Consumer spend on Wellness

•  69% of Gen X women and 60% of men stated that they are interested in products that are designed to improve their health. Additionally, 59% take supplements regarding general wellness, and 56% stated they eat functional foods.
•  28% of Gen X women buy natural health products.
• Moreover, 66% of Gen Xers spend on participating in activities which improve their wellbeing.
• Gen Xers spend an annual of $3.5 billion on gym membership. The average spend on spa visits is $80 per visit for Gen Xers.
• According to a survey, across all generations, those that take nutritional supplements spend the following amounts: $433 on vitamins and $202 on sports nutrition products. This is a total of $635 on nutritional supplements each year.
• Gen Xers devote 1.3% of their income to personal care (including beauty and personal care products, and personal care treatments outside of the spa) each year.

Research methodology

• The average spend on spa visits is $80 per visit for Gen Xers.
• There are 66 million Gen Xers in the US.
• There were 187 million spa visits in 2018 (in the US) and there are 327 million people living in the US. It follows that the average number of visits to the spa per person in the US was 0.57 (187 million/327 million).
• The total spend on spa visits for Gen Xers is then: $80 x 0.57 x 66 million = $1,881,000,000 ($1.9 billion)

• Those that use nutritional supplements spend total of $635 on nutritional supplements each year.
•  71% of Gen Xers use nutritional supplements regularly.
• There are 66 million Gen Xers in the US.
• The total spend on nutritional supplements for Gen Xers is then: 0.71 x 66 million x $635 = $29,756,100,000 ($29.76 billion)

• The total spend on nutritional supplements for Gen Xers is $29.76 billion.
• The total spend on spa visits for Gen Xers is $1.9 billion.
• Gen Xers spend an annual of $3.5 billion on gym membership.
• Together this amounts to: $29.76 billion + $1.9 billion + $3.5 billion = $35.16 billion (annual spend on nutritional supplements, spa, and gym).

• Gen Xers spend $22 trillion annually.
• The spend on nutritional supplements, spa, and gym as part of the total spend: $35.16 billion / $22 trillion = 0.159%.

• 0.159% (spend on nutritional supplements, spa, and gym) + 1.3% (personal care spend) = 1.459%.

Summary of Findings

• The market size for the overall health and wellness industry in the US is $174.3 billion as of 2019.
• This figure is a slight increase from the overall market size in 2018 of $170 billion.
• Notably, these recent figures also represent a steady rise from prior years, with the marketing growing from $166.4 billion in 2015, $168.3 billion in 2016 and $169.1 billion in 2017.
• Moreover, the health and wellness industry in the US is expected to continue growing into next year, with a forecasted market size of $179.1 billion in 2020.
• Overall, this market size and related growth expectations are driven by new trends in the industry, as well as increasingly "healthy behavior" by US citizens.

Research Strategy

MARKET SIZE FOR THE SUB-INDUSTRIES OF THE WELLNESS INDUSTRY: FITNESS/MIND & BODY

GLOBAL MARKET:

• As of 2017, the global market size for fitness & mind-body is about $595.4 billion. 
• Of the total global wellness economy ($4.2 trillion) in 2017, 10 specific categories are as follows:
• Personal care and beauty with $1.082 trillion of the global market size.
• Healthy eating, nutrition and weight loss with $702.1 billion of the global market size.
• Wellness tourism with $639.4 billion of the global market size.
• Fitness / mind-body with $595.4 billion of the global market size.
• Preventive and personalized medicine and public health with $574.8 billion of the global market size.
• Traditional and complementary medicine with $359.7 billion of the global market size.
• Wellness real estate with $134.3 billion of the global market size.
• Spa economy with $118.8 billion of the global market size.
• Thermal/mineral springs with $56.2 billion of the global market size.
• Workplace wellness with $47.5 billion of the global market size.
• According to the 2018 Global Wellness Economy Monitor, the "global wellness industry grew 12.8%" between 2015 and 2017, "from a $3.7 trillion to a $4.2 trillion market."

US MARKET:

• An article from Creative.Co revealed that the US is the "world’s largest health and wellness market."
• As of 2019, there are about 38,477 clubs, and that number is growing at an annual growth rate of around 3.6%.
• The article further illustrated the market size for the US health & wellness industry to be about $30 billion in revenue with a 6.1% growth rate.
• For 2017, the estimated US market size for one of the sub-industries of the wellness industry, Fitness/Mind & Body is about $3.75 billion.

RESEARCH STRATEGY:

TRIANGULATION:

• As of 2017, the global market size for fitness & mind-body is about $595.4 billion. 
• The total market size for the global wellness economy was $4.2 trillion in 2017.
• Therefore, the percentage of global market for fitness / mind-body would be = [($595.4 billion/ $4.2 trillion) x 100] = about 14.17% of the total global wellness market.
• Assuming this percentage (14.17%) to be true for the US market, we have triangulated the market size of the US fitness / mind-body market.
• The current market size (2019) for the US health & wellness industry to be about $30 billion in revenue with a 6.1% growth rate.
• Therefore, in 2018, the market size for the US health & wellness industry would have been = $30 billion — (6.1% of $30 billion) = $28.17 billion
• In 2017, the market size for the US health & wellness industry would have been = $28.17 billion — (6.1% of $28.17 billion) = $26.45 billion
• As mentioned above, the market size for the sub-industries of the wellness industry: Fitness/Mind & Body for the US would be = 14.17% of $26.45 billion in 2017 = $3.75 billion
• Therefore, the US market size for the sub-industries of the wellness industry: Fitness/Mind & Body is estimated to be about $3.75 billion for 2017.

US Weight Loss Industry

• The United States weight loss market was estimated at $72.7 billion in 2018.
• The weight loss market grew from roughly $69.8 billion in 2017, at a CAGR of 4.1%, and is expected to grow from 2018, at a CAGR of 2.6%, to 2023.
• The virtual weight loss market in the US is valued at about $1.4 billion in 2018.
• The market is expected to grow annually at a rate of 6.6% through 2023.
• Some key players in this market include WW (Weight Watchers), Medifast (US), BistroMD, Inc. (US), North Castle Partners (US), and NutriSystem, Inc. (US).

US Preventative/Personalized Medicine Market

• The size of the preventative/personalized medicine market in the United States is valued at roughly $720 billion.
• Based on the application segment, the US personalized medicine market is classified into Cancer Genomics (30%), Diagnosis and Intervention (28%), Drug Development & Usage (22%), and Others (10%).
• According to the Market Research Future (MRFR), the industry is projected to grow at a CAGR of 7.5% during the forecast period (2018-2023).
• The North American region dominates the global personalized medicine (PM) market, and the United States holds the largest market share of the global market.
• According to the Preventative Medicine 2020 Internal, United States holds "almost half of the global market share (48%)," of the global preventative/personalized medicine market.
• The global personalized medicine (PM) market size was "estimated at $1.5 trillion in 2018."
• Therefore, the United States' preventative/personalized medicine (PM) market size is approximately $720 billion (48%*$1.5 trillion).