Generation Z exchanges nightclubs for races and sports leagues, and fitness consumption gains strength over that of bars
According to CNBC Television, young people seek community in physical activities, which opens up space for leagues, competitions and events companies
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM CNBC TELEVISION · 3 MIN
Young American adults are exchanging part of their nightlife for races, strength tests and amateur sports leagues, and the movement is already showing up in company numbers and consumer data. According to a report from CNBC Television, the search for community through fitness is attracting customers and investors alike.
The most visible example cited by the broadcaster was DJ Diplo's Run Club, in Queens, at the end of October. Around 12,000 people paid up to US$250 to participate in a five-kilometer run followed by immersion in ice-cold water, product samples, music and a festival that also featured cocktails and beer.
The numbers behind the change
CNBC presented data that indicates interest that goes beyond a single event. About 7 in 10 adults under age 30 said they expect to participate in a recreational sports league in the next six months. In Ironman, a quarter of participants in half-distance and full-distance triathlons are under 30, up from 13% a decade ago.
The running app Strava, according to the report, found that Generation Z is more likely than Generation X to use exercise to meet people with common interests.
Spending follows behavior. Data from Bank of America cited in the article shows that Generation Z and millennials increased spending on fitness-related categories faster than spending on bars in the period analyzed. Among Generation X and older generations, the opposite occurred: spending on bars grew more.
Companies and capital enter the game
One sign of investor interest is Volo Sports, which organizes volleyball, kickball and football leagues. The company is on track for around 950,000 player signups this year, up approximately 34% over the previous year and almost five times the level of 2019. Volo acquired smaller competitors and received private equity funding, but the founder and chief executive told CNBC that most of the growth is organic. In his words, something like 25% came from acquisitions.
The report also highlighted that companies are incorporating socialization into the experience itself. Hyrox, a competition that combines running and functional exercises, partnered with the Surf Dating app for a doubles blind date feature. Surf also distributes bracelets to singles at events and promotes parties after the races.
Alcohol has not left the scene. Volo has partnerships with bars, and Diplo's festival had cocktail stands. For CNBC, the change may be more linked to when and how people socialize than to drinking itself.
What does this mean for the market
In the report's assessment, the displacement creates opportunities for league operators, race organizers and businesses that serve the public before and after events. For those who follow the consumer market, the relevant data is the migration of spending between categories within a generation, and not necessarily a general drop in social consumption.
CNBC did not present revenue or valuation projections for the companies mentioned, so the financial dimension of the sector is still uncertain. According to the broadcaster, for many of these young people the main return is having a reason to attend and people to meet again.
Automatically translated from Portuguese.
