Tuesday, July 3, 2012

Key Market Mechanisms for U.S. Wellness Industry

The U.S. Wellness industry is currently estimated to be $300 Billion and is expected to increase to over $ 1 Trillion in the next 5-10 years. The basic market drivers consist of; Sedentary lifestyle increasing incidence of chronic diseases; Rise in discretionary spending; Changing consumer lifestyle; Government initiatives; Growing awareness in corporate(s) and; Necessity for Life Coaching. The market challenges which need to be addressed include, but not limited to; Competition from unorganized players; Lack of standards and regulations and; Lack of industry incentive(s).

A review of market trends indicates some major highlights such as; Lifestyle, fashion and sports sectors not being directly linked to wellness; major area for participation of allied industries; Many start-ups as well as global players still evaluating, eyeing entry and capturing market share; Private equity and venture capital seeking start-ups and operating companies for targeting potential investment, M&A, strategic sale and Initial Public Offering (IPO) and finally; Importance of maintaining healthy “work-life” balance; very essential, and often more difficult, during challenging economic times and during times of change. Some of the key questions for the U.S. Wellness Industry include, but not limited to, the following influencing factors:

  • What role does technology, innovation, and invention play in introduction of new products and services?
  • How can the market and the sector best benefit from entry of talented entrepreneurs and promising start-ups?
  • What are the proper fiscal, financial and regulatory policies which can have a direct positive impact on the sector?
  • How do private equity and venture capital investors view the market and the sector?
  • What are the key market & business fundamentals and business-revenue models in coming years?
  • At what trajectory or optimal point will convergence, consolidation, mergers & acquisitions (M&A), roll-ups play an increasing role?

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