February 24, 2024

U.S. Corporate Wellness Market is Expected to be Flourished by Increasing Focus on Preventive Healthcare

The U.S. corporate wellness market involves various products and services offered to employers to help improve the health and well-being of their employees. This includes health risk assessments, fitness programs, smoking cessation programs, health screenings, nutrition management, weight management programs, and stress management among others. Health risk assessments help identifying health risks and managing chronic conditions. Fitness programs encourage physical activities and exercise regimes. In addition, smoking cessation programs educate employees about the hazards of smoking and support them in quitting smoking.

The global U.S. corporate wellness market is estimated to be valued at US$ 13.43 billion in 2023 and is expected to exhibit a CAGR of 9.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The U.S. corporate wellness market is expected to be flourished by increasing focus on preventive healthcare. Preventive healthcare aims to prevent diseases, disability, and premature deaths through early detection and management of health risks. As per the studies, most common chronic illnesses can be prevented through a healthy lifestyle and wellness programs help in encouraging employees to adopt a healthy lifestyle. Moreover, wellness programs offer short term and long term cost savings opportunities to employers through reduced healthcare costs and improved productivity. They help in reducing absenteeism at workplace and presenteeism. Thus, wellness programs offer significant returns on investments for employers that further drives the growth of the market. In addition, rising awareness about employee well-being is another factor contributing to the market growth.

Segment Analysis
The U.S. corporate wellness market is dominated by the health risk assessment segment, accounting for over 35% share in 2022. This is due to health risk assessments being the first step for companies to identify the health risks affecting their employees. Identifying health risks helps design targeted wellness programs to mitigate those risks. The fitness segment is the second largest due to increasing focus of companies on employee fitness through on-site gyms, workout classes, etc. Wellness coaching is another fast growing segment as it helps influence employee lifestyle and behaviors through personalized health coaching.

PEST Analysis
Political: The Affordable Care Act encourages employers to implement wellness programs to control healthcare costs. Tax deductions are granted to companies for wellness related expenses.
Economic: Rising healthcare costs are a burden for companies. Wellness programs help reduce absenteeism and presenteeism, boosting productivity. Companies view wellness programs as an investment to curb expenses.
Social: Employees are increasingly health conscious and demand workplaces that support healthy lifestyle. Social media further raises awareness about benefits of wellness.
Technological: Digital health tools like activity trackers, apps and online portals make wellness engagement more personalized and convenient for remote employees. Data analytics helps optimize programs.

Key Takeaways
The global U.S. Corporate Wellness Market is expected to witness high growth over the forecast period of 2023 to 2030, driven by the efforts of companies to curb rising healthcare costs and boost employee productivity and retention. The global U.S. corporate wellness market is estimated to be valued at US$ 13.43 billion in 2023 and is expected to exhibit a CAGR of 9.4% over the forecast period 2023 to 2030.

Regional analysis comprising: The Midwest region dominates the U.S corporate wellness market currently due to states like Ohio and Illinois having proactive worksite wellness legislation incentivizing employers.

Key players related content comprising: Key players operating 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. Companies are focusing on technology integration and data analytics to customize wellness programs as per individual employee needs.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it