The global pandemic created the need for remote lifestyles. As people found themselves more isolated, they needed health, wellness, and fitness activities they could participate in remotely for their social, emotional, physical, and intellectual wellbeing. According to research done by Vista Point Advisors, even before the pandemic, there was a trend moving toward a migration from traditional gym memberships towards fully or partially online wellness programs. Millennial and Generation Z cohorts grew the digital market with their willingness to pay for subscription-based wellness programs. The demand for digital, athome fitness was advanced 3 to 5 years, and spending in this area surged 30 to 40% following the initial lockdowns in early 2020. The online fitness market is slated to become a $59B industry by 2027. Necessity is the mother of invention, and digital wellness platforms were created by necessity to meet the growing demand.
Historically, the wellness market was dominated by in-person events in the form of fitness classes, meditation sessions, therapy sessions, etc. There was little focus on incorporating online options. As key players in the wellness industry began introducing remote wellness services to their customers, there was initial resistance to a widespread adoption as consumers struggled to adapt to the concept. With the pandemic, wellness providers and consumers were forced to adopt virtual platforms. The switch to virtual exposed consumers to the ease and flexibility of remote classes and created a fundamental transition in how consumers engage in wellness online and offline.
While remote-only wellness may not remain the norm, a hybrid approach is likely to stick around, as 87% of people who feel comfortable returning to gyms have said they will continue to keep at home workouts in their routine. The changes in consumer behaviors have opened the door for “connected wellness,” which merges the benefits of in-person and online wellness practices. The shifting demand from traditional, in-person gym subscriptions to boutique, connected studios is positioning the space for rapid market growth. The end result of this preference for online and boutique classes will result in a shift in an estimated $10B in spending from traditional gyms and fitness centers to at-home, on-demand video and boutique studios.
Gen Z and Millennials have overtaken other generations in the U.S. in both population and purchasing power. They have shown a greater inclination in paying top-dollar for connected wellness. In research done by YPulse, the top five things that Gen Z and Millennials do for their wellbeing include exercise, meditate, read, walk, and listen to music. The top ten places they say they find community include social media platforms, work, school, shared interest groups, and fitness classes.
The Restoration Depot is a great community for Gen Z, Millennials, and everyone else to find fun and healthy activities supporting their wellbeing. With our ever-expanding list of classes, ranging from fitness to music and educational to mindfulness, there is something for everyone.
We invite you to join the community and try your first class for $5!