The world of fitness and wellness has been experiencing a boom over the last decade. In years gone by, gyms were stereotypically seen as functional spaces, which offered weight and cardio machines and possibly a fitness class or two. Fast forward to 2025, and gyms could not look more different, with consumers now deeply engaged with their own health and wellbeing. In the UK last year, 76 percent of people said they ‘aspired to be healthy’ and 48 percent participated in regular exercise. Compare this to 15 years ago where only around 39 percent of men and 29 percent of women hit the recommended level of physical activity, the change in attitude couldn’t be clearer.
This has led to huge growth in the sector, as more than 7,000 gyms are now open across the country with over 11 million current members. Across that time, the way subscriptions are offered and what a member is entitled to has evolved within the gyms themselves. One change that we have seen has been the emergence of the aggregator market, with offerings like ClassPass, an online subscription platform that acts in a similar way to booking.com or Skyscanner, impacting the way people go to the gym. Members can choose a plan – whether that is 52 credits for £69 per month, nine credits for £15 per month, or 201 credits for £249 per month – and with those credits they can book into classes in gyms who have partnered with ClassPass. For example, a 1Rebel Reformer Pilates class may cost as many as 15 credits however booking in for floor time at a separate gym may only cost one credit.
“The overriding conclusion was quite simple: create a space that is clean, well maintained, friendly and well designed.”
While ClassPass was designed to shake up the traditional gym subscription model, as it means that users do not have to be members of a specific gym to access its facilities, it has been particularly popular in Europe but less so in the UK. I spoke to Sophie Lawler, CEO of health club chain Total Fitness, and she told me: “The UK is fundamentally structured differently to other countries like Germany where there are seven major cities and it’s quite difficult to get to critical scale.”
“Here in the UK, ClassPass can be really useful for boutique gyms that don’t have a central brand, but participating in the aggregator market can become cannibalistic which doesn’t benefit anyone in the long run.”
Colin Waggett, CEO of Third Space, agrees. He told me: “In the short term, something like ClassPass is great for the consumer, but what people don’t realise is that underneath it, you’re commoditising the business and the industry.”
So how do gyms create a sustainable member base that combats the potential implications of the aggregator market? After speaking to a number of leading voices within the sector, I found that the overriding conclusion was quite simple: create a space that is clean, well maintained, friendly and well designed. However, once this is embedded as the business’ foundation, gyms venture down different but adjacent avenues, depending on where they are situated within the sector.
On the luxury end, it’s about forming a community and creating a space that feels like a destination. Colin explains: “Our members come remarkably frequently. It’s replacing going for a night out with friends and drinking, as instead, people are looking to have a shared experience at a fitness or wellness club.
“We see ourselves as a hospitality club that does fitness, and we put that at the forefront of the customer experience. For us, our brand is about how people feel once they’ve left our clubs.”
Outside of luxury, Sophie says the priorities are similar but there is more of a focus on creating a space that simply addresses the customer’s needs. She says: “At Total Fitness, we’re very clear about what we promise and deliver to our customers – which is the space and opportunity to achieve more than they thought.
“We don’t take ownership for their results or promise body transformations, since that’s a member’s achievement to own and celebrate – our job is to provide the platform for them. We’re not actively building community and not all members want that, but where they do, then communities can form in our spaces.”
Contrary to general thought during the pandemic, there wasn’t as big a move to home workouts as was initially expected. Colin tells me: “If someone had told me five years ago that working from home would have been a net positive for us, I would have said they were mad, but actually, if you’ve been working from home all day and haven’t seen anyone, then you want to get out of the house and be around other people.”
Instead, it’s been an extremely positive time for the sector, as being active has transitioned from a minority activity to a majority one. PureGym hit 400 sites at the end of last year and Total Fitness has seen 15 percent year-on-year revenue growth, while on the ultra-luxe side, Third Space is continuing to expand with new gyms planned to open this year.
A crucial element in success is value, which is something that is particularly important among what Sophie refers to as the ‘57 percenters’. So called because this is the percentage of millennial, Gen Z and Gen Alpha’s who say they are likely to join a gym in the next 12 months, compared to 18% of the general population. She tells me: “While intrinsically motivated to workout, they don’t have brand loyalty – so if we’re not serving them properly, they will leave. The key is to ensure that gyms provide the right value equation, which isn’t the same as price.” For example, a membership at PureGym can cost as little at £20 a month, while a single gym Third Space membership is £230. These price points are clearly widely different, however what each gym offers also varies significantly.
“It’s been an extremely positive time for the sector as being active has transitioned from a minority activity to a majority one.”
Gyms like SoulCycle and Barry’s Bootcamp which offer singular types of training, or 1Rebel which is also purely class-based, are other types of models where value is crucially important. The draw is high quality instructors, a sense of community, reasonable class sizes and routine, and so as long as members feel as though they are getting value then they will stay. These are also the types of gyms that are more likely to engage with the likes of ClassPass as it can be a useful way for people to try their classes before committing to a full membership, or book into one or two sessions a week on top of their gym membership.
Looking ahead, it doesn’t feel like the world of fitness and wellness is going to lose momentum any time soon. The aggregator market seems to be one that will likely slow down in the UK as the fundamental structure of the market doesn’t seem to be an ideal fit, and where customer demand for flexible memberships is minimal. And as future generations become increasingly engaged with movement and exercise, and gyms continue to home in on their target demographics by creating spaces that feel genuinely valuable to their members, memberships should continue to rise. If there is one thing that is clear, it’s that exercise has become a key element of many people’s lives, and with gym’s acting as a cornerstone for movement and community, it is likely that positive results will continue for many years to come.
