Employee wellness programs target multiple risk factors and health conditions, impacting employees and the entire firm.
According to the National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), corporate wellness initiatives and disease prevention plans in the U.S. can potentially impact more than 150 million employees and substantially lower healthcare costs. And so, employees are urged to lead healthier lifestyles, ultimately improving their overall health and wellbeing while benefitting businesses with better productivity and cutting costs.
In the years ahead, it is anticipated that the overall expenditures associated with lost productivity owing to illness-related absenteeism will surpass USD 150 billion. As a result, companies are financially strained due to the rise in insurance costs brought on by the overweight and obesity issues.
In addition, the early onset and prevalence of rising chronic illness along with employee healthcare costs, are driving the market growth. Due to the nature of modern work, the majority of people lack the proper time to engage in mental and physical activities after work or in their spare time, impacting their health negatively. Since many of these ailments are becoming more common, chronic diseases pose a serious threat to the world.
Previously, research had reported the corporate wellness trends forecast for 2021 – 2028.
In a similar research report, the global corporate wellness market size was evaluated at USD 53.0 billion in 2022 and is anticipated to reach USD 55.1 billion in 2023 at a CAGR of 4.47%, to reach USD 74.9 billion by 2030.
The key factors driving the corporate wellness market growth include –
- prioritizing employee wellness
- availability of wellness vendors
- increasing investments by employers
- Regionally, many countries across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA) were studied. North America ranked top in the corporate wellness market with a share of 39.4% in 2022. Roughly 50% of U.S. organizations offer employee wellness programs.
- In the end-use segment, large-scale organizations, with a market share of 53.1% in 2022, offered advanced employee wellness solutions and dominated the corporate wellness market.
- With a majority share of 50.0% in the market in 2022, the corporate organizations and employers segment accounted for the top portion of the market, compared to therapists and consultants.
- Based on the type of corporate wellness services, the health risk assessment segment loomed over the market with a revenue share of 21.0% in 2022. About 80% of the employers who offered employee wellness solutions included health risk assessments. The next pivotal part of workplace wellness programs was fitness programs to encourage and monitor physical activity.
- Based on the type of delivery model, the onsite segment bore the highest market share of 56.4% in 2022 and is expected to display the fastest growth through 2030. However, the offsite segment is anticipated to witness a cost-effective growth of 5.06% during the forecast period.
While the World Health Organization (WHO) predicted that 10 million people would die from cancer by 2020, the American Cancer Society reports the global burden of cancer to increase to 16.3 million cancer deaths worldwide and 27.5 million new cases by 2040. Many developed nations have been affected by an unhealthy and sedentary lifestyle, heart illnesses, obesity, diabetes, and many other chronic diseases. However, these illnesses are usually lifestyle-based and can be prevented. As a result, there is a strong need for holistic approaches to be implemented in employee wellness programs to inform employees about the value of building healthy habits and the benefits of sticking to fitness goals.
Several companies and firms across several industry sectors have begun implementing employee wellness solutions, boosting their demand in the market. Workplace wellness initiatives assist businesses in increasing productivity while lowering overall operating expenses. And so, the corporate wellness market is anticipated to grow as people become more aware of the importance of employee health and wellness.