2023-11-12 05:03:25
Wellness is big global business with $5.6 trillion in revenue in 2022, according to a new report from industry group Global Wellness Institute. The nonprofit’s research said the industry has grown to US$3.4 trillion in 2023; By 2027, it is expected to grow a further 57%, to US$8.5 trillion, roughly double Germany’s Gross Domestic Product.
“We are amazed by the resilience of the global wellness economy and how quickly it has recovered from the pandemic” said Katherine Johnston, principal investigator at GWI, in a press release.
There are varying estimates as to what actually constitutes the size of the wellness industry. For example, a frequently cited figure is US$1.5 trillion, published by consulting firm McKinsey & Co. in 2021.
Wellness can be a murky and generalized label for a wide variety of businesses. In its report, GWI defined the industry as “the active pursuit of activities, choices, and lifestyles that lead to a state of comprehensive health.” In its research, GWI divides wellness into several broad categories, the largest of which (personal care and beauty) is valued at $1.08. That subsector includes things like skin care and hair or nail salons.
Right behind that category is healthy eating, nutrition and weight loss, at $1.07 trillion; This does not include the rapidly growing market for prescription weight loss drugs like Ozempic. Other GWI categories include wellness tourism, a $651 billion industry; physical activities like going to a gym; and public health, along with traditional and complementary medicine.
In one of the biggest changes since before the pandemic, spending on public health, prevention and personalized medicine increased the most, to US$611 billion in 2022 from US$358 billion in 2019. The report includes health screenings for Covid-19 and cancer.
One of the smaller sectors is “workplace well-being.” It consists of employer-designated programs aimed at improving the health and well-being of employees, such as educational and fitness classes.Unlike many of the other sectors, this market has shrunk since 2019, from $52.2 billion to $50.6 billion in 2022, because more employees are now working from home and corporations have been cutting costs.
The picture is different for hotel companies, which are increasingly trying to capitalize on wellness tourism and the demand for spas. Kerzner, with luxury brands like One&Only and individual properties like Atlantis the Royal, is building a brand around this trend, with its first location opening in Dubai early next year: Siro will revolve around fitness, mental health and nutrition of guests. Equinox, once known for its luxury gyms, opened its first hotel in New York’s Hudson Yards in 2019, with rooms described as “temples of regeneration”; In September, it was included for the first time in the list of the 50 best hotels in the world.
The only other New York hotel to make that list, Aman New York, has a three-story wellness wing that’s part spa and part medical practice. A Harvard-trained internist can analyze your blood work and prescribe “wellness immersion programs” that include hyperbaric oxygen therapy.
“All the big brands have woken up to the notion that wellness is the new battleground for super-luxury hotels,” says Inge Theron, founder of Facegym, in an interview with Bloomberg earlier this year. “Before it was regarding the restaurant concept you have, now it’s regarding what you do in the spa space. It’s not just regarding having a large group, but regarding what smart doctors and scientists you have on your staff.”
As for who spends the most on welfare, per capita spending is highest in North America, with US$5,108 a year, well above US$1,596. All those gym memberships, haircuts, vitamins, spa visits, and yoga trips are adding up.
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