By Erin Phelan
Fitness Industry Council of Canada
During canfitpro 2024, Fitness Industry Council of Canada held a State of the Industry session with a panel of leading Canadian and global fitness and business leaders. By popular demand, this State of the Industry will be held again live, virtually, on Friday, September 20th at 1:30 PM EST.
The panel includes:
Dave Hardy, President Franwest (Orange Theory / Anytime Fitness)
Sal Pelegrino, Executive Director Fitness Industry Suppliers Association
Maureen Hagan, Chief Operating Officer, canfitpro
James Muscart, Regional Manager Canada, Hyrox
Sara Gilbert, CEO LIVE WELL Exercise Clinics, President FIC
Paula Comfort, Founder of Hire Ground Talent
The Canadian fitness industry has undergone epic transformations and challenges in the last few years. But 2024 has landed much differently for fitness businesses around the world – to date, this has been a year of recovery and astonishing growth, with an industry fueled by innovation. The State of the Industry panel explores the trends shaping our current market, its future, and the challenges that lie ahead.
This is a snippet of what to expect on September 20th, 2024 at 1:30 PM EST. Register today.
A Strong Comeback: The Post-Pandemic Fitness Landscape
The Canadian fitness industry is experiencing a robust resurgence. The Fitness Industry Council of Canada (FIC) now represents more fitness facilities than ever before, reflecting the industry’s growth and the increasing demand in the Canadian marketplace for physical activity. The pandemic highlighted the importance of physical and mental health driving more Canadians to prioritize fitness as a means to improve their overall well-being.
One of the most significant shifts in the industry is the collective effort to combat sedentary lifestyles. Although competition remains fierce among fitness facilities, the industry is also united with a common purpose: to promote physical activity and fight against the sedentary habits that have become prevalent in modern society. This unified approach provides an opportunity for all fitness businesses to attract and appeal to new members – whether they are Baby Boomers who understand the role of exercise on longevity, or younger generations inspired by social media.
State of The Industry: FIC’s Lobbying and Advocacy
The FIC has been actively involved in lobbying efforts to secure better support and recognition for the fitness industry. Meetings with federal ministries, including the Ministry of Sport, Finance, and Health, have been crucial in positioning the fitness industry as a key player in the national health agenda. Collaborations with organizations like ParticipAction and the Canadian Society of Exercise Physiology (CSEP) further strengthen the industry’s influence and ability to promote physical activity on a larger scale.
These efforts are particularly important as the industry continues to advocate for the role of fitness in preventing non-communicable diseases, reducing healthcare costs, and improving mental health. The statistics are compelling: only 49% of adults and 39% of children in Canada meet the recommended physical activity guidelines. By increasing physical activity levels by just 15%, Canada could save nearly $1 billion annually in healthcare costs related to chronic diseases. FIC continues to lobby that the government revise line 33099 of the personal tax forms to allow gym memberships to be included as a medical expense.
Trends Shaping the Future of Fitness in Canada
As the fitness industry continues to evolve, several key trends are emerging that will shape its future. One of the most notable trends is the growth of franchise fitness companies over the past decade. These companies benefit from economies of scale, which allow them to reduce costs related to real estate and supplier discounts. However, this growth also presents challenges for single operators, who must navigate increasingly complex marketing, technology, and regulatory environments.
Digital transformation is another critical trend. The integration of technology in fitness has become more pronounced, with innovations such as wearables, virtual training, and AI-driven analytics becoming standard tools for fitness businesses. These technologies not only enhance the customer experience but also provide valuable data that can inform business decisions and improve operational efficiency.
One trend that is here now, and expected to grow, is the rise of personal health awareness, driven by devices like the Apple Watch and trends like reduced alcohol consumption, particularly among the younger generation. The gym has become a social meeting point for many Gen Z, who are willing to spend their money on their fitness, which bodes well for fitness businesses. Consumers are more health-conscious than ever, and fitness businesses are responding by offering more personalized and holistic health solutions.
Additionally, the concept of fitness racing, popularized by events like HYROX, is redefining how people perceive fitness. By combining elements of running, endurance, and strength training, HYROX – with their sell-out events – is appealing to a broader audience. Racing is bringing a sense of community, and goal-achieving, mainstream.
Challenges and Opportunities: Navigating a Complex Landscape
Despite the positive trends, the Canadian fitness industry faces several challenges. Certain facilities- such as High Value / Low Price (HVLP) have shown skyrocketing growth, while others have not recovered from the pandemic. One of the most pressing issues is the loss of members who have not returned – having taken up walking, or virtual workouts. Retaining and attracting new members remains a significant hurdle for many fitness facilities.
Human resources also pose a challenge, with high turnover rates, burnout, and low compensation contributing to a difficult employment environment. The rising cost of living further exacerbates these issues, as fitness businesses struggle to meet the wage expectations of their employees while maintaining profitability. To address these challenges, the industry must focus on creating a positive employee experience. This includes offering flexible work arrangements, competitive compensation, and opportunities for career development. Investing in HR technology, such as AI-driven recruitment tools and wellness apps, can also help businesses attract and retain top talent. Employers must get savvy with their HR practices.
Where we are at: A Resilient Industry Poised for Growth
The Canadian fitness industry is at a pivotal moment. The challenges of the past few years have forced us to adapt and innovate, resulting in a more resilient and dynamic landscape. As the industry continues to grow, it will play an increasingly important role in promoting physical health and well-being across the country.
The future of the fitness industry in Canada is bright, with new trends and technologies paving the way for continued growth. By addressing the challenges head-on and embracing the opportunities presented by digital transformation and shifting consumer behaviors, the industry is well-positioned to thrive in the years to come.
The Canadian fitness industry is not just bouncing back—it’s coming back stronger than ever. With a renewed focus on collaboration, innovation, and public health, the industry is set to make a lasting impact on the lives of Canadians for years to come.
Join us virtually on Friday, September 20th at 1:30 PM EST for the Canadian Fitness Industry Panel live – come with a list of questions for our esteemed panel!
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.
