Brazil fitness market faces tax reform and retention challenges

The fitness and sports sector in Brazil is facing a complex landscape characterized by market expansion and upcoming regulatory changes. According to the 2025 Fitness Industry Benchmarking Report from the Health & Fitness Association, the sector saw a median revenue growth of 9.9% in 2024, though member retention remains a challenge with a median rate of 66.4%.

Looking toward 2027, businesses such as gyms and sports schools must prepare for the impact of Brazil's Consumption Tax Reform, which will introduce IBS and CBS. Financial planning will need to account for these new taxes alongside existing costs like payroll, rent, equipment, and service contracts. Experts emphasize that successful management will require balancing revenue growth with operational efficiency and effective human resource management to maintain service quality.