Programs in North America and Europe will likely see the biggest gains due to high health care expenditures and the availability of a wide range of providers.
As more people – and their employers – realize the importance of keeping obesity and other health issues in check, corporate wellness programs are blossoming in many parts of the world, according to Transparency Market Research’s report, “Corporate Wellness Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-2026.”
The global corporate wellness market was valued at $29.27 million in 2017 and is expected to expand at a high CAGR of 9 percent from 2018 to 2026, to reach an estimated value of $61.69 million by 2026, according to the report. Programs within North America and Europe will likely post the highest revenue, due to high health care expenditures and the availability of a wide range of providers of corporate wellness services.
“Government support for corporate wellness programs has increased along with rise in health concerns among people with chronic conditions such as obesity and diabetes,” the authors write. “Favorable rules and regulations and the presence of several providers of corporate wellness services are expected to have a positive impact on the corporate wellness market in North America in the near future.”
Indeed, the U.S. government is incentivizing employers to provide wellness programs: a provision in the 1996 Health Insurance Portability & Accountability Act offers employers the ability to reduce the cost of health insurance premiums for employees practicing health-promoting activities. The provision has provided up to 20 percent of reduction in the employees’ regular premium cost.
The market in North America is also expected to register the highest growth rate, more than 11 percent during the forecast period, followed by the corporate wellness market, likely to grow more than 9 percent. However, the markets in Latin America, the Middle East and Africa are likely to expand at a sluggish growth rate.
The health risk assessment segment accounted for a major market share in 2017, and is likely to dominate the global corporate wellness market through 2026 due to rise in awareness among employers, increase in the incidence of chronic diseases, and surge in the spending on health care. Fitness is projected to be the second-most lucrative service segment, and will likely post strong growth due to rising awareness about health and well-being among employees, increasing prevalence of obesity, and willingness of employers to implement corporate wellness programs.
The also report also provides profiles of leading players operating in the global corporate wellness market: EXOS, ProvantHealth (Hooper Holmes, Inc.), Wellness Corporate Solutions, ComPsych Corporation, Optum, Inc. (United Health Group), Sodexo, BupaWellness Pty Ltd (BupaGroup), JLT Australia (RecovreGroup), Central Corporate Wellness, TruworthWellness, CXA Group Pte. Limited, and SOL Wellness.
Across the world, the corporate wellness market is fragmented with several local players operating within each country level – with no major players with strong geographical presence operating in the global market.