US Health and Wellness Market Size, Share, and Trends 2024 to 2033

US Health and Wellness Market Size and Forecast 2024 to 2033

The US health and wellness market size accounted for USD 1,356.37 billion in 2024 and is expected to be worth around USD 2,204.18 billion by 2033, at a CAGR of 5.54% from 2024 to 2033.

US Health and Wellness Market Key Takeaways

• By sector, the personal & beauty & anti-aging  segment registered the maximum market share in 2023.
• By sector, the nutrition & weight loss segment is anticipated to grow at a remarkable CAGR between 2024 and 2033.

Market Overview

Within the U.S. health and wellness market, the American Health & Wellness Association serves as a unified voice for individuals, professionals, and organizations dedicated to promoting public health and wellness. It facilitates education, engagement, and collaboration to address the diverse needs of communities across the United States and globally. Through advocacy and information exchange, the association seeks comprehensive solutions for preventive health and lifelong wellness goals.

• In November 2023, The Guardian U.S. launched a new lifestyle and wellness vertical, along with a newsletter and a live event in January.
• In July 2023, Sanofi acquired Qunol, a fast-growing U.S. brand in the healthy aging segment.
• California Health & Wellness offers tailored health insurance plans with comprehensive healthcare services to meet the needs of families and individuals throughout California, ensuring access to quality care.

The United States leads the global wellness economy, boasting significant markets in nine out of eleven wellness sectors, including physical activity, healthy eating, and wellness tourism. With sophisticated markets, diverse cultural offerings, and extensive recreational infrastructure, the U.S. provides varied wellness experiences, from outdoor adventures in national parks to luxurious spa retreats.

Wellness communities emphasizing human well-being in design and operation are increasingly prevalent. The size and composition of the U.S. health and wellness market encompass various consumer activities and expenditures, reflecting the country's unique development, culture, and policies. Each country's wellness economy is distinct and influenced by factors such as development history, culture, socioeconomic conditions, and government policy.

• In March 2023, CVS Health completed the acquisition of Signify Health.
• In July 2023, Justera Health completed the acquisition of Juillet Wellness Centre.

US Health and Wellness Market Growth Factors

• A robust wellness program should prioritize fostering healthy behaviors among employees. The prevalence of health issues such as elevated blood glucose, high cholesterol, and hypertension predominantly stems from poor dietary choices and sedentary lifestyles. As behaviors such as eating habits and physical activity significantly influence health outcomes, there exists a burgeoning market for interventions promoting healthier lifestyles.
• Expectations of wellness programs solely aiding individuals in achieving and sustaining healthy body weights may cause disillusionment. The pervasive unhealthy societal norms pose considerable obstacles to weight loss endeavors, with data indicating a consistent annual increase in weight among the populace. This persistent challenge underscores the potential of the U.S. health and wellness market for innovative solutions addressing weight management amidst prevailing environmental factors.
• The efficacy of wellness programs in curbing healthcare expenditures hinges on their substantive impact. Superficial initiatives like occasional nutrition seminars or basic health screenings need to yield significant cost savings. To truly influence healthcare costs, comprehensive programs addressing root causes and driving sustained behavioral changes are essential, thereby driving market expansion.
• A notable percentage of Americans prioritize health more than ever in the aftermath of the pandemic. This heightened awareness presents a fertile ground for the growth of the U.S. health and wellness market as individuals seek avenues to prioritize their well-being, including embracing healthier eating habits, regular physical activity, and holistic health management strategies.
• The aging population precipitates a burgeoning caregiving crisis, necessitating innovative solutions to meet their evolving needs. This demographic shift stimulates market growth opportunities for products and services tailored to elderly care, healthcare accessibility, and enhanced quality of life for seniors.
• The integration of advanced technologies is reshaping the healthcare landscape, offering novel avenues for service delivery and patient engagement. From wearable health monitoring devices enabling early detection and personalized treatment recommendations to telehealth platforms facilitating virtual consultations, these innovations drive the expansion of the U.S. health and wellness market by enhancing healthcare accessibility, efficiency, and patient outcomes.

Market Scope

Market Dynamics

Drivers

Diverse aging population and independent living trends

The increasing proportion of older adults in the United States, projected to rise by 47% from 2022 to 2050, presents a significant driver for growth in U.S. health and wellness market. There is a demographic shift, with the 65-and-older age group expected to comprise 23% of the total population by 2050, underscoring the escalating demand for tailored healthcare and wellness services.

The evolving racial and ethnic composition within the older population, marked by a decline in the share of non-Hispanic white individuals from 75% to 60% between 2022 and 2050, highlights the need for culturally competent and inclusive health solutions. This demographic diversity, however, needs to catch up to the rapid changes observed in younger generations, creating a generation gap in diversity.

Advancements in aging-in-place technologies, such as home modifications and assistive devices like walkers, have empowered older adults to maintain independence and autonomy. Consequently, there is a reduced reliance on traditional care settings like nursing homes and assisted living facilities, driving demand for personalized health and wellness solutions that cater to individual needs and preferences.

• In December 2023, Xponential Fitness bought the Well-Being chain.
• In September 2022, the American Council on Exercise (ACE) announced an expansion of its health coaching education and training through the acquisition of the Dr. Sears Wellness Institute (DSWI).

Elevated health consciousness

The burgeoning awareness of health-related issues serves as a significant catalyst for the growth of the U.S. health and wellness market. Health awareness initiatives have become pervasive, with nearly 200 health awareness days, weeks, and months listed on the US National Health Observances calendar, along with over 145 awareness days individually recognized. Each month, specific National Health Observances (NHOs) are featured, aligning with the overarching mission to enhance health outcomes nationwide.

• Heart Failure Awareness Week (HFAW), observed from February 11th to 17th, 2024, is dedicated to promoting education and awareness surrounding heart failure, as well as disseminating best practices for prevention.
• A heightened awareness and engagement in health-promoting activities contribute significantly to the expansion of the U.S. health and wellness market. As individuals become more proactive in managing their health and seeking preventive measures, there arises a greater demand for products and services that cater to holistic well-being, driving market growth and innovation.
• In February 2024, efforts were made to raise awareness about heart health, teen dating violence, and Black HIV/AIDS. Notably, heart disease stands as the primary cause of death in the United States. The National Heart, Lung, and Blood Institute (NHLBI) marked American Heart Month, aiming to promote healthy habits to prevent heart disease.
• In September 2023, Virgin Pulse and HealthComp announced their intent to merge to create a comprehensive employer health platform.
• In October 2023, Accenture acquired ConcentricLife to bolster its healthcare marketing and communications capabilities for the life sciences industry.

Restraints

Low health literacy

The escalating number of unhealthy Americans each year poses a considerable barrier to the expansion of the U.S. health and wellness market. A significant portion of the population fails to adopt lifestyles conducive to health and wellness, neglecting disease management and preventive measures. This trend is exacerbated by a lack of education regarding the essential components of maintaining a healthy lifestyle and strategies for promoting well-being.

The prevalence of unhealthy lifestyles, often stemming from inadequate health literacy rather than deliberate choices, acts as a deterrent to market growth. Without the requisite knowledge and understanding of health-promoting behaviors, individuals are less likely to seek out products and services aimed at enhancing their well-being. Consequently, the potential for the U.S. health and wellness market remains constrained, impeding the realization of its total growth prospects.

Addressing public health inequities

The COVID-19 pandemic has brought to light longstanding disparities that have plagued societies for generations. Its profound impact on lives, families, and communities across the United States and globally is evident through increased food and housing insecurity, exacerbated behavioral health issues, and other challenges that contribute to elevated morbidity and premature mortality rates. The public health sector faces critical shortages in key career fields, including epidemiologists, public health nurses, physicians, laboratory scientists, technicians, and environmental health workers. These shortages stem from various factors, such as high turnover rates driven by limited career advancement opportunities, unfavorable workplace environments, low job satisfaction, inadequate support systems, and substandard remuneration.

Addressing these systemic issues within the public health sector is imperative not only for addressing the current pandemic's challenges but also for fostering the growth of the U.S. health and wellness market. By investing in workforce development, improving job conditions, and enhancing compensation structures, the industry can attract and retain top talent. In doing so, it can better meet the evolving healthcare needs of the population, drive innovation, and create opportunities for market expansion in health and wellness services and products.

Opportunities

Digital healthcare revolution

The ongoing digital transformation in the U.S. healthcare sector presents lucrative prospects for growth of the U.S. health and wellness market, driven by a convergence of factors, including government regulations, financial incentives, technological advancements, and the imperative to enhance treatment efficiency while reducing costs. The transition to digital health technologies has enabled rapid access to clinical data for healthcare professionals while empowering managers to evaluate performance metrics, treatment outcomes, and the efficacy of quality initiatives.

Federal mandates and financial incentives have catalyzed the adoption of digital solutions, prompting healthcare providers to integrate Electronic Health Records (EHRs) with specialized data acquisition systems. This integration not only digitizes patient records but also fosters transparency and accessibility of health data, surpassing the limitations of traditional paper-based records. Furthermore, advancements in areas like artificial intelligence and machine learning have led to the development of innovative medical devices, enhancing diagnostic accuracy and treatment efficacy.

Regulatory frameworks aligned with industry best practices, such as those articulated in the GMLP Guiding Principles, play a pivotal role in ensuring the quality and safety of these digital health solutions. By adhering to robust regulatory standards, developers and manufacturers can instill confidence in their products and capitalize on the burgeoning demand for digital healthcare technologies.

• In May 2023, Ola Digital Health, a leading solution provider in the digital health industry, announced the launch of its turnkey digital health and wellness solutions.
• In January 2023, Tivity Health acquired the industry-leading digital health and wellness platform Burnalong.

Personalized healthcare trends

In recent years, a notable shift towards personalized healthcare has gained traction among consumers. Concurrently, there's a growing recognition that 'healthy' is a subjective concept, varying widely among individuals. Defining comprehensive health and wellness standards presents a considerable challenge for both individuals and healthcare providers. The Healthy Eating Index, a measure of how healthily Americans eat, underscores the widespread need for dietary improvement, with an average score of 58 out of 100. This indicates ample room for enhancement across the population.

Emerging technologies, including artificial intelligence (AI) and machine learning, offer promising avenues for advancing dietary assessment methods. From refined food recall techniques to sophisticated diet-tracking applications, these innovations hold the potential to enhance the accuracy of dietary intake evaluations. By leveraging AI-driven insights, healthcare providers can offer more personalized and targeted nutrition guidance to individuals based on their specific needs and preferences. This presents a significant opportunity for growth in the U.S. health and wellness market as consumers increasingly seek tailored solutions to optimize their health and well-being.

• In 2022, the NIH granted USD 170 million to centers and clinics throughout the United States for the investigation of personalized nutrition in individuals. 

Sector Insights

The personal care & beauty & anti-aging segment held the largest share of the U.S. health and wellness market in 2023. This thriving industry underscores the significance of personal care and beauty in the broader health and wellness market, with consumers prioritizing self-care and grooming routines. As the industry continues to innovate and cater to evolving consumer preferences, opportunities for growth and innovation abound, driving sustained market expansion and profitability.

Unlike pharmaceuticals, personal care products, including cosmetics and anti-aging solutions, do not require FDA approval before retail sale. This regulatory landscape, however, poses potential risks for pregnant individuals, as many everyday personal care items may contain ingredients harmful to pregnancy. Anti-aging skin care products, such as wrinkle creams and eye serums, play a vital role in reducing signs of aging.

Nevertheless, achieving optimal results necessitates adopting healthy skin care habits. Recognizing this, approximately 6,000 scientific and technical professionals in the cosmetics industry are dedicated to ensuring product safety through rigorous scientific methodologies.

• The U.S. cosmetic, beauty supply, and perfume retail industry boasts around 17,000 establishments, generating a combined annual revenue of approximately $23 billion. Cosmetics, face creams, and perfumes represent the lion's share of this revenue, accounting for 75% of industry sales. Hygienic products, including deodorants, shampoos, conditioners, hair colorants, and shaving products, command a 20% market share, while small appliances comprise 4%.

US Health and Wellness Market Companies

• Amway Corp.
• Herbalife Nutrition Ltd.
• Procter & Gamble

Recent Developments

• In February 2022, LifeSpeak acquired Wellbeats, a U.S.-based on-demand B2B physical wellbeing platform.
• In July 2023, WM Partners announced the acquisition of Allergy Research Group.
• In March 2023, NMS Capital announced that it had partnered with the management of Health & Wellness Partners Group, LLC (HWP) in the recapitalization of the company.
• In September 2023, Lucy Scientific Discovery announced the acquisition of BlueSky Wellness.
• In November 2022, Johnson & Johnson acquired Abiomed through a tender offer.
• In December 2022, HUL made strategic investments in ‘OZiva’ and ‘Wellbeing Nutrition’.

Segments Covered in the Report

By Sector

• Personal Care & Beauty & Anti-Aging
• Nutrition & Weight Loss
• Physical Activity
• Wellness Tourism
• Preventive & Personalized Medicine
• Spa Economy
• Others