The 11 Wellness Economy Sectors Performance

Snapshots: The 11 Wellness Economy Sectors Performance 2019-2023

Wellness Sectors that have Grown

• Wellness Real Estate (+18.1% annual growth 2019-2023) has been the fastest-growing sector in the wellness economy since before the pandemic, significantly outpacing projections and economic growth trends. The pandemic has accelerated the growing understanding among consumers about the critical role that external environments play in our physical and mental health and well-being.

• Mental Wellness (+11.6% annual growth 2019-2023) has grown strongly since 2019, as consumers desperately sought out products, services, and activities to help them cope with the immense stresses they faced during the pandemic and beyond. All types of products and services have posted strong growth: sleep solutions; sensory products and services; vitamins, supplements, functional foods/beverages targeting brain health and energy; cannabis; selfimprovement; coaching; and all kinds of meditation and mindfulness products and services.

• Public Health, Prevention, & Personalized Medicine (+15.2% annual growth 2019-2023) Due to governments healthcare systems accelerating their public health and prevention expenditures in response to the pandemic. Worldwide, public and private spending on public health/prevention has increased as a share of overall health expenditures.

• Healthy Eating, Nutrition, & Weight Loss (+4.7% annual growth 2019-2023) has grown as consumers sought out a variety of packaged foods and beverages, vitamins, and supplements that they believed would strengthen their immunity. GWI cautions that the growth in this sector should not be interpreted as “consumers were eating healthier”.

Wellness Sectors Maintaining

• Physical Activity (+4.1% annual growth 20192023) declined by 14.6% in the first year of the pandemic, but it has rebounded quickly, as people returned to their regular activities and exercise routines. Fitness was the most negatively impacted segment in 2020; while it has recovered and exceeds its pre-pandemic levels of spending, we estimate that participation rates for traditional gyms/fitness centers are still slightly down (possibly due to gym members not returning or shifting to online platforms, permanent gym closures, etc.). Mindful movement (Yoga, Pilates, etc.) saw a major boost in popularity and has continued to grow rapidly, not only as at-home exercise, but also for stress relief and mental wellness purposes. Supporting sectors (fitness tech, apparel/footwear, and equipment) and fitness technology has been growing at a rapid rate.

• Traditional & Complementary Medicine (+3.4% annual growth 2019-2023). Consumers are increasingly seek out ways to strengthen their immunity. The rapid rise of the cannabis and CBD market, as regulatory regimes have been loosening in many countries, has especially boosted the growth of this sector.

• Personal Care & Beauty (+3.1% annual growth 2019-2023). The growth of personal care & beauty from has slightly lagged the growth of overall consumer expenditures during this time period, possibly because several major markets have been affected by currency depreciation.

• Wellness Tourism (+4.5% annual growth 20192023) was the wellness sector most adversely affect by the pandemic, shrinking by 50.8% in 2020. Its slow recovery was due to the travel bans and border closures around the world, which extended through the end of 2022 in some parts of Asia. Globally, wellness tourism expenditures have recovered to 119% of their 2019 (pre-pandemic) level, while wellness tourism trips have grown to 111%. By comparison, the recovery rate for all tourism is 101% for expenditures and 90% for trips.

• Spas (+4.1% annual growth 2019-2023) were hit hard by the early stages of the pandemic, with travel restrictions, business shutdowns, and stay- athome orders leading to a 38.2% drop in revenues. Virtual offerings are a poor substitute for a physical presence and full immersion in spa experiences. The ongoing pandemic-related restrictions and tourism decline continued to affect many spas around the world throughout 2021 and 2022. Nevertheless, the industry has recovered steadily alongside the recovery of the tourism industry, and spas have posted strong revenue growth rates every year.

Wellness Sectors that Declined:

• Workplace Wellness (-0.02% annual growth 2019-2023). As the structure of the global workforce changes, fewer workers are in jobs that have access to wellness benefits. In addition, investments in employee wellness becomes more difficult to quantify (e.g., better air filtration, biophilic elements in workplaces, flexible work schedules, changes to work culture, etc.).

• Thermal/Mineral Springs (-1.2% annual growth 2019-2023).The sustained border closures, partial business shutdowns, and capacity restrictions effectively decimated business revenues across many regions in 2020-2021 and kept visitors from fully returning to springs, especially China and Japan, which account for nearly half of all global revenues.