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Corporate Wellness Market in US - Industry Outlook and Forecast 2019-2024

2nd Edition

SKU : ARZ190514
  • Published on : June 2019

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This research report on the US corporate wellness market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The study includes insights on segmentation by delivery model (onsite and offsite), programs (HRA, nutrition and weight management, smoking cessation, fitness services, alcohol and drug rehab, stress management, health education services, and others),  end-user (large private sector businesses, medium private sector businesses, public sector companies, small private sector businesses, and non-profit organizations), revenue models (recurring revenues and seasonal revenues), and incentive programs (participatory programs and health-contingent programs).

US CorporateWellness Market: Overview

A corporate wellness program is a health and wellness promotion initiative, which focuses on improving health outcomes, boosting morale, and increasing the productivity of employees.  It offers a plethora of activities and services that could vary in designs and implementation. The growing awareness for healthy eating habits and exercise, the high prevalence of obesity, and the reduction of insurance and healthcare costs are a few major factors driving the growth of the US corporate wellness market. The increasing focus on work-life balance and the implementation of company-sponsored employee-centric healthcare campaigns that offer lifestyle coaching and employee benefits are likely to boost the US corporate wellness market in the coming years.

Further, leading vendors are adopting digital technology to host a virtual screening and disseminate the information through their company portals to attract more consumers and increase market shares. These efforts are expected to boost the health and wellness industry growth rate over the next few years, thereby driving the US corporate wellness market. The US corporate wellness market is likely to reach around $15.5 billion by 2024, growing at a CAGR of approximately 8% during 2018–2024.

US Corporate Wellness Market: Dynamics

The growing reign of artificial intelligence (AI) is  expected to drive the US corporate wellness market in the coming years

Corporate wellness has made a seismic shift by bringing in a new era of customized education and solutions that tend to each employee's wellbeing through AI. The growing reign of artificial intelligence (AI) and the adoption of improved technologies are expected to drive the US corporate wellness market in the coming years. AI provides a platform for employers to build a deep profile about their employee in real-time and aid to scale-up the employee-friendly wellness programs. As consumers are growing accustomed to chatbots on social networks, AI can augment basic tasks that are part of EAPs, such as provide healthcare benefit information. It can also make it easy for employers to leverage information through a mobile device, thereby allowing employees to instill healthy habits without the intervention of health coaches.

The US corporate wellness market is witnessing a digital transformation wave. Telehealth, wearable devices, virtual reality, gamification, and smartphone applications are some of the latest technologies that are boosting health and wellness programs among corporate employees. These advancements are used as tools to promote, monitor, and reward healthy behaviors and achievements. Thus, effective tech initiatives have gained employees' interest, which is expected to drive the US corporate wellness market.

US Corporate Wellness Market: Segmentation

This market research report includes detailed market segmentation by revenue model, delivery model, program, end-user, type, and incentive programs.

 

US Corporate Wellness Market: Revenue Model

Automation, guidance, personalization, interactive feedbacks, and tracking of program participation are primary features of the recurring revenue model

The US corporate wellness market by revenue model can be segmented into recurring revenues and seasonal revenues. The recurring revenues segment dominated the market and is expected to grow at a CAGR of around 9% during the forecast period. The integration of employee wellness programs into facility operations to make them permanent with the workplace culture is propelling the growth of the segment. Hence, employers are actively involved in facilitating such programs on a recurring and regular basis.

Further, automation, guidance, and personalization that empower employees with information, interactive feedbacks, and tracking of program participation are some of the primary features of the recurring revenue segment, which is driving the US corporate wellness market.

In 2018, the seasonal revenue model recorded accounted for $2 billion.  A majority of revenue came in the second half of the year primarily due to the onset of the cold season. Hence, due to increased seasonal health challenges, employers were provided onsite flu vaccinations, health and lifestyle coaching, and 24-hour nurse line, which drew the seasonal revenue for the US corporate wellness market.

US Corporate Wellness Market: End-user

Around 89% of large businesses offer wellness programs for developing a long-term impact on the employee’s health and productivity

The US corporate wellness market by end-user is classified into large private sector businesses, medium private sector businesses, public sector companies, small private sector businesses, non-profit organizations. Large private sector business is the largest end-user and is expected to grow at a CAGR of around 8% during the forecast period. Approximately 89% of large companies offered wellness programs with varying degrees of complexity, which are driven by the need to develop a long-term impact on the employee’s health and productivity. EAPs, health and wellness websites, HRAs, wellness coaching, health and fitness challenges, disease management programs, biometric screenings, and onsite fitness center are the most popular health management programs.

Medium-sized private businesses are implementing company wellness programs primarily by healthcare costs. Therefore, HRAs, personalized health management, and biometric screenings are the most popular offerings in this segment.

Public sector companies, which local governments, have implemented wellness programs at a steady pace. About 83% of municipal and state governments in the US offer employees a minimum of one wellness program. These programs are more inclusive and mature than in the private sector. Wellness programs among the public sector are driven by low employee turnovers as employees tend to have longer careers.

Similarly, smaller businesses and non-profit organizations consider corporate wellness program more from a luxury perspective. However, Small businesses consider wellness extremely important and are more confident in managing wellness programs than larger businesses.

US Corporate Wellness Market: Program

HRA participation in sync with health insurance is an upcoming trend in the US corporate wellness market

The US corporate wellness market by programs can be segmented into HRA, nutrition and weight management, smoking cessation, fitness services, alcohol and drug rehab, stress management, health education services, financial wellness, and others. The HRA program dominated the US corporate wellness market and is expected to grow at a CAGR of around 8% during the forecast period. Increasing healthcare costs have given prominence to preventive care, which is driving the HRA segment. Further, the HRA participation in sync with health insurance is an upcoming trend as most of the employees are using incentives for HRA completions and participation in biometric screenings and physical activity programs.  

In the US, nutrition and weight management have become an integral part of corporate wellness programs. Thus, employers are emphasizing to incorporate nutrition and weight management program. Over 75% of employers in the US are providing lifestyle management programs in their wellness programs. With organizations grappling with the intensifying health costs, standard programs are no longer sufficient to change the course of the growth trajectory. Innovations hold the potential to change the game in terms of influencing consumer behavior in terms of uptake of alternatives to maintaining health outside of regular exercise and diet, self-care, better health management practices, wellness compliance, and achievement of personal milestones.

 US Corporate Wellness Market: Types

The US corporate wellness market has been witnessing growing integration between services and technology providers in the last few years

The US corporate wellness market by types can be segmented into service and technology. The service industry has captured nearly three-fourths of the market and is expected to grow at a CAGR of around 8% during 2018–2024. The segment includes health coaches, clinical interventions, and other such programs, whereas the technology segment includes devices, health applications, and software. In the last few years, there has been growing integration between services and technology. For instance, Terryberry Wellness, a cloud-based employee wellness program, partnered with WellRight, a wellness program company offering biometrics, health assessments, and wellness education, to provide an integrated portal for wellness activities, education, social encouragement, and incentivizing healthy behaviors.

US Corporate Wellness Market: Delivery Model

The onsite delivery model is expected to grow at a CAGR of around 9% 2018–2024

The US corporate wellness market by the delivery model can be segmented into onsite and offsite. The onsite delivery model has captured more than three-fourths of the market and is expected to grow at a CAGR of around 9% 2018–2024. The number of large employers providing on-site health clinics has grown in a bid to help increase participation and improve the overall health of the employee. Larger companies are likely to offer onsite services as they have access to resources in terms of budgets, space, and personnel. Further, digital portals have also gained traction that help employers and physicians to keep track of screenings. For instance, Hooper Holmes ScreeningPro tablet technology helps in data collection, online reporting, scheduling, and faster delivery of results.

The offsite delivery model is prevalent in small and medium-sized businesses and non-profit organizations. Teambuilding programs, lab and gym membership vouchers, health fairs, at-home sample collection kits, and remote screening are some of the commonly provided offsite services. Further, vendors have introduced several packaged programs in collaborations with testing laboratories, fitness clubs, and health and technology providers.

US Corporate Wellness Market: Incentive Type

Health-contingent programs are gaining popularity among employers as they provide outcome-based incentives

The US corporate wellness market by incentive can be segmented into participatory programs and health-contingent programs. Participatory programs have captured half of the market and are expected to grow at a CAGR of around 10% during the forecast period. They are non-conditional and preclude incentivizing outcomes that offer preventive care services to employees. Further, vendors are designing incentive programs that are in sync with the goals and objectives of the company.  Hence, with the legal landscape becoming murkier, participatory programs are offering a safe alternative, which is expected to drive the US corporate wellness market.

In 2018, the health-contingent programs segment was valued at $3.39 billion. The segment is gaining popularity among employers as health-contingent programs provide outcome-based incentives. For instance, Optimity, a health coaching platform, allows the employees to select their impetus to exercise. It also offers customized rewards such as paid leaves, trophies, gift cards, and healthcare account contributions. Such employee-friendly services are expected to drive the US corporate wellness market during the forecast period.

Key Vendor Analysis

The US corporate wellness market is highly fragmented, with the leading four vendors accounting for less than 15% of the market share. However, the market is witnessing consolidation albeit at a slow pace. The market is witnessing the entry of several external players such as in-house services by large businesses and other entities in the health and fitness space that offer membership discounts to drive up their share of the pie in the market. There are also a lot of health clinics, gyms, and fitness clubs that provide certain services hinged on tests and biometric screenings, memberships, health fairs, seminars, educational workshops, and incentives. Further, mergers and acquisitions are also gaining traction as players are looking forward to becoming more comprehensive in their offerings.

Prominent Vendors

  • ComPsych
  • Wellness Corporate Solutions
  • Virgin Pulse
  • Provant Health Solutions

Other prominent vendors are Active Wellness, Aduro,Aquila, Bank of America Merrill Lynch, BaySport, Beacon Health Options, Best Money Moves, Ceridian, Corporate Fitness Works, Exos, Fidelity, Financial Finesse, HealthFitness, Healthtrax, Integrated Wellness Partners, Kinema Fitness, LifeStart, LIVunLtd, Professional Fitness Management, Power Wellness, Reach Fitness, Marino Wellness, Mercer, Midtown Athletic Club, National Institute for Fitness and Sport (NIFS), OptumHealth, Privia Health, Premise Health, Prudential Financial, WTS International, Vitality Group, Wellsource, Wisdom Works Group, and Workstride.

Key Market Insights

  • Offers market sizing and growth prospects of the US corporate wellness market for the forecast period 2019–2024
  • Provides comprehensive insights on the latest industry trends, market forecast, and growth drivers in the US corporate wellness market
  • Includes a detailed analysis of market growth drivers, challenges, and investment opportunities.
  • Delivers a complete overview of market segments and the regional outlook of the US corporate wellness market
  • Offers an exhaustive summary of the vendor landscape, competitive analysis, and key market strategies to gain a competitive advantage in the US corporate wellness market.

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