Global wellness economy hits $5.6 trillion, projected to reach $8.5 trillion by 2027

The Global Wellness Institute (GWI) has unveiled groundbreaking research forecasting the global wellness economy to reach an unprecedented value of US$8.5 trillion by the year 2027.

This revelation, presented in The Global Wellness Economy 2023 report during the 17th annual Global Wellness Summit (GWS) in Miami, Florida, marks the 10th edition of this comprehensive analysis.

The report delves into the significant transformations within the wellness market following the economic upheavals caused by the pandemic. Offering detailed insights, it covers data and analysis for all 11 wellness sectors, regional statistics, and the top 20 national markets for each sector. Moreover, it explores emerging trends and shifts that are expected to shape the future of each wellness market.

Reflecting on the journey so far, the wellness market experienced a contraction from US$4.9 trillion to US$4.4 trillion (11% decrease) between 2019 and 2020. However, it has since rebounded impressively, witnessing a 27% growth to achieve a record-breaking US$5.6 trillion in 2022. Notably, seven of the 11 wellness sectors now surpass their pre-pandemic values from 2019.

Katherine Johnston, GWI senior research fellow and co-author of the report, expressed surprise at the resilience of the global wellness economy and its swift recovery post-pandemic. She emphasized that while the pandemic disrupted short-term industry momentum, it simultaneously created significant long-term opportunities and trajectory shifts for wellness.

The report provides sector-specific figures for 2022, showcasing remarkable growth rates across various segments. Notable performers include Personal Care and Beauty, Healthy Eating, Nutrition and Weight Loss, and Physical Activity, each exhibiting triple-digit percentage increases compared to 2019.

Looking ahead, the GWI projects a robust upward trajectory for the wellness economy, expecting an annual growth rate of 8.6% over the next five years. This surpasses the projected global GDP growth of 5.1% according to IMF forecasts. The wellness market is anticipated to reach US$6.3 trillion by the end of 2023, culminating in a remarkable US$8.5 trillion by 2027, constituting 6.6% of the global GDP.

Noteworthy sectors expected to drive significant growth through 2027 include Wellness Real Estate, Wellness Tourism, Thermal/Mineral Springs, and Mental Wellness, with annual growth rates ranging from 12.8% to 17.4%.

Regional analysis reveals that wellness markets worldwide have fully recovered from the pandemic, with North America, Middle East-North Africa, and Europe exhibiting particularly robust growth rates. The North American market has now surpassed Asia-Pacific as the largest regional wellness economy.

Per capita spending on wellness is highest in North America and Europe, with US$5,108 and US$1,596 respectively. The report also highlights the anticipated market sizes for various sectors, including four sectors exceeding US$1 trillion by 2024 and three surpassing half a trillion dollars in 2024.

The global wellness economy, driven by accelerating global trends such as an ageing population and increased prevalence of chronic diseases and mental health concerns, faces macro challenges such as widening wealth gaps and geopolitical uncertainties. Ophelia Yeung, GWI senior research fellow, and co-author emphasized that the future performance of the wellness economy hinges on the interplay of these factors.

The GWI plans to release annual Global Wellness Economy Reports at each GWS, with a companion Country Rankings Report providing in-depth insights into market size, rankings, analysis, and per capita wellness spending for 150 nations scheduled for release on January 30, 2024.

Source: spabusiness.com