Increasing wellbeing awareness will lead to healthy growth
London, United Kingdom (PRWEB) January 31, 2013
After enjoying a long run of health during the early to mid-2000s, the Corporate Wellness Services industry has fallen ill during the past five years. According to IBISWorld industry analyst Steven Connell, “a housing crash, financial crisis and two recessions since 2008-09 have seen employers cut back on non-core spending and slash jobs, constraining demand for health and wellbeing services”. The downturn has proved particularly pronounced for corporate health providers as key customers like banks and accounting firms downsized and prioritised spending elsewhere.
During the past decade, academic research and media attention has focused on the costs imposed on business by illness and injury. As a result, companies have come to view corporate wellness services as an effective way of reducing costs and boosting productivity.
The industry is expected to record growth of 2.1% during 2012-13, as the bearish economic outlook leads corporations to remain wary of investing in corporate health. IBISWorld estimates industry revenue will grow at a compound annual rate of 0.5% during the five years through 2012-13 to £632.1 million.
The industry is expected to recover over the next five years as the business environment strengthens and businesses and governments look to reduce the costs of poor health in the workplace and improve productivity. Demographic and structural changes should also drive growth in the industry. More Britons are expected to work in services industries that benefit most from corporate wellness services. The ageing of the population, pension reform and the rising incidence of chronic disease should also continue to inflate the costs of poor health to employers, increasing the necessity to invest in health and wellbeing. Connell adds, “possible government intervention looms as a key opportunity for the industry, while growth in the online delivery of some wellness services should also boost revenue and margins”. IBISWorld forecasts industry revenue will grow at a healthy rate over the five years through 2017-18.
The Corporate Wellness Services industry is expected to have a medium level of market share concentration, with the top four players in the industry having a combined market share of under 55%. Major companies include Bupa and Nuffield Health.
For more information on the Corporate Wellness Services industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry provide a range of wellness services including health risk assessments, health and fitness programs, educational advisory services and counselling services. These activities are designed to improve employee's health and wellbeing in order to increase productivity and minimise costs to the company.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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