Global Corporate Wellness Market Size (2023 - 2030)

In 2022, the Global Corporate Wellness Market was valued at $60.1 billion, and is projected to reach a market size of $103.49 billion by 2030. Over the forecast period of 2023-2030, market is projected to grow at a CAGR of 7.03%. The rising prevalence of chronic diseases, growing awareness about stress management, increasing investment in stress management programs, and the rising dominance of Artificial Intelligence and wearable technologies are some factors majorly driving the market growth.

Corporate wellness programs consist of a set of programs, policies, health promotion strategies, and benefits to address multiple risk factors and health conditions and encourage the health and safety of employees. These programs can include a wide range of facilities such as weight management, nutrition & dietary facilities, fitness services,  stress management activities, health screening, and smoking cessation sessions. Large and medium-scale organizations are offering mindfulness workshops, gym services yoga sessions, nap rooms, and wearable health trackers, among others to enhance employee productivity through such initiatives. These programs help in improving employee retention, organizational culture, and the worksite environment. Under corporate wellness programs, employees are encouraged to practice a healthy lifestyle and support companies to enhance their productivity and cut healthcare costs, by eventually enhancing employee wellbeing. Healthy employees tend to spend less on health care and take fewer sick days to give more productive output. The global corporate wellness market is mainly driven by the rising prevalence of chronic diseases caused by sedentary lifestyles, high-stress levels, unhealthy dietary patterns, and overexposure to digital screens. Moreover, increasing organizational awareness concerning employee health and wellbeing is propelling the market growth. Corporations are adopting virtual ways to connect employees with psychologists or health coaches. In addition, the implementation of supportive government policies along with the launch of insurance plans promotes public health and contributes to market growth. 

MARKET DRIVERS:

Growing awareness about stress management along with increasing investment in stress management programs are boosting the market growth

The working-class population tends to take the stress which adversely affects their physical and mental health. The increased stress issues have created the need for mental health management of the employees resulting in increased demand for wellness programs by the organizations. The corporate wellness program also offers services like weight management, food & nutrition, stress management, etc. Manufacturers in the global corporate wellness market are focusing on offering high-quality services to improve the overall health and wellbeing of employees. Corporate wellness programs help in reducing the total healthcare expenditure and improving the productivity of employees. Therefore, this fuels the demand for health products and services in the global corporate wellness market.

The growing prevalence of chronic diseases is fuelling the need for corporate wellness programs

The growing prevalence of chronic diseases is boosting the need for corporate wellness programs to reduce employee healthcare costs. In today's hectic work culture, people do not have enough time for mental and physical activities after work, which is leading to various health problems. Organizations are increasingly implementing wellness programs to increase the efficiency of employees to achieve the organizational goal. Corporate wellness programs are significant for a holistic approach for employees and employers to bring out the optimal output and maintain the well-being of the work culture.

The rising dominance of Artificial Intelligence and wearable technologies is bolstering the market growth

The emergence of personalized solutions to cater to employees' well-being through AI is driving the growth of the global corporate wellness market. Several companies are adopting artificial intelligence solutions to maintain employee interaction involving human touch points, creating a detailed profile of workers in real-time to help them scale up wellness plans without relying much on human resources. AI-enabled services identify patterns, predict real health problems or statistics, and plan a strategy to combat health and well-being issues. Hence, the growing adoption of AI solutions and wearable technologies is significant for the market growth.

MARKET RESTRAINTS:

Budgetary constraints in organizations can limit the adoption of corporate wellness programs, thus, negatively affecting the market growth

The occupational health policies come with a huge cost for the various health and wellness programs. Companies may set up gyms that require regular maintenance of equipment and involves high costs to hire professionals and trainers, which increases the operational cost of the organization. Huge cost associated with such initiatives has to be borne by the organization which can limit corporate wellness programs, especially in medium and small-scale organizations. Many businesses lack the financial resources to initiate such programs.

Low awareness about the corporate wellness programs and a dearth of skilled professionals can restrain the market growth

Many employees are unaware of health programs offered by their company due to communication gaps. Also, many individuals are unaware of the benefits of corporate wellness programs and show little enthusiasm for participating in them. Employers need to provide employees with all of the specifics and relevant information about corporate wellness programs to ensure that employees are availing of such services. Employees need to be informed about the purpose, and potential rewards, to be encouraged to participate. In addition, the shortage of qualified and skilled professionals in these professions can be a challenge. As per the Health Resources and Services Administration, the number of adult psychiatrists in the US is likely to fall by 20% by 2030. In emerging countries, the dearth of mental health experts for corporate wellness programs can limit the market progression.

Concerns about the employee data breach can negatively affect the corporate wellness market

Corporate wellness programs deal with concerns related to data privacy and healthcare data breach. The employees participating in such programs provide their data and health-related information. Additionally, fitness trackers and various digital gadgets are prone to hacking as these devices usually have minimum data security features and can be hacked by cybercriminals. Corporate wellness providers are concerned about their customers and thus, focus on collaboration with cybersecurity companies to avoid the breach of their customer's personal and medical information.

GLOBAL CORPORATE WELLNESS MARKET REPORT COVERAGE:

Segmentation Analysis

Corporate Wellness Market – By Service:

• Fitness

• Health Risk Assessment

• Nutrition & Weight Management

• Stress Management

• Health Screening

• Smoking Cessation

Based on Service, the Corporate Wellness Market is categorized into Fitness, Health Risk Assessment, Nutrition & Weight Management, Stress Management, Health Screening, Smoking Cessation, and Others. The Health Risk Assessment segment dominates the corporate wellness market. Corporate wellness programs primarily include screening activities to detect health risks and implement appropriate strategies to promote a healthy lifestyle among employees. Nearly 80% of the employers providing employee well-being services, go for health risk assessment solutions for their employees. The Stress Management segment is anticipated to register the fastest growth rate over the forecast period owing to the increasing work stress among the employees. Stress management programs help employees in managing their office along with their personal life. The high prevalence of extended work hours, work pressure-related issues, and heavy workloads create physical and mental repercussions, including hypertension, heart attacks, and instability among the employees. The employees continuously work under a lot of pressure and excessive work demands with the rising competition. As per the American Psychological Association's 2021 Work and Well-being Survey conducted on 1,501 United States adult workers, it was found that 79% of employees had felt work-related stress in the month before the survey. Hence, the increasing cases of stress fuel the requirement for mental health management.

Corporate Wellness Market – By Category:

• Fitness and Nutrition Consultants

• Psychological Therapists

• Organizations/Employers

Based on Category, the Corporate Wellness Market is segmented into Psychological Therapists, Fitness and Nutrition Consultants, and Organizations/Employers. The Organizations/Employers segment dominated the market with the largest revenue share of 50.3% in 2021. The service providers offer outsourced as well as in-house health management services for corporations. The trend of on-site fitness, including yoga and meditation, is gaining popularity. The Fitness and Nutrition Consultants segment accounted for a 25.5% revenue share in the corporate wellness market in 2021. Fitness consultants facilitate customized exercise programs to help a diverse group of people. The nutrition consultant reviews the clients eating habits and prosperity goals to suggest a meal plan and guide the client on proper nutrition to prevent certain diseases.The Psychological Therapists segment contributed 15.9% revenue share in the global corporate wellness market in 2021. Psychological therapists help individuals by managing the general emotional unrest and illness.

Corporate Wellness Market – By Delivery:

• Onsite

• Offsite

Based on Delivery, the Corporate Wellness Market is categorized into Onsite and Offsite. The Onsite corporate wellness segment dominated with the largest revenue share of 57% in 2021. Onsite wellness initiatives offer employee well-being, along with the guidance of fitness coaches to meet personal health needs. Several organizations have added benefits and insurance plans to meet the health needs of employees and their families. Service providers are spreading awareness among employees concerning unhealthy aspects related to work pressure.

 Corporate Wellness Market – By End User:

• Small Scale Organizations

• Medium Scale Organizations

• Large Scale Organizations

Based on Delivery, the Corporate Wellness Market is categorized into Small Scale Organizations, Medium Scale Organizations, and Large Scale Organizations. The Large-Scale Organizations segment dominated with the largest revenue share of nearly 52.8%. Large organizations can implement programs and services in their organization infrastructure while small-scaled organizations can benefit from outsourcing the services and corporate memberships. Regular health screening programs are conducted to keep a check on employee health, promote preventive care, and reduce treatment costs. Corporate wellness programs can reduce the disease burden along with reducing the overall cost of healthcare premiums paid by the employer to the insurance provider.

Corporate Wellness Market - By Region:

• North America

• Europe

• Asia-Pacific

• Rest of the World

Geographically, the North American Corporate Wellness market accounted for the largest revenue share of more than 42% in 2021 in the global corporate wellness market. As per the RAND employer survey, about 50.0% of the employers in the U.S. provide employee wellness programs. Several market players are implementing strategic initiatives. For instance, Peloton Interactive Inc. launched a corporate wellness program to grow its membership base in June 2021. Wayfair, SAP, Samsung, and Sky are among the businesses to join the program. Similarly, in August 2021, TRX launched TRX for Employee Wellbeing to expand its footprint in the corporate wellness market. The growing corporate businesses in the region coupled with rising awareness among the corporate owners about their employee’s health benefits are key factors driving the market growth. The Harvard Business School stated that American companies have minimized their medical expenses by USD 3.27 for each dollar spent on the wellness programs. This encourages employers to implement corporate wellness programs in their organizations to get maximum benefits in terms of return on investment.The European Corporate Wellness Market is anticipated to exhibit significant growth during the forecast period. This can be attributed to the increasing prevalence of chronic diseases, increasing awareness regarding mental well-being, increasing healthcare expenditure, and rising government initiatives in the region. Furthermore, an increasing number of start-ups for corporate wellness programs further drives the growth of the market in this region.

The Asia Pacific Corporate Wellness Market is poised to witness impressive growth during the forecast period. Factors such as growth in the working population in the Asia Pacific region, an increase in the number of cases of chronic diseases and stress disorders, and growing awareness about the health management of employees are contributing to the growth of the corporate wellness market in the region.The Corporate Wellness Market in Latin America, the Middle East, and Africa is anticipated to account for the least share of the global market. The corporate wellness market in these regions has been witnessing significant improvement in economic performance owing to the increasing working population in the region.

Major Key Players in the Market:

1. ComPsych

2. Central Corporate Wellness

3. EXOS

4. Marino Wellness LLC

5. Privia Health

6. Sodexo

7. Quest Diagnostics

8. SOL Wellness

9. Truworth Wellness

10. Virgin Pulse

11. UnitedHealth Group

12. Wellness Corporate Solutions LLC

13. Wellsource Inc.

The corporate wellness market is expanding with the increase in corporations focused on including in-house employee wellness services. In the U.S.., over 550 corporates are providing employee wellness programs in their organizations. Key industry participants are focusing on market expansion to cater to and accommodate larger employee groups.

COVID-19 pandemic impact on Corporate Wellness Market

The COVID-19 outbreak had a severe impact on the mental health of employees. The pandemic led to the work-from-home transition resulting in a great deal of stress among employees owing to the feeling of isolation. Moreover, the COVID-19 pandemic hit the economy and led to a financial crisis for many individuals which affected their mental health.

Corporate wellness service providers are adopting virtual ways to offer services including meetings with health coaches and psychologists. The COVID-19 pandemic has shifted employers' focus to preventive management by helping employees adapt to new standards. People with chronic diseases, such as diabetes, heart disease, high blood pressure, and cancer are among the most at-risk groups for coronavirus infection and complications. This has created health consciousness in workplaces and prompted many employees to pay closer attention to their health.

In September 2020, a survey titled, "Polarized perceptions of corporate health and wellness, Aetna International survey results" by Aetna International, implied that 74% of employees' productivity was affected by poor mental health since the onset of the COVID-19 outbreak. This significantly reflected the need for effective health and wellness programs at workplaces. Therefore, the initiation of wellness programs at workplaces became a major priority for employees to feel safe amid the pandemic. Moreover, several companies are introducing fitness programs to make individuals feel connected while working at home. For instance, in February 2022, GYMGUYZ, a leader in in-home, onsite, and virtual personal training, announced its plan to expand its corporate wellness services. The company aims to deliver its corporate wellness services in-home along with onsite at corporate locations. Such developments are anticipated to have a positive impact on market growth. Many activities relying on in-person attendance such as health fairs and screenings, educational classes, gym memberships, and fitness classes, among others were curtailed by workplace closures or cost-cutting measures by the company. The companies make it mandatory to avoid absenteeism and to sustain a healthy working environment in the companies.

Notable happenings in the Global Corporate Wellness Market in the recent past:

• Expansion-In February 2022, Quantum CorpHealth Pvt Ltd, a health tech company, opened three new offices in India to meet the country's rapidly growing need for health and wellness services for corporate employees.

• Product Launch- In January 2021, UnitedHealth Group announced the launch of virtual primary care for employee wellness and chronic condition management.

• Acquisition- In February 2021, LifeWorks, Inc. acquired SMG Health Pty. Ltd. through its LifeWorks Business to expand the company’s offerings in Australia.

• Product Launch- In April 2021, Workplace Options unveiled its specialized program, Revive, to help employees experiencing burnout through live counseling sessions.

• Collaboration- In May 2021, Bassett Healthcare Network collaborated with Optum to expand its clinical and operational performance further and deliver convenient, high-quality, and affordable health care in Central New York.

• Acquisition- In February 2020, Anthem, Inc. announced the acquisition of Beacon Health Options an independently held behavioral health organization, to integrate the company’s behavioral health capabilities with Beacon Health’s support services.

• Product Launch- In May 2020, Sodexo announced the launch of "rise with Sodexo," a program aimed to meet the health, operational, and confidence challenges of its clients caused by the global COVID-19 pandemic.

• Product Launch- In June 2020, Virgin Group Ltd. announced the launch of VP Passport, a unified engagement platform offering employer-configurable monitoring tools, live support, and partner solutions to assist in a safe return to the workplace.

• Product Launch- In December 2020, Mindhouse announced the launch of Wellness Labs, a shared learning platform for senior HR professionals focused on transforming work environments during and post- covid pandemic.