
Bringing Wellness Home: How Economic Shifts Are Transforming Consumer Behavior
A generation ago, the home wellness industry was a niche sector. Today, it is valued in the hundreds of billions, a growth of about 50 percent over the past decade. The US represents the largest wellness market in the world, and opportunities abound for businesses selling products and services ranging from home saunas to fitness apps and trackers. Here, we explore the social and economic dynamics that are driving this growth and its impact on both businesses and consumers.
Changing priorities and demand
Millennials, those born in the 1980s and early 90s, represent the largest consumer group in the US. Described in many academic and research papers as the “wellness generation” they prioritize their health and wellbeing above friends, spirituality and careers, according to a 2022 survey by Sanford Health.
The drivers behind this are diverse. Partly it is a consequence of the information age; this generation has a better understanding of health and its importance and impact on all areas of life. But it is also because those born in the America of the 1980s and 90s are, on average, wealthier and better provided for than previous generations. It means the acquisition of wealth and tangible possessions is less of a priority as they have grown up with everything they need. While baby boomers reached the same age in the 1970s and aspired to buy a car or a TV, millennials already have these essentials and might instead look to invest in a home sauna or gym.
Home sauna market seeing solid growth
Saunas are a perfect example of this principle in action. The past five years have presented economic challenges to families across the US, yet the home sauna market has seen steady and consistent year-on-year growth.
Once served by small businesses with local reach, the US sauna sector has recently witnessed the arrival of privately owned companies with nationwide reach. Tennessee-based The Sauna Place (saunaplace.com) is a case in point. Key to their success in challenging economic times has been their introduction of prebuilt saunas in kit form. This has reduced the overall cost of buying and installing a home sauna from perhaps $50,000 to less than $10,000, with the kits themselves starting at about $4,000 for a two-person cabin sauna.
Home saunas also cater to the convenience and hygiene demands of millennials who prefer to take care of health and wellness in the comfort of their own homes instead of joining a gym or health club. This is perhaps the most significant trend in wellness from an economic perspective and is worthy of closer examination.
Bringing wellness home
The economic impact of the global events that took place in 2020 and 2021 are still being felt across every industry, and will continue to be for some time yet. But the wellness sector was affected even more than most. The closure of public leisure facilities naturally led to an increase in home fitness activities and in consumers purchasing everything from phone apps for a few dollars to the home saunas we discussed earlier.
However, while for some industries the impact was a temporary one that evaporated when the world returned to normal, wellness habits have, in many cases, been permanently changed. A sauna or a home gym is a long-term investment. It is also one that brings convenience over health club membership, as consumers can use their wellness equipment flexibly or at short notice. This might include having a 20 minute work out first thing in the morning or relaxing in the sauna before bed, things that would be far less convenient to do if it meant driving some distance to a public facility.
Looking ahead
Generation Z is as focused on wellness as the millennials who came before, so the industry seems set to continue to grow and evolve over the coming years and decades.
For businesses serving the home wellness sector, understanding consumer needs as they evolve will be key to success. These changes could be profound as millennial consumers move beyond middle age into their 50s and beyond.