Fitness for Performance, Not Just Wellness

 

In recent years, the wellness industry has dominated headlines. It’s already a massive market, and it’s experiencing explosive growth as it expands to include new levers of wellness, such as sleep, recovery, mindfulness, biomonitoring and more. 

 

This is TRNR’s future “addressable market” in the broadest terms – a diverse, expanding sector fueled by demand that cuts across almost all age groups and the most valuable spending categories. 

 

• In fact, in 2024 the wellness industry was estimated to be worth a staggering $1.8 trillion globally. In the US alone, the market is growing 5-10% each year, with 83% of consumers considering wellness a priority.

 

Much of this growth is driven by new products and experiences – cold plunges, sweat houses, cycling, apps and dietary supplements. With that said, there’s no arguing that just getting in better shape – basic fitness – is fundamental to wellness and a huge demand driver for our business model.

 

But working out to be stronger and healthier – e.g., going to a gym like Gold’s, a key customer for TRNR, isn’t the only opportunity for our business. 

 

In fact, both our current product lines – FORME and CLMBR – also tap into a related but distinct macro trend:  getting fit specifically in order to perform better at a sport you love.

 

Pro and college athletes have always trained for their core sport, of course. But increasingly, the average recreational sport player is doing this too. 

 

• It’s one of the side effects of the overall trend in health and wellness:  an understanding that even for sports as a hobby, fundamental fitness and strength are key to being able to enjoy a pickup basketball game, weekend tennis match, rugby league, up-and-coming sports like pickleball (the New York Times recommends squats, among other strength training for this fast-growing sport), and even bowling.

 

TRNR’s current fitness equipment and content portfolio is ideal for efficient home or gym work across different sports, given the different workout options FORME and CLMBR offer. FORME Golf, even more specifically, shows the multi-layered opportunity here.

 

• In 2023, a record 26.6M people hit the links in the US alone, and in 2022 it was estimated that golf contributed an enormous $101.7B to the US economy. 

 

• That spending, and the focus people put into a sport known for its obsession with perfection and performance, is why we launched FORME Golf last year.

 

• Traditionally, golf performance was focused on lessons and endless practice on links, ranges and putting greens. Many golf experts and enthusiasts know this all changed when Tiger Woods rose to fame not just for his accuracy, strategy and mental toughness, but because of his physicality.

 

• As FORME Golf recognizes, you don’t have to be Tiger to benefit from being stronger and more flexible in golf – fitness can unlock performance for anyone.

 

Our gym chain customers recognize this trend, as do our Titleist Performance Institute trainers and all the many content makers, sports associations and other sports equipment makers across the larger wellness market. 

 

So, this macro tailwind is one of our strategic focuses as we continue to execute against our value-driven operating strategy of applying an ever-improving capital structure to smart acquisitions in a big, growing category. 

 

When you invest in us, you’re buying into demand not just for equipment or fitness itself, but for being stronger and healthier in order to play a beloved sport better or longer. That’s a basis for growth; a trend that will have big returns, and one we’re proud to be ahead of. 

 

Stay tuned for future posts where we’ll dive into other facets of our market opportunities even further.

Forward-Looking Statements:
This post includes certain statements that are “forward-looking statements” for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the future. Forward-looking statements generally are accompanied by words such as “believe”, “project”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity”, “plan”, “may”, “should”, “will”, “would”, “will be”, “will continue”, “will likely result” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the possibility of completing the Sportstech acquisition, as well as achieving revenue guidance for 2025. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Risks and uncertainties include but are not limited to: demand for our products; competition, including technological advances made by and new products released by our competitors; our ability to accurately forecast consumer demand for our products and adequately maintain our inventory; and our reliance on a limited number of suppliers and distributors for our products. A further list and descriptions of these risks, uncertainties and other factors can be found in filings with the Securities and Exchange Commission. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements.