Australia & New Zealand Corporate Wellness Market Size, Share & Trends Analysis Report By Service (HRA, Fitness), By Delivery Model (Onsite, Offsite), By End Use, By Category, And Segment Forecasts, 2022 - 2030

Report Overview

The Australia & New Zealand corporate wellness market size was valued at USD 1.4 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of around 5.36% from 2022 to 2030. The market growth is being aided by the rising awareness about employee health and well-being. Factors such as capital spending by the private sector, increased health awareness, and rising employee absenteeism, are also likely to contribute to the market growth. As a growing number of businesses aim to enhance their employee well-being offerings, digital employee well-being platforms will play a critical role.

Moreover, the pandemic compelled firms and employees to increase their use of new technologies. Employees commonly suffer from health issues associated with stress, such as improper diet, insufficient sleep, alcoholism, smoking, and physical inactivity. According to a 2019 Absence Management & Wellbeing Survey, absenteeism increased by 1.5 days in 2019 to 11.2 days per employee per year, up from 11.2 days in 2017. This cost around USD 26.3 to the Australian economy in wages and lost productivity. Organizations hire professionals to implement health plans for health screening, smoking cessation, and Health Risk Assessment (HRA).

Moreover, chronic conditions, such as asthma, cancer, hypertension, and diabetes, are responsible for an increase in absenteeism and loss of productivity. The prevalence of chronic diseases is high in Australia & New Zealand. According to the Australian Institute of Health and Welfare (AIHW), about 47% of Australians have one or more chronic conditions & nearly 20% of people have behavioral health conditions. Obesity is a major reason for chronic ailments. Also, two of three adults are overweight. The high chronic disease prevalence is likely to drive employers to adopt employee health programs.

Workplace fitness activities are health-related and need to adhere to regulations. The Work Health Safety Act (WHS) and Work Health & Safety Regulation compel employers to ensure the mental, physical, and overall health safety of their employees. The act has guidelines for the safety of employees, improving employee productivity. Such government initiatives and regulations to promote positive work culture are anticipated to favor the adoption of workplace wellbeing programs. Providing workplace health services helps promote employee wellbeing and also benefits the organization by increasing employee productivity.

COVID-19 Australia and New Zealand Corporate Wellness Market Impact: 2.6% decrease from 2019 to 2020

Small businesses can expect a high return on investment through organizational wellbeing initiatives for their employees. Furthermore, the provision of health programs also impacts employee onboarding and retention in the organization. For instance, a survey by Robert Walters, which included around 3,400 professionals from New Zealand and Australia, noted that around 92% of surveyed people found it was somewhat or very important for them to work for an organization that implements a workplace wellness program.

Service Insights

Based on service, the market is segmented into HRA, fitness, smoking cessation, health screening, nutrition & weight management, stress management, and others. The HRA segment held the largest market share of over in 2021 owing to the high adoption of HRA services by employers while offering employee health services. Employers are increasingly investing in HRA.On the other hand, the stress management segment is expected to witness the fastest CAGR during the forecast period. The stress management segment is expected to have high growth amid increased workplace stress and the availability of high-quality stress management programs. According to a Headsup survey on the State of Employee Health, one in five Australians has experienced job stress and is looking forward to taking time off to cope.

Approximately 9 out of 10 people believe in the value of a health-conscious workplace. This is likely to propel the segment growth. Moreover, the growing smoking population and growing knowledge of its adverse consequences are important factors boosting the smoking cessation segment growth. Men and women smoke an average of 13.1 and 12.9 cigarettes per day, respectively, according to the AIHW. Adults aged 40 to 60 years smoked at a rate of 15.8% daily. The providers offer smoking cessation seminars including 6-week quit smoking programs, which involve daily 1-hour sessions and are conducted according to the availability of employees.

Category Insights

On the basis of category, the market is segmented into fitness & nutrition consultants, psychological therapists, and organizations/employers. The organizations/employers segment held the largest market revenue share in 2021. Corporate wellness is becoming a major avenue of interest for organizations in Australia. Increasing work stress, long work hours, and health issues among Australians are expected to drive the need for employee wellbeing practices by employers. Employers are conducting wellness programs, consulting external service providers, and conducting health screening, stress management, & fitness campaigns & workshops. The rise in personalized health programs along with the expansion of digital wellness and well-being tools is expected to drive the segment.

The fitness and nutrition consultants segment is estimated to witness remarkable growth during the forecast years owing to the rise in the accessibility of fitness services, such as massage, nutrition consultation, and yoga among others. Nutrition Australia is one of the key providers of fitness and nutrition services for employees. It offers seminars, cooking demonstrations, one-on-one health consultations, customized programs for organizations, and access to NSW Health’s Get Healthy initiative. The majority of large-scale and a few medium-sized businesses contemplate hiring dietitians to provide one-on-one coaching. In addition, some workplaces offer a variety of activities and gym services. This is propelling the growth of the segment.

Delivery Model Insights

In terms of delivery model, the onsite segment dominated the market in 2021. According to the Human Resources Director, around 64% of organizations in Australia are adopting wellness programs for employees and 92% of employees believe in the importance of wellness programs. Longer working hours with higher levels of stress are propelling the need for employee wellbeing programs in the country. Also, workplace wellness plays an important role in giving job satisfaction and value to employees. The key providers in the market, such as Corporate Wellness Australia, Workplace Wellness, and others, provide detailed health assessments, seminars, group exercise sessions, response training, critical incident response support, and others.

The offsite segment is expected to register the fastest CAGR during the forecast period. The COVID-19 pandemic and technological advancements are expected to drive the segment growth over the forecast period. The increasing adoption of technology since the pandemic has resulted in companies preferring offsite programs, primarily ones being conducted online. Online webinars are the most commonly adopted activity by wellness providers. HealthyME Digital offers an online platform to support employees with stress management, mental health, and personal development programs through tips by experts via live webinars, video guides, presentations, and audio exercises. & 24/7 online support.

End-use Insights

The large-scale organizations segment dominated the market in 2021 accounting for the maximum revenue share. According to the Australian Government, companies with revenue of more than USD 250 million & over 200 workers are large-scale organizations. Larger corporations typically join with independent wellness companies to assist with program administration; these partner companies are a good method to keep staff fit and healthy. In addition, programs at large companies often include incentives for participating, such as fitness tracking devices and reduced deductibles. These companies typically have large budgets allocated for workplace wellbeing programs.

For instance, Hilton has tie-ups with high-quality workplace wellness services providers. In addition, the career pathing tool at Hilton drives its employees for career planning & focused work, reducing stress & keeping a healthy mindset. The medium-scale organization segment is expected to register the fastest growth during the forecast period due to the quick adoption of employee health services. These organizations are generally at a growing stage, which leads to the faster adoption of employee wellbeing programs. The medium-scale organizations typically have employee-led health campaigns, stress management programs, detailed health screening, and others. Thus, workplace wellness services have a major scope in medium-scale companies in Australia & New Zealand.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of a few major players and a large number of small- & medium-sized providers. Health At Work, Corporate Work Health Australia, and Holistic Services Group are some of the leading players in the market. Corporate Work Health Australia provided office workstations, manual handling, and workplace wellness services to over 2,000 enterprises. The organization conducted ergonomic risk evaluations on over 10,000 workstations in the office and with remote employees. Some of the key players operating in the Australia & New Zealand corporate wellness market include:

• Corporate Wellness Australia

• Holistic Services Group

• Workplace Wellness Australia

• Complete Corporate Wellness

• EvolvME

• Corporate Work Health Australia

• Logic Health

• Health At Work

• Healthbox NZ

Australia & New Zealand Corporate Wellness Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2030. For the purpose of this study, Grand View Research has segmented the Australia & New Zealand corporate wellness market report based on service, end use, category, and delivery model:

• Service Outlook (Revenue, USD Million, 2016 - 2030)

  • Health Risk Assessment

  • Fitness

  • Smoking Cessation

  • Health Screening

  • Nutrition & Weight Management

  • Stress Management

  • Others

• End use Outlook (Revenue, USD Million, 2016 - 2030)

  • Small-scale Organizations

  • Medium-scale Organizations

  • Large-scale Organizations

• Category Outlook (Revenue, USD Million, 2016 - 2030)

  • Fitness & Nutrition Consultants

  • Psychological Therapists

  • Organizations/Employers

• Delivery Model Outlook (Revenue, USD Million, 2016 - 2030)

  • Onsite

  • Offsite

• Country Outlook (Revenue, USD Million, 2016 - 2030)

  • Australia

  • New Zealand