The World of Wellness in 2021

Why Wellness?

In the midst of a global pandemic, health is resurfacing as a priority for many. Looking to upgrade physical and mental health, consumers are seeking out new products and services that improve exercise regimes, diet habits, sleep patterns, and countless other health concerns.

The paradigm shift towards healthier lifestyles is apparent, and economists have taken notice: The Global Wellness Institute (GWI) estimates the global wellness economy to be $4.5 trillion dollars, accounting for more than half of the total global health expenditures¹. Now, more than ever, people are interested in taking charge of their own health. Moving away from the disease-treating world of traditional medicine, consumers are looking for holistic alternatives to combat chronic disease and live healthier, happier, and longer lives.

Business Case for Wellness

Coresight Research’s 2021 Retail and Technology Outlook predicts wellness will be the #1 driver of consumer spending growth worldwide this year². At the forefront of this movement are many innovative startups which have developed products or services that span every personal care need: fitness, skincare, meditation, female reproductive health, sustainable cleaning products, addiction counseling, sleep tracking— the list goes on.

The infographic above incorporates a variety of interesting brands that are redefining our wellness and lifestyles. From at-home fitness to organic beauty companies, from online therapy to functional medicine practices, there is now a way for everyone to customize their own wellness journey. Even a simple Google search for “wellness” produces 1.1 billion search results, demonstrating the breadth of opportunity in this space.

While these companies are unique in how they address customer concerns, their broader business goals seem to align: create a product or service that makes customers healthier and happier. The outcome? Customer retention, stickiness, positive reviews. The outcome of satisfied customers? The ability for companies to charge a premium for the product or service provided, and thus, produce higher profits.

Not only does the “wellness business model” satisfy sticky customers at a high price point, but also the market is extremely lucrative and growing at a fast pace. Statista estimates that the global health and wellness market will top $6 trillion by 2025³, and as research in the health and wellness space continues to expand, we can anticipate new offerings will promptly follow suit, with even more creative solutions to consumer pain points.

Companies Doing Well(ness)

The emphasis on health and wellness has disrupted the NUTRITION + FOOD INDUSTRY, with companies like Thrive Market, a grocery wholesaler that seeks to make healthy living easy by delivering affordable, organic food straight to your doorstep. Furthermore, the way we approach food and dieting will be transformed by companies like Levels, developing wearable continuous glucose monitors that enable users to observe metabolic health in real-time, and Wellory, the anti-dieting app.

The FITNESS INDUSTRY has experienced a shift from gyms and boutique fitness to at-home and connected fitness, accelerated by recent events of the past year. Fitness studios like barre3, have been forced to make accommodations to the online fitness community amidst studio closings, while Hydrow and CLBMR have followed Peloton’s footsteps in an effort to revolutionize at-home fitness equipment.

Many companies in the RECOVERY+ SLEEP industry are making their debut, as consumers begin to learn more about the importance of sleep. Boutique recovery will continue to emerge as a rising wellness trend in 2021, with companies like EightSleep bringing to market a revolutionary smart mattress that helps customers fall asleep faster and stay asleep longer. Hyperice’s innovative, technology-enabled recovery devices have risen in popularity alongside other competitors, such as Therabody, whose elevated price points indicate the economic value derived from an advanced recovery. Therapy and pain relief devices are now an integral part of many athletes’ daily routines, as consumerism surrounding rest and recovery continues to grow.

Aside from the traditional health and wellness sectors such as nutrition and fitness, the BEAUTY INDUSTRY has also received a makeover. Follain, a rising star in the clean living and beauty space, flaunts its own line of clean skincare on the market, while also serving as a retailer for other brands such as Tata Harper, Tatcha, and Drunk Elephant.

The current HEALTH CARE system was built to treat disease, which has saved countless lives. However, many non-traditional health professionals are bringing to light the need for a more holistic health care system that addresses the root cause of chronic diseases, in hopes of creating a world of happier, healthier, longer-lived individuals. Until this sentiment is fully embraced by the health care system, disruption will be led by startups like Parsley Health, which delivers personalized holistic medicine consultations by licensed, board-certified Functional Medicine practitioners, online or in-person. The underserved market of women’s health has also benefited from the rise of technology and virtual care, with companies like KindBody providing in-person and virtual fertility, gynecology, LGBTQ+, and wellness appointments.

The Global Wellness Institute states that “the lack of effective MENTAL WELLNESS programs is a public health crisis”⁴. However, the high demand for these services makes it an opportune time for businesses to come to market. Estimated to have a global market size of $121 billion⁵, the mental wellness space is filled with ventures like Two Chairs and Talkspace, revolutionizing and simplifying access to therapy. Headspace has emerged as a leader in the mindfulness space, raising over $215 million in venture funding for their in-app meditation platform⁶.

Lastly, many of these platforms and services have integrated SOCIAL components, enabling users to connect with other wellness-focused individuals. Fitbit and WHOOP both have integrated communities on their app, whereby you can connect and compete with users by age, location, or similar interests. Additionally, Under Armor’s MyFitnessPal enables users to closely monitor their diet and macros, with a large pre-existing database of over 11 million foods, or track exercise, with a calorie counter and GPS for outdoor runs.

Looking Ahead to 2021

While there may be trends within wellness, wellness itself is not a trend anymore. Moving forward, we will see wellness take many different forms, in many different industries.

In “The Future of Wellness 2021” report, the Global Wellness Institute identified 9 key emerging trends which consumers and investors can expect to see heat up in 2021⁷:

1. Entertainment Industry: Expect collaborations between Big Media and the wellness world to bring relevant programming to consumers at scale.
2. Immune Health: Evidence-based approaches to immune health will rise as a trend in wellness, led by the consumer obsession with “immune-boosting” supplements, shots, IV-drips, and more.
3. Wellness Based Architecture: Exploration and development of wellness within our physical environments will continue in 2021, as we discover the impacts of our surroundings on mental health.
4. Breathe as a Super Power: Medical professionals agree with the profound impact of our breath: how we breathe, what we breathe, when we breathe, and how much we breathe. Moving forward, expect to see breathwork and its benefits unfold in new directions. (PS: Check out New York Times Best Seller, Breath: The New Science of A Lost Art, by James Nestor if you are looking for a head start in transforming your life through your breath!)
5. Convergence of Wellness and Healthcare: The adaption of holistic medical practices will continue to expand, as an emphasis on personalized care continues to emerge.
6. Inclusion in Wellness: Diversity and inclusion offerings will expand in the wellness space, highlighting the different ways people of color experience wellness offerings and spaces.
7. Event Transformation: While the pandemic has transformed the event industries for the time being, it is expected that traditional event programming will begin to incorporate wellness offerings at the core of many large-scale events.
8. Financial Wellness: In an era of transparency, financial wellness will end the money taboo, leaving room for personalization and empathy in a traditionally cut and dried industry.
9. Wellness Travel: The tourism industry expects to see a rise of more health-related experiences, as travelers are looking to leave their vacations more centered, rested, and focused than when they arrived.

Whether a personal venture or business venture, there is an opportunity for everyone in the wellness industry.

References:

1. https://globalwellnessinstitute.org/press-room/press-releases/physical-activity-billion-market/
2. https://coresight.com/research/retail-2021-global-trends/?fbclid=IwAR3CRCj0e7NZWNKbejZXzZ6kSU3doH4SXhLABQ3lB5YB2ZwHX2iOrM9EJBE
3. https://www.statista.com/statistics/491362/health-wellness-market-value/
4. https://www.globalwellnesssummit.com/gws-2020/access-new-report-on-why-mental-wellness-is-your-biggest-business-opportunity-in-2021/
5. https://globalwellnessinstitute.org/press-room/press-releases/gwi-finds-mental-wellness-is-a-121-billion-market/
6. https://www.crunchbase.com/organization/headspace
7. https://www.globalwellnesssummit.com/trends-2021/