The 'Golden Era' of premium gym chains ends as costs rise and demand shifts.

Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized fitness formats is intensifying—driving a broader restructuring of the industry.

From fixed memberships to community and flexibility

Minh Hoang, 31, previously described himself as a “legacy member” of a luxury gym chain in Hanoi. He spent tens of millions of dong annually on membership fees, plus tens of millions more on personal training, averaging around 600,000 dong per session. However, for more than half a year, his membership card has largely gone unused because the cost no longer fits his routine.

Instead of relying on gym equipment during peak hours, Hoang now trains more frequently through outdoor runs around West Lake on weekend mornings and plays pickleball with colleagues in the evenings. He said the gym environment felt repetitive and isolating, while his current activities involve more movement, social interaction, and a more open atmosphere.

Similar patterns are reflected in broader market research. McKinsey’s trends research indicates Gen Z and Millennials prefer highly community-based physical activities 1.7 times more than previous generations. Traditional gyms—closed spaces centered on fixed machines and limited variety—are losing appeal as users shift toward experiences that feel more emotionally engaging and personalized.

Thanh Lan, 27, said she stopped paying for a gym card near her workplace after nearly a year. She cited long queues for equipment and peak-hour congestion. After about five months, she discontinued and transferred her remaining card to colleagues for other sports, describing waiting for machines as common even in a large gym.

Cost pressure and the “double pressure” on operators

While changing behavior reflects demand, rising operating costs are tightening supply. The traditional gym model depends heavily on large, centrally located spaces—often thousands to tens of thousands of square meters—along with significant upfront investment. CBRE Vietnam data show retail rents in major cities such as Hanoi and Ho Chi Minh City rose steadily from 2022 to 2025, particularly in central areas, squeezing margins for gym operators.

Operators also face constraints on pricing. Competition limits how much gym packages can increase, reflecting a broader global pattern. In addition to rent, premium gyms must maintain extensive facilities such as pools and saunas, which are increasingly treated as essential amenities.

A representative from a major Ho Chi Minh City mall said they prefer gym tenants because gyms typically cannot easily leave when footfall declines, given the heavy capital expenditure required. This can help provide relatively steadier cash flow for the mall.

Industry data: closures, segmentation, and growth outlook

Industry contraction is not limited to Vietnam. Appraisal Economics estimates that about 22% of U.S. gyms closed permanently after the pandemic, with industry revenues dropping by nearly $29.2 billion. Major chains such as 24 Hour Fitness faced closures, and Korea recorded a record 553 gym closures in 2024.

At the same time, smaller formats are gaining traction. Private gyms—smaller studios emphasizing personalized service—are positioned as an alternative to large chains because they require less space and tend to focus more on coaching and individualized experiences.

In Vietnam, OMR Research projects the gym and fitness market could reach $3.78 billion by 2030, with a CAGR exceeding 19% from 2022 to 2030. However, competition has intensified as the number of facilities increased from 2020 to 2023, leading to greater segmentation. The traditional membership model still accounts for about 55% of market share, but it is showing limits as consumer habits shift.

Deloitte’s Southeast Asia fitness survey also points to momentum for smaller studios: it finds a more than 35% increase in small studios and private gyms over three years. Private gyms report higher customer retention—about 20–25%—attributed to personalization and privacy. The rise of “micro-communities” aligns with a broader move toward closer coach–client relationships rather than crowded spaces in large chains.

Digital fitness and technology as additional disruptors

Digital fitness is another factor reshaping demand for traditional gyms. Gitnux projects online fitness could reach $59 billion by 2027, with virtual classes accounting for about 25% of total activity. Wearable technology, with roughly 30% penetration in the global gym community, supports data-driven training beyond physical gym spaces.

Impact and outlook for gym chains

For large gym chains, the challenge is balancing scale—once a key advantage—with higher costs and evolving expectations. The contraction of major chains, according to the article, reflects a structural shift rather than a simple decline: as users change how they exercise, models that do not adapt are likely to lose ground.

By their early 30s, Hoang and Ngoc Anh both said health remains a priority, but they do not plan to queue for workouts at 5:30 pm anymore. Hoang said he may return to gym workouts in the future, but likely through personalized sessions or home training supported by online coaches.