The multi-trillion dollar wellness market

The economics of health—and how some influencers exploit it

Last month, Julian and I recorded a Conspirituality Brief on a claim we’ve heard often while working on the podcast: people turn to wellness because the conventional medical system has failed them.

There’s some truth to this. For-profit healthcare systems produce horrible incentives. No one should ever go bankrupt for a surgery or course of treatment. Yet it happens often: 650,000 Americans are pushed into medical bankruptcy every year. 

Like everything, some truth, but not the full picture. Many countries with socialized medicine are experiencing wellness booms. In fact, the broader wellness industry is now valued somewhere around $1.8 trillion.

While I’m critical of influencers spreading misinformation, there’s nothing wrong with spending money on wellness services and products. I do. Most people I know from the fitness and health industries do. This multi-trillion-dollar figure includes many services: gym memberships, yoga classes, supplements—it’s a broad term. From my experiences working in the industry, most people simply want to live a healthy lifestyle. If you have the money or access to do so, go for it.

With that in mind, I’m going to break down the top five trends and analyze potential red flags with each, keeping in mind that none of them are completely problematic. None of them get off scot-free, however.

Market forces

The wellness report reveals some interesting data. First, the American wellness market is $840 billion alone, with 82% of US consumers considering wellness practices a “top or important priority.” And that demographic skews younger. 

This is especially true among Gen Z and millennial consumers, who are now purchasing more wellness products and services than older generations, across the same dimensions we outlined in our previous research: health, sleep, nutrition, fitness, appearance, and mindfulness.

According to Bloomberg, North Americans’ per capita spending on wellness products and services is $5,108 in North America, while Europeans drop $1,596 each year. So there’s definitely more fervor around “wellness” here, but it is a global phenomenon.

Now let’s dive into the topic 5 trends, followed by my analysis of potential issues.