By Erin Phelan
Fitness Industry Council of Canada
The fitness industry has always recognized Gen Z as an opportunity. What’s changed is not the size of that opportunity, but the clarity around the nuances that turn early engagement into long-term value.
Gen Z is entering adulthood with growing spending power and a clear willingness to invest in experiences that support mental health, identity, and belonging. Research shows Gen Z’s spending power is projected to reach $12 trillion globally by 2030, and that their spending is growing faster than previous generations at the same age — positioning them as one of the most financially influential consumer cohorts of the next decade.
For fitness operators, this matters because when you get this right, Gen Z doesn’t churn.
They stay. They spend. And they grow with you.
Not because they’re locked into contracts or driven by hype — but because they’ve chosen a place that fits into their lives.
Gen Z isn’t dabbling in fitness.
They’re seeking places to belong.
What Gen Z Is Responding To — and Why It Works
This generation doesn’t separate physical health from mental health. Fitness is not a vanity pursuit for Gen Z; it’s a stabilizing force. It’s about routine, emotional regulation, social connection, and identity.
That’s why engagement is strongest in environments that offer more than equipment access or a single modality. Growth is happening in spaces that reduce friction, simplify decision-making, and support multiple needs at once.
This is where the idea of third spaces becomes critical. Beyond home and work, Gen Z is actively choosing environments that feel human, safe, and socially connective. Fitness facilities that function as third spaces — places people want to return to even when life gets busy — are positioned for long-term retention.
The takeaway for operators is clear: motivation alone doesn’t drive consistency.
Systems do.
Why Belonging Drives Retention
Decades of behavioural research show that belonging — not motivation — is one of the strongest predictors of long-term adherence. Humans are wired to seek meaningful social connection, and behaviours anchored to a sense of belonging are far more likely to persist over time. This is especially relevant for Gen Z, a generation navigating higher levels of social fragmentation and anxiety, and actively seeking environments where they feel seen, connected, and welcomed back.
Research on the human need to belong supports this, demonstrating that consistent participation increases when people feel socially anchored to a place or community — even when motivation fluctuates.
In fitness environments, this means community cannot be assumed. It must be designed.
Belonging shows up through familiar faces, consistent programming, shared rituals, and environments that encourage interaction rather than isolation. When members feel noticed — by coaches, peers, or simply by the rhythm of a place — they are far more likely to return after a missed week or a disrupted routine.
This is one of the key reasons Gen Z retention behaves differently when environments support belonging rather than pressure
From Transactions to Ecosystems
One of the most important shifts underway in the fitness industry is the move away from siloed offerings toward integrated ecosystems — a trend that is proving relevant across demographics, not just for Gen Z. As lives become more complex and time-pressured at every age, members are gravitating toward environments that support multiple needs within a single, coherent experience.
Ecosystems reduce decision fatigue. They create flexibility. They give members more reasons to show up — for movement, recovery, connection, or simply routine — without forcing an all-or-nothing mindset. For Gen Z in particular, this flexibility aligns with how they already think about health and wellbeing, but the benefits extend well beyond one generation.
This reframes spending not as upsell, but as a natural outcome of relevance.
One Canadian operator that reflects these dynamics in practice is Sweat and Tonic.
As President and CEO Luke Doran explains:
“We’re laser-focused on our mission to bring the best of fitness and wellness under one roof.”
That focus on cohesion — rather than isolated offerings — mirrors what research shows Gen Z responds to most.
“In short, our culture to relentlessly deliver our mission has created an ecosystem of synergistic products which support sweat, recovery and connection which speak to our core demographic to drive loyalty.”
Friction Is the Silent Churn Driver
Another nuance Gen Z responds strongly to is ease — not as a luxury, but as a signal of trust.
Consumer behaviour research consistently shows that friction — not lack of motivation — is one of the leading drivers of abandonment. Complex pricing, rigid contracts, and psychological barriers to entry erode confidence, even among highly motivated users. When the path feels confusing or punitive, people disengage quietly.
In contrast, low-friction systems build confidence and long-term engagement. Transparent pricing, flexible access, and intuitive experiences reduce dropout and increase the likelihood that members return after life inevitably intervenes.
This is especially relevant for Gen Z, a generation that values autonomy, transparency, and respect. Ease doesn’t mean lowering standards — it means removing unnecessary obstacles that get in the way of consistency.
That philosophy extends beyond technology and into how experiences are designed overall.
“Remove friction from the booking and buying journey, even when it might appear counter-intuitive to short-term business goals,” says Doran.
At its most effective, friction reduction isn’t just operational — it’s psychological.
“We reduce psychological hurdles to converting to membership in a number of ways, with no minimum commitment, truly unlimited class attendance and guaranteeing no price increases.”
For Gen Z, ease isn’t about convenience alone.
It’s about respect.
What This Means for Operators
You don’t need to replicate a premium urban model to apply these insights.
But you do need to design intentionally.
- Build systems that support consistency, not perfection
- Reduce friction wherever possible
- Treat community as a deliberate operational choice
- Offer flexibility without sacrificing clarity
- Create environments people want to return to — even after a break
The opportunity with Gen Z has always been there. What’s new is the clarity around what actually drives long-term loyalty.
When fitness businesses get this right, Gen Z doesn’t churn.
They stay. They spend. And they grow with you.
Because they’re not looking for a gym.
They’re looking for a place to belong.
Fitness Industry Council of Canada (FIC) is the not-for profit trade association that represents the voice of fitness facility operators across Canada. Representing more than 6,000 facilities with more than six-million members nationwide, FIC pursues a legislative agenda in the hope of bettering the fitness industry for both consumers and operators. FIC aims to work with both industry and government to improve the health and physical activity levels of Canadians.
