formats—with light capital requirements, sharply defined target positioning, and scalable franchise models—are gaining share. Some traditional full-service operators have moved to close or restructure unprofitable locations. At the same time, companies such as Curves and Fast Fitness Japan continue to exemplify structurally resilient operators, and new formats such as compact convenience gyms and specialized studios are expanding rapidly.

The clearest shift is the rise of small, highly targeted business models. As consumer behavior becomes more neighborhood-oriented and convenience-driven, formats that serve unmet demand within small trade areas are growing. chocoZAP, operated by RIZAP Group, is the emblematic example. Its rapid expansion—opening more than 1,000 directly operated locations in a single year—illustrates the strength of low-barrier, neighborhood-based fitness. Across the market as a whole, 24-hour gyms and group Pilates studios are growing fastest, with roughly 4,600 24-hour gyms and about 1,800 group Pilates studios now operating nationwide.

Consumer priorities have also changed. Japanese consumers once tended to choose fitness clubs based first on proximity to the nearest train station, then facility quality, and then price. Today that order has shifted: price, proximity to home, and cleanliness are now the most important selection factors. This reflects both economic pressures and broader lifestyle changes. Consumers are seeking services that are affordable, accessible, and easy to use frequently.

Personal training gyms grew substantially during the pandemic, but many operators in this segment are now downsizing or exiting the market amid rising customer-acquisition costs, talent constraints, and concerns over service quality and safety. At the same time, growing interest in women’s wellness, Pilates, recovery, mental health, metabolic health, and weight management is changing the nature of demand. Consumers are no longer seeking exercise alone; they want measurable health outcomes, convenience, safety, cleanliness, and community.

Policy, Advocacy, and Public Health

From a policy and public health perspective, three major developments are shaping the industry. The first is the full-scale implementation of Health Japan 21 (Third Term), the national health promotion initiative, together with the institutionalization of the government’s Health and Productivity Management (Kenko Keiei) program for companies. The national target of 100,000 companies engaged in Health and Productivity Management provides a stronger policy tailwind for fitness operators pursuing the corporate wellness and health-insurer markets. In parallel, discussions surrounding the 2026 revision of long-term care insurance fees are heightening interest in preventive care and medical fitness. This could create new pathways for older adults to use commercial fitness services as part of maintaining their health and preventing the need for nursing care.

The second policy trend is the strengthening of consumer protection regulation. As subscription-style services and recurring-billing membership contracts have become commonplace, discussion within the government of issues relating to contract continuation, cancellation, and transparency has increased. Fitness clubs, personal training gyms, and yoga studios have been cited in discussions of consumer complaints. For Japanese fitness operators, this is both a risk and an opportunity: inappropriate contract practices could invite tighter regulation, while strengthening industry standards could build trust and improve long-term retention.

Third, the industry is increasingly positioned as a potential partner in public health and preventive medicine, but it has yet to be fully integrated into Japan’s healthcare and social security systems. There are encouraging signs: At government-certified designated exercise therapy facilities, a portion of fitness-related expenses can, under certain conditions, be treated as tax-deductible medical expenses, and interest in medical fitness is rising. Even so, the industry must build a stronger evidence base, raise the qualifications and capabilities of instructors, and develop clearer models of collaboration with insurers, municipalities, employers, and healthcare providers.

Advocacy is also growing in importance. Representing the fitness industry, Takenori Furuya, editor and publisher of Fitness Business and Wellness Business, participated in the Sports Future Development Conference hosted by the Ministry of Economy, Trade and Industry (METI) and the Japan Sports Agency. His recommendations emphasized expanding preventive health behaviors; creating incentives comparable in concept to the US Personal Health Investment Today (PHIT) Act; opening public and private spaces to physical activity; supporting sports opportunities for children; improving school- and community-based sports models; and integrating sports, fitness, medical professionals, and public facilities more effectively.

Economy and External Environment

The broader macroeconomic environment is creating both opportunities and pressures. Persistent inflation and stagnant real wages are accelerating the polarization between value-oriented and price-driven services. Labor costs are rising, and competition to secure capable instructors and trainers is intensifying. These pressures weigh especially heavily on full-service clubs with pools, saunas, and large facilities, which carry ongoing energy, maintenance, and labor costs.

Outlook and Key Growth Drivers

For 2026 and beyond, the outlook for Japan’s fitness industry is cautiously optimistic. Over the medium to long term, the market has substantial room to grow. Japan’s fitness participation rate remains at around 10%, well below the levels of many developed Western markets. If participation rises toward 20%, the overall market could expand significantly. An aging population, pressure to contain healthcare and long-term care costs, Health and Productivity Management, digital health, and consumer demand for preventive wellness all support long-term growth.

At the same time, the shakeout within the industry will intensify. Operators with unclear positioning, weak marketing capabilities, heavy cost structures, or insufficient investment in talent development will struggle. Even fast-growing segments such as Pilates face risks of overexpansion, instructor shortages, and rising investment costs.

The companies that will succeed in Japan are those that sharpen their focus on target markets; connect fitness with healthcare, preventive care, and corporate wellness; and invest seriously in people, data, and service innovation. The industry’s future is bright, but growth will not be distributed evenly. Japan is entering an era in which the overall market expands even as the gap between winners and losers becomes sharper than ever before.

In Japan, it is not only fitness but also the value of sports that is being re-examined. Professor Shinya Kuno of the University of Tsukuba Graduate School, a member of the Human Resource Development Subcommittee of the Fourth Japan Growth Strategy Council hosted by the Ministry of Education, Culture, Sports, Science and Technology (held on April 9, 2026), estimates the economic impact of health improvement through sports at approximately ¥9.07 trillion (US$60.6 billion), and the impact on the healthcare economy at approximately ¥3.54 trillion (US$23.7 billion)—a combined total of roughly ¥12.61 trillion (US$84.3 billion). He notes that the value of sports in extending working lives and improving productivity is high, including its spillover effects, with particularly strong potential among older adults and women. Citing scientific evidence that sports participation enhances social capital and strengthens social connections, he argues that promoting sports policy is essential as a human-capital development strategy that contributes to national growth.