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What is the Wellness Economy and Why is it Trending?

The wellness economy is a trend around the world. Here we tell you what it is about.

Woman doing yoga outside a building

The Wellness economy or Wellness economy is understood as an opportunity for the future. Photo: Pexels

LatinAmerican Post | Brandon Martínez Salazar

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Leer en español: ¿Qué es la economía Wellness y por qué está en tendencia?

The Wellness Economy is understood as an opportunity for the future. In the market it is contextualized as "the industries that allow consumers to incorporate wellness activities and lifestyles into their daily lives." This is thanks to the errors that were found during the pandemic to offer better assistance services. So, there is a need to promote a growing wellness mindset in which the way people work, rest and play is increasingly sustained and connected in this industry.

With a high demand, it is estimated that the sector of the global Wellness economy, today valued at 4.4 trillion dollars, will have a growth of up to 7 trillion by the year 2025.

Why is it trending?

The pandemic and its consequences allowed public health problems to be reflected, such as low investment in medical resources, mental health disorders, lack of organization in medical care, etc. These factors have been determining factors in setting a milestone that already promises growth of 5% by 2025. For this reason, it has become a trend phenomenon worldwide.

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Now, this economy is not simply focused on the individual. Although for many people the search for personalized assistance has become fundamental, it has also been considering collective improvement to offer broader social benefits, such as lower health care costs, higher productivity, better social relationships and improved satisfaction general and quality of life.

Thanks to this trend, the Wellnes economy has grown by 5.3% of global economic production, twice as fast as economic growth.

Benefits of the Wellness economy

The benefits of this economy are, in principle, an economic growth from the health sector and a social benefit in terms of the quality of life of users or consumers, who seek four points in essence:

- Control: They are aware of health problems and for that reason they seek to treat their personal well-being with proactive and preventive measures.
- Convenience: Finding frictionless wellness solutions. That is, they do not interrupt your social or professional activities.
- Transparency: They seek assistance reflected in values where the cost-benefit is worth it.
- Personalization: They look for where they can provide them with a more comprehensive, personal and results-oriented experience.

Potential Categories in the Wellness Economy

According to the Global Wellness Institute, the growing categories within this industry are as follows:

- Wellness tourism:
It had an annual growth of 8% from 2017 to 2019. By 2020, with the pandemic, the market was reduced to -39.5%. However, it now has a projected annual growth rate of 21% through 2025.

- Thermal springs:
During 2017 and 2019 its growth was 6.8%. Although it was affected by the pandemic with income losses of -39%, today it expects an annual growth of 18% in the coming years.

- Spas:
It went from having an annual growth of 8.7% to -39% as a result of the pandemic. This market is expected to grow 17% annually.

- Mental Wellness:
It maintained its growth of 7% between 2019 and 2020, due to the psychological problems derived from the pandemic. Annual growth of 10% is forecast over the next five years.

- Well-being in the workplace:
It came with an annual growth of 4.6% until the pandemic reduced it to 7% in 2020. This market is expected to grow 4% through 2025.

- Physical activity:
Although in the pandemic the income of this market fell by 15.5%, it is expected to double in the economic recovery. In this market are: gyms, studios, classes, fitness technology and training platforms.

- Preventive and personalized medicine and public health:
It remained in a pandemic with a growth of 4.5%, due to the increase in investment by governments and health systems during the health crisis. During 2020, it represented about 4% of the global spending on total health. It is expected to continue growing.

According to Katherine Johnston, a researcher at the Global Wellness Institute: “The wellness economy will grow to 7 trillion in 2025, because the forces that have driven it are still as powerful as ever: an expanding global middle class, an aging population and disease chronic on the rise ”.