Corporate Wellness Market is expected to expand at a high CAGR of 9% from 2018 t
Posted by Aniket Ankushrao on July 3rd, 2019
The global corporate wellness market was valued at US$ 29,266.9 Mn in 2017 and is expected to expand at a high CAGR of 9% from 2018 to 2026, to reach an estimated value of US$ 61,690.9 Mn by 2026, according to a new report published by Transparency Market Research (TMR) titled “Corporate Wellness Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.” The report suggests that the rise in awareness about health and wellness among employers and employees across the globe is likely to drive the global corporate wellness market from 2018 to 2026.
North America and Europe are expected to dominate the global corporate wellness market, in terms of revenue, during the forecast period. Factors such as high health care expenditure and availability of a wide range of providers of corporate wellness services boost the corporate wellness market in these regions. The market in North America is expected to register the highest growth rate of more than 11% during the forecast period. The corporate wellness market in Asia Pacific is expected to register the second-highest growth rate of more than 9% during the forecast period. The corporate wellness markets in Latin America and Middle East & Africa are likely to expand at a sluggish growth rate during the forecast period.
Rise in the Number of White-collar Employees and Increase in Private Sector Capital Expenditure to fuel the Market
Government support for corporate wellness programs has increased along with rise in health concerns among people with chronic conditions such as obesity and diabetes. A federal legislation has also sought to cut escalating health care costs. A provision in the 1996 HIPAA (Health Insurance Portability & Accountability Act) offers employers to reduce the cost of health insurance premiums for employees practicing health-promoting activities. The provision has provided up to 20.0% of reduction in the employees’ regular premium cost. White-collar employees include managers, government employees, professionals, and salespersons. The number of service sector employees is expected to increase in the next few years. This is likely to drive the global corporate wellness market during the forecast period. The number of industry operators is expected to increase at a rate of 3.2% per annum to reach 549 operators from 2016 to 2020. This, in turn, is projected to increase the number of white-collar employees in the near future, for whom companies would be taking up corporate wellness programs.
Health Risk Assessment and Fitness projected to be Highly Lucrative Service Segments
The health risk assessment segment accounted for a major market share in 2017. It is likely to dominate the global corporate wellness market during the forecast period, due to rise in awareness among employers, increase in the incidence of chronic diseases, and surge in the spending on health care. Fitness is projected to be the second-most lucrative service segment by the end of the forecast period, due to rise in the incidence of chronic diseases in a majority of developed and developing countries such as the U.S., China, Japan, Germany, and Australia. Fitness programs have gained significant popularity in the last few years, due to rise in awareness and government initiatives for promoting workplace fitness. Fitness programs are designed to provide employees with the risk score or rating or reference to a doctor. They are designed to address weight loss, healthy eating, or general fitness. The fitness segment is likely to hold a major share of the global corporate wellness market during the forecast period. The segment is expected to witness strong growth from 2018 to 2026, due to rising awareness about health and well-being among employees, increasing prevalence of obesity, and willingness of employers to implement corporate wellness programs.
Nutrition and Weight Management Service Segments estimated to register the Highest CAGR
Weight management programs incorporate healthy diet, exercise, and changes in lifestyle. Every employee is provided with a personalized plan to help meet individual goals and reduce chances of developing serious health issues such as diabetes, cardiovascular diseases, or high cholesterol. Making the right food choices helps prevent chronic diseases and conditions including diabetes, cancer, heart diseases, and obesity. Hence, it is important to organize nutrition sessions that provide a diet plan or a chart that helps employees stay healthy and improves their productivity. Nutrition plays an important role in maintaining health of an employee. Hence, corporate wellness programs focus on providing nutrition services to clients. Several corporate wellness companies are helping businesses expand by offering on-site fitness facilities.
North America projected to be a Highly Lucrative Market for Corporate Wellness
North America is expected to dominate the global market between 2018 and 2026, due to rise in the number of white-collar employees and favorable regulatory environment for businesses in the region. The market in North America is primarily driven by factors such as rise in the adoption of corporate wellness services, surge in health care costs, increase in the incidence of chronic disorders, and rise in investments in corporate wellness. In addition, highly penetrated corporate wellness market, availability of diversified corporate wellness services, and well-defined health care policies of private and public health insurance firms boost the corporate wellness market in the region. The U.S. holds a major share of the market in North America, owing to increasing adoption of new services for corporate wellness and high awareness among employers in the country. Thus, favorable rules and regulations and presence of several providers of corporate wellness services are expected to have a positive impact on the corporate wellness market in North America in the near future.
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Trend of Increase in the Number of New Entrants in the Local Market observed in the Last Few Years
The corporate wellness market is highly fragmented with presence of several, small-scale and large-scale providers of corporate wellness services. This report provides profiles of leading players operating in the global corporate wellness market. These key players are EXOS, ProvantHealth (Hooper Holmes, Inc.), Wellness Corporate Solutions, ComPsych Corporation, Optum, Inc. (United Health Group), Sodexo, BupaWellness Pty Ltd (BupaGroup), JLT Australia (RecovreGroup), Central Corporate Wellness, TruworthWellness, CXA Group Pte. Limited, and SOL Wellness. The global corporate wellness market is fragmented with presence of several local players that operate at a country level. Hence, no major players with strong geographical presence operate in the global market.
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About the AuthorAniket Ankushrao
Joined: June 26th, 2019
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