Wellness: Consumer Spending

Part
01
of five
Part
01

Wellness: Consumer Spend

US consumers aged 35-55 spend approximately 1.459% of their income on wellness.

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

Gen Xers are currently between the ages of 38 and 53, and as such follow closely the criteria of focusing on consumers aged 35 – 55. For this research, we focused on Gen X consumers in the US.

Wellness industry is defined to consist of personal fitness, personal care, spa, and nutrition products. Our triangulation follows these categories to calculate the overall wellness spend.

In order to calculate the average spend on spa visits per year, we used the following data:
  • 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)
In order to calculate the average spend on nutrition products, we used the following data:
  • 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)
All together, we triangulate as follows:
  • 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).
To calculate the spend on nutritional supplements, spa, and gym as part of the total spend by Gen Xers, we triangulate as follows:
  • 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%.
The total spend on wellness as part of the overall spend can be calculated as:
  • 0.159% (spend on nutritional supplements, spa, and gym) + 1.3% (personal care spend) = 1.459%.
Part
02
of five
Part
02

Health and Wellness Market Size

The market size for the overall health and wellness industry in the US is $174.3 billion.

Summary of Findings

Research Strategy

Please note, for the purpose of this analysis, statistics publication Statista was used as a reference for determining the overall health and wellness industry in the US. Notably, the leveraged data is available for free and to the public, however the relevant link leads to paywall. As such, we have provided both the direct link to Statista as well as a screen shot of the appropriate data for reference as convenient.

However, we were unable to identify a second source for the overall health and wellness industry in the US. First and foremost, we conducted a direct search for additional data on this subject, however this further review of industry and researcher materials yielded only results that were neither free nor publicly available.

We next attempted to triangulate this data by obtaining the size of the global health and wellness market, and estimating the US sub-segment as a percentage of this total market size. Although appropriate data on the global market was available, relevant information about the US sub-segment as a portion of the worldwide market was lacking.

We thirdly worked to triangulate information about the US market by obtaining the size of the health and wellness market in North America, and estimating the US sub-segment as a percentage of this regional market size. Although appropriate data on the North American market was available, relevant information about the US as a portion of the regional segment was once again lacking.

Finally, we attempted to create a second estimate for the overall health and wellness industry in the US by collecting and summing the component parts of the US health and wellness industry. Despite an extensive review of industry and researcher materials, we were able to obtain estimates for only portions of the US market.

Given our identification of at least one credible source for the total value of the US health and wellness market, as well as the failure of multiple other attempts to identify this information, we reported an in depth summary of our findings from Statista.
Part
03
of five
Part
03

Health and Wellness: Fitness/Mind & Body

According to our research, the estimated US market size for Fitness/Mind & Body, one of the sub-industries of the wellness industry is about $3.75 billion. Moreover, according to the 2018 Global Wellness Economy Monitor, in 2017, the global market size for the Fitness/Mind & Body was $595.4 billion.

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:

Due to the absence of any directly available statistics for the market size for the sub-industries of the wellness industry: Fitness/Mind & Body in the US, we have decided to triangulate the data based on the global data. Some sources we consulted during our research included market research reports, statistical databases, and blogs and media articles such as IBIS World, Statista, PR Web, Global Wellness Institute, Wellness Creatives, Luxe Digital, Fast Company, The Niche Blogger, Stella Rising, and others. Although we were able to find the global data for the market size for the Fitness/Mind & Body, we could not obtain any clue for the US market size. So, we decided to calculate the data using the global data percentage and the US data for the market size of the wellness industry.

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.
Part
04
of five
Part
04

Health and Wellness: Healthy Eating/Nutrition/Weight Loss

Estimates show that the size of the United States weight loss market is valued at $72.7 billion in 2018.

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).
Part
05
of five
Part
05

Health and Wellness: Preventative/Personalized Medicine

Estimates show that the United States Personalized Medicine Market is about $720 billion.

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).
Sources
Sources