A top ClassPass and Peloton investor says virtual training is the next frontier in the exploding $106 billion fitness industry
- Consumer-focused private-equity firm L Catterton has invested in some of the biggest names in fitness, including ClassPass, Peloton, and Equinox.
- A managing partner at L Catterton, with more than two decades of experience in the field, told Business Insider what will be the next big trends in fitness.
- One-to-one virtual personal training services will become a major trend in the next five years, he said.
- We can also expect to see high-tech fitness trackers that allow us to be more specific with our workouts and health and fitness goals.
- Visit Business Insider's homepage for more stories.
The fitness industry is booming and buzzy concepts are constantly cropping up and giving consumers innovative ways to work out, and this means that investors are constantly on the lookout for the next big thing.
Marc Magliacano, a managing partner at L Catterton - a private-equity firm that has invested in some of the biggest disruptors in the industry such as ClassPass, Peloton, and SoulCycle-owned Equinox - has more than two decades of experience working in the field and a good eye for the next big hits.
In a recent conversation with Business Insider, he shared his thoughts on what's next for the fitness industry - where revenues are growing at about 9% a year and expected to reach $106 billion in 2020.
Virtual training, high-tech fitness trackers
First, Magliacano is expecting the way we track our fitness regime and plan our goals to become more advanced.
New high-tech devices will give users greater insight into their daily routines and outcomes so they can be more specific with their workouts, rather than just tracking quantitative metrics such as your heartbeat or the steps you take in a day.
"A lot of people say: 'Hey, I want to lose 10 pounds,' but tomorrow's goal is going to be more like: 'I want to bring my cholesterol to between X and Y; or I want to train for a half marathon, which I have never done before, and I am 46 years old,'" he said.
He continued: "An individual device or embedded software is going to track everything you are doing because if you just walked up the empire state building, you're asking yourself: 'What impact did it have on my heart rate that day? On the calories burned? Water consumption? Water usage in the body?'"
'Capability is going to be a big deal'
He added: "This is where the technology of fitness is going, it is coming down to more sophistication, it is more science-based, and it is more bespoke to the fitness user. That capability is going to be a big deal."
In addition, we can look forward to greater access to one-to-one personal training sessions conducted in our homes via more virtual training options, he said.
High-tech home fitness startups Mirror and Tonal (which is also another company that L Catterton is invested in) are already offering their own versions, but Magliacano expects these services to become more advanced and for more to come to market.
"There will be a solution where you can get live, one-on-one, bespoke training performed at the convenience, comfort, and safety of your own home," he said, saying that this will become a major trend over the next five years.
Lastly, he's expecting wellness and self-care to become more integrated into our fitness regime.
Talking about wellness socially was "taboo" about 10 to 15 years ago, he said. Today, it's everywhere.
"At cocktail parties, people talk about acupuncture, they talk about their Botox ... discussion on health and wellness and living a longer, healthier, and more vibrant lifestyle is commonplace," he said. "More men are talking about wellness services today than a decade ago where they would be embarrassed to discuss."
This isn't only true of the US.
"Globally, these trends will take hold and it will be just a matter of time, he said. "This whole concept of self-care is just growing and is not going away."
L Catterton on ClassPass
Magliacano was fresh from L Catterton's recent investment into ClassPass when we spoke. L Catteron led a $285 million round of funding in the company. L Catterton was formed in 2016, through a partnership between Catterton, LVMH, and Groupe Arnault. It says it is the world's largest consumer-focused private equity firm.
ClassPass is a good example of the coming together of fitness and wellness concepts, he said. The platform was historically used for customers to book fitness classes but today's membership gives customers access to an array of wellness services such as massages or acupuncture and even hair cuts.
ClassPass "will be a seamless experience that will add enormous value to your life," he added.
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