Changes in spending, gym closures and anti-obesity drugs decimate fitness industry

The fitness industry is in decline due to anti-obesity drugs. As fitness spending soars, the once-thriving “dumbbell economy” is being forced into diets as people turn to medical solutions to manage their weight.

The number of customers who used their cards at Pilates and yoga studios last year fell by 12%, below the level at the height of the coronavirus pandemic in 2021, according to data released by Shinhan Card’s Big Data Research Center on Sunday.

Pilates and yoga studio customer numbers increased by 3.1% year-on-year in 2022, but have steadily declined since then, dropping by 8.6% year-on-year in 2023, by 3.7% year-on-year in 2024, and by a further 3.1% year-on-year.

Gym access also took a hit last year. Customer numbers have steadily increased each year since 2021, rising by 25.4% in 2022 after social distancing rules ended, but fell by nearly 2% year-on-year last year.

Last year’s monthly data showed a decline in most months, except for June, July, and December, when summer was just around the corner.

More gyms have closed due to poor business conditions. A total of 553 fitness centers have applied for closure, the second-highest number on record after 567 in 2024, and more than 431 in 2020 and 403 in 2021 during the pandemic, according to government data.

Demand for commercial gyms is also decreasing due to the growing popularity of running among people in their 20s and 30s and the proliferation of fitness centers in apartment complexes.

Industry observers expect this trend to accelerate with the rise of anti-obesity drugs such as Wegovy and Mounjaro.

A representative from the fitness industry said, “There are more members who are interested in Wegovy and Mounjaro than in exercise.” “We often explain the need to combine medicine with exercise and warn about side effects during the consultation.”

According to data from Democratic Party Rep. Seo Mi-hwa’s office, the number of effective prescriptions for anti-obesity drugs such as Wigoby and Munjaro reached 168,677 as of November last year, an increase of 152.5% in just three months.

Boxes of Novo Nordisk’s Ozempic and Wigovy on display at a pharmacy in London on March 8, 2024. [REUTERS/YONHAP]

In the case of Munjaro, which is covered by insurance when prescribed for diabetes treatment, the number of insurance claims filed with four major non-life insurance companies – Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and Meritz Fire & Marine Insurance – jumped from 24 in August last year to 3,264 in February this year.

Anti-obesity drugs cost about 300,000 won (approximately 22,000 yen) per month, but demand continues to increase because they help people lose weight faster than exercise. A consumer culture that prioritizes efficiency is also contributing to this trend.

“I lost about 15 kilograms. [33 pounds] “After taking Wegovy for about 4 months, I don’t feel the need to go to the gym because I can lose weight without exercising,” said one person. Even if I regain the weight after coming off the medication, I’d rather save money going to the gym and use it to pay for my prescriptions. ”

Experts say the fitness industry needs to move beyond weight loss and focus on giving users more confidence in managing their health.

“Consumers are leaving the industry because they are concerned about the cost of personal training and the quality of unqualified trainers,” said Lee Eun-hee, a professor of consumer science at Inha University. “To compete with anti-obesity drugs, the industry must improve the quality of its programs.”

This article was originally written in Korean and translated by a bilingual reporter using generative AI tools. It was then edited by a native English speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

Written by Oh Hyo-jung [[email protected]]