Corporate Wellness Services in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) December 02, 2014 -- The Corporate Wellness Services industry has experienced robust growth over the past five years, due to many businesses' purchasing wellness programs to help lower healthcare costs. Many businesses have grappled with illness-related costs, such as a loss of productivity due to employee absenteeism, bolstering industry demand. In particular, according to the research corporation RAND, 72.0% of employers purchased screening services (e.g. services that identify employees' health risks) and intervention services (e.g. services that reduce health risks by promoting healthy lifestyle choices), thus stimulating industry revenue growth. According to IBISWorld Industry Analyst Sarah Turk, “In response to the burgeoning obese and overweight population, which may increase employer-mandated health insurance costs, many businesses have implemented biometric screening services.”
For example, corporate wellness services may include collecting employees' biometric data (e.g. height, weight, blood pressure and blood glucose levels), which helps industry operators target high-risk employees for intervention programs. Among businesses that offered lifestyle management programs, 79.0% of businesses had nutrition and weight counseling, followed by smoking cessation (77.0%), fitness (72.0%), alcohol and drug abuse (52.0%), stress management (52.0%) and health education (36.0%) programs, according a RAND study in 2013. Further exacerbating demand for industry services, businesses are expected to have a high return on investment (ROI) for disease management services, with each dollar allocated toward these programs resulting in a $3.80 ROI. During the five years to 2014, industry revenue is expected to increase markedly, including a substantial rise in 2014. Profit is also expected to grow, driven by businesses increasingly demanding comprehensive wellness programs.
The Corporate Wellness Services industry is characterized by a low level of market share concentration. In 2014, the top four companies are expected to make up a small amount of industry revenue. Overall, the industry is highly fragmented, which can be attributed to many corporate wellness companies solely catering to market niches. In particular, some companies may offer wellness services to nonprofit businesses or some public sector businesses. For instance, ValueOptions benefits from robust demand for behavioral health and wellness services from active duty members, retirees and their families via the Department of Defense's TRICARE program.
As a result, if corporate wellness companies can secure contracts to exclusively provide wellness services (e.g. health assessments, screenings and nutrition education) to a particular client, this trend adds to the industry's fragmentation. “Further adding to the industry's level of fragmentation, corporate wellness services may encompass a multitude of products,” says Turk. For example, while health risk screenings have been a common industry service over the past five years, more corporate wellness companies have included additional services, such as disease management services, fitness benefits and access to healthcare providers (e.g. nurses).
During the five years to 2019, industry revenue is forecast to grow substantially. According to a 2012-2013 Health Care Reform study by Willis, 50.0% of businesses surveyed reported that they planned on expanding the scope of their wellness program, which will provide opportunities for the industry over the next five years. Furthermore, 65.0% of businesses with 50 to 100 employees reported that wellness programs are a key differentiator for employee recruitment, inciting some businesses to purchase wellness services to bolster employee retention rates.
For more information, visit IBISWorld’s Corporate Wellness Services in the US industry report page.
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IBISWorld industry Report Key Topics
This 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 and their families. This does not include programs designed internally by existing human resources personnel.
Industry Performance
Executive Summary
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Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
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Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
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Cost Structure Benchmarks
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Major Companies
Operating Conditions
Capital Intensity
Key Statistics
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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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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