Corporate Wellness Market – A Step towards Employee’s Well-being
Corporate wellness plays a major role in advanced healthcare, as it keeps employees healthy and happy. Corporate organizations conduct various programs to create stress-free environment and healthy work culture for employees.
The global corporate wellness market size was valued at US$ 53,645.7 million in 2018, and is expected to exhibit a CAGR of 7.2% over the forecast period (2019–2027).
Figure 1. Global Corporate Wellness Market Value (US$ Mn), by Region, 2018
Source: Coherent Market Insights Analysis (2019)
Increasing incidences of smoking is expected to propel growth of the corporate wellness market
Corporate wellness programs are conducted to keep employees healthy, prevent diseases, and increase the productivity. Moreover, high prevalence smoking and obesity is expected to drive growth of the global corporate wellness market during the forecast period. According to Institute for Health Metrics and Evaluation (IHME), 2017, an estimated 6.32 million deaths of smokers were reported in 2016 globally. Moreover, according to the same source, around 883,930 deaths of second hand smokers were reported in 2016 globally
Moreover, increasing prevalence of obesity associated with deskbound lifestyle is expected to propel growth of the global corporate wellness market over the forecast period. According to the World Health Organization (WHO) factsheet, February 2018, around 1.9 billion adults aged 18 years and above were overweight around the world in 2016, of which around 650 million were obese.
However, low adoption rate of corporate wellness programs by new startups and small corporate offices is expected is the major factor hindering the market growth.
Figure 2. Global Corporate Wellness Market Share (%), by Service, 2019 and 2027
Source: Coherent Market Insights Analysis (2019)
Increasing risk of diabetes associated with deskbound lifestyle in North America is expected to bolster the market growth in the region.
North America holds dominant position in the global corporate wellness market, owing to increasing risk of diabetes and other diseases associated with deskbound lifestyle or physical inactivity. According to the Centers for Disease Control and Prevention (CDC) report, 2015, around 30.3 million Americans were diagnosed with diabetes in 2015, and around 1.5 million are diagnosed with diabetes every year.
Moreover, increasing employee welfare activities in the corporate sector is propelling growth of the market. For instance, Accenture, a consultant company, offers employee assistance programs to provide confidential support for employees’ issues such as stress, substance abuse, depression, and anxiety. Furthermore, the company provides employees Teladoc services, where they can consult a physician for any health-related queries 24x7.
Major players operating in the global corporate wellness market include Wellness Corporate Solutions, ComPsych Corporation, United Health Group, Sodexo, BupaWellness Pty Ltd., Recovre Group, Central Corporate Wellness, Truworth Wellness, CXA Group Pte. Limited, SOL Wellness, ComPsych Corporation, Virgin Pulse, Inc., Interactive Health, Inc., and ConneXions Asia.
Corporate wellness programs are conducted in corporate offices to keep employees healthy, both physically and mentally. Currently, corporate wellness programs are largely adopted by employers to promote employee health, to reduce health-related costs, and to increase the productivity and quality of work. Corporate wellness programs vary in services and activities. Some programs are largely adopted by employers including smoking cessation program to help employees to quit habit of smoking, nutrition and weight management program to help employees to manage their weight and nutrition intake, stress management program to reduce stress from employees’ life, and fitness programs to keep employees fit and active.
High prevalence of smoking, obesity, and overweight is expected to be a major factor increasing demand for corporate wellness programs. Therefore employers are adopting corporate wellness programs, in order to make their employees healthy, reduce health care costs, and increase employee’s productivity. For instance, according to the data published by Centers for Disease Control and Prevention (CDC), in 2016, around 15.5% of the U.S. adults smoke cigarettes, which is around 37.8 million adults.
In corporate offices, an employee works around 9 hours, and during this time period, most employees sit continuously and are physically inactive. Hence, such physical inactivity can lead to rise in prevalence of lifestyle diseases such as diabetes, blood pressure, and others. Hence, increasing prevalence of such lifestyle diseases can increase demand for corporate wellness programs by employers to reduce absenteeism, increase work productivity, and improve employee morale. For instance, according to the data published by Centers for Disease Control and Prevention (CDC), in 2017, in the U.S., 30.2 million adults aged 18 years and above (around 12.2% of all the U.S. adults) were suffering from diabetes, in which type-2 diabetes accounted for 90% to 95% of all diabetes cases.
However, low adoption rate of corporate wellness by small scale corporate offices and new startups in emerging economies such as India and Africa is expected to be a major factor restraining the global corporate wellness market growth. Furthermore, low participation of employees in corporate wellness programs is also expected to hamper the global corporate wellness market growth.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.