Growing working age population and greater employee awareness are driving the growth of corporate wellness in the APAC and LATAM regions

Health And Wellness Management Services Category - Procurement Intelligence

The health and wellness management services category is expected to grow at a CAGR of 4.47% from 2023 to 2030. A McKinsey survey report conducted in 2021 found that 79% of consumers considered well-being to be of prime importance. Over the last two to three years, almost 48.2% of Americans have increased prioritizing health and wellness. In the U.K., the study found, following the pandemic, since 2021, many customers did not resume their pre-lockdown exercise routines; however, their fitness objectives remained the same. Hence, the industry has witnessed a significant increase in creative applications such as Mirror, Peloton, and Tonal. Some of the major trends in this category include the growing use of fitness and healthcare applications and devices, telehealth solutions for work-related illnesses, and employee engagement software.

Companies increasingly want workers to live healthy lives, manage risks, and save money on medical care. Health and wellness management also makes it possible for businesses to establish healthy lifestyle initiatives for their employees, educating them about various illnesses, providing hints for staying well, and emphasizing the value of leading a healthy lifestyle. Some examples of program offerings may include biometric screenings, health assessments, medical care programs, and stress management programs. Service adoption in APAC and Latin America is rising as a result of major international buyers' attempts to combine their supply bases. Growing working age population and greater employee awareness are driving the growth of corporate well-being in Asia Pacific, particularly in Singapore, Australia, and New Zealand.

By offering programs for managing diseases, lifestyles, and health screenings, suppliers are also enhancing their ability to supply. 2022 and 2023 saw an increase in the average amount spent on welfare benefits. For instance, compared to 2019, eight out of ten Indian companies have increased their expenditures on employee well-being in 2023. As per the Aon study in 2023, a growing number of companies are broadening their primary care well-being benefits. Among them, 80% offer mental health support and employee assistance programs, while 37% provide telemedicine.

A few other developments include:

• In August 2023, Virgin Pulse announced a partnership with Cigna Healthcare with the launch of its connected wellness platform. The new platform is made available on “mycigna” and will provide personalized health experiences to more than 11 million customers. Employees or participants can track their progress, metrics, and achieve their goals through this product.

• In September 2022, Privia Health announced a strategic partnership with OhioHealth by signing a non-binding memorandum of understanding. A medical group for independent providers was launched as a part of this deal, which would thereby expand OhioHealth’s clinically integrated network. The deal would enable all medical professionals and provider groups to remain independent and continue treating patients under all payment models while shifting to value-based care agreements.

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Health and Wellness Management Services Sourcing Intelligence Highlights

• The global health and wellness management services category is highly fragmented. In many emerging economies such as India, this category is disorganized and fragmented.

• The bargaining power of suppliers globally is moderate owing to the presence of multiple players and high fragmentation. Barriers as such longer sales cycles for products or services, difficulty in gauging the local demand, dynamic regulatory landscape, pricing disparities, etc. can sometimes make it slightly difficult for new suppliers to enter this industry.

• Some of the major cost components include salaries of health and wellness consultants, tools, technology, and software, marketing and advertising, and facilities/office space.

• More than 65% - 70% of employees in North America receive some kind of well-being initiative or program. More than 40% - 45% of employees in Europe receive well-being benefits or programs.

• In terms of operating model, companies mostly prefer engaging with approved service providers adhering to different health regulations and standards. 

Health and Wellness Management Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, PPT, and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the Health and Wellness Management Services category:

• Health and Wellness Consultants’ Salaries

• Tools, Technology, and Software

• Marketing and Advertising

• Facilities/Office Space

• Others

  • Ongoing Maintenance

  • Employee Participation Costs

  • Tests and Checkups

  • Utilities

  • Legal Costs

  • Others

Health and wellness consultants’ salaries, tools, technology and software, and marketing/advertising form the largest cost components of the Health and Wellness Management Services category. 

List of Key Suppliers in the Health and Wellness Management Services Category

• ComPsych Corporation

• Wellness Corporate Solutions (Laboratory Corporation of America)

• Virgin Pulse, Inc.

• EXOS

• Marino Wellness LLC

• Privia Health

• Vitality Group International, Inc.

• Wellsource, Inc.

• Central Corporate Wellness

• Truworth Wellness

• Healthfirst, Inc.

• FitMind LLC

• Limeade, Inc.

• TotalWellness