The Wellness Economy

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THE WELLNESS ECONOMY

A T R E N D R E P O R T BY N A D I M

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The Wellness Economy

A Trend Report by Nadim

O N S I G NA L D I S C OV E R Y Consumer trends in health and wellness are deeply rooted in our basic and fundamental human needs, wants and desires. While these needs seldom change - today’s consumer is constantly faced with technological, societal, economical and environmental change.

Through synthesis of objective, constructed and filtered facts - trends in consumer behaviors and ideas begin to emerge. The emerging signals herein provide insights on the impact and disruption within the wellness industry and how new markets can be maximized.

The best way to predict the future? Dream it.

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The Wellness Economy

TA B L E O F C O N T E N T S 06 08 10 12 14

WELLNESS EVOLVED TREND DISCOVERY PRECISION NUTRITION COGNITION CRISIS CIRCADIAN CONSEQUENCES

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FUTURE EXPERIENCES AMAZONME LOBLAW LIFE IKEA SOVA FUTURE WELLNESS

A Trend Report by Nadim

THE WELLNESS ECONOMY

TREND REPORT BY

COVER IMAGE CSABA GYULAI

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The Wellness Economy

A Trend Report by Nadim

W E L L N E S S E VO LV E D state of play

Wellness has permeated the global consumer consciousness - affecting daily decision making through food purchases, stress reduction, the incorporation of movement, and a heightened awareness for our shared environment.

With longer lifespans, rising chronic diseases, stress and unhappiness - the wellness market is now valued at a whopping $4.2 trillion, growing 12.8% between

2015 and 2017 - representing 5.3% of global economic output.1 In the face of this economic growth, healthcare costs are rising faster than GDP in most developed countries, and the WHO has predicted a gap of 18 million health workers by 2030.1 Companies and public health officials today are in prime position to utilize wellness for the masses - addressing

chronic health issues, filling in the gaps left by traditional healthcare.

We are living in exciting times. It is estimated that by 2025, the cost to sequence and study a human genome will be $1.1 At this price point, genetic information will be commonplace - unlocking precision medicine that will radically disrupt healthcare with individualized treatments that eradicate disease in the longterm.

1 Global Wellness Institute: 2018 Global Wellness Economy Monitor OECD: Healthcare costs unsustainable in advanced economies without reform 3 National Human Genome Research Institue: The Cost of Sequencing a Human Genome 2

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T R E N D D I S C OV E RY 1. Precision Nutrition Advancements in tech meet diet confusion to propel personalized platters.

2. Cognition Crisis Brain health takes center stage as boomers and millenials seek mental sharpness.

3. Circadian Consequences Sleep deprivation hurts alot - physically, socially, emotionally, and economically.

We live in an age of major disruption.

Most of today’s Fortune 500 companies will be gone in the next decade.4 And there is no field more disrupted than healthcare. And that’s a good thing.

Doctors spend $210 billion per year on procedures that aren’t based on patient need, but fear of liability. Americans spend, on average, $8,915 per person on healthcare more than any other country 4

on the planet.

Prescription drugs cost around 50% more in the U.S. than in other industrialized countries. And at this rate, by 2025, nearly ¼ of the US GDP will be spent on healthcare.5

Harvard Business Review: Digital Transformation Is Racing Ahead and No Industry Is Immune 5 Singularity University: Disrupting Today’s Healthcare System

A Trend Report by Nadim

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The Wellness Economy

HYPER P E R S O NA L Precision Nutrition

Health management through food is a trending topic as today’s consumers look for ways to improve their overall wellbeing by making changes to the food that they eat.

“Gut health” and “bloating” are some of the popular search terms when it comes to understanding the connection between nutrition and healthy liv-

ing. A Google Trends analysis highlights this, showing a 200% increase in searches for phrases such as “best foods for bloating” and a 350% increase in searches for “best foods for gut health” between 2012 and 2017.6 Digestive health has become one of the biggest focus areas of health and wellbeing in the UK, with Euromonitor reporting

that sales of digestive remedies are expected to reach £333 million by 2021.7 With so many conditions directly associated with the gut microbiome including obesity, diabetes, depression, autoimmune diseases, Parkinson’s, and even cancer, the importance of personalized nutrition becomes ever more urgent.6 The growing interest in

A Trend Report by Nadim

gut health is not merely hype. Personalization is the central component for preventing and eradicating lifestyle diseases in the long-term. In pursuit of this goal, data concerns will need to be addressed surrounding the vast amounts of personal health data will need to be collected and leveraged to treat and manage patients.

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ÂŁ333 million the expected sales of digestive remedies in the UK by 2021

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Schiever Research: Health and Wellness - The Gut Health Mega-Trend 7 Singularity University: Disrupting Today’s Healthcare System

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The Wellness Economy

A Trend Report by Nadim

COGNITION CRISIS An unhealthy diet, poor sleep, the pervasiveness of technology, airborne pollution - these are just a few of the many factors threatening our brain health.8 Emerging as the next big trend in health, according to Research and Markets, the Global Brain Health market was valued at 2.3 billion in 2015, and is expect-

ed to reach 11.6 billion by 2024, increasing 19.6%.9 One of the biggest threats to our long-term brain health - Alzheimer’s is the fastest growing epidemic facing the Western world. Tied to an aging boomer population, the mortality rate due to Alzheimer’s disease has sharply increased 123% between

2000 and 2015.10 Enter nootropics (Greek for mind change), supplements featuring amino acids, popularized by Silicon Valley “biohackers,” are now getting attention for their claims to enhance cognitive performance. As the boomer generation gets older, many are looking for new ways to maintain mental sharpness.

123% increase to mortality rate due to Alzheimer’s between 2000 - 2015

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8 National Institute on Aging: Risks to Cognitive Health Research and Markets: Global Brain Health Supplements Market Size 10 Euromonitor: Digestive Remedies

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The Wellness Economy

C I RC A D I A N C O N S E QU E N C E S

The circadian rhythm, our sleep-wake pattern, is a central feature of human biology.

When it breaks down, we are at increased risk for illnesses such as diabetes, heart disease, and dementia.11 The first part of the brain that begins to fizzle when we don’t get enough sleep is the prefrontal cortex, the cradle of decision-making and problem-solving.12

A Trend Report by Nadim

A G L O BA L H E A LT H EPIDEMIC

EXPENSIVE C O N S E QU E N C E S The adverse effects of insufficient sleep on health and productivity, has far-reaching and expensive economic consequences. In just five OECD countries, the RAND Corporation found the productivity losses from sleep deprivation hurts economies to the sum of $680 billion.13 12

People who don’t get enough sleep have more medical issues, are less productive at work, and are more likely to get in an accident. Chronic sleep loss from increased work demands, night shifts, and sleep disorders results in hundreds of billions of dollars a year in healthcare costs, doctor visits, prescription and OTC drugs.16

$680 billion the productivity losses from sleep deprivation in 5 OECD countries

11 Medic, Goran et al.: Short- and long-term health consequences of sleep disruption 9 Alhola, Paula and Päivi Polo-Kantola: Sleep deprivation - Impact on cognitive performance 13 RAND Corporation: Why sleep matters - the economic costs of insufficient sleep

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EXPLORING FUTURE EXPERIENCES

1. Amazon There is a growing awareness that wellbeing is a highly personal matter, as we endure the long slow death of “one size fits all” dietary recommendations. Hyper personalized care is a key opportunity for Amazon as consumers increasingly turn to tailored diets and needs.

Campbell’s signaled their intention investing $32 million into Habit, a startup focusing on personalized nutrition.

2. Loblaw As Canada’s largest food retailer, Loblaw Companies encompasses pharmaceuticals and groceries with divisions in Shoppers Drug Mart and Loblaw Market.

With UN data suggesting the population aged 60 and older will more than double by 2050 and more than triple by 2100 - there should be no shortage of consumers for whom brain-support supplementation would be a wise idea.14

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3. IKEA A full night’s sleep now feels as rare as a handwritten letter. Sleep disorders have officially been declared a public health epidemic by the CDC.15 Market research

by P&S forecasts the sleeping aids market to attain revenue of $102 billion by 2023.16 With Casper snagging a staggering $239.5 million in VC funding,the world’s largest furniture retailer is poised to make a significant impact.

14 The United Nations: World Population Ageing Centers for Disease Control and Prevention: Sleep and Sleep Disorders Data and Statistics 16 Prescient & Strategic Intelligence: Sleeping Aids Market Overview

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The Wellness Economy

AMAZONME

E a r t h ’s m o s t c u s t o m e r - c e n t r i c c o m p a n y

A. Why Consumers have begun to embrace personalized services with DNA tests and wearables. Amazon entities like Fresh, Go, and Elements provide existing platforms to be leveraged.

B. How Amazon’s distribution network provides consumers with at-home kits to analyze RNA biomarkers - unlocking the potential to provide hyper personalized recommendations.

C. When Now. First movers like Viome have begun to capture market space. Current technologies in AI and microbiome sequencing can predict responses to thousands of foods.

A Trend Report by Nadim

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The Wellness Economy

A Trend Report by Nadim

L O B L AW L I F E

L i v e L i f e We l l – s u p p o r t i n g t h e n e e d s and well-being of Canadians

A. Why In an age of Alzheimer’s, and the balance of work/ life elusive. A trusted domestic brand in Shoppers Drug Mart can leverage the appeal of mind-sharpening supplements.

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B. How Natural ingredient combinations, like caffeine and L-theanine, are proving to be successful in clinical studies improving attention, accuracy and alertness in cognitive tests.17

C. When Now. Innovation is required to compete with Amazon. Consumers today are ready to feel better - managing brain health to reduce stress and anxiety is the next step in wellness.

Owen, Gail et al. (2008) The combined effects of L-theanine and caffeine on cognitive performance and mood

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The Wellness Economy

I K E A S OVA

Creating a better ever yday life for the many people.

A. Why In the U.S. alone, sleep deprivation adds up to 1.2 million working days and $411 billion lost each year.18 This weakens national economies, endangers society, and propels health care costs.

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B. How Designing and selling a variety of home products, IKEA can augment the circadian rhythm through innovative sleep aids; blue light bulbs to increase melatonin, lavender scented pillows for relaxation.

C. When Now. We are living in a golden age for sleep science. With increased awareness and scientists taking the field more seriously - Ikea is positioned to take a holistic approach to the bedtime routine.

Owen, Gail et al. (2008) The combined effects of L-theanine and caffeine on cognitive performance and mood

A Trend Report by Nadim

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The Wellness Economy

FUTURE WELLNESS It is important to consider that wellness is not just the absence of illness. It is a comprehensive state of physical, emotional, mental, and spiritual wellbeing.

The future of wellness will be revolutionary - individuals will be empowered with the knowledge on how to attain their own highly personal wellbeing, democratizing health through free information and mobile technologies.

Through strategic and innovative thinking today - we have the capacity to design a future in which we have the tools to shape our genes - preventing and curing diseases entirely.

A Trend Report by Nadim

F LOW In a word, wellbeing is flo w a lightness of being in which t h e r e ’s n o a n t i c i p a t i o n o r r e g r e t .

Just being in the moment. — Deepak Chopra

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