Over the past decade, the U.S. fitness club landscape has undergone a dramatic shift with the increasing dominance of high-volume, low-price (HVLP) clubs as the driver of industry growth. HVLP concepts are designed for broad-based appeal with a combination of affordable monthly dues and non-intimidating atmospheres—essentially democratizing fitness to a broader spectrum of consumers.
As a result, consumer demand has become increasingly bifurcated between budget-friendly HVLP clubs and premium gyms or boutique studios, leaving the mid-tier segment in decline. By delivering value, flexibility, and convenience, HVLP clubs are particularly attractive for Millennials and Gen Z, who now comprise about 65% of fitness club members nationwide. Likewise, month-to-month membership options further reduce barriers to entry and support member acquisition.
Private investment has increased in the HVLP sector due to its prospects for continued growth, financial resilience, and scalability. The segment has outpaced other fitness categories in attracting capital, leading to rapid expansion and operational innovation. Private equity has played a crucial role in funding expansion and operational innovation. By leveraging data analytics, investors have also driven improved member engagement, lower customer acquisition costs, and more efficient club designs. This investment has enabled the quick rollout of new HVLP locations and strategic enhancements to club offerings.
Looking ahead, continued growth is projected from “HVLP 2.0” concepts—clubs that retain the affordability and scale of traditional HVLP models while integrating a broader set of services. These may include expanded group fitness options, advanced strength training areas, personalized training, and amenities such as recovery lounges or wellness services. HVLP clubs have become a strong and growing segment in the overall industry, leveraging affordability, demographic trends, and private capital to grow the addressable market through increased relevancy. The sector’s long-term success will hinge on its adaptability and ability to consistently execute on the core tenets of value, accessibility, and scale.
Affordable fitness clubs are changing the landscape of the gym industry. Explore how these high-volume, low-price models are reshaping member expectations, expanding access, and setting new standards for future growth in our equity research report, High-Volume, Low-Price Fitness Clubs Are Driving Growth and Investment, or visit the Equity Research Rewind page for more topics.