Health and Wellness ‘The next trillion dollar industry globally’ oh yes! You heard it right. Wellness, the “new black,” is now a status symbol among consumers, who prioritize maintaining their well-balanced physical and mental health. In 2016, analysts reported that the global wellness economy reached $3.7 trillion and growth is expected to accelerate by 17% in the next five years. In 2017, we predict there will be a great opportunity for marketers to meet the needs of health & wellness – focused consumers. Conducted by the independent, non-profit research firm SRI International, the study confirms wellness as one of the world’s biggest and rapid – growing industries. Key sectors include: • Anti-Aging & Beauty (Dollar$999 billion.) • Healthy Eating, Nutrition & Weight Loss (Dollar$648 billion.) • Wellness Tourism (Dollar$563 billion.) • Fitness & Mind-Body (Dollar$542 billion) • Preventative & Personalized Medicine and Public Health (Dollar$534 billion) • Complementary & Alternative Medicine (Dollar$199 billion) • Wellness&Lifestyle Real-Estate (Dollar$119 billion) • Spa-Industry (Dollar$99 billion) • Thermal-Mineral Springs (Dollar$51 billion) • Workplace Wellness (Dollar$43 billion) Health & Wellness sectors seeing the rapid growth since 2010 are: • Healthy_eating, nutrition and weight loss (108 percent increase to $276.5 billion) • Preventative and personalized health (78 percent (%) increase to dollar ($)243 billion) • Complementary and alternative medicine (65 percent (%) increase to $113 billion) • Beauty and anti-aging (51 percent increase to $679 billion) Consistent with the World Health Organization’s (WHO) definition of “health,” the 2013 Global Wellness Tourism Economy report defines health & wellness as a state of complete physical, mental, and social ‘well-being’. It goes beyond mere freedom from disease or infirmity and emphasizes the advance or proactive maintenance and improvement of health and well-being. The Indian wellness industry was estimated at close to Rs85,000 crore in financial year 2014-15 and is expected to grow at nearly compounded annual growth rate of nearly 12 Percent (%) for the next 5 years. The industry can achieve about Rs1.5 trillion by FY20, according to a recent report by Ficci and EY. India’s population recently is relatively young with about 47% of the population expected to enter the elderly phase down the line. Health characteristics, which include the import of diseases, productive years lost, and monetary value of health care—among others—are key drivers of economic growth for emerging markets like India. Wellness players, in alignment with above trends, have responded by reallocating their focus from traditional offerings like healing health care and value-oriented mass products to new-generation offerings like preventive health care, luxury products and personalized services. India’s wellness market is estimated at Rs490 billion, and wellness services alone comprise 40% of the market. Healthcare has become one of India’s largest sectors – both in terms of revenue and employment. In the Union Budget 2017-18, the overall health budget increased from INR 39,879 crore (US$ 5.96 billion) (1.97% of total Union Budget) to INR 48,878 crore (US$ 7.3 billion) (2.27% of total Union Budget). India is a land full of opportunities for players in the medical devices industry. Industry concerns and challenges: There are a number of systemic challenges faced by the Health & Wellness industry which if left unaddressed, can hamper the future growth potential of the industry. Prevailing challenges involves the following: • While players are inventing strategies to control costs and arrive at optimal ‘cost structures’, managing ‘input costs’ continue to be a challenge due to the limited capability of the players to pass on these costs to the customers. • ‘Health & Wellness’ industry continues to face a talent crunch. This paucity of skilled talent resulted in high manpower costs and attrition levels. This may produce a ‘war for talent’, unless active measures are adopted to create ‘credible and accessible’ training infrastructure. “While growth in the fitness services sector continues to be in high double digits, there has been some contraction in spends by customers, with customers scaling down on extra services. This has pushed the impetus for increasing penetration and driving enrollments” (‘ISTAYAK ANSARI’, COO, Gold’s Gym India) With rising lifestyle-related diseases and health conditions, naturally healthy products remained appealing to target consumers and thus witnessed the highest value growth in year 2015. ‘India remains a country with increasing “obesity” issues and thus an increase in fitness activities’. “Health & wellness” is set to continue to record strong value growth over the forecast period due to rising consumer health awareness and rising disposable incomes. Product wellness market segmentation and analysis of the health and wellness market: • Fitness equipment • Preventive and personalized ‘health’ • Wellness tourism • Beauty and personal care products • ‘Health and wellness’ food In 2015, the health and wellness food segment dominated the market and accounted for nearly 51% of the market share. The ‘health and wellness’ food market consists of naturally ‘healthy’ foods, functional foods & nutraceuticals, better_for_you foods, organic foods, and food intolerance products. Factors such as the growing demand for healthy & high-fiber foods and rising awareness of health issues to aid in the growth of this market segment by the end of 2020.

Advertisements