Mindbody’s 2025 State of the Industry Report finds that, despite economic uncertainties, nearly three-quarters (72 percent) of operators in the fitness space are confident about their performance this year, signaling that wellness has shifted from a luxury to a lifestyle priority. AI-driven innovation and favorable fitness trends are also seen as factors boosting confidence.

The fitness tech platform surveyed 1,421 decision-makers across the global fitness and wellness landscape, including fitness studios, spas, salons, and integrative health businesses. Of those survey respondents, 36 percent were “very optimistic” about their business performance in 2025, while the same percentage were “somewhat optimistic.” Only 9 percent described themselves as “pessimistic.”

Mindbody found the results “striking,” given “talk of inflation, rising costs and a potential recession have been persistent themes echoing throughout 2025.”

The study found that one reason for the optimism is that fitness clients are opting for ongoing relationships rather than one-off services. Others include monthly or tiered memberships continue to lead within the industry, with 54 percent of operators citing them as the most popular pricing model for 2025 and class packs (44 percent) and unlimited memberships (27 percent) were also widely cited as the most popular options among members.

“The prioritization of people’s spending into health and wellness is increasing rapidly and is now overtaking other forms of expenditures,” said James Stanley, CEO and co-founder, Biowell Health, in the report.

Also providing some confidence to operators are the benefits coming from advances in technology, including smart technology backed by artificial intelligence. Smarter software and automation can free up staff, drive efficiencies and help reimagine customer experiences and client engagement. The survey found that among fitness operators actively investing in technology, 81 percent were either “very” or “somewhat” optimistic, compared to 66 percent of those actively cutting or not focused on technology.

Fitness operators surveyed are also facing a broad range of favorable trends to drive demand. Asked which trends will define the industry in 2025, more than a quarter of operators (28 percent) identified holistic wellness as the top trend shaping the sector this year, followed by recovery and longevity, 20 percent; budget-friendly options, 17 percent; AI-powered personalization, 15 percent; community-based fitness, 13 percent; and biohacking and wearables, 4 percent.

AI’s Evolving Role in the Fitness & Wellness Industry
The report explored how AI is transforming the fitness space. According to the survey, the most common use of AI in the fitness & wellness industry is in marketing content, with 44 percent of businesses stating that they are using it to support various aspects, including websites, brochures, social media copy, and blog content. The second most cited use case is customer service, with 17 percent of businesses utilizing AI tools such as chatbots, automated response systems, or appointment confirmations to streamline their communications.

Lee Kelly, CEO of CorePlus, said in the study, “One AI tool we’ve introduced automatically creates step-by-step guides by following your screen. It’s been a game-changer in documenting processes across our studios—saving significant time while ensuring consistency. Our advice to other operators: start small and practical. Even small integrations can make a big impact.”

Jason Breazeale, VP of Technology at Burn Boot Camp, said, “We’re doing a 30-gym pilot with an AI tool that gives us insight into external customer behaviors like online searches or competitor interactions,” he says. “Through this, we identified 1,400 members in 30 gyms who were at-risk. That’s 1,400 members who might have left a gym, and now we can nurture them differently.”

The report found that only 4 percent of fitness & wellness businesses have reduced staff due to AI. Among the fitness operators surveyed, one in four said it is making their staff more efficient, and 38 percent state they have no plans to use AI for headcount reduction.

Biowell Health’s Stanley said, “We’re starting to consider going back to basics and speaking to our customers, phoning them up and offering them more consultation time. We’ll continue to look at what ‘personalized’ actually means and try to make it real.”

How Fitness Businesses are Rethinking Revenue and Retention
The survey found that one in three fitness operator businesses plan to add retail (apparel, supplements, equipment) to drive revenue streams beyond core classes and services.

Additionally, 29 percent of operators plan to introduce events or retreats, and 18 percent plan to invest in new digital content or programs. The report found that, following a surge during the pandemic, virtual workouts have evolved to complement in-person studio experiences, providing clients with flexibility and convenience.

Burn Boot Camp’s Breazeale said in the study, “The virtual on-demand sessions are a big add-on. Studio fitness is not open 24 hours a day, 7 days a week. We’re starting to see growth in on-demand sessions. It’s grown month over month since we launched it in October 2023.”

When asked about their primary approach to retention, fitness operators overwhelmingly cited personalized outreach, with 56 percent of respondents identifying it as a top strategy. Discounted packages and pricing promotions followed at 40 percent, while engagement events came in third at 31 percent. Of the respondents, 21 percent cited loyalty programs as a primary method of retention, with adoption notably higher among spas (38 percent) and salons (33 percent).

Gina Costa, founder of Breathe Movement Studios, said, “We just launched a rewards program and had a line of people out the door signing up. Clients can redeem points for socks, activewear and even retreats. Instead of canceling during winter or holidays, members use points to put their membership on hold and come back.”

What’s Working for Client Acquisition
According to the survey, Instagram is the leading client acquisition channel for fitness and wellness businesses, with 63 percent of respondents citing it as their most effective platform. Instagram was followed by Facebook and Google/SEO, tied for second at 42 percent, while e-mail marketing (21 percent), paid media ads (8 percent), and TikTok (7 percent) lag considerably behind.

Word of mouth was cited as the second most powerful acquisition tool after Instagram by 46 percent of operators. Of the fitness & wellness operators, 37 percent use SMS at least once a month to reach clients. SMS and e-mail tied for channels in which clients engage the most (32 percent).

To read the full Mindbody 2025 State of the Industry Report go here.

 Image courtesy CorePlus