The global wellness market, worth about $6.8 Tn in 2024, is witnessing a meteoric rise in demand due to changing people’s attitude towards health and wellness post pandemic. This shift is mainly driven by Gen Z and millennial population, who are investing more in wellness products and services. 

Its market size is further expected to grow in coming years, according to a report that predicted the global wellness market would be about worth $9 Tn by 2028 amid rising ageing population, chronic diseases, and widespread mental illness. 

The wellness industry would grow at a rapid rate of 7.3% annually from 2023 to 2028. Its market size in 2028 would be double the size of value in 2017, around $4.5 Tn, according to a report by the Global Wellness Institute.

“The wellness market grew from $4.6 Tn in 2020 to $5.8 Tn in 2022 and reached a record $6.3 Tn by the end of 2023 (9% annual growth). Wellness continues to expand its share of the overall economy, now representing over 6% of global GDP, up from 5.75% in 2019,” it said.

Further, the projected growth leaders through 2028 would be wellness real estate (15.8%), mental wellness (12.2%), wellness tourism (10.2%), thermal and mineral springs (9.2%), and healthy eating, nutrition and weight loss (6.4%), it said.

Factors driving the growth of global wellness market

Gen Z and millennials: They are looking for effective, data-driven, science-backed health and wellness solutions to improve their health and well-being. There is now more demand for at-home testing kits and diagnosis tools, offering convenience, fast and reliable results, and the ability to test frequently, as people are more eager to know about their health status. These diagnostic tests are appealing to millennials as they offer more convenience than visiting a healthcare professional. 

About 82% of US consumers consider wellness a top priority in their lives compared to what consumers in the UK and China reported (73% and 87%, respectively), according to McKinsey’s Future of Wellness research that surveyed over 5,000 consumers across these three countries.  

Biomonitoring and technological advancements: Wearable devices, such as watches have been popular for many years, but new wearables like biometric rings powered by advanced technologies have ushered in a new era for biomonitoring as these are equipped with sensors that provide consumers with insights about their weight, fertility period, sleep quality, heart and pulse rates, etc. Glucose monitoring provide insights about the user’s blood sugar levels. About 30% of consumers in the UK, the US, and China are eager to use a wearable device to monitor their health, according to the McKinsey research. 

Rise in usage of personalised products & services: Technological advancements and first-hand availability of data are giving personalization a new edge. About 20% of consumers in the UK and the US and 30% in China look for personalized products and services that use their biometric data to provide suggestions. Users can pair these tools with gen AI to achieve more precision and customization. Some wearables use gen AI to design customized workouts for users based on their fitness data.

Clinical effectiveness: Consumers have started shifting from wellness products with clean or natural ingredients to those with clinically proven ingredients. About half of UK and US consumers reported clinical effectiveness as the main purchasing factor, while about 20% reported the same for natural or clean ingredients. This trend is most pronounced in categories like over-the-counter medications, vitamins and other supplements.

Doctors’ viewpoint is important: Doctors’ advice is the third highest-ranked source of influence on consumer health and wellness purchase decisions in the US. Consumers are now most influenced by experts' and doctors’ advice while seeking care related to mindfulness, sleep, weight, pregnancy, sexual and overall health, as per the research.

Emphasis on women’s health and hygiene: There is now more emphasis on purchasing menstrual-care, intimate-care, and sexual-health products, which were ignored earlier. Now, consumers spent the most on motherhood, menopause, pregnancy, post-pregnancy, and fertility-related products. 

Healthy ageing: There is also more demand for products and services related to healthy ageing and longevity due to a shift towards preventive medicines, the growth of health technology, such as telemedicine and digital health monitoring, and advancements in research on anti-ageing products and services.

Weight management: Obesity is a big problem among youth these days, about one in three adults struggles with obesity and weight-related issues in the US as per the McKinsey research that said 60% of US consumers are trying to lose weight. Over 50% of US consumers consider prescription medications to be effective tools and there is a rise in demand for such medications across the world. 

Rise in in-person fitness: Consumers across the world are spending more on in-person fitness classes and personal training. They like spending on fitness club memberships and fitness-related apps. Building fitness communities and offering experiences such as retreats, services like nutritional coaching and personalized workout plans enabled with gen AI can help players evolve their value proposition and manage customer acquisition costs.

Besides, increasing consumer awareness, technological advancements, product innovation and a rise in chronic illnesses have further catalysed the growth of the global wellness market, especially in North America ($2.2 Tn), Asia-Pacific ($1.9 Tn), and Europe ($1.7 Tn), which together account for more than 90% of the entire global wellness economy, said the Global Wellness Institute report. 

While the Asia-Pacific region has a large population, but per capita wellness spending is much higher in North America at $5,768 and Europe at $1,794 than in Asia and other regions.

The wellness real estate and mental wellness markets would double by 2028. Five segments -- personal care and beauty; healthy eating, nutrition, and weight loss; physical activity; wellness tourism; and public health, prevention, and personalised medicine -- would surpass $1 Tn in the market size, the wellness report predicted.