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  • Published On : May 2023
  • Code : CMI5704
  • Industry : Healthcare IT
  • Pages : 160
  • Formats :

The U.S, Corporate wellness market was valued at US$ 12.28 Bn in 2022 and is forecast to reach a value of US$ 25.12 Bn by 2030 at a CAGR of 9.4% between 2023 and 2030. The U.S, Corporate wellness market is experiencing strong growth due to the increasing prevalence of chronic diseases and outbreak of COVID-19 (pandemic) in the U.S. Moreover, rise in focus on corporate wellness and rising awareness regarding employee health and well-being is expected to boost the growth of the market. However, factors such as slow adoption and lack of awareness and remote work and increased surveillance by employers are expected to hamper the market growth.

U.S, Corporate Wellness Market Drivers:

Rise in burden of chronic diseases to underpin market growth

One of the key factors expected to augment the growth of the U.S, Corporate wellness market over the forecast period is the increasing prevalence of chronic diseases in the region. Most of the people do not have enough time to engage in mental and/or physical activities after work or in their free time, due to which health problems are caused. Majority of them are overweight and prone to heart attacks and other cardiovascular problems owing to unhealthy blood pressure, cholesterol, or blood sugar levels. According to the American Heart Association (AHA), cardiovascular diseases are the leading cause of death in the U.S., responsible for 17% of national health expenditures.

The outbreak of COVID-19 to propel market growth

Another factor which is driving the growth of the U.S, Corporate wellness market is the outbreak of COVID-19 (pandemic) in the U.S. For instance, the pandemic has taken a toll on mental, physical, and emotional health of the workforce, and has heightened the need to address employees' mental health issues. The pandemic has affected the public’s mental health and well-being in a variety of ways, including through isolation and loneliness, job loss and financial instability, and illness and grief. At least four in ten U.S. adults (41%) have experienced high levels of psychological distress at some point during the pandemic, according to Pew Research Center.

U.S, Corporate Wellness Market Opportunities:

Rise in focus on corporate wellness is expected to offer significant growth opportunities for players in the U.S, Corporate wellness market. For instance, prioritizing mental health in the workplace is crucial for the well-being of the workforce. Corporate wellness programs can offer several benefits such as help reduce healthcare costs, increase productivity, and improve satisfaction and retention. In June 2021, Peloton Interactive Inc. launched Peloton Corporate Wellness, a corporate wellness program to bring content or connected fitness products to businesses or organizations. Peloton will also assist corporate partners with outfitting office workout spaces.

Rising awareness regarding employee health and well-being is expected to offer lucrative growth opportunities for players in the U.S, Corporate wellness market. For instance, the usage of effective workplace programs and policies can reduce health risks as well as improve the quality of life for American workers. In the United States, corporate programs promoting well-being and health, and providing disease prevention plans can potentially effect more than 150 million employees, which significantly reduce healthcare costs, according to National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP).

U.S, Corporate Wellness Market Trends:

Rise in focus on stress management is a recent trend

Businesses and organizations are focusing on employee stress management due to extended work hours, heavy workloads, and work pressure that create mental and physical repercussions, such as heart attacks, hypertension, and the feeling of instability in employees. According to the American Psychological Association's Work and Well-being Survey of around 1,501 US adult workers, over 79% of employee’s experienced work-related stress, and 3 out of 5 workers cited a negative effects of work-related stress. This trend is expected to continue over the forecast period.

Rise in adoption of corporate wellness programs is another trend

Prioritizing mental, physical, and emotional health in the workplace is crucial for the well-being of the workforce. Corporate wellness programs can offer several benefits such as reduce healthcare costs, improve satisfaction & retention, and increase productivity. According to UnitedHealthcare Wellness Checkup survey (2019), US employees were expected to invest an average of more than US$ 3.6 million in their respective wellness/wellbeing programs. This trend is expected to continue over the forecast period, driving the growth of the market.

Figure 1. U.S. Corporate Wellness Market Value (US$ Bn) & Y-o-Y Growth (%), 2017-2030

U.S. Corporate Wellness  | Coherent Market Insights

U.S, Corporate Wellness Market Restraints:

Slow adoption and lack of awareness to hinder market growth

One of the key factors expected to hamper the growth of the U.S, Corporate wellness market is the slow adoption and lack of awareness. Organizations face obstacles when it comes to developing and managing an employee wellness program and the lack of employee awareness and engagement definitely has an impact on effectiveness. Some of the reasons why employees are pushing back against these programs include privacy concerns, doubt that the program would actually be helpful, and lack of confidence in their employer’s ability to run an effective program.

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U.S. Corporate Wellness Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 13.43 Bn
Historical Data for: 2017 to 2021 Forecast Period: 2023 to 2030
Forecast Period 2023 to 2030 CAGR: 9.4% 2030 Value Projection: US$ 25.12 Bn
Segments covered:
  • By Programs: HRA (Health Risk Assessment), Nutrition and Weight Management, Smoking Cessation, Fitness Services, Stress Management, Alcohol and Drug Rehab, Health Education Services, Financial Wellness, Others
  • By End User: Large Private Sector Businesses, Medium Private Sector Businesses, Small Private Sector Businesses, Public Sector Companies, Non-profit Organizations
  • By Incentive Program: Participatory, Health-contingent, By Revenue Model, Recurring Revenues, Seasonal Revenues
  • By Type: Services, Technology
  • By Delivery Model: Onsite, Offsite
  • By Industry: Media and Technology, Healthcare, Financial Services, Manufacturing, Retail, Others
Companies covered:

Ayco, Aquila, BSDI, Aduro, Active Wellness, Virgin Pulse, Compsych, Provant Health Solutions, American Specialty Health, Wellness Corporate Solutions, and Bank of America Merrill Lynch, among others.

Growth Drivers:
  • Increasing prevalence of chronic diseases
  • The outbreak of COVID-19 (pandemic)
Restraints & Challenges:
  • Slow adoption and lack of awareness
  • Remote working and increased surveillance by employers

Rise in trend of remote working to hamper market growth

Another factor which is hampering the growth of the U.S, Corporate wellness market is the remote work and increased surveillance by employers. As the pandemic rolled around and remote working became commonplace, most wellness programs that are usually built around employee presence in the office began to fail, programs for employees working remotely did not succeed. Moreover, companies are increasingly keeping tabs on their employees and resorting to digital tracking and getting employees to stamp timecards, taking away their sense of dignity and autonomy which is also affecting their mental, physical, and emotional health.

Figure 2. U.S. Corporate Wellness Market Share (%), By Program, 2023

U.S. Corporate Wellness  | Coherent Market Insights

U.S, Corporate Wellness Market Segmentation:

The U.S, Corporate wellness market report is segmented into Programs, End User, Incentive Program, Revenue Model, Type, Delivery Model, and Industry.

Based on Programs, the market is segmented into HRA (Nutrition and Weight Management, Smoking Cessation, Fitness Services, Stress Management, Alcohol and Drug Rehab, Health Education Services, Financial Wellness, and Others). Out of which, Smoking Cessation Segment is expected to dominate the U.S, Corporate wellness market during the forecast period and this is attributed to the increasing smoking population and rising awareness about side effects.

Stress Management Segment is also expected to witness significant growth in the near future and this is owing to the rise in focus on stress management.

Based on End User, the market is segmented into Large Private Sector Businesses, Medium Private Sector Businesses, Small Private Sector Businesses, Public Sector Companies, and Non-profit Organizations. Out of which, Large Private Sector Businesses Segment is expected to dominate the market during the forecast period and this is attributed to the rise in implementation of corporate wellness programs to offer various services that eventually saves employees time and also contributes to their productivity.

Medium Private Sector Businesses Segment is also expected to witness significant growth in the near future and this is owing to rise in adoption of corporate wellness programs and increasing awareness about employee health programs.

Based on Incentive Program, the market is segmented into Participatory and Health-contingent. Out of which, Participatory Segment is expected to dominate the market over the forecast period and this is attributed to the increasing awareness among employees about the benefits of corporate wellness programs and rise in participation in such programs.

Based on Revenue Model, the market is segmented into Recurring Revenues and Seasonal Revenues. Out of which, Recurring Revenues Segment is expected to dominate the market over the forecast period and this is attributed to the implementation of corporate wellness programs.

Seasonal Revenues Segment is also expected to witness significant growth in the near future and this is owing to onset of the cold season that brings with it viruses and germs.

Based on Type, the market is segmented into Services and Technology. Out of which, Services Segment is expected to dominate the market over the forecast period and this is attributed to the initiatives taken by organizations to promote corporate well-being services.

Technology Segment is also expected to witness significant growth in the near future and this is owing to rise in adoption of advanced technologies.

Based on Delivery Model, the market is segmented into Onsite and Offsite. Out of which, Onsite Segment is expected to dominate the market during the forecast period and this is attributed to the increase in adoption of corporate wellness programs. Onsite initiatives provide a personal touch to employee well-being, along with the facilities to exercise under the guidance of fitness consultants and coaches to meet their personal health needs.

Based on Industry, the market is segmented into Media and Technology, Healthcare, Financial Services, Manufacturing, Retail, and Others. Out of which, Healthcare Segment is expected to dominate the market over the forecast period and this is attributed to the rise in implementation of health programs in the healthcare industry.

Manufacturing Segment is also expected to witness significant growth in the near future and this is owing to rising awareness regarding employee health and well-being.

U.S, Corporate Wellness Market: Key Developments

In April 2021, Workplace Options announced the launch of specialized program, Revive, to assist employees experiencing or at risk of burnout through live counselling and coaching.

In January 2021, UnitedHealthcare expanded the availability of virtual care with local physicians for members enrolled in employer-sponsored plans, and launched a Virtual Primary Care service designed to enable access to medical services in a simpler and more convenient way. Through both efforts, eligible members may be able to visit virtually with health care providers for various types of care, including wellness, routine and chronic condition management.

In March 2020, Anthem, Inc. announced the acquisition of Beacon Health Options (Beacon), the largest independently held behavioral health organization in the country (US) serving more than 36 million people across all 50 states.

U.S, Corporate Wellness Market: Key Companies Insights

The U.S, Corporate wellness market is highly competitive. This is attributed to the rise in adoption of corporate wellness programs in various industry verticals, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the U.S, Corporate wellness market are Ayco, Aquila, BSDI, Aduro, Active Wellness, Virgin Pulse, Compsych, Provant Health Solutions, American Specialty Health, Wellness Corporate Solutions, and Bank of America Merrill Lynch, among others.

*Definition: Corporate wellness is an employer's approach to achieve healthy workplace. These programs are designed to support and encourage a holistic approach to employee wellbeing by creating an organizational culture of health. Corporate wellness incorporates wellness activities into their daily life to promote employees' well-being.

Corporate wellness is an employer's approach to achieve a healthy workplace. Corporate wellness programs are designed to both support and encourage a holistic approach to employee wellbeing by creating an organizational culture of health. Corporate wellness incorporates wellness activities into their daily life to promote employees' well-being.

Market Dynamics:

Increasing prevalence of chronic diseases, the outbreak of COVID-19 (pandemic), rise in focus on corporate wellness, and rising awareness about employee health and well-being are major factors expected to drive growth of the U.S. corporate wellness market.

For instance, According to the American Psychological Association (APA), since the COVID-19 pandemic, essential employees were twice more likely to be diagnosed with a mental health issue, and received treatment from a mental health professional (34% vs. 12%). This in turn has increased the need for wellness programs in the workplace.

Key features of the study:

  • This report provides in-depth analysis of the U.S. corporate wellness market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2023–2030), considering 2022 as the base year.
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market.
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends, regional outlook, and competitive strategies adopted by key players.
  • It profiles key players in the U.S. corporate wellness market based on the following parameters such as company highlights, products portfolio, key highlights, financial performance, and strategies.
  • Key companies covered as a part of this study include Ayco, Aquila, BSDI, Aduro, Active Wellness, Virgin Pulse, Compsych, Provant Health Solutions, American Specialty Health, Wellness Corporate Solutions, and Bank of America Merrill Lynch, among others.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics.
  • The U.S. corporate wellness market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts.
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the U.S. corporate wellness market.

Detailed Segmentation:

  • U.S. Corporate Wellness Market, By Programs
    • HRA (Health Risk Assessment)
    • Nutrition and Weight Management
    • Smoking Cessation
    • Fitness Services
    • Stress Management
    • Alcohol and Drug Rehab
    • Health Education Services
    • Financial Wellness
    • Others
  • U.S. Corporate Wellness Market, By End User
    • Large Private Sector Businesses
    • Medium Private Sector Businesses
    • Small Private Sector Businesses
    • Public Sector Companies
    • Non-profit Organizations
  • U.S. Corporate Wellness Market, By Incentive Program
    • Participatory
    • Health-contingent
  • U.S. Corporate Wellness Market, By Revenue Model
    • Recurring Revenues
    • Seasonal Revenues
  • U.S. Corporate Wellness Market, By Type
    • Services
    • Technology
  • U.S. Corporate Wellness Market, By Delivery Model
    • Onsite
    • Offsite
  • U.S. Corporate Wellness Market, By Industry
    • Media and Technology
    • Healthcare
    • Financial Services
    • Manufacturing
    • Retail
    • Others
  • Company Profiles
    • Ayco
    • Aquila
    • BSDI
    • Aduro
    • Active Wellness
    • Virgin Pulse
    • Compsych
    • Provant Health Solutions
    • American Specialty Health
    • Wellness Corporate Solutions
    • Bank of America Merrill Lynch

Frequently Asked Questions

The U.S. corporate wellness market size is estimated to be valued at US$ 13.43 Billion in 2023 and is expected to exhibit a CAGR of 9.4% between 2023 and 2030.
Increasing prevalence of chronic diseases and the outbreak of COVID-19 (pandemic) in the U.S. is fueling the growth of the market.
The HRA segment is the leading component segment in the market.
Slow adoption, lack of awareness, remote working, and increased surveillance by employers are major factors restraining growth of the market.
Major players operating in the market are Ayco, Aquila, BSDI, Aduro, Active Wellness, Virgin Pulse, Compsych, Provant Health Solutions, American Specialty Health, Wellness Corporate Solutions, and Bank of America Merrill Lynch, among others. 

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