I should have known the day would come when I would get a chance to incorporate a healthy squat regimen and aesthetics into market analysis.
And it is time.
It honestly brings me joy to see consumers lifting heavy things again. It’s good for us, right?
We know the fitness industry was hit hard by the pandemic.
At a time when you would have thought staying healthy and active may have been a priority, gyms in most countries worldwide were forced to close as countries went into lockdown.
Before that, revenue of the fitness, health, and gym club industry in the United States had been steadily climbing for a number of years, hitting a peak of $37.46 billion in 2019.
Thankfully, consumers are getting back in the gym and out of their houses.
Just look at these trends!
These trends serve as major tailwinds for gyms…and especially Planet Fitness.
Here’s why we’ve got a close eye on the judgement-free zone.
The Case for Planet Fitness
First: ease of adoption.
After a year (or 2) off, many consumers may be feeling self-conscious.
According to a study from fitness technology company Egym, the motivation for going to the gym has changed post-Covid, with more people focused on health than aesthetics.
This potentially creates a new wave of fitness lovers and gym-goers who may feel more comfortable with Planet Fitness’ “Judgement Free Zone” policy.
In addition, the barrier to entry is low.
The company’s monthly membership costs $10.
PLNT ended 2021 with 15.2 million members, a 1.7 million-member increase since the end of 2020, and above the 14.4 million members reported at the end of 2019 (pre-pandemic).
And that number is rising.
Consumer mentions of signing up for a Planet Fitness membership have risen by +14% YoY, after a nice New Year resolution boost.
To see mentions continue to rise through march is quite frankly unheard of.
Second: Planet Fitness membership provides high value at a low cost.
Overall, New Gym Membership Mentions are trending +33% QoQ and +7% YoY… (which, based on the previous chart, means Planet Fitness is bucking the industry average).
And with inflation at 40-year highs, Planet Fitness’ low-cost option makes it a fantastic choice for those who are looking to reduce their spending or new gym-goers who don’t want to splash out.
Even so, 62.5% of members have upgraded to its Black Card, the $22.99 monthly membership option that lets customers access any Planet Fitness location and other perks.
Third: Planet Fitness is successfully engaging the youths.
Planet Fitness revealed Generation Z — people born between 1997 and 2012 — was the fastest-growing group that took out memberships in 2021…
A trend that has continued into 2022.
The company mentioned that the Generation-Z demographic “continue to join, quite a bit above pre-Covid levels.”
This is a positive sign for long-term recurring revenue.
But it’s more than just Gen-Z joining the gym.
If we look specifically at Consumer Purchase Intent Mentions or, in other words, Consumer Demand, we can see there was a clear trend upwards before the pandemic…
And, even though LikeFolio data is yet to show demand back at previous levels, they are on course to close Q1 significantly above the previous few quarters, +53% QoQ and +23% YoY.
This indicates growth...