In 2019 the wellness industry was valued at $4.4 trillion US dollars, a figure set to reach $7 trillion US dollars by 2025 as wellness dominates consumer spending.
Huge growth predicted in the wellbeing industry
Wellness spending is a critical contributor to the global economy. Its contribution should not be underestimated. Globally, in 2020 it is forecasted to grow by 10% to reach $7 trillion US dollars by 2025.
This unprecedented growth is due to the pandemic causing a shift in consumer lifestyles and government policies where wellness, health, and prevention are prioritized more in decision-making.
Notably, the COVID-19 experience has sparked significant shifts in how consumers understand, experience, and expect wellness. Wellness is now at the forefront of many lifestyle decisions.
What is Wellness and the Wellness Economy?
The Global Wellness Institute (GWI) defines wellness as –
“the active pursuit of activities, choices, and lifestyles that lead to a state of holistic health.”
Meanwhile, the wellness industry that makes up this economy is categorized by GWI as –
“those industries that enable consumers to incorporate wellness activities and lifestyles into their daily lives.”
GWI has helpfully categorized wellness into eleven sectors. Notably, the top four – Personal Care & Beauty is the largest, closely followed by Healthy Eating, Nutrition & Weight Loss, Physical Activity, and Wellness Tourism make up just over $3 trillion US Dollars.
Traditional & Complementary Medicine, Public Health, Prevention & Personalized Medicine, Wellness Real Estate, Mental Wellness, Spas, Workplace Wellness, and Springs make up the remainder.
Growth by Sector
According to GWI’s The Global Wellness Economy: Looking Beyond COVID, dated December 2021, Wellness tourism will grow year on year by 21%, followed by Thermals and Mineral Springs (18%), Spas (17%), and Wellness Real Estate by 16%. Each of the eleven sectors is forecasted to grow due to the demand for wellness products and services.
Who has the largest wellness economy?
Further research published by GWI in February 2022, The Global Wellness Economy: Country Rankings, confirmed that the top three regions accounted for 90% of global wellness spending. Asia-Pacific, followed by North America and then Europe.
Asia-Pacific has the most significant regional wellness market, estimated at $1.5 trillion US Dollars. North America wellness market at $1.3 trillion US Dollars while Europe’s at $1.1 trillion US Dollars.
Wellness spending per capita (US Dollars) in 2020
It may be no surprise that North American wellness spending is $3,567 per capita. Three times more than Europeans spending $1,236. Spending in Latin America, the Caribbean, and Asia-Pacific countries was $360. Four times lower than spending in Europe.
Wellness is gathering momentum post-pandemic, and there is no doubt that it has become one of the main differentiators for consumers when purchasing both products and services. Spending on wellness is fast becoming a key consideration in government and workplace policies.
Wellness significantly contributes to each economy across a multitude of products and services, with the spending forecasted to increase year-on-year. Unfortunately, the part technology has played in underpinning and contributing to wellness is unclear.
Still, there is no doubt that it plays a significant part in making all sectors that contribute to the wellness sector more globally accessible.