Grip the free weights firmly. Ozempic Revolution is coming to a gym near you.
The phenomenal success of “GLP-1” weight loss and diabetes drugs, which also include Wegovy and Zepbound, cannot be overstated. Sales this year are expected to approach $50 billion, making it the best-selling class of drugs in the world. That's despite global shortages, high prices and the fact that it's currently only available primarily in injectable form. Sales are expected to more than double to $130 billion by 2030, and could soar even more if manufacturers win approval to sell it as a preventive tool.
This is great news for pharmaceutical groups Novo Nordisk and Eli Lilly. For others, it can be really bad. Diet company Weight Watchers recently replaced its chief executive officer as the company struggles to adjust. Soft-drink, beer and snack companies are on the rise as consumers on drugs start eating healthier foods and investors try to determine who will be hurt the most if they cut back on their intake. Stock prices are skyrocketing. overall calories.
The impact will be significant for gyms and health clubs, but complicated for an industry still rebuilding post-COVID-19. The pandemic has shuttered a quarter of U.S. fitness centers and reshaped commuting and exercise patterns. Weight-loss drugs could further accelerate the consumer rush to strength-training equipment that has been gaining momentum for more than a decade, and many gyms are not yet ready for it.
Ten years ago, most fitness club floors were a sea of treadmills, elliptical machines, stationary bikes, fixed weight machines at one end, and a free weight area dedicated to powerlifting, used primarily by men. . But the pandemic and the accompanying rise of apps and YouTube videos, giving people access to personalized fitness routines, have made that structure almost obsolete.
Customers still use treadmills, but now both men and women are looking for a wide range of strength training equipment, including barbells, dumbbells, medicine balls, and more. Clubs looking to grow membership are also focusing on the social aspects of in-person fitness, from group classes and personal trainers to cafes and hangouts.
Gyms have pushed stair climbers and fixed weight machines to the periphery, replacing them with open space for body sculpting classes, free weights and personal training sessions.
“The demand for strength space is increasing,” Colleen Keating, CEO of Planet Fitness, one of the largest publicly traded gym groups, told analysts in August. . Even Peloton, known for its cardio-intensive bikes, is testing an app focused on strength training.
Shifts cost time and money. Cardio equipment, now less popular, is often sold on multi-year leases, while strength training equipment typically requires an upfront investment. The delay has led to uneven usage and customer complaints at clubs that haven't made the transition.
Weight loss drugs make the pressure worse. As the drug gains acceptance, fewer people rely on exercise as their primary means of weight loss, and the drug's side effects, such as nausea and intestinal distress, can make high-impact aerobic exercise unpleasant.
However, GLP-1 users still need a gym. Research suggests that the drug causes significant loss of muscle as well as fat, leading to balance and mobility problems and even sagging skin, also known as “Ozempik's butt.”
Strength training seems to be the solution, not just for GLP-1 users, but for everyone else as well. A growing body of medical literature suggests that strength training can reduce mortality rates, especially in women, while also helping prevent osteoporosis and reducing symptoms of depression.
“We've gone from health and fitness to more comprehensive health and wellness,” says Eleanor Scott, partner in the PwC leisure strategy team.
According to data provider Placer.ai, foot traffic at popular U.S. gym chains Crunch Fitness and EoS Fitness has increased by double digits year over year. Planet Fitness has added 2.7 million members since the beginning of 2023 and improved its profit margins.
For all of them, the combination of strength training and prevention presents an opportunity to win over or win back older customers who remain wary of gyms post-COVID-19. According to ABC Fitness, 80 percent of baby boomers participate in fitness activities, but only 42 percent belong to a gym, compared to nearly a quarter of active Gen Z and Millennials. 3 is occupied. However, if a newcomer has to fight with the regulars to get the dumbbells, growth will not continue.
