Corporations will continue to desire ways to cut rising healthcare costs, and corporate wellness programs will still be the most effective option
Los Angeles, California (PRWEB) December 08, 2011
In the next five years, the Corporate Wellness Services industry will continue to thrive, according to latest report from IBISWorld, the nation’s largest publisher of industry market research and statistics. With higher corporate profit, incidence of adult obesity and healthcare costs, corporations will seek out this industry's participants to help educate their employees and reduce expenses. From 2011 to 2016, industry revenue is forecast to increase at an average annual rate of 9.8% to $2.9 billion. In 2012 specifically, industry revenue will grow an estimated 8.4% to $2.0 billion. During the year, healthcare costs will continue to increase, and effected firms will look for efficient ways to improve their profit margins. For this reason, industry research firm IBISWorld has added a report on the Corporate Wellness Services industry to its growing Wellness Services report collection.
The Corporate Wellness industry includes companies that primarily provide workplace programs that offer a combination of educational, organizational and environmental activities designed to support behavior that is conducive to the health of employees in a business and their families. According to IBISWorld, the industry’s major player, HealthFitness Corporation (Insight, JobFit, Empowered), provides integrated health-, fitness- and condition-management services for employees and individuals. This does not include programs designed internally by existing human resources personnel. The Corporate Wellness industry has experienced strong growth and is expected to prosper in the years to come. Corporate wellness services provide workplace programs to help corporations improve the health of their employees. As healthcare costs rose and discounts were implemented for employees participating in wellness programs, more corporations demanded services from corporate wellness providers. As such, in the five years to 2011, industry revenue is expected to increase an average 4.3% per year to $1.8 billion. An increase in corporate profit and a decline in Americans' overall health also helped boost revenue in the past five years. In 2011, IBISWorld estimates industry revenue grew 7.0% as corporate profit improved further by 8.5%, allowing more corporations to afford this industry's services.
According to IBISWorla analyst, Mary Nanfelt, from 2011 to 2016, industry revenue is projected to grow an average 9.8% per year to $2.9 billion. Similar to the previous five years, “corporations will continue to desire ways to cut rising healthcare costs, and corporate wellness programs will still be the most effective option,” says Nanfelt. Firms will also want to increase their employees' productivity. For example, research shows that obese workers tend to be less productive and miss more days of work on average. So in order to improve the overall health of employees, more firms will hire industry services. This demand, however, will be slightly offset by external competition, such as from gym memberships that companies buy for their employees or from more internal wellness programs coordinated by HR staff. These options tend to be less expensive and will take away some business from the Corporate Wellness Services industry.
For more information, including latest health trends, statistics, analysis and market share information on corporate wellness, download the full report from IBISWorld on the corporate wellness industry
IBISWorld Industry Market Research Reports Contain:
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.