Many studies have reported the benefits of corporate wellness programs – how they boost employee engagement, workplace productivity, reduce healthcare costs, and improve employee retention rates. Organizations have realized that implementing these corporate wellness programs at their workplace will not only improve employee wellbeing, but will also enhance their market demand.
As the impact of employee health and wellbeing on workplace productivity and business growth is getting evident, the demand to implement corporate wellness programs has also sky-rocketed.
Reports suggest that in 2020 the global corporate wellness market had a value of USD 52.8 billion and is expected to touch the mark of USD 58.2 billion in 2021. The revenue forecast is expected to grow at a 7.0% compound annual growth rate (CAGR) from 2021 to 2028 to reach almost USD 93.4 billion, by 2028.
The rising awareness about the importance of employee health and wellbeing, and the proven effectiveness of employee wellness programs to achieve it are bound to drive the demand in the corporate wellness market.
According to the National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), implementing employee wellness programs with disease management and preventive care programs can promote employee wellbeing. So much so, it can influence almost 150 million employees in the US to cultivate healthy habits, thus, reducing healthcare costs. Studies show that employers can save up to $730 billion towards healthcare costs with just improved employee lifestyle habits.
To build this report, Grand View Research put together the statistics and market estimates of the corporate wellness industry from 2018 – 2028. Here are a few insights of the latest Corporate Wellness Market Size, Share & Trends Analysis Report.
Insights about Corporate Wellness Services:
The most common corporate wellness services taken into consideration were –
- Health Risk Assessment
- Smoking Cessation
- Health Screening
- Nutrition & Weight Management
- Stress Management
The most dominant feature was health risk assessments, and it bought revenue of almost 21.1% in 2020. Almost 80% of the employers who offered corporate wellness solutions included health risk assessments.
According to a RAND study, in 2013, 70% of companies had invested in health screenings.
Health risk assessments and biometric screenings are supposedly crucial onboarding activities that give an insight into employee health, lifestyle habits, and potential risk factors. The outcomes of these assessments and screenings can help in planning appropriate employee wellbeing strategies to reduce health risks and promote a healthy lifestyle.
Workplace Wellness End-use Insights
The different end-use segments studied for this report are –
- Small Scale Organizations
- Medium Scale Organizations
- Large Scale Organizations
Of the three segments, the large-scale organizations were the major contributors to the corporate wellness market, with a revenue share of 52.8% in 2020. While large organizations can incorporate different employee wellness solutions into the workplace culture and infrastructure, small-scale organizations can outsource the employee wellness solutions from a credible vendor to achieve the anticipated benefits.
Through the pandemic has led to remote working and shutting down of many offices and gyms, employees must still make sure they are taking care of their health and wellbeing. With so many reports suggesting the impact of the pandemic on employee wellbeing, they must stay physically and mentally strong through the uncertainties. Offering workplace wellness programs can help in promoting employee health and wellbeing even while working remotely. Employers can add different remote working wellness activities or virtual wellness challenges ideas to make sure employees still have access to their wellbeing services, even at home.
Corporate Wellbeing Category Insights
The key segments considered for the corporate wellness category studies were –
- Fitness & Nutrition Consultants
- Psychological Therapists
With the largest revenue portion of 50.3% in 2020, organizations/employers were the dominant categories in the market. The wellness program providers outsourced their wellbeing services and also offered in-house services to large and small-scale organizations. While stress management programs are anticipated to grow quickly from 2021 to 2028, on-site programs like meditation and yoga are gaining traction.
Workplace Wellbeing Delivery Model Insights
The two key delivery models were –
Accounting for more than 57% of the revenue share in 2020, the on-site delivery model of the corporate wellness programs was dominant. According to the reports, the on-site model is anticipated to have a rapid growth rate over the 2021 – 2028 forecast period.
Compared to the virtual or off-site wellbeing services, the onsite corporate wellness programs tend to have the extra personal touch, along with one-on-one guidance from the health coaches and other wellness resources to meet the specific employee wellbeing needs. With the pandemic forcing many employees to work remotely, employers are incorporating virtual wellness challenge ideas, along with virtual health coaching programs to help employees focus on their mental health and other holistic wellbeing dimensions.
Corporate Wellness Regional Insights
The corporate wellness trends based on services, End-use, category, delivery, and more, were studied globally based on their wellness market share across different regions, like –
- North America
- Asia and Asia Pacific
- United Kingdom
- The Middle East and Africa
- Latin America
Of all these regions, North America was found to dominate the global corporate wellness market with a high revenue percentage of more than 42% in 2020. A RAND employer survey reported that almost 50% of US employers offer corporate wellness programs at their workplace. Large-scale organizations are offering multiple and complex employee wellness solutions to their employees that focus on holistic wellness dimensions.
While Europe ranked just after North America, Asia Pacific is deemed to have an extraordinary growth rate from 2021 to 2028. The rising working employee population and the expanding awareness about employee wellbeing is the key reason for the probable growth of the corporate wellness programs.
The pandemic has badly affected employee health and wellbeing, and so, employees are being encouraged to cultivate healthy habits through suitable wellness challenges ideas and other activities. Businesses are looking out for different ways to promote employee wellbeing by implementing well-designed corporate wellness programs to lead a life of holistic health, reflecting better workplace productivity and business growth. Studies show that implementing well-designed corporate wellness programs can yield an ROI of 3:1.
As the global corporate wellness market is expanding, it is high time that all organizations start taking employee health and wellbeing seriously, and implement well-designed corporate wellness programs at their workplace for complete business growth and workplace wellness.