How is the health and wellness industry changing?

Increasingly, consumers are taking their health and wellness more seriously. They go to gyms, use mindfulness apps, buy wearables, and add supplements to their diet. All of that makes wellness a part of their everyday lives. What are the key trends in the industry? How is it changing? And how can you as a supplement business ensure your products meet the needs of consumers? Global health and wellness industry The COVID-19 pandemic has changed almost every aspect of our lives and drawn more attention to our health. The data by McKinsey & Company shows that for around 50% of US consumers wellness was a top priority in their day-to-day lives in 2022, compared to 42% in 2020. The company estimates the value of the global wellness market at more than $1.5 trillion, with annual growth of 5 to 10%. When we look at regions, the 2022 report “The Global Wellness Economy: Country Rankings” by Global Wellness Institute revealed that per capita spending on wellness is highest in North America ($3,567) and Europe ($1,236). Switzerland, Iceland, the United States, Austria, and Norway are the top five countries where people spend the most on wellness. The pandemic contributed to the growth of many sectors. According to its 2021 report “The Global Wellness Economy: Looking Beyond COVID”, wellness sectors that grew during the pandemic (2019–2020) included: Mental wellness (+7.2%) as consumers sought out products (e.g., meditation accessories, stress gadgets, and brain health supplements) and services (e.g., meditation or relaxation activities) to help them cope with the stresses they faced Healthy eating, nutrition & weight loss (+3.6%) as consumers sought out foods and beverages, vitamins, and supplements that they believed would strengthen their immunity Fitness technology (+29.1%) as consumers switched their spending to workouts via digital platforms (streaming and apps) Current and future trends The trends which emerged during the pandemic are here to stay in 2023 and beyond. Of course, there are also changes in consumer behaviour. Mental health in the limelight This trend started gaining prominence during the COVID pandemic when consumers became aware that health is not only about taking care of their bodies. It is still the case. According to Ipsos Global Trends 2023, 80% of global consumers agree that they need to do more to look after their mental well-being. The data also shows that mental health is a challenge especially for the young population. While around 40% of respondents under 35 years of age strongly agree that they need to do more for their mental well-being, just 24% of those aged 55–74 say the same. Macro force issues affecting this trend include, amongst others, growing mental health crisis, ageing populations, and systematic health inequality. At the same time, 86% of consumers agree they need to do more to look after their physical health. The survey included more than 48,000 participants from 50 countries. Personal workouts over isolation Due to pandemic measures, people had to exercise at home, but this is no longer the case. In 2023, more people are returning to gyms than before the pandemic. Gym visits in December 2022 were higher by 19.3% when compared to December 2019 and higher by 17.5% when compared to December 2021. January 2023 visits saw both YoY and Yo3Y (year-over-three-years) increase. Every year since 2007, ACSM (American College of Sports Medicine) publishes the “Worldwide Survey of Fitness Trends”. In this year’s edition, the top three trends are wearable technology (including fitness trackers, smart watches, heart rate monitors etc.), strength training with free weights and bodyweight training. Consumers seek personalisation Personalisation of products and services is a trend that continues to gain importance, especially among young consumers. According to a survey by McKinsey & Company, 49% of Millennials and 37% of Gen Z strongly prefer products, services, or apps using personal data to personalise their consumer experience. A study by Vesta, a community marketing technology company, also confirms the interest in personalised products. 71% of respondents among Gen Z and Millennials are interested in personalised supplements. Loss of interest in clean products In 2020, approximately 30% of respondents said they would prefer natural and clean over effective dietary supplements. The 2022 data by McKinsey & Company revealed the slowing of this trend. 28% of consumers would prefer clean and natural over effective supplements. This shift is likely affected by two factors. First, the COVID-19 pandemic has given additional credibility to products that can show clear results. Second, people are overexposed to claims of natural or clean ingredients. In many cases, they are perceived as a form of greenwashing. How to respond to these trends if you sell private label supplements? As you see, the health and wellness sector is booming. That also means that it’s getting more competitive. It is, therefore, crucial to target the precise consumer segments that may be most interested in your products. Marketing should be tailored to those consumers and their needs. With personalisation gaining prominence, it is necessary to get one step further to succeed. As a business selling private label supplements, you need to think about how you can personalise your products and customer journey. An example can be a recommendation of products based on how consumers respond to questions of a quiz. You also need to be strategic about labelling, as “clean” or “natural” will not attract every consumer. For that reason, it is necessary to identify products where the mentioned claims would resonate most strongly. With the growing number of customers who take care of their soul, try to incorporate supplements with the potential to improve mental health in your product portfolio. An example is ashwagandha, an adaptogen with a projected market growth of 11.3%. Find out more in our article “What you need to know about ashwagandha”. Read also our article about supplement trends to watch for in 2023 to learn more about the top three product categories for this year.

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Aktualizované: 21.8.2023

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How is the health and wellness industry changing?

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