The Fitness Business Forecast 2025: Industry Experts Discuss Capital Trends, AI ROI, and Global Expansion
The latest fitness industry news takes center stage in a special edition of The Fitness Business Forecast presented by ABC Fitness, where All Things Fitness and Wellness host Krissy Vann leads an exclusive roundtable discussion recorded on-site at HFA 2025. This high-level conversation delves into the financial trends and forces shaping the fitness industry in 2025, providing essential insights for industry leaders and professionals.
The episode brings together top industry leaders, including Mo Iqbal (Chairman of SweatWorks & Chief Strategy Officer at ABC Fitness), Mark Mastrov (Founder of New Evolution Ventures), Lise Kuecker (CEO & Founder of Studio Grow), Brian Anderson (CEO & Strategic Advisor for Fitness and Consumer Brands), and Matthew Janusek (Co-Founder of Escape Fitness & Co-Host of Lifts podcast). The discussion covers key investment trends, the impact of AI, and global expansion strategies shaping the future of fitness businesses.
Top Takeaways from HFA 2025
The panelists noted a renewed energy at HFA 2025, with industry professionals eager to explore new opportunities. Mo Iqbal highlighted high engagement levels and an optimistic outlook, pointing to the bustling convention floor as a sign of a strong year ahead. Lise Kuecker emphasized increasing international interest in boutique fitness, particularly in the UAE, Qatar, and APAC regions, where growth potential remains high. Mark Mastrov reinforced the industry's global expansion, highlighting rising fitness penetration levels worldwide, making 2025 a pivotal year for fitness businesses.
Financial Trends in the Fitness Industry
Mark Mastrov discussed the strong financial performance of major fitness brands, noting that companies like Life Time and Planet Fitness are achieving record numbers. Despite these successes, stock prices remain volatile due to external factors such as tariffs and economic uncertainty. Panelists agreed that fitness has firmly established itself as an essential industry, influencing real estate trends and consumer behavior while maintaining its role as a resilient sector in the economy.
Capital Investment
Mo Iqbal addressed shifts in the investment landscape, noting a move away from tech-driven fitness investments toward brick-and-mortar gym spaces. While private equity firms remain active, many are either holding onto capital or looking for exit opportunities. He also highlighted a slowdown in early-stage investments, suggesting that past overfunding led to unrealistic valuations. As a result, fitness startups that have survived the recent funding downturn are now being acquired at more reasonable prices, reshaping the investment outlook.
Venture Capital, Private Equity & Family Offices
The discussion explored how different investor types—venture capital firms, private equity groups, and family offices—allocate funds within the fitness sector. Private equity firms typically invest in established companies with consistent earnings, focusing on proven brands. PE investments span various segments of the industry, targeting companies that demonstrate strong financial performance and consistent earnings.
Venture capital firms, in contrast, take a high-risk, high-reward approach, primarily targeting early-stage businesses, particularly in fitness technology and supplements. These investors seek companies with recurring revenue potential and high margins, often aiming for valuations 10 to 15 times sales. However, the last few years have presented challenges for startups seeking Series A funding, though there are signs of improvement. Meanwhile, family offices and private investors have more flexibility in their investment strategies, allowing them to explore a wider range of opportunities within the fitness sector.
A Defining Year for Fitness
With shifting capital trends, AI-driven innovations, and expanding global markets, 2025 is shaping up to be a defining year for the fitness industry. As brands adapt to changing consumer demands and new financial realities, industry leaders remain optimistic about long-term growth. The Fitness Business Forecast provides critical insights into these developments, equipping fitness professionals with the knowledge needed to navigate an evolving landscape. All Things Fitness and Wellness continues to deliver in-depth industry insights, expert interviews, and relevant fitness news on the trends shaping the fitness world.
