Fitness and Wellness Industry: Just A Fad Or A Lucrative Investment Opportunity?

The fitness and wellness industry has been on an impressive trajectory, especially after the pandemic caught the world off-guard. You may have noticed a surge in influencers sharing tips on staying fit and articles about adopting a healthy lifestyle. But is it all a media-spurred hype or are the masses actually becoming attentive to health and fitness? That’s what we will attempt to find in this article!

The fitness and wellness industry has taken the world by storm

According to Deloitte research, people are more concerned about their health and overall wellbeing than ever before. And this interest is growing over time as evident in the survey where 42 percent reported wellness to be a top priority while 79 percent cited it as important. The report states that consumers in every market it researched show increased prioritization of wellness in the past two to three years.

With growing consumer interest and resurged purchasing power, spending on wellness has rebounded after a brief decline amid the pandemic’s advent. Notably, the wellness market was already competitive before COVID-19 hit the world. But it is now resurgent and is on track to surpass pre-pandemic levels. All thanks to these factors, the global wellness industry is worth $4.4 trillion now, as per the Global Wellness Institute.

Inside this market, the physical activity economy is expected to reach $1.2 trillion by 2025. Personal care and beauty will reach $1.4 trillion. Healthy eating, nutrition, and weight loss will reach $1.2 trillion. More people are now resorting to making lifestyle changes, which indicates increased workouts.

Would home workouts really substitute gyms?

There is a common perception that home workouts are becoming more popular now with the introduction of digital fitness instructors and fitness apps. That perception originates from the fact that the number of gym-goers slumped, as the COVID restrictions made people resort to home workouts. This time saw an increase in the usage of fitness apps.

However, according to the experts, this trend will soon subside and start to reverse, as people have already started returning to gyms after relaxation in COVID restrictions. While home workouts will reduce over time, fitness apps are here to stay, as many gyms have assimilated them in designing their fitness programs.

Workouts and other fitness regimes have become a trend currently. With social media influencers posting videos of their workouts and dietary routines, people are taking inspiration and making gyms a regular part of their routine. According to fitness industry experts, gym workouts are still more popular than home solitary fitness exercises because they prove to be the social motivator. People go there for the

1: social experience

2: and the professional setup

—both of which are absent in home workouts.

Indonesia is following suit—with slow but steady pace

Until now, Indonesia was considered a less mature physical activity market.?However, it is catching up to the rest of the world now. According to an ADB report, consumers have adopted fitness apps, online tutorials and platforms, and wearables rapidly.

Despite being a relatively inactive group dynamic, Indonesia still is the 7th largest wellness economy in the Asia-Pacific region with a $36.4 billion market value. The healthy eating, nutrition, and weight loss sector constitute over 36% of the country’s overall wellness market. The participation rate for recreational physical activities is 34.2%, which is fine enough given that it is increasing at a steady pace.

Indonesia stands among the top 20 countries with regard to the wellness industry because of its sheer population size and increasing consumer spending.

Workouts and other fitness regimes have become a lifestyle lately. With social media influencers posting videos of their workouts and dietary routines, Indonesians are also jumping on the bandwagon and showing a willingness to spend on fitness products and wearables.

Now is the time to act—invest in the wellness industry!

Indonesian consumer is ready to spend on wellness now more than ever. The archipelago is home to the third-largest middle class. Per capita income is increasing and is expected to balloon by 2025 to $8700. More millennials, especially women, are entering the workforce. Gen Z is also joining the corporate industry and is more willing to spend on trendy purchases. This consumer base is health-conscious and tech-savvy. Thanks to digital media, they are ready to follow the hot trends and internalize them in their routine.

There is a swelling interest in buying health and wellness products in Indonesia. Even the government has increased campaigns promoting healthy eating and living. The increased per capita income and purchasing power have led people to become more conscious about overall health and fitness. This is the normal behavior, as described in a Deloitte report, that consumers with high-level incomes put heavy emphasis on health and wellness.

While the high-income group is an attractive consumer base for fitness products, the middle to low-income groups can be engaged more by introducing low-cost products of good quality. Capturing this group dynamic can be more lucrative, as it is way bigger in size. According to the World Bank, the resurgent middle class comprises 52 million people, which is a relatively untapped group dynamic for fitness entities.

Competitive Pricing beats Brand Loyalty

The said report also maintains that consumers focus more on price considerations than brand loyalty now. For instance, introducing low-cost gyms with similar benefits can help garner the said group dynamic. Aside from the physical activity economy, other health and wellness sectors contain ample opportunities for investors. Take Blackmores for example, an Australian vitamin-maker, that shifted its focus from China to Indonesia and saw a 73% rise in sales in just half a year.

ReFIT is grabbing this untapped potential and striving to capture the major chunk of the relatively ignored consumer base. It has introduced low-cost gyms but with similar (even better than many) quality services to attract middle-to-low income Indonesians. Not only this but it is also providing others an opportunity to act up and leverage the untapped potential of economical yet quality gyms.

Your Opportunity to Benefit from the Soaring Fitness Trends

Investing in gyms and fitness clubs proves to be highly lucrative because of its annuity-like revenues. In a conventional retail business, a customer buys a product, pays for it, and then there is no further commitment. But with a gym or a fitness club, the commitment sprawls over months and years on end. Apart from the consistent income, investment in gyms is good because of their scalable business model.

The business’s expansion does not require any significant change in working capital. You can scale your membership from 1000 to 5000 without a proportional investment in additional capital. So, it is high time to invest in the fitness industry now before it gets too crowded as it did in the other top wellness economies.