Growing wellness industry good for our bodies, businesses
The health care we enjoy today helps us live longer. But a recent study from the University of Pennsylvania reveals that we aren’t feeling particularly great. And the largest decline in self-reported health status was in people ages 25 to 54—not the elderly.
What accounts for the disparity? Researchers indicate that although we’re living longer, the majority of us are not taking good care of ourselves. Growing rates of obesity, a higher prevalence of substance abuse and a more sedentary lifestyle may be to blame.
For entrepreneurs, these findings present an opportunity. One of the industries predicted to see exponential growth in the next decade is wellness—products and services designed to improve the way we feel and reduce our chances of experiencing severe or chronic illness.
The wellness industry was born in the 1980s with the fitness movement. Some economists predict the industry will be worth $1 trillion by 2010. In 2004, we spent $42.8 billion on natural and organic products. The energy drink business alone grossed $275 million in 2001, more than doubling the profits from the previous year.
“Wellness” encompasses everything from Botox and “nutraceuticals” to energy drinks and wrinkle cream. If it’s designed to make you feel better, look better, fight aging or avoid illness, it is part of the wellness movement.
The high end of the wellness industry includes the luxury spas and resorts that often incorporate exercise programs, alternative medicine, behavioral therapy, spirituality and beauty treatments. These programs, such as Canyon Ranch and Richard Branson’s Virgin Life Care, are now popping up across the country. On the lower end are organic foods sold by big-box retailers and wellness drinks manufactured by leading soft-drink makers.
The desire to reduce health-care costs is one force behind the wellness industry. The other is the strong desire to find something to make us feel better. Researchers tell us that most adults feel their lives are “out of balance,” so shrewd entrepreneurs will seize that opportunity to deliver products and services to help consumers enrich their quality of life. The challenge will be finding the right balance of products and services to create a profitable combination.
Anyone entering the wellness business needs to be prepared to deal with the potential perception that some wellness products are just a notch or two above snake oil. Whatever you sell, you should be able to back up the promotional claims with solid research.
The wellness industry is a proactive one, involving intentional choices consumers make to enhance how they feel and how they perform physically and mentally. By contrast, the health-care industry is reactive, dealing with maladies and problems as consumers present them. Those who work in promotions in the wellness industry need to create calls to action—ways to get some of the sluggish baby boomers off the couch and onto the fitness trail, into the organic food section or to the vitamin counter.
Obviously, boomers are a huge market for the wellness industry. Wellness entrepreneurs need to be prepared to capitalize on boomers’ disposable income and sense of personal responsibility (boomers control 40 percent of the nation’s disposable income although they are only 20 percent of the U.S. population). Because of the high cost of medical care, many feel it is up to them to control their health destiny. Making that easy for them is the key. Boomers like to feel smart and like to have choices. Wellness companies that offer them information, education and choices will be the most likely to succeed.
Boomers also like convenience and all-in-one kinds of products. One example is the portfolio of health monitoring devices that can be used in the home to check vital signs and other routine health indicators. Telemonitoring services offer ways to manage chronic conditions, such as diabetes and asthma.
And, like convenience, boomers value customization. They want to be able to choose and personalize their wellness programs from an array of services. Spas that offer a broad menu of services will be successful in appealing to this group’s desire to do it “their way.”
If you’re thinking of creating a wellness business, you first need to define to which area of wellness you want to appeal—physical, mental, spiritual, even financial. In addition, you should determine whether you want your product or service to help consumers prevent wellness issues, manage conditions or correct problems. Then design a solution accordingly.
Appealing to the health consciousness of the American consumer is big business. Just look at the wide array of “life waters,” 100-calorie snack packages and organic TV dinners in the grocery store. And now, even a staple of indulgence has gone healthy. Krispy Kreme donuts are now available in a whole-wheat version. But be warned. The slightly darker confection only boasts 20 calories and one gram of fat less than its original counterpart. Is it worth it?
Might be better to join a fitness club and just do an extra 10 minutes on the treadmill. v
Virginia Wilson is a Small Business Development Centers counselor with the University Center for Innovation and Entrepreneurship at the University of Missouri-Columbia College of Business.