The United States wellness market is booming, and experts believe it will continue to grow at record rates.
According to the McKinsey Future of Wellness survey, more than $450 billion is spent on the U.S. wellness market alone every year, and this figure is expected to see a 5% growth rate. The market is crowded with businesses in the health and wellness space, and investment in digital health startups reached a record high of $29 billion in 2021 across more than 730 deals. Despite this massive number of new ventures, consumers are still identifying gaps in the market and feel that companies are not meeting their needs by tackling every element of wellness.
Altogether, McKinsey has identified six dimensions of wellness: nutrition, health, fitness, mindfulness, sleep, and appearance. Nutrition includes diet programs, subscription services, apps, and juice cleanses, while health involves over-the-counter medicine and vitamins. Fitness constitutes at-home equipment or gym memberships, mindfulness includes therapy and meditation apps or studios, and sleep products are supplements or apps that track sleep. Finally, appearance incorporates skincare, haircare, or salon services. While brands primarily focused on one of these elements at the beginning of the wellness craze, more lucrative ventures will be in products that can combine one or more of these elements. More than 37% of consumers polled by McKinsey are demanding more sleep and mindfulness products.
Data shows that members of Gen Z desire wellness products more than any other demographic, and they strongly prefer personalized experiences throughout products, apps, or services. Influencers and celebrities also are important to this demographic, as products endorsed by either had brand discovery rates that rose from 20% to 60% over the course of two years. Lastly, while products are the most significant portion of the wellness market, 45% of consumers say that they're looking to spend more on apps or services.