Corporate Wellness Market - Size, Share, Outlook, and Opportunity Analysis, 2018

Posted by Rajkumar on June 22nd, 2019

Corporate wellness are programs that are conducted in corporate offices to keep the employees healthy and happy, both physically and mentally. Currently, corporate wellness programs are largely adopted by employers to promote employee health, to reduce health related costs, and to increase the productivity and quality of work. Corporate wellness programs vary in services and activities, some common programs which are largely adopted by employers include smoking cessation program to help employees to quit habit of smoking, nutrition and weight management program to help employees to manage their weight and nutrition, stress management program to reduce stress from employees’ life, and fitness programs to keep employees fit and active.

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Corporate Wellness Market Drivers

High prevalence of smoking, obesity, and overweight is expected to be a major factor which will create demand for corporate wellness programs. Therefore employers are adopting corporate wellness programs in order to make their employees’ healthy, reduce health care costs, and to increase employee’s productivity. For instance, according to the data published by Center for Disease Control and Prevention (CDC), in 2016, around 15.5% of the U.S. adults smoke cigarettes, which is around 37.8 million adults in the U.S. According to World Health Organization’s data published in February 2018, since 1975 obesity has nearly tripled globally, and it was estimated that in 2016, globally, 39% of adults aged 18 years and above were overweight and around 13% were obese. Furthermore, according to the same source, in 2016, over 1.9 billion adults (18 years and older) were overweight out of which over 650 million were obese.

In corporate offices, an employee works around 9 hours, and during this time period most employees sit continuously and are physically inactive during working hours. Hence, such physical inactivity can lead to rise in prevalence of lifestyle diseases such as diabetes, blood pressure, and others. Hence, increasing prevalence of such lifestyle diseases can increase demand for corporate wellness programs by employers to reduce absenteeism, increase work productivity, and to improve employee morale. For instance, according to the data published by Center for Disease Control and Prevention (CDC) in 2017, in the U.S. 30.2 million adults aged 18 years or older (12.2% of all the U.S. adults) were suffering from diabetes in which type 2 diabetes accounted for 90% to 95% of all diabetes cases. According to the data published by Center for Disease Control and Prevention (CDC) in January 2018, the death rate from high blood pressure increased by nearly 11% in the U.S. between 2005 and 2015, and the actual number of deaths rose by almost 38% up to nearly 79,000 by 2015.

Corporate Wellness Market Regional Analysis

North America corporate wellness market is expected to hold a dominant position in the global corporate wellness market over the forecast period, owing to increasing adoption of corporate wellness programs by corporate offices and rising health awareness among the population for living a healthy and stress free life.

Asia Pacific corporate wellness market growth is expected to exhibit high growth over the forecast period, due to increasing demand for corporate wellness program from countries such as Japan and China, where there is a rise in lifestyle diseases such as diabetes and blood pressure. For instance, according to a survey done in Japan by Health Ministry in 2016, around 10 million adults in Japan were suspected to be diabetic.

Corporate Wellness Market Restraint

Low adoption rate of corporate wellness by small scale corporate offices and new startups in emerging economies such as India and Africa is expected to be a major factor which will hinder and restrain the global corporate wellness market growth. Furthermore, low participation of employees in corporate wellness programs is also expected to hamper the global corporate wellness market growth.

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