With both a consumer and employer increased focus on wellbeing, the global health and wellness market is expected to reach around $24.8 billion in 2023 with an annual growth of 22%, according to a new research report from Kilo Health. The largest areas of growth in offerings are expected around financial wellness, fitness, mental health, older adults and medical systems. This follows a consumer trend in 2022 of people focusing more on their personal health and wellness, resulting in big investments in mental health, health diseases, nutrition, and family and children products and services.
The most funded categories between 2019–2022:
- Personal Health & Self-Care ($18B).
- Medical Systems ($14B).
- Health Diseases ($12B).
Wellness apps in the benefits mix
A big part of consumer and employer spending is expected to be in the wellness app space, which has heated up during the pandemic. Wellness apps are great tools for HR professionals to consider in the benefits mix, as they make it easy for employees to find and get the help they need directly, without a lot of administrative middle-man work required — not to mention the likelihood of employees taking few sick days and the increase in productivity. Here’s a look at a few more reasons for HR professionals to consider wellness apps in 2023:
- Reduce healthcare costs: By encouraging healthier lifestyles, wellness apps can help reduce healthcare costs for both employers and employees through lower insurance premiums and fewer claims.
- Increased competitiveness and employee engagement: Wellness apps as part of employee benefits can lead to increased employee engagement and loyalty, while helping to attract and retain top talent. It signals to current and future employees that the organization cares about employee wellbeing. As more employers offer extensive wellness programs within benefits packages, those organizations that do not may be at a disadvantage for talent.
- Customization: Many wellness apps offer a high level of customization and personalization, allowing employees to set goals and track progress according to their individual needs and preferences. Some even allow individuals to connect and share with family and friends to support and encourage each other. These apps can help employees feel empowered to address their health issues and encouraging them to be engaged in their own wellbeing.
Overall, investing in wellness apps as part of employee benefits can be a win-win for both employers and employees. They promote a healthier and more productive workforce while addressing employees’ growing needs in mental, social, financial, physical and occupational wellbeing.