The New Social Scene Swaps Bars for $300 Gym Memberships

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(Bloomberg) — At 7 p.m. 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 color-coordinated workout sets and a steady stream of arrivals heading to reformer Pilates classes.

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A decade ago, this crowd might have been outside the pub, drinking anything but a smoothie. 

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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.”

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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. 

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As a result, boutique fitness and premium gyms are increasingly functioning as social hubs for younger consumers, offering the structure, familiarity and community they’ve lost elsewhere. That’s the case for Nicolette Brewer, 25, a technology consultant who lives in New York’s West Village. Her main gym, Equinox, costs over $300 a month. She estimates she spends around $500 monthly on fitness between her SoulCycle spinning classes, boutique Pilates-Barre fusion studio the Silhouette Method, and entry fees to run races.

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She says she met her boyfriend at a run club, and made other friends by attending the same workout classes week-in, week-out. “It reminds me of being in school and sitting next to someone in class and becoming friends because you’re in close proximity,” Brewer says. At the very minimum, if you need a conversation starter, there’s always the fitness class you just sweated through together. 

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Brewer, who attended college during the pandemic, says she appreciates the chance to do more in-person activities. “People are more comfortable living digitally now because of Covid. So it’s nice to have a space where we can go out and it’s OK to socialize and start conversations,” she says.

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Olivia Antonelli, 26, also sees group fitness as a key part of her social life. “Every friendship I have now, no matter what phase of my life I met them, we always say, ‘Let’s go take a class’ instead of let’s go to drinks or dinner,” the Manhattan resident says. “There’s something so empowering about it.” 

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If older millennials made athleisure acceptable daywear, Gen Z has turned wellness into a full-fledged identity. On TikTok and Instagram, gym routines, Pilates classes and “What I eat in a day” videos have become a core genre, with more than 3.4 million posts under #Pilates alone.

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“Gen Z is very visually motivated,” says India Gay, a 23-year-old Atlanta-based content creator, who posts about beauty, lifestyle and wellness.  “There’s definitely an aesthetic tied to fitness and nutrition right now.” She spends about $100 a month on an all-inclusive gym membership. She’s one of many young adults who treat fitness as an investment. “For many people in our generation, that includes going to the gym, taking classes, prioritizing healthy eating and focusing on wellness overall,” Gay says.