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 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 corporate wellness market in the coming years
MARKET TRENDS AND DRIVERS
The growing reign of artificial intelligence (AI) will drive the 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 wellness market in the coming years. AI provides a platform for employers to build a deep profile about their employees 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 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.
MARKET SHARE AND SEGMENTATION
This market research report includes detailed market segmentation by
- Revenue model
- Delivery model
- Incentive programs
CORPORATE WELLNESS MARKET: REVENUE MODEL
Automation, guidance, personalization, interactive feedback, 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 holds the largest market share 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 demand.
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.
INSIGHTS BY END-USER
Around 89% of large businesses offer wellness programs for developing a long-term impact on the employee’s health and productivity
Large private sector business is the largest end-user of the wellness programs 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. Low employee turnovers drive wellness programs among the public sector as employees tend to have longer careers.
INSIGHTS BY PROGRAM
HRA participation in sync with health insurance is an upcoming trend in the US corporate wellness market
The 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 holds the largest market share 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.
INSIGHTS BY TYPES
The 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 share 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.
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.
The US Corporate Wellness market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue from 2019 to 2024 for the following segments:
- Nutrition and weight management
- Smoking cessation
- Fitness services
- Alcohol and drug rehab
- Stress management
- Health education services
- Financial Wellness
- Large Private Sector Businesses
- Medium Private Sector Businesses
- Public Sector Companies
- Small Private Sector Businesses
- Non-Profit Organizations
- Recurring Revenues
- Seasonal Revenues
- Participatory Programs
- Health contingent Programs