The Great Gym Consolidation Reshaping Fitness in 2026

Key Takeaways

• Fitness industry consolidation is accelerating in 2026, with major deals including Flynn Group LP's acquisition of 98 Planet Fitness locations and Playlist's $7.5 billion merger with EGYM, as gym memberships hit a record 77 million Americans in 2024.
• Budget gym chains are expanding aggressively, with Planet Fitness opening 181 new clubs in 2025 to reach 2,896 total locations and EoS Fitness targeting 250 gyms by 2030, capitalizing on demand from price-conscious consumers.
• Boutique fitness studios are booming alongside budget gyms, with the boutique market projected to reach $59 billion by 2030 and Pilates now representing over 43% of primary studio modalities as consumers prioritize specialized, community-driven experiences.
• The fitness middle market is collapsing, as the industry splits into two winners: high-volume, low-price chains and premium, high-touch studios, leaving average-priced gyms with average experiences under the most pressure.
• Gen Z and Millennials are driving 60% of discretionary fitness spending growth, with Gen Z projected to spend $2,164 per year on fitness and wellness in 2026, a 22% increase over 2024, as younger adults prioritize gym memberships over nightlife.
• Wellness brand acquisitions are surging, with Procter & Gamble acquiring supplement brand Thorne for $3.8 billion and Danone buying Huel for $1.2 billion, signaling that global companies view wellness as a core growth strategy.

Record Membership Numbers Are Fueling Unprecedented M&A Activity

The US fitness industry reached a milestone in 2024 when gym memberships hit a record 77 million, representing nearly one in four Americans. When non-members who use fitness facilities are included, total fitness facility customers approached 96 million. This massive and growing consumer base is attracting institutional capital and merger-and-acquisition activity at levels the industry has never seen.

In the first quarter of 2026 alone, EoS Fitness acquired 14 gyms, signed 11 new leases, and opened three new locations, part of an aggressive expansion strategy by the High Value Low Price chain. Meanwhile, Flynn Group LP announced the acquisition of Grand Fitness Partners, a Planet Fitness franchisee operating 98 locations across California, Florida, New Jersey, Pennsylvania, and Virginia. On the technology side, Playlist merged with EGYM, a startup known for smart gym equipment and AI-driven workout plans, in a deal valuing the combined company at $7.5 billion.

With industry revenues in 2025 estimated around $45 to $46 billion, consolidation is reshaping the competitive landscape and changing what consumers can expect from their gym options.

Budget Gym Chains Are Winning the Volume Game

Planet Fitness opened 181 new clubs in 2025, including 23 corporate-owned locations, bringing its system-wide total to 2,896 clubs across all 50 states, Washington D.C., Puerto Rico, and five countries. The budget chain continues to dominate the high-volume, low-price segment of the market, and industry forecasts suggest budget and mid-range gyms are expected to grow fastest in membership count, leveraging demand from price-conscious consumers.

EoS Fitness, with more than 225 locations open or on the way nationwide, is rapidly expanding and aims to operate 250 gyms by 2030 while maintaining what it calls a sharp focus on consistency, innovation, value, and accessibility. These budget chains are succeeding by offering no-frills memberships, extended hours, and standardized equipment at price points that make fitness accessible to a broad demographic.

Boutique Studios Are Thriving on Community and Specialization

At the opposite end of the spectrum, boutique fitness is experiencing sustained momentum. According to industry reports, boutique fitness is experiencing one of the strongest growth periods, with record openings from existing brands and new entrants. The boutique fitness studio market has reached meaningful scale, with projections of $59 billion by 2030 and a compound annual growth rate of about 8%.

Class attendance has climbed close to pre-COVID levels and is projected to surpass 2019 numbers, while revenue continues to rise year-over-year with average class prices increasing roughly 6%. Pilates has emerged as a particularly strong category, now representing over 43% of primary studio modalities, signaling sustained demand for low-impact, high-intensity movement experiences.

According to the ABC Fitness report, 57% of active consumers say social connection is the primary reason they join a gym. Smaller, specialized studios win here because community is built into the experience, not bolted on. Instructors know members by name, class sizes are capped, and programming is intentional rather than transactional.

The Middle Market Is Getting Squeezed Out

Industry analysts note that the market is dividing into two winning models: high-volume, low-price and premium, high-touch. The clubs caught in the middle, offering average pricing and average experiences, are under the most pressure. They lack the scale and operational efficiency of budget chains and cannot compete on the personalized service and community focus that boutique studios provide.

Data supports this bifurcation. Luxury gym users had the highest overall traffic with over 315,000 visits per location and the most engaged visitors, with 5.2 monthly visits per person, averaging 86 minutes per visit. Meanwhile, budget gyms win on sheer volume and accessibility. Gyms in the middle are struggling to differentiate and retain members in an increasingly polarized market.

Gen Z and Millennials Are Reshaping Consumer Spending

Younger consumers are driving the fitness industry's growth. Gen Z consumers are projected to spend an average of $2,164 per year on fitness and wellness products and services combined in 2026, a 22% increase over their 2024 spending levels. Gen Z adults aged 18 to 24 posted the highest gym membership penetration at 35.5% and made up nearly half of all new gym joins in 2025.

Together, Gen Z and Millennials are driving this surge and are responsible for 60% of discretionary fitness spending growth, with 30% of Gen Z planning to spend more on fitness in 2026. Younger adults are prioritizing gym memberships over nightlife as wellness, community, and mental health reshape consumer spending, investing in health, wellness, and social fitness communities rather than traditional nightlife and entertainment.

Strength training has become the top trend among younger fitness users, pushing gyms to expand weight and resistance zones. This reflects a deeper focus on performance, longevity, and muscle-based metabolism rather than cardio alone. Free weights are the fastest-growing equipment category since 2021.

Wellness Brands Are Becoming M&A Targets for Global Giants

The consolidation wave extends beyond gyms and studios into the broader wellness space. Procter & Gamble announced its acquisition of supplement brand Thorne for $3.8 billion, part of a wave of high-profile acquisitions in the wellness sector. Unilever's $1.2 billion acquisition of Grüns underscored how wellness has shifted from adjacency into a core growth strategy for global food, beverage, retail, and health companies.

Danone is expanding its portfolio in functional nutrition, entering into a definitive agreement to acquire British nutrition startup Huel for approximately $1.2 billion. According to industry observers, established businesses are recognizing that acquiring health and wellness brands, with loyal consumer bases and proven efficacy, is the fast route to diversification and growth, with assets demonstrating pricing power, operational adaptability, and science-led differentiation commanding premium interest.

What Consumers Want: Flexibility, Community, and Value

Consumer preferences are evolving rapidly. Members today demand greater flexibility, including month-to-month plans and cross-utilization of multiple studios or apps, and place a premium on cleanliness, safety, and personal space in facilities. In 2026, U.S. consumer spending at fitness centers and health clubs is projected to reach $39.4 billion, a 9.2% increase over 2025.

Retention has become a key battleground. Retention rates at clubs offering loyalty reward programs average 76%, compared to just 51% at clubs without them. Gyms and studios that invest in member experience, personalized programming, and community-building are seeing stronger retention and lifetime value, even as rising rent, instructor fees, energy costs, and marketing expenses put margins under strain.

What This Means for Readers

Editorial analysis — not reported fact:

If you're choosing a gym or studio in 2026, you're navigating a fundamentally different landscape than existed even two years ago. The middle-tier gym with a treadmill bank, some weights, and a few group fitness classes is disappearing. You're increasingly faced with a binary choice: budget chains that offer access, equipment, and hours at rock-bottom prices, or boutique studios that deliver specialized programming, instructor attention, and tight-knit community at premium prices.

For budget-conscious consumers, families, or those who prefer to work out independently, the budget gym expansion is good news. Chains like Planet Fitness and EoS Fitness are opening locations rapidly, making convenient, affordable fitness more accessible. For those who thrive on accountability, personalized coaching, and social connection, the boutique boom offers more options than ever, from Pilates to strength-focused studios to hybrid training models.

If you're currently a member of a mid-priced gym, pay attention. Consolidation and margin pressure may lead to ownership changes, membership price adjustments, or even closures. Consider whether your current gym delivers enough value to justify its price, or whether you'd be better served by trading down to a budget option or up to a boutique experience that better aligns with your goals and preferences.

Younger adults driving spending growth are voting with their wallets: they want strength training, community, and experiences that double as social outlets. If you're in this demographic, you have more choices than any previous generation, but also more pressure to choose wisely. Month-to-month memberships, trial classes, and loyalty programs give you flexibility to experiment and find the right fit without long-term commitment.

Sources & Further Reading

• IHRSA fitness industry membership and revenue data — reports on record 77 million gym memberships in 2024 and total customer counts
• EoS Fitness expansion announcements — Q1 2026 acquisitions, new leases, and 2030 growth targets
• Planet Fitness club opening data and Grand Fitness Partners acquisition — 2025 openings and franchisee M&A activity
• Playlist and EGYM merger announcement — $7.5 billion valuation for combined smart fitness company
• Boutique fitness market projections — $59 billion market forecast by 2030
• Mindbody boutique fitness growth and pricing trends — class attendance recovery and 6% price increases
• Studio modality data and margin pressures — Pilates representing 43% of primary modalities
• ABC Fitness consumer behavior report — 57% of members join for social connection, loyalty program retention data
• Procter & Gamble acquisition of Thorne — $3.8 billion wellness brand acquisition
• Unilever acquisition of Grüns — $1.2 billion wellness M&A deal
• Danone acquisition of Huel — functional nutrition expansion for $1.2 billion
• Gen Z fitness and wellness spending projections — $2,164 average annual spend in 2026
• McKinsey analysis of Gen Z and Millennial fitness spending — 60% of discretionary fitness spending growth
• Placer.ai luxury gym traffic and engagement data — 315,000 visits per location, 5.2 monthly visits per person
• Club Industry market bifurcation analysis — high-volume low-price vs. premium high-touch winners
• U.S. Census Bureau consumer spending at fitness centers — $39.4 billion projected for 2026

Editorial coverage of publicly reported health, fitness, wellness, nutrition, and active living developments. Move Weekly has no commercial relationship with any companies, gyms, studios, brands, events, experts, products, or organizations named.