The new social scene swaps bars for elite gym clubs

Younger consumers are splashing more money to find friends and romance in run clubs and spa-heavy gyms

- 

Younger consumers are splashing more money to find friends and romance in gym clubs and spa-heavy gyms

(BLOOMBERG)

At 7pm on a Friday in London, the lobby of Third Space in Soho looks more like a members’ club than a gym.

There’s a humming smoothie bar, twenty-and thirtysomethings in colour-coordinated workout sets and a steady stream of arrivals heading to reformer Pilates classes. A decade ago, this crowd might have been outside the pub, drinking anything but a smoothie.

Across the UK and US, younger consumers are redirecting their discretionary income from nightlife to fitness. Gym-related spending among Gen Zers and millennials is rising as alcohol consumption continues to decline, according to a February report from Bank of America. And, according to market intelligence firm Mintel, 30% of US Gen Z consumers say they're spending more on gym memberships and classes than a year ago, as fitness takes a broader role in their lives. “We're seeing consumers across the board becoming more focused on their wellbeing,” says Claire Tassin, principal strategist for wellness at Mintel. “But Gen Z in particular is driving a lot of that energy.”

Tassin says gyms and studios are filling a gap once occupied by bars, restaurants and even offices. Meeting people at a gym or through pickup sports activities is nothing new, but younger people are investing in fitness as their must-do social activity instead of just a healthy habit for their bodies.