“Powerful forces” driving wellness economy, on track to hit US$7 trillion by 2025
06 Dec 2021 --- Research from the Global Wellness Institute (GWI) reveals that the global wellness economy grew to US$4.9 trillion in 2019 and then fell to US$4.4 trillion in the pandemic year of 2020. Notably, the COVID-19 pandemic continues to play a significant role in shaping the meaning of “wellness.”
However, with a consumer “values shift” underway, the wellness market is predicted to increase 10% annually through 2025. The report also gives insight into how the personal care sector experienced a decline in consumer spending, whereas the nutrition sector saw an increase.
“The wellness economy will grow to US$7 trillion in 2025 because the forces that have been driving it remain as powerful as ever: an expanding global middle class, an aging population and rising chronic disease,” says Katherine Johnston, a senior research fellow at GWI.
“However, the pandemic has brought new shifts, and a global ‘values reset.’ ‘Wellness’ now means far more than a facial or spin class, with a growing focus on mental well-being and the importance of work-life balance, social justice, environmental sustainability, the built environment and public health.”
Personal care industry experiences dip
The increase in the “forces” mentioned by Johnston will underpin the recovery of the wellness economy. They will also shift consumer, policy and healthcare spending in new directions, she explains.
Within the personal care and beauty sector, GWI highlights that consumer spending increased from US$1 trillion in 2017 to US$1.1 trillion in 2019 and then declined by 13% to US$955 billion in 2020.
Also, in 2020, the Asia-Pacific region moved from being the third to the first-ranked market. This is due to consumer spending on personal care and beauty decreasing less in Asia than in other areas during the COVID-19 pandemic.
However, GWI predicts that consumer spending will increase post-pandemic, with 8.2% annual growth through 2025, expected to reach US$1.4 trillion.
The pandemic’s effects
According to GWI’s analysis the personal care sector has been affected by the shutdown of service and retail outlets, the reduced need for cosmetics, fragrances, and personal grooming in an era of working from home and social distancing; as well as overall global economic decline.
These consumer spending and shopping habits will likely return after the pandemic. Most personal care and beauty product businesses are switching to digital and omnichannel strategies.
However, the pandemic has also heightened shifts in this sector related to the broader concepts of wellness and the wellness economy.
The report adds that emerging evidence indicates pandemic-induced “zoom dysmorphia” is sending more people to seek cosmetic procedures or consultations on acne, wrinkles, and hair loss.
There is also increasing consumer interest in cosmeceuticals, dermatological supplements, and functional beauty beverages, even though many of these products are not yet backed up by rigorous scientific evidence.
Tracking the nutrition market
In contrast to the difficulties faced in personal care, the GWI report notes the COVID-19 pandemic has launched a new wave of interest in cooking, eating and nutrition. Consumers are more aware that a healthy diet strengthens immunity. Additionally, the pandemic has caused consumers to be more aware of the food-health connection.
The healthy-labeled F&B sector is the largest segment, representing 72% of the market in 2020. This segment includes a wide variety of processed and packaged F&B that are specifically positioned, marketed, or labeled with health and wellness claims, including low-sugar/low-fat/low-carb products; functional products with added nutrients; products that are “free-from” gluten/lactose/dairy/meat; products marketed as “naturally healthy”; and organic products.
GWI’s analysis shows that the smallest segment tracked is weight loss products and services, representing 14% of the market in 2020. This segment encompasses packaged F&B precisely positioned to target weight management.
Taking a look at nutrition, Nestlé and the US-based Tufts University recently launched the Global Nutrition and Health Atlas (GNHA), a new online platform that provides free access to global nutrition and health data for over 190 countries. Additionally, Tufts University developed a nutrition profiling system called the Food Compass.
By Nicole Kerr
This feature is provided by Nutrition Insight’s sister website, Personal Care Insights.
To contact our editorial team please email us at editorial@cnsmedia.com
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