The wellness industry has been experiencing explosive growth over the past few years, emerging as one of the most rapidly expanding markets globally. Valued at over $4.5 trillion in 2018, the wellness economy encompasses sectors like wellness tourism, fitness, nutrition, beauty, healthy eating, and more. With rising consumer demand for health-conscious products and services, the industry is projected to continue its robust growth.
Fastest Growing Wellness Industry
The wellness industry refers to the aggregation of sectors that enable consumers to incorporate wellness activities and lifestyles into their daily lives. It encompasses industries like wellness tourism, fitness, nutrition, preventative and personalized health, beauty, healthy eating, mindfulness, and more.
The core focus is on proactively promoting health and wellbeing rather than reactively treating illnesses. As a result, the wellness economy has been thriving with the rising consumer interest in maintaining health, reducing stress, and enhancing quality of life.
Over the past few years, the industry has experienced explosive growth globally. The wellness market was valued at $4.5 trillion in 2018. It is projected to reach nearly $7 trillion by 2025, representing a growth rate of over 7% annually from 2015-2025.
Market Size and Projected Growth
The wellness industry has expanded at a brisk pace of 6.4% annually from 2015-2017, more than twice the global economic growth. This pace of expansion places wellness among the most rapidly growing worldwide markets.
In 2018, the global wellness economy was valued at a whopping $4.5 trillion. Of this, $179 billion was from wellness tourism, $595 billion from wellness lifestyle real estate, $773 billion from preventative and personalized health, and $828 billion from healthy eating, nutrition and weight loss.
The industry is projected to continue its upward trajectory, further expanding at a CAGR of 7% from 2015-2025. By 2022, the global wellness market is expected to reach nearly $6 trillion. And by 2025, it is forecasted to grow to $7 trillion.
The sectors that are poised for the highest growth rates include wellness lifestyle real estate at 7.5%, the spa industry at 8%, and wellness tourism at 9%. Workplace wellness, preventative and personalized health, and public health are also expected to experience above-average growth.
Key Drivers of Wellness Industry Growth
Several factors are fueling the rapid growth of the wellness industry worldwide:
Consumer Demand and Societal Forces
With rising health consciousness, consumers are seeking out products and services that enhance wellbeing and quality of life. There is increasing awareness of the role of preventative health in reducing medical costs and disease burdens down the line.
Life expectancy has also risen, leading to an aging population looking to extend healthy life. Further, faced with high levels of chronic disease and stress, consumers want solutions that address these lifestyle issues.
Technological, Social, and Environmental Changes
Advances in technology are enabling consumers to easily access health data and the plethora of wellness offerings. The rise of social media also allows people to connect with wellness influencers and communities.
Meanwhile, environmental degradation is motivating consumers to seek out clean living spaces, products, and organic foods. Work culture shifts also provide impetus for the wellness industry as employers begin recognizing the benefits of workplace wellness programs.
Wellness Sectors with Explosive Growth
Among the diverse range of wellness sectors, some segments are experiencing particularly explosive growth from 2015-2017:
Wellness Real Estate
The wellness real estate sector expanded at a CAGR of 6.4% from 2015-2017. It was valued at $134 billion in 2017 and is expected to reach $197 billion by 2022.
Demand for homes designed with wellbeing in mind is rising. Consumers want residences that promote healthy living through amenities like fitness facilities, natural lighting, air purification systems, communal green spaces, and more.
Mental Wellness Market
Fueled by the pandemic’s psychological toll, the mental wellness sector grew at a robust CAGR of 5.5% from 2015-2020. The market is expected to expand from $121 billion in 2020 to over $500 billion by 2030.
From meditation apps to online counseling and mentorship programs, consumers are seeking various avenues to reduce stress and enhance mental wellbeing.
Regional Market Insights
While wellness is a global phenomenon, some regions currently dominate the market:
United States
Accounting for over a third of the global wellness market, the United States is the largest market worldwide. In 2020, the US wellness economy was valued at $1.5 trillion.
Wellness tourism and workplace wellness are top performing sectors here. The US is also the world’s largest wellness tourism destination.
China
China has the world’s second largest wellness market, valued at $683 billion in 2020. The market here focuses on healthy eating, fitness, and personal care.
Despite being severely impacted by the pandemic, China’s wellness economy has rebounded quickly with increasing consumer demand.
Other Key Markets
Europe, Australia, Japan, South Korea, Brazil, Indonesia are other sizeable wellness markets with high growth potential in the coming years.
Specific regions with strong wellness tourism industries include the Asia-Pacific, Middle East, Nordic nations, and Latin America. Countries like India, Vietnam, Malaysia, and the Philippines are emerging as wellness tourism destinations.
Top 10 Wellness Trends for 2023
Wellness trends keep evolving each year as new innovations emerge and consumers explore different avenues for health. Here are the top wellness trends predicted for 2023:
- Mental wellness – With the pandemic’s psychological impact, services for stress, sleep, burnout, loneliness, and more will rise. Meditation, breathwork, life coaching, and mentorship programs will gain popularity.
- Outdoor activities – Outdoor sports like cycling, hiking, and open water swimming aligned with nature will grow as people seek safe wellness activities.
- Wellness sabbaticals – Longer wellness retreats and sabbaticals will become more common as people take time off to focus on self-care.
- Healthy meal delivery – Plant-based, organic, and nutritionist-designed meals will be increasingly delivered to homes as healthy eating rises.
- Epigenetics – Personalized health plans based on individual epigenetics will expand as people seek customized wellness solutions.
- Medical spas – Hybrid clinics offering both medical and spa treatments will continue growing in popularity for health, beauty, and anti-aging.
- Respiratory health – Air purifiers, lung-health supplements, breathing classes will trend as respiratory health gets attention post-COVID.
- Purposeful travel – Wellness retreats, eco-tourism, meaningful experiences will define travel rather than typical sightseeing.
- Financial wellness – Financial literacy, counseling, and debt management services will rise as money stresses affect wellbeing.
- Biohacking – Using technology like sensors and DNA testing to optimize health and performance will increase.
Industry Market Segments
The wellness industry encompasses diverse market segments focused on various health aspects. Key segments include:
Health and Wellness Food
Accounting for the majority share of the wellness market, the health food segment was valued at over $700 billion in 2020. This includes organic, locally sourced, plant-based, and functional foods.
The market is expected to rise at a CAGR of over 5% through 2027 with increasing demand for clean, sustainable eating.
Fitness and Mind-Body Wellness
Yoga, pilates, indoor cycling, and wearable fitness technology are part of the booming fitness segment. This market was valued at around $600 billion in 2020 and is projected to grow 6% annually.
Preventative and Personalized Health
Genetic testing, wellness screening, personalized nutrition, and digital health are part of this over $500 billion segment. Rising chronic illnesses and focus on preventative care contribute to growth.
Beauty and Anti-Aging
The natural beauty and cosmetics market focusing on wellness prioritizes clean, sustainable ingredients and ethical production. This segment was valued at over $1 trillion in 2020, demonstrating the convergence of beauty and wellness.
Public Health and Wellness
Public health initiatives by governments and health systems to improve wellbeing make up this segment. It was valued at around $300 billion globally in 2020.
Wellness Tourism
Wellness retreats, luxury spas, yoga getaways, and fitness bootcamps fall into this travel sector estimated at $250 billion in 2020. It is one of the rapidly expanding tourism markets.
Consumer Behavior and Spending
Consumers worldwide are allocating growing shares of discretionary income to wellness products and services. Key consumer behaviors include:
- Globally, consumers spend over $4.5 trillion on wellness each year. Wellness now represents over 5% of total consumer spending.
- On average, people spend between $200-$800 per month on wellness-related expenses like gym memberships, healthy food, vitamins, streaming workouts, massage therapy, and more.
- Surveys find consumers are willing to pay premium prices for foods, supplements, and experiences perceived as healthy. Products positioned as wellness boosters garner interest.
- High-income households especially have embraced wellness spending. The wealthy devote lavish sums to wellness travel, fitness training, and leading wellness brands.
- While premium wellness attracts the affluent, budget-friendly options are also rising to target middle and lower-income consumers.
- Many consumers have shifted budget away from retail, apparel, and general travel towards wellness products and experiences.
- Per capita wellness expenditures are highest in North America, Western Europe, and the wealthiest Asia-Pacific countries like Japan and South Korea.
- With online wellness opportunities booming, consumers are spending more time and money on digital fitness apps, telehealth, meditation, and nutrition programs.
Challenges and Risks Facing the Wellness Industry
Despite optimistic growth forecasts, some risks and challenges stand to hinder the wellness industry:
Affordability
For lower-income groups, the high costs of services like gym memberships, healthy diets, and counseling limit access and equity. There is a need for affordable wellness.
Greenwashing Claims
As consumers seek ethical wellness goods, some brands use misleading claims about sustainability and natural ingredients for profits. This practice needs regulation.
Workplace Wellness Limitations
While worksite wellness programs are growing, participation rates remain low. Programs must be sensitive to diversity factors like race, gender, age, and medical needs.
Consumer Skepticism
Exaggerated promises and pseudoscience claims have made some consumers skeptical towards the wellness market’s efficacy and authenticity. Trust must be built.
Tourism Disruption
Global events, pandemics, climate change, and geographic conflicts can severely disrupt tourism flows including wellness travel.
Economic Conditions
Recessions depress consumer spending and tighten business investments. An economic downturn could slow wellness industry growth.
Future Opportunities and Trends
Despite challenges, the future looks promising for the wellness economy based on emerging opportunities and trends:
Preventative Health Adoption
With more insurers covering preventative wellness initiatives, adoption of services like screening tests, digital trackers, nutrition advice, and immunizations will rise.
Expanding Wellness Tourism
New wellness tourism hubs are developing across the world, expanding beyond traditional destinations like Thailand, India, and Costa Rica. This will benefit the travel industry.
Workplace Wellness Integration
To attract talent and reduce absenteeism, more employers are expected to incorporate wellness programs covering mental health, chronic illness management, fitness, and nutrition.
Home Health and Wellness
As people spend more time at home, demand will climb for products like air purifiers, ergonomic furniture, immunity boosters, and home gym equipment that promote wellbeing in residential settings.
Telehealth and Digital Wellness Growth
Virtual health and wellness services will likely continue rising in popularity given their convenience and COVID-driven adoption. Digital wellness enables access to consumers worldwide.
Nutrition Advancements
With innovations in food science, personalized nutrition, supplements, and processing, consumers will have more options to customize diets for their wellness needs and goals.
Impact of the COVID-19 Pandemic
The COVID-19 pandemic has had a dual impact on the wellness industry:
Accelerated Growth
Seeking protection against COVID and associated stresses, consumers spent more on sectors like immunity supplements, home workouts, meditation apps, and telehealth in 2020. This accelerated wellness industry growth.
Shifts in Consumer Behavior
Shelter-in-place orders and fears of infection dramatically changed habits. For example, demand rose for home fitness equipment and live-stream workouts as gyms closed. Virtual wellness offerings boomed.
While COVID-19 has devastated industries like restaurants and tourism, it has propelled people to prioritize self-care and adopt digital wellness solutions. These lasting behavioral shifts will profoundly benefit the wellness industry long after the pandemic retreats.
Regional Market Analysis
Here is a brief analysis of leading regional wellness markets:
North America
North America accounts for over one-third of the global wellness market, driven by the United States. This region focuses heavily on preventative health, beauty, anti-aging, and fitness.
High disposable incomes contribute to consumer ability to spend lavishly on premium wellness offerings. Workplace wellness is also well-established here.
By 2025, the North American wellness market will likely surpass $1 trillion, retaining its dominance.
Asia Pacific
Rising incomes in Asia Pacific have allowed its middle class to embrace wellness. China, Japan, and Australia are key markets.
Asia Pacific consumers favor more traditional modalities like tai chi, spa therapies, yoga, and Ayurvedic medicine. Wellness tourism expands here.
Europe
With large regional markets like Germany and the UK, Europe represents around one quarter of the global wellness industry. Europeans prioritize healthy cuisine, mindfulness practices, workplace wellness, and fitness activities.
Latin America
While smaller than other regions, the Latin American wellness industry is quickly evolving with enthusiasm for yoga, fitness, and spa tourism. Mexico, Brazil, and Costa Rica are major markets as economic growth enables wellness spending.
Middle East
The Middle East is a top destination for wellness tourism centered around lavish spas and spiritual retreats. Rising health awareness is also driving wellness adoption in the United Arab Emirates, Saudi Arabia, and elsewhere in the region.
Market Segments and Product Offerings
Here are some of the diverse market segments within the wellness industry along with key product and service offerings:
Healthy Eating, Nutrition, and Weight Loss
This is the largest wellness market segment, boosted by demand for organic, natural, plant-based, and functional foods. Top products include:
- Organic produce and packaged foods
- Grass-fed meats
- Plant-based protein like tofu and beans
- Nutritional supplements like vitamins and probiotics
- Healthy meal delivery services
- Detox cleanses
- Weight loss programs and products
Personal Care and Beauty
Consumers seek ethically produced, natural skincare and cosmetics. Offerings include:
- Natural moisturizers, creams, serums with botanical ingredients
- Organic and cruelty-free makeup and haircare
- Essential oil-based perfumes
- Massage oils and aromatherapy
- Eco-friendly skin and hair treatments at spas
- Infrared saunas
Physical Activity and Fitness
From boutique studios to home workouts, options abound to stay active. Key offerings are:
- Gym memberships with high-tech equipment
- Yoga, Pilates, Zumba, and dance studios
- Personal training and bootcamps
- Digital fitness programs and wearables to track activity
- Active travel like biking tours or hiking retreats
Preventative and Personalized Health
Consumer demand is rising for customized and preventative care:
- DNA testing to identify health risks
- Precision medicine based on genetics
- Health screening tests
- Telehealth consultations
- Biometric trackers
- IV vitamin therapies
Wellness Tourism
Destinations and retreats cater to wellness travelers through:
- Yoga, meditation, and spiritual retreats
- Spa getaways with massage, hydrotherapy, etc.
- Bootcamps and fitness holiday packages
- Healthy cuisine getaways
- Nature and adventure wellness travel
Spas
Spas offer pampering treatments and healing modalities like:
- Massage therapy
- Skin and body treatments
- Hydrotherapy
- Acupuncture
- Meditation and relaxation spaces
Workplace Wellness
Employers provide wellness benefits including:
- Onsite fitness studios and gym discounts
- Health screenings and flu shot clinics
- Meditation spaces
- Standing and treadmill desks
- Healthy snacks and cafeteria food
- Yoga and stress management workshops
- Ergonomic office furniture
Consumer Wellness Priorities and Spending
Surveys consistently find the following wellness priorities influencing consumer spending:
Healthy Eating
Nutrition is foundational to wellness. Consumers spend on fresh, organic, local, and unprocessed foods that offer functional benefits like immunity and energy. Plant-based diets are especially popular.
According to Nielsen, healthy food sales grew over 10% in 2020. Organic food sales rose 12.8% as consumers sought quality.
Mental Wellbeing
Seeking relief from pandemic-driven isolation and anxiety, consumers are buying mindfulness apps, life coaching services, journals, meditation tools, and therapy.
Mental wellness spending is expected to rise in coming years with services like counseling becoming more accessible and stigma decreasing.
Physical Fitness
Gyms, boutique fitness studios, and home workout programs remain popular avenues for consumers to get in shape and relieve stress through physical activity.
During peak COVID gym closures in 2020, sales of home fitness equipment surged 170% as consumers created home gyms. Now as studios reopen, both in-person and digital fitness are seeing high demand.
Fitness tracker device sales are also rising as consumers monitor health data. The wearables market is forecast to grow nearly 15% by 2027, indicating the tech fitness trend will continue.
Sleep Health
Quality sleep is increasingly recognized as imperative to wellbeing. Consumers spend on solutions that improve sleep like:
- Mattresses, pillows, and bedding promoting ergonomic alignment and comfort
- Soothing sleep aids like weighted blankets, essential oil diffusers, and meditation apps
- Light therapy lamps and blue light-blocking glasses to optimize sleep rhythms
- Sound machines and sleep headphones to create relaxing environments
The global sleep health industry size already exceeds $85 billion and is estimated to rise at a CAGR of 9% through 2026 as sleep tech innovations emerge.
Appearance and Anti-Aging
Seeking to preserve youthful looks and age gracefully, consumers spend billions each year on skincare, cosmetics, treatments, and plastic surgeries.
Top-selling products include:
- Anti-aging moisturizers, serums, creams with antioxidants and peptides
- Botox and dermal filler injections
- Laser skin resurfacing and tightening
- Face lifting and eyelid surgeries
- Sun protection clothing, hats, and SPF products
The global anti-aging market is projected to reach nearly $330 billion by 2028, demonstrating consumer emphasis on appearance.
Complementary Wellness Approaches
Practices like massage, acupuncture, and Ayurveda are becoming more mainstream. Consumers spend on:
- Massage therapy at spas, studios, or via mobile services
- Acupuncture and traditional Chinese medicine
- Ayurvedic treatments and herbal supplements
- Aromatherapy, essential oils, and incense
- Energy healing like reiki
- Colonic hydrotherapy
- Cupping and gua sha tools
The complementary wellness market will likely grow at over 9% CAGR through 2027 with increasing consumer adoption.
Telehealth and Digital Wellness
Virtual services boomed during COVID-19. Consumers spend on:
- Telehealth consultations with physicians
- Mental health counseling and coaching via phone or video chat
- Digital therapy and meditation apps
- Online fitness classes, training programs, and video subscriptions
- Health and wellness content subscriptions
As telehealth becomes reimbursed by more insurance plans, adoption will likely continue rising. The global telehealth industry is projected to expand by nearly 30% through 2028.
Meanwhile, the digital wellness sector should grow 17% by 2027 as remote options keep gaining traction.
Conclusion
Fueled by consumers’ growing desire to enhance quality of life and wellbeing, the global wellness industry has emerged as a thriving and resilient market. It encompasses diverse segments catering to modern priorities like preventative care, healthy nutrition, wellness travel, beauty and anti-aging, fitness, and more.
While the United States and Asia currently lead the market, wellness is a truly global phenomenon with spending rising across developed and developing regions.
Driven by0004 technological, environmental, and workplace changes, along with increased health consciousness, the wellness economy is forecast to continue robust growth in the coming years. It is expected to reach nearly $7 trillion by 2025.
Within the industry, sectors like wellness tourism, workplace wellbeing, spas, and mental health are predicted to be leading growth segments. Meanwhile, consumers are shifting budgets towards emerging industries like wellness real estate, medical spas, epigenetics, sleep health, and more.
Despite some lingering hurdles like affordability barriers and consumer skepticism, the outlook remains highly promising for businesses ready to capitalize on people’s growing prioritization of health, self-care, and wellbeing. With innovative offerings, strong branding, and high-quality products and services, wellness companies have immense opportunities to thrive.
FAQs
What is the wellness industry?
The wellness industry encompasses all the sectors promoting health, wellbeing and quality of life. This includes industries like wellness tourism, preventative healthcare, fitness, nutrition, spas, workplace wellness and more.
Why is the wellness industry growing so quickly?
Growth is driven by rising health consciousness, life expectancy, rates of chronic illnesses, workplace trends, environmental concerns, and consumers’ desire to improve wellbeing. The industry meets modern needs.
What was the global wellness market worth in 2020?
The wellness economy was valued at over $4.5 trillion in 2020. This represents 5.3% of total global economic output.
Which regions have the largest wellness markets?
North America, Western Europe, and developed Asia Pacific countries like Japan, Australia, and South Korea currently dominate the wellness market. But emerging economies are catching up.
What are the key wellness consumer spending trends?
Top priorities include healthy eating, fitness, appearance/anti-aging, sleep health, stress relief, preventative care, experiences like spas and wellness retreats, and personalized health services.
