The global health and wellness market could be worth almost US $7 trillion by 2025 according to new figures published by the Global Wellness Institute.

In its Global Wellness Economy: Looking Beyond COVID report, the Global Wellness Institute (GWI) found the health and wellness market will increase its share of overall consumer spending in the wake of the pandemic.

This growth comes despite a difficult 2020 putting an end to years of market expansion due to “temporary shocks” caused by COVID’s global spread.

Between 2017 and 2019, the industry grew at an average rate of 6.6% to reach US $4,909.9 billion before the sector gave up 11% in 2020 to drop back to US $4,369.3 billion.

However the GWI said the “underlying forces” driving the sector’s previous growth – including population ageing, the rise of the middle class and increasing prevalence of chronic illness –  remain present and continue to offer a “compelling” case for the industry.

“And, the pandemic has brought new shifts that accelerate many wellness drivers, including a growing awareness of the role of the built environment in health, a growing focus on mental health and well-being, a rethinking of the balance of work and life, an expanding focus on social justice and environmental sustainability, and much more,” the report added.

Commenting on the data, George Karafotias – CEO of Australian health and wellbeing brand and distribution company Wellnex Life – said the findings highlight the importance health has in consumers’ lives.

“Most people want to live happy and healthy lives and are willing to pay for high-quality products that will support them with those lifestyle choices,” he said.

“I expect that’s only going to become more apparent in the future as consumers look to shed the ‘COVID kilos’ and improve their general wellbeing after this pandemic forced them to reconsider their health.”

Asia Pacific leads demand

Of the US $4.3 trillion value the health and wellness market generated in 2020, the largest portion (US $1.5 trillion) came from the Asia Pacific region.

This region also experienced one of the greatest rates of growth prior to the onset of the pandemic, lifting 8.1% between 2017 and 2019.

It also experienced the smallest decline through 2020, dropping back only 6.4%. 

The GWI noted the region’s health and wellness market had been buffered against the worst of the pandemic’s effects due to strong growth in the ‘wellness real estate’ and ‘public health, prevention, & personalized medicine’ segments.

Similarly, smaller declines were recorded in the ‘physical activity’ and ‘personal care & beauty’ segments in Asia-Pacific than in other regions.

Wellnex Life (ASX: WNX) is well-positioned to take advantage of a booming health and wellness industry. To stay up to date with the latest Wellnex Life news and announcements, register your details on their investor centre.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Wellnex and will receive fees for its services

Sources

• Global Wellness Institute, The Global Wellness Economy: Looking Beyond COVID