Peloton and Planet Fitness Pivot as Strength Training Soars in Popularity
In the ever-evolving fitness landscape, a significant shift is underway as an increasing number of gym-goers set their sights on building muscle. This growing trend has spurred major fitness companies to recalibrate their strategies, moving beyond the traditional focus on cardio workouts.
Life Time’s annual survey of 3,000 respondents revealed a striking finding: for 2024, building muscle emerged as the top fitness goal, surpassing weight loss and general movement. This revelation has sent ripples through the industry, prompting companies like Peloton and Planet Fitness to take notice and adapt.
Planet Fitness, a household name in the fitness world, has been making tangible changes to its offerings. After observing that over the past year, members were consistently gravitating towards more strength equipment and showing less interest in cardio machines, the company decided to revamp its equipment mix. This shift was particularly aimed at catering to its Gen Z clientele, who make up a substantial 25% of its customer base, as disclosed in the company’s third-quarter 2023 earnings conference call.
“Gen Z clearly seems to prefer strength and functional workouts versus cardio,” Chief Financial Officer Thomas Fitzgerald stated. “Treadmills still get about the same use, but things like elliptical and bikes are getting far less use.”
The company’s strategic pivot seems to be paying off. In its second-quarter earnings, Planet Fitness surpassed revenue expectations, and the emphasis on strength workouts was a significant contributing factor. Fitzgerald further elaborated that strength equipment not only costs less than cardio gear but also allows for more workout space, accommodating additional members.
Miriam Fried, a strength-focused personal trainer based in New York City, has also witnessed a parallel transformation among women. She noted that many of her clients, who were previously dedicated to cardio or group fitness classes, have now developed an interest in building strength.
“Over the last 10 years, since I’ve been a part of the fitness industry, I would say it’s definitely become a little more common for women to be strength training,” Fried said. Peloton, another prominent player in the fitness arena, is also exploring new avenues in response to the strength training boom. The company has faced its fair share of challenges, with sluggish demand for its fitness equipment as consumers tightened their purse strings on big-ticket items. However, Peloton has an ace up its sleeve: its strength training content has emerged as the most popular among digital members and ranks second among those who own Peloton hardware.
Capitalizing on this insight, the company recently launched testing for a new app, Peloton Strength+. This innovative app is designed to offer custom, instructor-led strength workout plans, specifically tailored for gym workouts rather than Peloton studios. The company’s upcoming earnings report on Thursday is likely to shed more light on this strategic move. Peloton’s new mobile approach bears similarities to that of fitness app Ladder. Since 2020, Ladder has been providing personalized strength training programs. CEO Greg Stewart shared that despite launching its mobile workout subscription service in the midst of the Covid-19 pandemic, the company has experienced its “most explosive” growth in the past couple of years.
Ladder’s user demographic is predominantly female and consists of individuals who invest in gym memberships to utilize the equipment. “We’re 70% women members in our app, so as strength training has become more popular and in demand, we’ve certainly benefited from that,” Stewart said.
Stewart also pointed out that 65% of Ladder’s users take the app to the gym weekly to make use of the facilities. He emphasized that while the pandemic led many companies to focus on home fitness consumers, gym-goers now represent a vast and untapped potential in the industry.
“Most companies in our area haven’t really focused on that user, even though it’s a huge audience, 65 million in gym memberships in the U.S. … It’s a huge, meaningful audience that’s motivated and excited and committed financially to their workout routine,” Stewart said.
In conclusion, as strength training continues to gain momentum, fitness companies are being forced to adapt or risk being left behind. Whether it’s through equipment upgrades, new app launches, or targeted marketing, Peloton, Planet Fitness, and others are vying to capture the growing market of muscle-seeking fitness enthusiasts. This shift not only reflects changing consumer preferences but also opens up new opportunities for growth and innovation in the fitness industry.