These health and wellness offers, partnerships and funding rounds made headlines in 2023 and will affect the trade for years to come back
Within the first full yr of post-pandemic life, the health and wellness trade has seen its justifiable share of headlines, each constructive and damaging.
Whereas dealmaking has cooled off some from its pandemic-era excessive, there nonetheless have been loads of main health and wellness strikes in 2023, together with model partnerships, nine-figure funding rounds and superstar endorsement offers.
Athletech Information recaps the eight health and wellness strikes that outlined 2023, and forecasts what every may imply as we enter a brand new yr.
-
1. Peloton, Lululemon Strike Content material & Attire Partnership
Two of the largest manufacturers within the health and activewear classes joined forces in a serious manner in 2023. As a part of a five-year world partnership, Peloton agreed to create unique digital health content material for Lululemon Studio, whereas Lululemon grew to become Peloton’s official attire companion, creating co-branded clothes for instructors and followers.
Why It Issues:
The deal marked the ultimate nail within the coffin for the Mirror, Lululemon’s ill-fated piece of related health {hardware} that by no means fairly lived as much as its $500 million price ticket. Lululemon introduced it could be formally discontinuing Mirror, as an alternative pivoting absolutely to Lululemon Studio, its digital health platform which now provides members entry to Peloton’s library of exercise courses.
For Peloton, the deal exhibits the related health firm’s dedication to turning into greater than only a “bike firm,” because it seems to be to supply several types of health content material, from yoga to energy coaching, along with spin courses.
What To Watch in 2024:
Whereas Peloton has constructed a big following of devoted health followers, the jury continues to be out on whether or not the corporate can efficiently transition from being a cycling-focused model to a one-stop store for various health content material. Offering content material for Lululemon Studio will expose Peloton’s exercises to much more folks world wide, probably serving to the related health firm make good on its daring enlargement plans.
-
2. WeightWatchers, Life Time & Xponential Make GLP-1 Strikes
For higher or worse, the weight-loss-drug period is formally right here. GLP-1s like Ozempic and Wegovy are flying off the proverbial cabinets as customers search entry to the medicine, which have been celebrated for his or her confirmed capability to assist folks lose vital quantities of weight in a comparatively quick time period.
WeightWatchers acquired telehealth model Sequence in early 2023, a transfer that signaled the load loss firm’s shift from a food-based method to adopting prescribed drugs together with GLP-1s. WeightWatchers nonetheless provides its well-known Factors Program, however the firm has made weight reduction meds a core a part of its providing.
Within the health realm, manufacturers together with Life Time and Xponential Health are embracing weight-loss medicine. In November, Life Time launched its first Miora Longevity and Efficiency clinic, providing members entry to GLP-1s reminiscent of Ozempic underneath medical supervision, along with a number of different wellness advantages.
Xponential, in the meantime, introduced its intention to amass Lindora, a metabolic well being model with clinics providing weight-loss drugs. Xponential plans to quickly scale the model by franchising.
Why It Issues:
The offers struck by WeightWatchers, Life Time and Xponential present that not less than some established health and wellness manufacturers are prepared to embrace GLP-1s, making weight reduction meds an essential a part of their enterprise technique.
What To Watch in 2024:
There’s nonetheless a lot to be taught in regards to the long-term results of GLP-1s on sustained weight reduction and different features of well being. Some analysts predict that the rise of weight-loss medicine will result in a corresponding rise in health club membership gross sales as extra customers turn into assured sufficient of their our bodies to need to hit the health club; others have expressed skepticism in regards to the medicine’ capability to spur significant adjustments in folks’s health and wellness habits.
-
3. Apple Companions With Anytime Health
Apple has been pushing additional into health and wellness for a number of years now, with developments in Apple Well being and the launch of Apple Health+. In November, the tech big inked its first take care of a health club model, partnering with Minnesota-based Anytime Health. By means of the collaboration, Anytime Health members throughout the U.S. and Canada could have entry to an Apple Health+ subscription included of their membership at no further value. The 2 corporations may take their partnership even additional with extra collaborations down the street, Anytime Health CEO Chuck Runyon has instructed Athletech Information.
Why It Issues:
The deal marks Apple’s agency entry into the brick-and-mortar health club area, probably signaling a serious shift in how the corporate will method health and wellness in 2024 and past.
What To Watch in 2024:
It is going to be attention-grabbing to see if Apple companions with some other health club manufacturers, or if the tech big is content material to journey with Anytime Health and its community of 5,200 areas worldwide in the interim. For Anytime Health, can a partnership with Apple sway customers to decide on AF over rival low-price, high-value health club chains like Planet Health, Crunch Health and others?
-
4. Pvolve Inks Deal With Jennifer Aniston
Useful Health model Pvolve reached a brand new degree of mainstream recognition and notoriety this yr, partnering with superstar A-lister Jennifer Aniston. The previous “Associates” star will advise on Pvolve’s advertising, product and programming methods, in addition to star in Pvolve commercials, together with a strength-focused advert marketing campaign that launched in August.
Why It Issues:
Whereas superstar endorsements are nothing new for the health trade, getting a star on the extent of Jennifer Aniston is unusual, and it bodes effectively for Pvolve because the model expands its footprint of brick-and-mortar studios by franchising.
What To Watch in 2024:
To date, the partnership appears to be bearing fruit for Pvolve: the health model reported a 650% enhance in branded search and a 125% enhance in franchise inquiries since partnering with Aniston. As time passes, we’ll see how a lot Pvolve leans on its superstar affiliation because the model continues to develop nationwide and even internationally.
-
5. Nike Launches Group Health Studios, Tools Line
Nike is not only a health attire model. In 2023, the Swoosh entered the brick-and-mortar area, opening group health studios in Southern California, with one other location deliberate for Austin, Texas. In partnership with FitLab, Nike Studios provides practical coaching and endurance exercises led by professional instructors. The sportswear big additionally pushed into the health gear area, launching Nike Power, a group of energy coaching gear together with barbells, bumper plates, dumbbells and kettlebells, all of which function outstanding Nike branding.
Why It Issues:
As seen with Apple, “blue chip” corporations are more and more getting into the standard health area. Nike clearly believes within the long-term potential of the health and wellness market, saying it could rent over 1,000 world health trainers to lend experience in creating holistic health content material, programming and experiences, presumably as a part of its Nike Studios endeavor.
What To Watch in 2024:
Nike may make vital inroads into the health and wellness area if the model is really dedicated to the vertical, though it stays to be seen whether or not customers will latch onto the thought of visiting a Nike Studio for his or her every day exercise. On the gear entrance, may Nike turn into a real rival to established energy coaching manufacturers like Eleiko and Rogue Health?
-
6. Peloton Proclaims Rebrand, New Strategic Imaginative and prescient
Again in Might, Peloton introduced its intentions to turn into the health firm for “anybody, anyplace,” trying to shed its notion as a “bike firm” targeted predominantly on rich customers.
As a part of a large-scale rebrand, Peloton launched a brand new health app with three subscription tiers, together with a freemium choice that provides greater than 50 courses curated throughout 12 modalities for no value. The Peloton App One and Peloton App+ tiers value $12.99 per 30 days and $24 per 30 days, respectively. The related health firm additionally launched Peloton Fitness center, which provides at-home energy coaching exercises.
See Additionally
Health
FlexIt Brand Added to Grand Rapids Gold Participant Uniforms as Partnership Expands
Why It Issues:
Peloton CEO Barry McCarthy has stated that the corporate needs to department out past biking exercises, turning into a extra well-rounded digital health firm that makes most of its cash by content material quite than {hardware} gross sales. Because of this, Peloton has solid partnerships with high sports activities groups and leagues, universities and even lodge teams because the model seems to be to extend its world recognition and drive customers to its app.
What To Watch in 2024:
To date, Peloton has struggled to translate its rebrand into monetary success. In its most up-to-date earnings report, Peloton misplaced paid subscribers, with the related health firm struggling to transform free app customers into paying members. Peloton has probably the most loyal fanbases of any health firm, though lots of these followers are biking diehards. It stays to be seen whether or not Peloton can deliver new members into the fold by emphasizing different sorts of health content material.
-
7. EGYM Raises $225M, Preps for IPO
In July, match tech firm EGYM acquired €207 million ($225 million) in progress capital, closing a financing spherical led by Affinity Companions, a world funding agency launched by Jared Kushner, the son-in-law and former advisor to President Donald Trump. The funding will allow the Munich-based EGYM to arrange for an IPO, the corporate’s co-founder and CEO Philipp Roesch-Schlanderer has stated.
EGYM supplies good health club options, together with software program and health gear, for greater than 15,000 gyms worldwide, and is quickly increasing its North American staff.
With the funding, EGYM may also concentrate on additional growing its digital options for health-focused exercises and increasing the EGYM Wellpass company well being community, an space Roesch-Schlanderer has recognized as vital.
Why It Issues:
Funding has been tougher to come back by in 2023 as a result of macroeconomic circumstances, however Affinity Companions’ funding in EGYM exhibits the promise of tech-enabled health. With much more assets, EGYM seems to be poised to increase its lead because the dominant match tech supplier in the marketplace, probably reaching much more gyms worldwide.
What To Watch in 2024:
Will EGYM’s spectacular funding haul be an indication of issues to come back for match tech corporations or was the spherical extra of an anomaly given the present financial outlook? The latter final result is feasible, as EGYM appears distinctive in its capability to supply software program and {hardware} options underneath one model.
-
8. BowFlex, BODi Change Names To Spark Turnaround
2023 noticed a pair of down-on-their-luck health manufacturers change their names in hopes of sparking a turnaround. In March, The Beachbody Firm introduced it could be generally known as BODi transferring ahead, a transfer co-founder and CEO Carl Daikeler stated aligned with a shift within the firm’s technique towards inclusive health and wellness and away from the looks-based advertising that made the model well-known however has appeared to show off fashionable customers, particularly Gen Z.
Within the fall, Vancouver, Washington-based health gear maker Nautilus modified its company title to BowFlex, rallying behind its hottest model. As a part of the rebrand, BowFlex launched a brand new shade scheme, advertising marketing campaign and at-home gear designed to focus on customers within the related health period.
Why It Issues:
Two of the largest health manufacturers of the 2000s period have struggled in recent times, however they’re not taking place with out a combat. For each corporations, the title change has been accompanied by a serious rebranding effort that might basically change the way in which every positions itself within the health and wellness trade.
What To Watch in 2024:
Will the name-change tactic employed by BowFlex and BODi give different struggling health corporations a blueprint to observe to regain relevance, or will it show to be a cautionary story for health and wellness manufacturers trying to return to their glory days?