The fitness and wellness industry is on the upswing — but what’s next? Here’s what leading thought leaders and market anaylsts say
A recent roundtable aired this week on Nasdaq TradeTalks, with leading analysts and thought leaders discussing the growth and deal activity in the connected health and wellness solutions market.
“It’s a really exciting space,” Athletech Media Group founder and CEO Ed Hertzman said. “One of the difficulties is that it’s an extremely fragmented market, but at a macro level, without question, you see more and more consumers are interested in this. There are more and more modalities and retail locations available to the consumer — the wearable market is trending up, wellness is trending up. All in all, I think there’s a lot of positive activity happening, and we’re going to see a lot of investment moving forward into this space.”
Max Rakhlenko, TD Cowen’s director of Hardlines & Wellness, added that he projects an omnichannel experience, combining the in-gym experience with at-home fitness.
“Those two are going to continue to blend together,” Rakhlenko said, adding that he sees a future that includes wellness within the traditional gym space. He also pointed out the positive impact of social drivers, gamification and Gen Z’s interest in living a healthy lifestyle.
The discussion also touched on the impact of GLP-1s on the fitness and wellness industry.
“When I first started covering the health and fitness space, one of the primary reasons that people didn’t go to the gym was they felt like they had to work out to go to the gym,” said Hugh Paisley, managing director at RBC Capital Markets. “And that stereotype has [changed] by models like Planet Fitness, Crunch Fitness. Now with GLP-1s, it just accelerates that process. There’s still people that are sitting on the sidelines, and now they’re getting more involved.”
Jon Canarick, Managing Partner of North Castle Partners, noted the evolution of the home fitness trend, which he said spurred the growth of wellness products, recovery products and wearables. Advertising has also changed its approach, no longer targeting just athletes but a broader audience.
“It’s working quite well,” he said, using Therabody as an example of a recovery and wellness tech company that now appeals to a wider segment of wellness seekers, including those on their feet all day, such as nurses and UPS drivers.
To hear more insights on GLP-1s, the impact of influencers, wellness, the future of fitness and more, check out the recent TradeTalks with Jill Malandrino here.
