Did you know that the 10 markets that make up the wellness economy are now worth $4.2 trillion!
Over the past 2 years this has grown 12.8% and represents a whopping 5.3% of global economic output.
These are big numbers. As you know - there has been a shift toward integrating movement and wellness into everyday life and this move towards prioritizing wellness is changing the shape of our industry and the habits of consumers.
So… what makes up wellness?
The Global Wellness Institute focused on 10 specific categories for their research:
Personal care and beauty: $1.082 trillion
Healthy eating, nutrition and weight loss: $702.1 billion
Wellness tourism: $639.4 billion
Fitness / mind-body: $595.4 billion
Preventive and personalized medicine and public health: $574.8 billion
Traditional and complementary medicine: $359.7 billion
Wellness real estate: $134.3 billion
Spa economy: $118.8 billion
Thermal / mineral springs: $56.2 billion
Workplace wellness: $47.5 billion
Spas, wellness tourism, and wellness real estate were shown to be the fastest-growing sectors over the last two years. But, many of the categories above blend together as the industry moves even more towards delivering a complete and rounded experience for it’s consumers. Just like you might have contemplated adding spa or nutrition services to your studio offerings.
The big players are doing the same.
With Peloton bikes inside hotel rooms and Exhale (barre and spa) being purchased by Hyatt Hotel group, fitness and travel are merging because of consumer demand and habits.
Another area prime for big growth is workplace wellness. Some large companies recognize the benefits (think increased productivity, less time off) of integrating fitness and wellness into the workplace, but there is so much more that can be done.
What we know is that people who engage with group exercise feel more fulfilled than those who do not by nearly 30%
You can relate to this - you know your clients feel this way about your business.
Regular group fitness participants also report closer relationships with family and friends, enjoying their work more and finding time for play and having fun.
We know that consumers are seeking a more connected and holistic approach to balance the stress and pressures of every day life - perhaps this is why Yoga has grown in popularity - the number of people practicing yoga has increased 54% in the last 10 years!
Let’s dive into some more details on the fitness industry:
The average age of Yogis is 36 and nearly 20% are male.
We know also know that a younger population favor more intense exercise with HIIT being the most popular amongst the millennial generation and a low impact spin class is a firm favorite across all ages.
The average American spends $87/month on health and wellness, but those who engage in regular workouts spend significantly more. Top spenders are CrossFitters spending an average of $187/month on health and wellness, Yogis average the lowest of those surveyed - but still spend $131/month.
The average income of those in the survey was $73k - with top earners choosing HIIT as their favorite workout and averaging $82k in annual income.
On the boutique business side, there is more really interesting data… 50% of boutique wellness businesses generate in excess of $300k in revenue every year with 16% making over $500k. The average revenue for boutique fitness studios was $289,000. Nice work folks!
What about spending? I know many studios spend $249/month or less on marketing - that makes up 18% of studios. But the average marketing budget each month is $783! On average in fitness, the marketing budget is 3.4% of total revenue. Perhaps that will help guide your budget for next year?
How about staff? These are the numbers that really surprised me… of those fitness studios surveyed, the average staff size was 14 in total, with around 8 full time staff and 6 part time staff.
One last piece of data for you - only 27% of American adults visit a group fitness facility regularly - even less visit 1:1 fitness services.
So, despite these big growth numbers, there is still plenty of opportunity to continue to engage with new clients and growing your studio business.
Of those who use the MIndBody app, 80% go to group classes 2-3 times per week or more. Making booking as simple and easy as possible really helps to get your clients to be more engaged in your business.
Personally, I love to see data like this. I think seeing the bigger trends can help us all understand consumer thinking and behavior across the industry and help drive and guide better decision making within business. It can inspire us all to create more innovative methods to help clients further engage with wellness and help you become an industry leader who stays ahead in this multi-trillion dollar industry!
What do you think of these numbers? Do they represent what you see? What questions do you have?
Sources: MindBody Wellness Index Survey 2018, Global Wellness Institute,