Corporate Wellness Market to expand at a CAGR of 9.1% from 2016 to 2024
The corporate wellness market in Asia Pacific is led by a slew of global and local companies, such as Central Corporate Wellness, ComPsych Corporation, Optum, Inc., JLT Australia (Recovre Group), Truworth Wellness, SOL Wellness, Sodexo, ConneXions Asia, and Bupa Wellness Pty Ltd. Transparency Market Research has observed that the number of companies venturing into this avenue has been steadily rising owing to the growing presence of MNCs in several developing countries.
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The opportunity in the corporate wellness market in Asia Pacific was pegged at US$3.4 bn in 2015 and is expected to be worth US$7.4 bn by the end of 2024 at a strong CAGR of 9.0%. Geographical expansions, expansion of product portfolio, mergers and acquisitions, and investing in extensive wellness programs are some of the key growth strategies adopted by the leading players in the Asia Pacific. For instance, in March 2016, Sodexo signed a 10-year contract with Rio Tinto to expand its operations in Australia.
Increase of Non-communicable Diseases Driving Need for Health and Wellness Programs
The prevalence of non-communicable diseases such as diabetes, chronic respiratory diseases, cardiovascular diseases, and cancer has increased significantly in Asia Pacific in recent years. The report has found that these diseases account for at least 8.5 million deaths in Southeast Asia each year. “Employers are, as a result, driven to promote as well as maintain the health and well-being of their employees and offering corporate wellness programs and services has turned out to be the most effective method of doing so,” the lead analyst states. These services not only boost productivity but also reduce overall medical costs.
The corporate wellness market in Asia Pacific is also fueled by government support and initiatives, the rising number of white-collar employees, the willingness of employers to invest in wellness programs, and growing health consciousness among the population.
High Cost of Implementation Restricting Widespread Adoption
“Implementing corporate wellness programs in organizations is a costly affair and companies need to utilize a certain portion of their budget from the revenue generated,” the author of the study comments. Services such as fitness and health risk assessment need high investments and as a result, are cut down by the companies. This restricts the growth of the corporate wellness market.
In addition, the inefficient execution of corporate wellness services is a major restraint to the market and is likely to increase costs for the companies.
China to Lead APAC Corporate Wellness Market throughout Forecast Period
By type of service, the fitness segment led the overall corporate wellness market, accounting for a 38.6% share in 2015, reaching US$2,793.5 mn by 2024. The smoking cessation segment, although the smallest in terms of revenue in 2015, is anticipated to register a strong CAGR of 9.6% during the forecast period. By country, China emerged as the leading revenue generator in 2015 and is projected to retain its position throughout the forecast period. India, on the other hand, is expected to expand at the fastest pace by 2024.
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