U.S. Corporate Wellness Market Size, Share & Trends Analysis Report By Service (Health Risk Assessment, Stress Management), By End-use, By Category, By Delivery Model, And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. corporate wellness market size was valued at USD 21.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2020 to 2027. The reduction in the overall healthcare costs of the employee and increasing onset of chronic diseases are expected to boost the market growth. Employee wellbeing has proved to be an essential feature of the modern-day business world. Employees are likely to perform more diligently for employers that make them feel loved. Around 60% of employees approve that corporate wellness programs have made them opt for a healthy lifestyle outside of the office as well.

Stress in the workplace is a major source of stress for U.S. adults and is progressively increasing over the past few decades. The American Institute of Stress, in September 2019, reported that around 85% of employees in the U.S. suffer from work-related stress, which costs the employers around USD 300 billion annually. Moreover, according to SHRM, the cost of treating depression alone is approximately USD 110 billion annually, half of which is spent on treating employees.

There is an increasing awareness regarding corporate wellness programs and their benefits in countering the various physical and mental disorders. This has resulted in increased adoption of programs by employers. According to a study published by the American Journal of Health Promotion, in 2017, almost half of the entire U.S. worksites offered some kind of health promotion program.

The high return on investment (ROI) in corporate wellness services is also a factor that attracts employers to offer these services. The employers pay a substantial amount of healthcare premium to insurance providers, especially, in a large-scale organization. The increasing number of unhealthy employees leads to an upsurge in the premium cost putting employers under increased financial burden. This motivates the employers to readily invest in programs for the employees to reduce the healthcare costs for the organization and increase productivity at work.

The government is taking initiatives to promote corporate wellness services. The Health Insurance Portability and Accountability Act (HIPAA) protects employee health information held by employers. Moreover, in May 2016, the U.S. Equal Employment Opportunity Commission (EEOC) passed a rule to implement Title II of the Genetic Information Nondiscrimination Act (GINA) associated with employer wellness programs. The final rule implies that employers may provide limited financial and other incentives in exchange for employee participation in wellness programs.

Service Insights

The health risk assessment segment dominated the overall market with a share of 20.9% in terms of revenue in 2019. The HRA analyzes information such as height, weight, level of physical activity, smoking habits, and stress level of the employees to derive the risk factors affecting the employees’ health. The segment growth is attributed to the growing trend to adopt health risk assessment as a service while offering employee wellness services. Wellness programs mainly comprise screening activities for the identification of probable health risks and the implementation of the required intervention strategies for promoting a healthy lifestyle. The stress management segment is expected to witness the fastest growth during the forecast period due to the increasing prevalence of stress in the workplace in the U.S.

Category Insights

In the category segment, organizations dominated the market and accounted for a revenue share of 50.5% in the year 2019. The service providers offer in-house as well as outsourced health management services for large as well as small-scale corporations. The trend of on-site fitness, which includes yoga and meditation, is becoming popular. Employers are significantly investing in offering healthy diets by providing catering options on campus and are hiring fitness coaches for their employees. Therefore, the fitness and nutrition consultants segment is anticipated to witness the fastest growth from 2020 to 2027.

Delivery Model Insights

Onsite corporate wellness programs dominated the market in 2019 and accounted for 58.2% share of the overall revenue. The segment is anticipated to grow at a rapid rate over the forecast period. Onsite wellness initiatives provide a personal touch to employee wellbeing, along with the facilities to exercise under the guidance of fitness consultants and coaches to meet the employees’ personal health needs.

End-use Insights

The large-scale organization segment dominated the market and accounted for 53.2% share of the overall revenue in 2019. The segment growth is attributed to the availability of capital for investing in wellness services and sufficient space for providing onsite wellness services for employees. Large-scale organizations offer various services on their campuses, such as physicians, therapists, and chiropractors. This eventually saves employees’ time and also contributes to their productivity.

The medium-scale organization segment is expected to witness the fastest growth over the forecast period. The quick adoption of these services by the medium-scale organizations is expected to contribute to the growth of the medium-scale organization segment in the coming years.

Key Companies & Market Share Insights

The market is characterized by the increase in awareness regarding the benefits of corporate wellness and research and development leading to the launch of new products.

For instance, in June 2016, Fitbit launched Fitbit Group Health to provide corporate wellness services. It provides services and software for weight management, corporate wellness, health research, and insurance. Moreover, in May 2019, Wellness Corporate Solutions launched an upgraded employee wellness portal to include the client and participant feedback to make the screening, administering flu shots, and health coaching easier.

The COVID-19 pandemic has severely impacted the mental health of employees. After its onset, it led to the work from home transition, which resulted in a great deal of stress among employees due to the feeling of isolation. Moreover, the pandemic hit the economy creating a financial crisis for many individuals, which, in turn, affected their mental health. To tackle the problem, wellness service providers are adopting virtual methods to provide services, such as meetings with psychologists and health coaches. Some prominent players in the U.S. corporate wellness market include:

• ComPsych

• Wellness Corporate Solutions (WCS)

• Virgin Pulse

• Provant Health Solutions

• EXOS

• Marino Wellness

• Privia Health

• Vitality

• Wellsource, Inc.

• Sonic Boom Wellness

U.S. Corporate Wellness Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. corporate wellness market report based on service, end-use, category, and delivery model:

• Service Outlook (Revenue, USD Million, 2016 - 2027)

  • Health Risk Assessment

  • Fitness

  • Smoking Cessation

  • Health Screening

  • Nutrition & Weight Management

  • Stress Management

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Small-scale Organizations

  • Medium-scale Organizations

  • Large-scale Organizations

• Category Outlook (Revenue, USD Million, 2016 - 2027)

  • Fitness & Nutrition Consultants

  • Psychological Therapists

  • Organizations

• Delivery Model Outlook (Revenue, USD Million, 2016 - 2027)

  • Onsite

  • Offsite