By Zach Weston
The HFA recently released their annual global report on their insights on the Health and Fitness Industry. The full report is available from the HFA website here: https://www.healthandfitness.org/publications/the-2025-hfa-global-report/
According to Liz Clark, HFA President and CEO: “Around the world, more people are joining gyms, exercising regularly, and viewing fitness as essential—not optional. That shift didn’t happen on its own. It’s the result of operators evolving their businesses, consumers embracing health and wellness, and associations like HFA working to ensure the industry is recognized and supported by policymakers.”
Canada’s fitness industry, with its 15.5% member penetration rate, is a mature market that reflects both its own unique dynamics and broader global trends. The Health & Fitness Association’s (HFA) 2025 Global Report highlights that the challenges and opportunities facing Canada’s fitness sector are shared by many countries. The World Health Organization highlights the potential for the fitness sector to create real impact: “Significant growth opportunities remain untapped, with global inactivity rates at an estimated 31% of the total population,” while the Global Wellness Institute recognizes the magnitude of our sector stating: “The fitness industry operates within the broader $6.3 Trillion global wellness economy.”
It is clear that the Canadian Fitness Industry is a critically important player in supporting the health of our country and there is much more that we can offer through advancing collaborative public:private partnerships to mitigate the otherwise consequences of an inactive population.
Key Market Data and Global Comparisons
Market Penetration
Canada’s 15.5% member penetration rate in 2024 is a strong indicator of a well-established market. This figure is comparable to other developed nations but still has room to grow when compared to the highest-penetrating markets. The United States, for example, leads all observed markets with a member penetration rate of 24.9%. In Europe, Denmark’s consumer penetration rate is 19% , and the United Kingdom stands at 16.9%. This places Canada as a strong player within the global context, with significant potential to increase participation and reduce the country’s high inactivity rates. Other notable countries market penetration rates provide further perspective on Canada’s success and opportunities when considering Japan (5%), New Zealand (21%), Australia (23%), France (10%), Germany (14%), and Ireland (18%).
Economic Context
The Canadian industry has demonstrated resilience amid a stabilizing economic environment. This aligns with global trends where consumers prioritize health spending despite financial pressures. In Australia, consumers chose to keep their gym memberships while cutting back on other discretionary spending, which constrained operators’ ability to raise fees. Conversely, countries like Portugal, with strong GDP growth and stable inflation, saw their fitness industries achieve record growth in revenue and facility count in 2024. In Canada, annual inflation eased to 2.4% in 2024, and while unemployment ticked up slightly, consumer spending on gym memberships and related retail remained resilient.
Policy and Advocacy
Across the globe, national associations are actively advocating for policy changes that position the fitness industry as an essential part of public health. Canada’s push to get fitness services recognized by the CRA as a medical expense is part of a larger international effort.
- Scandinavia: Denmark is actively debating tax deductions and public support schemes for physical activity. The Netherlands successfully defeated a proposed VAT increase on fitness services, with a coalition of fitness and sports organizations leading the charge.
- United States: The HFA is working to pass the PHIT Act, which would allow consumers to use pre-tax income from health savings accounts for fitness expenses, a move aimed at making fitness more accessible and affordable.
- Portugal: The government has a tax incentive that allows a 30% deduction of the VAT on gym and fitness expenses from personal income tax.
In Canada, the Public Health Agency allocated $9 million to support physical activity initiatives, and a new law affirmed the designation of the first Saturday of June as National Health & Fitness Day. These examples, both domestically and abroad, demonstrate a worldwide push to recognize fitness as an essential public good rather than a luxury.
Insights, Trends, and Opportunities
The trends shaping the Canadian market are mirrored globally, with a focus on wellness, technology, and diverse offerings.
Industry Segments Similar to other markets, Canada’s fitness landscape is polarized. High-value, low-price (HVLP) gyms like Fit4Less and Crunch Fitness continue to attract price-sensitive consumers and lead in membership numbers. At the same time, boutique studios and premium operators are thriving by offering specialized programs and a strong sense of community. This segmentation is a global trend, seen in markets like Spain, where low-cost operators like VivaGym and Synergym are expanding alongside premium chains like Metropolitan and boutique studios like Distrito Estudio.
Wellness and Longevity The industry is moving away from purely aesthetic goals toward a focus on holistic wellness and longevity. This trend is evident in a variety of services gaining traction globally, such as recovery amenities, mental health integration, and age-appropriate programs.
- In Canada, programs for active aging and medical fitness are expanding, with gyms partnering with clinics to support those with chronic conditions.
- In Denmark, there is growing demand for personalized and evidence-based training solutions, particularly those focused on mental resilience and managing lifestyle diseases.
- In the U.S., longevity and GLP-1 drugs for weight loss have dominated conversations, creating new opportunities for complementary fitness programs.
Technology Technology is a powerful force driving fitness trends. The Canadian wearable tech market reached $4.18 billion in 2024 and is projected to grow significantly in the coming years. This is amplified by the widespread adoption of hybrid fitness models, which combine in-gym, virtual, and outdoor workouts. This reflects a global trend where consumers expect a seamless, integrated digital experience.
- The report notes that AI is rapidly transforming the industry, with operators investing in platforms that provide personalized guidance and enhance member engagement through gamification.
- In Latin America, consumers are highly engaged with fitness tracking apps and wearable devices, and operators are embracing smart equipment and integrated management platforms to streamline operations.
Conclusion
The HFA’s report demonstrates that Canada is a strong player in the global fitness landscape. By navigating economic shifts and advocating for policies that support public health, the Canadian industry can continue to grow and innovate, much like its counterparts in Scandinavia and other mature markets. The key to future success lies in embracing technology, diversifying offerings to meet evolving consumer needs, and advocating for policies that reinforce the fitness industry’s value as a solution to public health challenges.