Corporate Wellness Market

Market Overview

The global corporate wellness market size was valued at USD 55,549.50 million in 2022. It is projected to reach USD 94,649.56 million by 2031, growing at a CAGR of 6.10% during the forecast period (2023-2031). 

Corporate wellness programs consist of a collection of policies, programs, and benefits that address multiple risk factors and conditions and impact both employees and the organization. Employees are encouraged to adopt a healthier lifestyle, which ultimately improves employee well-being and helps companies increase productivity and reduce costs. Workplaces should have organizational policies or health-promoting activities that support healthy behavior and enhance the health of their employees. Corporate wellness programs are intended to support and encourage a comprehensive approach to employee welfare by fostering a culture of health inside the workplace. Wellness programs improve not only the health of the workers but also lower absenteeism and produce more motivated, productive employees, which increases overall productivity within the company. The demand for workplace wellness initiatives is rising globally as chronic illnesses become more common. So, to assist working people in leading a stress-free and healthy lifestyle, the government and private health insurance have started to offer programs.

Highlights

• Health risk assessment segment is the highest contributor to the market by service type.
• Private sector segment owns the highest market share by end-user.
• North America is the most significant revenue contributor by region.

Market Dynamics

Market Drivers

Chronic Diseases: Growing Prevalence and Early Onset

Given that many of these ailments are becoming more common, chronic diseases are a danger on a worldwide scale. Due to unhealthy and sedentary lifestyles, obesity is one of the chronic diseases that plague many nations worldwide, including many industrialized countries. For instance, according to information from the Center for Chronic Disease Prevention 2019, between 1999-2000 and 2017-2018, the prevalence of obesity increased in the United States from 30.5% to 42.4%, while the prevalence of severe obesity climbed from 4.7% to 9.2%.

Obesity is becoming more common in developing countries like Mexico. According to OECD data from January 2020, Mexico is one of the most concerning examples. Mexico's population is overweight to a degree of 73%. Additionally, the highest level of obesity occurs in 34% of those who are obese: morbid obesity. Therefore, the rising rate of obesity has had a variety of adverse effects on people's health. Their lifestyle has become more sedentary and paved the way for other chronic ailments, including diabetes and heart disease.

Market Restraint

Slow Adoption and Low Conscience

The availability of workplace wellness programs has increased, but employers and providers continue to confront significant obstacles that could make these programs unprofitable. When it comes to wellness programs, employees might need to be more interested or follow through. They might not be interested in participating, or they might not even be aware of all the wellness choices accessible to them. On the other side, some employees could erroneously believe that the only goals of wellness programs are weight loss and quitting smoking. Even in the industrialized world, workplace wellness programs encounter significant obstacles regarding employee understanding and adoption.

Even though most employers and businesses in industrialized nations provide workplace wellness programs, only some employees know about these initiatives. According to the results of the previous poll, either employees needed to be made aware of the programs offered by their employers or view them as genuine wellness initiatives. The main contributing element to this problem was a need for more creative and clear communication about what they are giving and how the programs might improve the well-being of their employees.

Market Opportunities

Reduction of Worker Healthcare Outlays

Many employers are trying to find ways to cut the expense of healthcare. The primary goals are to identify cheaper choices and motivate staff to maintain or enhance their health. Employee wellness programs are being implemented. As a result, to improve overall employee health and well-being. For instance, Alight Solutions unveiled strategies to lower the cost of employee health care in August 2018. There are various formats for corporate wellness initiatives. Most of the time, they entail educating staff members about health hazards, reducing them, and making better lifestyle choices. Employees may receive help managing current health conditions, such as high blood pressure and unhealthy behavior (such as smoking), which may be actively addressed.

Some of the fundamental measures that employers are executing include providing aid to employees who want to stop smoking and informing them where to go for medical care in various situations. A screening or assessment day, frequently done with a medical aid provider, is crucial to workplace wellness. This enables workers to discover important health data about themselves, such as their weight, blood pressure, and cholesterol levels. Counseling, dietary and exercise recommendations, and HIV/AIDS testing may be available.

Regional Analysis

The global corporate wellness market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the major revenue contributor and is expected to grow at a CAGR of 5.50% during the forecast period. The population of the United States is affected by stress, which is a significant health risk. The stress levels of Americans are among the highest in the world. Over half of Americans experience stress during the day, which is 20% more than the global average of 35%, according to Gallup's 2019 data on emotional states. According to projections from the American Psychological Association, in 2020, about 1 in 5 Americans reported that their mental health had deteriorated. Additionally, especially in the United States, younger generations are more stressed and anxious than older ones in 2020. One of the leading causes of financial loss is stress at work. 

Europe is expected to grow at a CAGR of 6.30% during the forecast period. The expenses businesses place on their employees' mental health have received significant academic research and media attention in the UK during the past ten years. Health and Safety Executive (HSE) estimates that 38.8 million working days were lost in Great Britain in 2019–20 due to work-related illnesses and non-fatal workplace accidents. Additionally, 17.9 million and 8.9 million of the days missed due to work-related disease were attributed to stress, depression or anxiety, and musculoskeletal illnesses, respectively. Each person who was afflicted missed work 17.6 days on average.

In China, corporate wellness initiatives are widely adopted to boost worker productivity and reduce the adverse effects of stress and anxiety on physical and mental health. According to the AXA Health of the Nation China 2020 Report, released in March 2020, about 70% of people thought workplace problems were to blame for these depressed emotions. Over the previous six months, over one-third of people reported having a bad mood due to a high workload or working long hours. The same source also claims that presenteeism in the workplace is slightly greater than absenteeism (from 46% to 53%), ranging from 54% to 63%. Numerous reasons may be to blame, such as work environments where employees feel unsafe or have to deal with imbalanced workloads.

Bahrain, Oman, Kuwait, Qatar, the United Arab Emirates, and Saudi Arabia are among the nations that make up the Gulf Cooperation Council (GCC). Mental health disorders are among the top 10 ailments in the United Arab Emirates, according to the Dubai Health Forum 2019. To encourage employee well-being and increase productivity, businesses in the UAE are boosting their spending on corporate wellness initiatives. Israel, Turkey, Iran, Iraq, Nigeria, Morocco, Kenya, Sudan, and other Sub-Saharan African (SSA) nations are included in the rest of the MEA. It has been noted that countries like Turkey and Israel have higher per capita incomes than Nigeria, Iran, Sudan, Egypt, and other nations in this region. Therefore, Israel and Turkey both provide promising prospects for the corporate wellness market.

Segmental Analysis

The global market is segmented by service type and end-user.

Based on service type, the global market is bifurcated into health risk assessment, stress management, smoking cessation, and others.

The health risk assessment segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.45% during the forecast period. One of the most often utilized screening methods in health promotion is a health risk assessment (HRA), which is frequently the first stage of multi-component health promotion programs. It is also a valuable tool for comprehending a person's or a group's health conditions and hazards. It usually consists of a health questionnaire that gathers data on demographic factors (age, sex, gender, ethnicity, etc.), physiologic factors (height, weight, etc.), personal and family medical histories, and dietary and lifestyle habits (exercise, smoking, diet, alcohol consumption, etc.).

Employee health is greatly influenced by diet. Businesses incur direct and indirect expenditures due to weight increases and related health problems. Accordingly, research has found that compared to their healthier counterparts, overweight and obese workers are less productive at work, take more time off, and are more likely to use short-term disability benefits. Many businesses are promoting on-site nutrition seminars for staff members during lunchtime. These initiatives aid in educating staff members about healthy behaviors and encouraging them to adopt them. Additionally, they teach students how to read food labels, which items are best to eat, and how adopting a healthy diet can enhance their quality of life and help avoid disease.

Employees are experiencing physical and mental effects like hypertension, heart attacks, and a sense of instability due to the increasing prevalence of long work hours, hefty workloads, and work pressure-related concerns. The staff is under a lot of pressure and unreasonable demands due to the growing competition. Therefore, stress reduces an employee's ability to maintain a healthy work-life balance. Stress is one of the leading causes of long-term employee absenteeism, according to the Chartered Institute of Personnel and Development's (CIPD) 2018 Health and Well-being report. Additionally, more than 37% of the respondents said their stress levels at work had risen in the previous 12 months. Furthermore, up to 55% of US citizens face stress at work, according to 2019 figures on workplace stress.

Other service types covered in this area include those exercise, drug and alcohol misuse, health education, sleep management, and mental health, among others. One of the top worries for businesses of all sizes is workplace mental health difficulties. Mental Health Commission of Canada estimates that 500,000 employees are unable to work each week due to mental health issues since, in 2018, one in five Canadians experienced a mental health condition or illness. Employees can set health objectives using Accenture's cutting-edge wellness program, which provides incentives for sticking to a healthy routine. So that staff may work out whenever they choose, the company offers exclusive rates and discounts for gyms and fitness facilities in addition to an online training program.

Based on end-user, the global market is bifurcated into the private sector, public sector, and others.

The private sector segment owns the highest market and is estimated to grow at a CAGR of 6.40% during the forecast period. Employees in the private sector are more likely to experience health problems and stress-related conditions due to increased work pressure. For instance, 5% of Indians in the private sector cope with one or more mental health issues. These exclusive facilities give staff members free access to the gym, reductions on spa services, complete nutritionist consultations, and many other perks. These private businesses are making minor adjustments to workplaces and workspaces to support employee wellness and encourage healthy behaviors. 

To achieve a healthy workplace, the public sector and other end users (non-profit organizations) also offer corporate wellness programs. Many government ministries are transitioning as health concerns grow, and several programs have yet to be launched. The program's primary goal is to improve the departments' well-being and working conditions so service delivery, employee health, and productivity can be hastened and enhanced. Numerous governmental and nongovernmental groups have recently launched thousands of projects and programs focused on the need for community members to embrace healthy lives.

Recent Developments

• February 2022- To fulfill the country's quickly expanding need for health and wellness services for corporate personnel and their dependents, Quantum CorpHealth Pvt Ltd built three additional offices in India (Bengaluru, Pune, and Hyderabad).