“From an investment standpoint, the fitness industry’s resilience is rooted in a fundamental consumer shift,” says Raphael Bihler, senior vice president at KSL Capital Partners. “What was once seen as a discretionary purchase has evolved into a core component of daily life.”

Driven by Well-Being

“We have been investing in relevant membership-based businesses for decades, and in recent years, we have really seen a mega-trend in the evolution of fitness and well-being from [being] discretionary to an essential component of many people’s daily life,” Bihler notes.

“Studies show that fitness has become one of the key items consumers are willing to spend on, even during periods of economic uncertainty.”

This shift has fueled a bifurcation of the market, with both value and premium segments showing unprecedented strength. While budget-friendly gyms offer an accessible entry point that is hard for consumers to abandon, the premium sector is thriving by providing a differentiated, hospitality-focused experience.

Strong Demand Across the Spectrum

“In the value segment, it is difficult to imagine an avid gymgoer giving up a £25 ($33.45) per month membership, even in a downturn,” Bihler says. “At the same time, demand has never been stronger in the premium segment. Our leading UK fitness brand, Third Space, today has waitlists for new members to join their clubs, which is a testament to the right product and positioning in combination with sustained demand since the pandemic.”