Brazil

Country Insights

Building a More Active Brazil

By Ailton Mendes, President, Brazilian Association of Health and Fitness Clubs (ACAD Brasil)

Industry Performance and Market Dynamics

Brazil continues to experience growth in the number of fitness facilities across a variety of business models. This expansion reflects the rise of the so-called "longevity economy," in which individuals over the age of 40 increasingly seek physical activity to maintain and improve both physical and mental health, ultimately enhancing their quality of life.

The industry has also embraced franchise models and specialized boutique studios focused on single-service offerings. More than 90% of Brazilian fitness businesses were founded by fitness professionals who have become entrepreneurs and are continuously seeking tools and knowledge to improve their management skills. Even so, the sector has demonstrated increasing levels of technical excellence, innovation, and professionalization.

One of the sector's greatest challenges remains affordability. While a low-price gym membership in the United States typically represents between 1% and 2% of the minimum wage, in Brazil that figure can reach as much as 10%. This remains a significant constraint on the industry's ability to broaden access and translate Brazil's strong fitness culture into higher participation.

Policy, Advocacy, and Public Health

One of the most important policy issues is the country's lengthy and complex tax reform process and its significant impact on productive sectors of the economy. In this regard, ACAD Brasil's leadership has demonstrated the strength and relevance of effective advocacy. Through continuous engagement with government authorities and members of the National Congress, as well as industry events and strategic stakeholder meetings, ACAD Brasil played a key role in securing a 30% reduction in the new tax rate applied to the fitness industry.

Despite having more than 10,000 kilometers of coastline and a climate that naturally encourages outdoor physical activity, Brazil still lacks meaningful public policies and incentives to promote active lifestyles. This often limits the democratization of access to exercise and sports participation.

In response, ACAD Brasil is leading Brasil Ativo (Active Brazil), a nationwide movement to combat physical inactivity. Its mission is to engage as many individuals, companies, and government institutions as possible in promoting active lifestyles and regular physical activity. According to data from the World Health Organization (WHO), Brazil ranks among the most physically inactive countries in the world, highlighting the urgency of this initiative.

The movement is built upon three core pillars: combating physical inactivity, positioning fitness facilities as health agents, and creating meaningful nationwide impact. In 2026, ACAD Brasil also adopted "Protect, Grow, and Connect" as the guiding purpose behind all of its initiatives. Through this commitment, the association continues to strengthen industry representation, support the development of fitness businesses, foster meaningful connections among people, and contribute to improving the health and well-being of the Brazilian population.

Economic and External Context

Brazil entered 2026 with some encouraging economic signals but continued fiscal uncertainty. The country's five-year credit default swap reached 116 basis points in May, its lowest level since 2020. Brazil recorded a trade surplus of US$3.2 billion. However, annual inflation remained close to 5%, interest rates were still exceptionally high, and domestic markets remained cautious.

The national elections have added to a highly polarized political environment, leading business owners and executives to adopt a more cautious approach. The FIFA World Cup also influences national calendars and economic activity, particularly in a country as passionate about football as Brazil.

Outlook and Key Drivers

The year 2026 represents a particularly important moment for the Brazilian fitness industry. All indicators point toward the definitive positioning of fitness facilities as health promoters, with a genuine commitment to improving people's lives. Continued facility growth, the longevity economy, franchise and boutique expansion, and increasing professionalization provide a strong foundation for the market's next phase.

At the same time, affordability, high interest rates, political uncertainty, and the absence of stronger public incentives may limit the pace at which the sector reaches new population groups. Progress will depend on the industry's ability to strengthen businesses and fitness professionals while building broader recognition of physical activity as a public health priority, an economic development strategy, and an investment in the future.

ACAD Brasil believes that when the industry grows stronger, Brazil transforms—and when Brazil moves, everything changes.