Corporate Wellness Market Size USD 94.9 Billion by 2030

July 19, 2022

The global corporate wellness market size is expected to hit around US$ 94.9 billion by 2030 from valued at US$ 52.8 billion in 2020 and is anticipated to grow at a CAGR of 7.04% from 2021 to 2030.

Rising obese and overweight population increases insurance costs that account for the financial burden on the employers. The corporate wellness initiatives target particular health risk factors such as stress, obesity, smoking, poor eating, and lack of exercise.

The pandemic has caused a change in the process of delivering wellness services. Although in-person sessions have resumed to some extent, the virtual platform has been made available to at-risk employees to meet their psychological and fitness needs. Initially, the lockdown imposed due to COVID19 resulted in transition to work from home, causing a great deal of stress. 

Employers have started offering some kind of fitness program for the purpose of disease prevention and improve productivity. According to a study conducted by Harvard economists, absenteeism costs fall by USD 2.7 for every dollar spent on fitness programs. Therefore, employees need to be encouraged to adopt a healthier lifestyle to improve their performance.

Employers providing the programs have noticed a significant rise in productivity and a decline in leaves and attrition. In addition, companies in the U.K. initiated the Fit for Work service, which offers a tax benefit of USD 663.3 per year. Organizations are providing wearables, such as Fitbit, Apple watch, and Google watches, which helps in keeping track of parameters such as heart rate and blood pressure.

Report Highlights

  • The health risk assessment segment dominated the market for corporate wellness and accounted for the largest revenue share of 21.1% in 2020. Corporate wellness programs mainly include screening activities to identify health risks and implement appropriate interventional strategies to promote a healthy lifestyle among employees.
  • The large scale organizations dominated the end-use segment and accounted for the largest revenue share of 52.8% in 2020.In the category segment, organizations dominated the market and accounted for the largest revenue share of 50.3% in 2020.
  • The service providers offer in-house as well as outsourced health management services for large as well as small scale corporations. The trend of on-site fitness, which includes yoga and meditation, is becoming popular.
  • Onsite corporate wellness programs dominated the delivery model segment and accounted for the largest revenue share of more than 57% in 2020. Onsite wellness initiatives provide a personal touch to employee wellbeing, along with the facilities to exercise under the guidance of fitness consultants and coaches to meet their personal health needs.
  • North America dominated the corporate wellness market and accounted for the largest revenue share of more than 42% in 2020. According to the RAND employer survey, approximately 50.0% of the employers in the U.S. offer wellness programs to their employees. Larger employers offer more complex wellness initiatives.
  • Asia Pacific is likely to witness an impressive growth rate over the forecast period from 2021 to 2030. The growth of the working population in the Asia Pacific and growing awareness about the health management of employees are responsible for the need for corporate wellness programs in the region.