Americans Obsessed With The Wellness Market? Market Peak Estimated For 2023!
Fitness courses, smartwatches, and meditation applications are all examples of how consumers continue to place a high value on well-being, which is rapidly becoming a part of the average American’s daily life. According to our estimates, the U.S. wellness market is worth well over $450 billion and is expanding at a rate of more than five percent yearly.
In recent years, the wellness business has experienced significant innovation and increased competition, notably in sectors like tailored nutrition, vitamins, and cosmetics. However, many customers’ demands for wellness are not being fully met by the goods and services that are currently offered. This is particularly true for African-American and millennial customers, who now make up the biggest generational pool of prospective spenders.
However, it is also true that recent trends have not only managed to sustain themselves but also continue growing!
1. Services Are Starting to Peak
While the majority of money is still spent on products, services and applications are gaining a footing and currently account for around 30% of money spent. Around 45% of shoppers want to spend more on services, even if they be app-based, throughout the coming year. In comparison, around 25% plan to spend more on items. Services and apps also appear to be poised to take a considerably bigger percentage of future spending.
2. Fame-Backed Product Branding
Celebrities and influencers are becoming increasingly significant for millennial consumers, in particular when it comes to product discovery. The percentage of customers who believed the famous were crucial to brand discovery increased by approximately 20% over the previous two years, reaching over 60%.
This is probably owing, in part, to the success in recent years of celebrity-owned beauty companies like JLo Beauty by Jennifer Lopez, Kylie Skin & Kylie Cosmetics by Kylie Jenner, and Kora Organics by Miranda Kerr.
3. Personalized Services & Products
This phenomenon is especially prevalent among Gen Z and millennials, who show a strong preference for goods, services, or applications that use personal data to tailor the shopping experience for each individual by 37% and 49%, respectively. Companies have had success using a variety of strategies across all wellness parameters.
As an illustration, a customized vitamin company called Care/of employs a type of straightforward quiz-based personalization that suggests one of many product possibilities based on how customers reply to questions about themselves. ZOE, a firm specializing in customized nutrition, employs more advanced customization to provide specialized goods and services depending on each customer’s particular health indicators.
Despite the increase in market participants, many of the customers’ requirements are still not being adequately met. An increasing number of wellness categories are now underserved, and there are entire customer segments that are dissatisfied with the current offers. Companies will be well-positioned to prosper in the expanding and more holistic health ecosystem if they are aware of developing trends and fast to respond to them.
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