U.S. CORPORATE WELLNESS MARKET ANALYSIS

Market Challenges And Opportunities

U.S. Corporate Wellness Market Drivers:

Rise in burden of chronic diseases to underpin market growth

One of the key factors expected to augment the growth of the U.S. Corporate wellness market over the forecast period is the increasing prevalence of chronic diseases in the region. Most of the people do not have enough time to engage in mental and/or physical activities after work or in their free time, due to which health problems are caused. Majority of them are overweight and prone to heart attacks and other cardiovascular problems owing to unhealthy blood pressure, cholesterol, or blood sugar levels. According to the American Heart Association (AHA), cardiovascular diseases are the leading cause of death in the U.S., responsible for 17% of national health expenditures.

The outbreak of COVID-19 to propel market growth

Another factor which is driving the growth of the U.S. Corporate wellness market is the outbreak of COVID-19 (pandemic) in the U.S. For instance, the pandemic has taken a toll on mental, physical, and emotional health of the workforce, and has heightened the need to address employees' mental health issues. The pandemic has affected the public’s mental health and well-being in a variety of ways, including through isolation and loneliness, job loss and financial instability, and illness and grief. At least four in ten U.S. adults (41%) have experienced high levels of psychological distress at some point during the pandemic, according to Pew Research Center.

U.S. Corporate Wellness Market Opportunities:

Rise in focus on corporate wellness is expected to offer significant growth opportunities for players in the U.S. Corporate wellness market. For instance, prioritizing mental health in the workplace is crucial for the well-being of the workforce. Corporate wellness programs can offer several benefits such as help reduce healthcare costs, increase productivity, and improve satisfaction and retention. In June 2021, Peloton Interactive Inc. launched Peloton Corporate Wellness, a corporate wellness program to bring content or connected fitness products to businesses or organizations. Peloton will also assist corporate partners with outfitting office workout spaces.

Rising awareness regarding employee health and well-being is expected to offer lucrative growth opportunities for players in the U.S. Corporate wellness market. For instance, the usage of effective workplace programs and policies can reduce health risks as well as improve the quality of life for American workers. In the United States, corporate programs promoting well-being and health, and providing disease prevention plans can potentially effect more than 150 million employees, which significantly reduce healthcare costs, according to National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP).

U.S. Corporate Wellness Market Restraints:

Slow adoption and lack of awareness to hinder market growth

One of the key factors expected to hamper the growth of the U.S. Corporate wellness market is the slow adoption and lack of awareness. Organizations face obstacles when it comes to developing and managing an employee wellness program and the lack of employee awareness and engagement definitely has an impact on effectiveness. Some of the reasons why employees are pushing back against these programs include privacy concerns, doubt that the program would actually be helpful, and lack of confidence in their employer’s ability to run an effective program.

Rise in trend of remote working to hamper market growth

Another factor which is hampering the growth of the U.S. Corporate wellness market is the remote work and increased surveillance by employers. As the pandemic rolled around and remote working became commonplace, most wellness programs that are usually built around employee presence in the office began to fail, programs for employees working remotely did not succeed. Moreover, companies are increasingly keeping tabs on their employees and resorting to digital tracking and getting employees to stamp timecards, taking away their sense of dignity and autonomy which is also affecting their mental, physical, and emotional health.