Workplace Wellness Market Size, Share & Trends Analysis Report By Type (Weight Management and Fitness Services, Nutrition and Dietary Plan, Stress Management Services, Health Screening and Assessment, Smoking Cessation), By End-User (Small-size private organizations, Mid-size private organizations, Large-size private organizations, Public sector, NGO) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global workplace wellness market was valued at USD 53.0 billion in 2022. It is estimated to reach USD 78.56 billion by 2031, growing at a CAGR of 4.47% during the forecast period (2023–2031).

Wellness in the workplace refers to efforts made by employers to improve the health of their staff members. Examples of wellness initiatives in the workplace include employer-sponsored fitness programs, weight-loss plans, educational seminars, smoking cessation programs, and health screenings. These plans are intended to assist employees in leading healthier lifestyles, achieving their weight loss goals, and enhancing their overall physical health and well-being. Employees participating in wellness programs may be eligible for cash incentives, such as reduced health insurance premiums or gift cards. The primary reasons driving the market expansion for workplace wellness are the rise in the incidence of chronic diseases and the optimal return on investments.

The expansion of the workplace wellness market is also being driven by increased awareness of the importance of striking a healthy balance between one's personal and professional lives and the adoption of wellness programs by businesses. However, the enormous cost businesses incur to implement workplace wellness initiatives is expected to be a major barrier to the market's expansion. In addition, profitable opportunities are anticipated to emerge in the not-too-distant future due to the enormous focus placed by the public and commercial sectors of developing countries on enhancing the health of their personnel.

Market Dynamics

Global workplace wellness market drivers:

Rise in Prevalence of Chronic Diseases

The Global Wellness Institute estimates that 3.2 billion employees around the world are experiencing a worsening of their health. Anxiety, persistent illnesses, and uncertain financial situations plague most workers. In addition, an increase in the economic burden of sick workers results in a loss of production and an increase in the weight of medical bills for employers. Every year, employers suffer enormous financial losses as a result of occupational illnesses and accidents that are work-related. There hasn't been much research done to show that disengaged workers are less productive, have a bad impact on their coworkers, and drive away clients or consumers.

As a result of this, every organization must prioritize the promotion and provision of corporate wellness initiatives. Employers who implement corporate wellness programs will be better able to attract and retain health workers, which should, in the long run, lead to increased productivity and a reduction in medical expenses, resulting in increased market growth.

Growth in Awareness and Implementation of Wellness Programs by Employers

Employees are under stress due to an increased workload, longer working hours, and continual multitasking, all of which make it impossible for them to take time for their wellness. Many businesses are introducing on-site wellness programs, including exercise and yoga classes, gym vouchers that can be redeemed for a discount, and healthy lunches. For example, ZocDoc has a culture of eating together as a family and provides catered meals for its employees.

In addition, it has provided its workers with a Fun Room equipped with a guitar, arcade games, and a hammock in which they can take short naps before returning to their regular duties. The industry-leading company Microsoft encourages healthy lifestyles, one aspect of which is the development of healthy community services through volunteer work. It provides an employee volunteer with $17 per hour in compensation.

Global workplace wellness market restraint:

Huge Cost to the Company

Even though these wellness programs provide businesses with various benefits, their prices continue to rise. Employers have a significant financial burden when attempting to implement these initiatives. For instance, a Well-Being Survey conducted by Fidelity Investments and the National Business Group on Health found that workplace wellness programs result in an additional cost of 3.6 million dollars per year for businesses. This information was gleaned from the National Business Group.

In addition, the poll conducted by United Healthcare found that businesses spent an average of USD 742 per employee per year on wellness programs, even though there was no guarantee that these programs would result in immediate cost savings for the organizations. As a result, the cost of participating in these programs might be prohibitively high for businesses, particularly those of a more modest scale, which impedes market expansion.

Global workplace wellness market opportunities:

Untapped Developing Economies

There has been a shift in desire toward a higher quality of life, which may be ascribed to the growth in the affordability of healthcare infrastructure in emerging nations and the surge in medical expenditures in these countries. Additionally, this shift in desire can be attributed to the fact that there has been a surge in the number of people seeking medical treatment in these countries. The adoption rate of workplace wellness initiatives in developing countries like India and China is higher than expected. Countries like China and India are good examples. In addition, an increase in the number of new startups and small-scale businesses, in addition to the penetration of large-scale organizations in emerging countries, is predicted to provide profitable growth opportunities for the market.

Regional Analysis

North america dominates the global market

The global workplace wellness market is bifurcated based on region into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global workplace wellness market shareholder and is estimated to exhibit a CAGR of 6.5% over the forecast period. The presence of service providers and large-scale private enterprises in this region contributes to expanding the market for workplace wellness programs. However, due to a growth in the number of businesses in Canada adopting these kinds of programs and plans better to manage the health and stress of their employees, it is anticipated that the Canadian market will expand at the fastest rate over the projection period.

In North America, the market for workplace wellness is experiencing continuous expansion, which can be attributed to the rise in the prevalence of chronic diseases such as diabetes and cancer. In addition, obesity in the United States has developed into a serious public health concern, as it has been linked to an increased risk of various diseases. These diseases include an elevated chance of developing cancer, coronary artery disease, type 2 diabetes, stroke, and a substantial rise in early mortality and increased economic expenditures.

Europe is anticipated to exhibit a CAGR of 6.1% over the forecast period. Due to substantial expenditures made by businesses in employee health and fitness programs and advanced healthcare infrastructure, the workplace wellness sector in Europe is expanding quickly. Germany accounted for most of Europe's market share, projected to continue during the forecast period. The recent measures launched by the public and commercial sectors for the promotion of health and fitness in the area show that the use of workplace wellness programs is increasing. Employers' initiatives to implement these programs within their businesses fuel the expansion of the workplace wellness industry in this region. Additionally, the existence of established healthcare systems and an increase in healthcare spending support market expansion in European nations.

Additionally, the use of digital approaches in workplace mental health has been added to Europe's workplace wellbeing portfolio, which has expanded from evaluations of the economic benefit of workplace wellbeing and contributed to market expansion.

The workplace wellness market in the Asia-Pacific area has promising prospects, which are also expected to increase quickly over the projected period. The largest market share belonged to Japan, which is anticipated to continue to dominate during the projection period. India is also anticipated to become a market with significant growth potential. Due to the rising demand for workplace wellness programs and the rise in medical expenditure growth rates in nations like China and India, the Asia-Pacific workplace wellness market is becoming increasingly well-known.

In addition, there is a growing need for workplace wellness initiatives, particularly those that screen for and evaluate health. The market is expanding rapidly due to the expansion of the medical sector and the significant rise in new businesses and start-ups in this area. The market expansion for workplace wellness in this region is also aided by the penetration of large and medium-sized enterprises in the area. The market for workplace wellness in this region is growing due to the rise in awareness among companies to embrace health assessment, stress management, and smoking cessation programs.

In LAMEA, the market for workplace wellness is still in its infancy. This is because the area lacks healthcare facilities, which results in a lack of large, specialized facilities and insufficient health spending. However, a large increase in new businesses in this area is helping the workplace wellness market expand. Healthcare expenditure is predicted to increase during the forecast period, offering lucrative growth prospects for industry players and making LAMEA a rising market. This area has experienced the strongest economic growth over the past 20 years because of economic reforms that have raised living standards and opened up a variety of options for the healthcare industry. These factors are anticipated to propel the workplace wellness market's expansion during the projected period. Additionally, the rise in chronic diseases and stressful workplaces contribute to expanding the workplace wellness industry in this region.

Segmental Analysis

The global workplace wellness market is bifurcated into type and end-user.

Based on the type, the global workplace wellness market is bifurcated into weight management and fitness services, nutrition and dietary plans, stress management services, health screening and assessment, and smoking cessation. 

The health screening and assessment segment owns the highest market share and is predicted to exhibit a CAGR of 5.5% over the forecast period. The segment with the most market share was health screening and assessment, expected to grow at the quickest CAGR throughout the forecast period. The most often used workplace wellness program by businesses is health screening. It comprises blood tests, cholesterol testing, and measurements of the body's weight and blood pressure, among other tests. The primary focus of health screening is to identify the biggest and most prevalent physical issues that impact an employee's productivity. Most of these programs also provide different incentives for engaging in activities and achieving specific health objectives. Many businesses are embracing the trend of health screening wellness at work, which provides health exams as part of preventative healthcare packages for employees and holds various educational sessions to promote good health to reduce sick days and bad performance.

Based on end-users, the global workplace wellness market is divided into small-size private organizations, mid-size private organizations, large-size private organizations, the public sector, and NGOs. 

The Large-size companies segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 6.3% over the forecast period. Large-size private enterprises are anticipated to account for the bulk of the market share during the forecast period. This is expected to be the case. This can be attributable to a sizable labor force in the respective organizations. In addition, businesses with more employees are leading corporations with the financial resources to invest in employee wellness initiatives. Large-scale private companies typically have more than one thousand people on their payroll. It is projected that this sector will continue to hold its dominant position in the market for workplace wellness throughout forecasting. This is expected due to the maximum number of employee strengths, and large corporations have larger healthcare expenditures than other businesses.

Recent Developments

• August 2023- MyGALF, India’s trusted one-stop wellness platform for corporates, announced its partnership with Decathlon Mumbai as the Corporate Wellness Partner for the upcoming Decathlon 10K 2023 – Mumbai Edition.
• June 2022- To provide MSME cardholders with health insurance, Visa, a pioneer in digital payments and employee health insurance platform Plum, joined forces. With monthly plans starting at Rs. 129, the association offers medical visits, health insurance coverage, and a "host of additional wellness benefits" to small business owners who also own Visa business cards.