Over the next six years, the health and wellness industry is expected to grow at a 6% annual rate, surpassing $6 trillion in revenue by 2025. This growth, largely driven by the boom of holistic health services and products, is a wave that many health and wellness businesses are looking to ride.
In this blog, we’ll explore the effects of holistic medicine on the health and wellness industry, the trends driving its growth, and what e-commerce businesses in this space should be aware of.
What Is a Holistic Approach to Health?
Rather than treating just the pain, a holistic approach to health seeks to treat the whole person. Holistic health is sometimes wrongly viewed as synonymous with practices like alternative medicine, naturopathy, and Eastern-inspired health trends, though there can be a crossover between these practices.
Holistic health is not against the standard Western practices of healthcare and pharmaceuticals. Instead, it takes into account all aspects of one’s lifestyle (e.g. diet, exercise, mental health, etc.) to take a broader and more in-depth look at what may be causing disruptions or deficiencies in one’s health.
Why the Health and Wellness Industry Is Booming
The health and wellness industry generates approximately 5.3% of the world’s economic output. The current magnitude — and expected growth — of the holistic health industry is exciting for e-commerce companies in this space, and it’s important to understand the health and beauty industry trends that are driving this holistic approach to health.
Trend #1: Consumer Health Awareness
One of the reasons for growth in holistic health is an increasing concern for longevity and sustainable healthy lifestyles. As younger generations witness people living with chronic health problems and stress, long-term lifestyle changes promoting fitness and sustainable diets are becoming more normalized and favored above over-the-counter prescriptions.
Trend #2: Dissatisfaction with Current Healthcare Options
With rising prices of over-the-counter medications and a growing distrust of some corporations in the pharmaceutical sector, disappointment with current healthcare options is rising to the surface. If a patient doesn’t think a certain healthcare system respects and understands their pain, they will often seek alternatives that fall under the “holistic health” moniker.
Trend #3: Millennial Spending
Millennials are one of the largest generations in history, and the industries coming out on top are the ones recognizing Generation Y’s spending habits. Millennials are also three times more likely to research new brands and find new products on social media, making them a popular demographic for influencer marketing.
Trend #4: Influencer Marketing
Utilizing social media influencers to promote holistic health services and products has been highly successful. With the proven success of influencer marketing, e-commerce businesses are cashing in on the power of using trusted personalities to get their message out to millions of people.
Trend #5: Self-Care
It may seem obvious that fitness is a form of self-care, but the stigma of spending time on yourself is pivoting in the public eye from being “selfish” to something that’s necessary for improved mental health. As wearable fitness devices and activities like “wellness tourism” grow, the health and wellness industry is poised to benefit from generations of people wanting to take care of themselves.
Riding the Health & Wellness Industry’s Growth
More than half of Americans say they’re “actively trying to improve their health.” This stat is good news for businesses looking to capitalize on long-term growth. Some of the most popular products and services in the space are listed below.
- CBD-Based Products. Used for a variety of ailments like generalized pain relief, anxiety, and stress, CBD is another market experiencing tremendous growth.
- Energy Medicine. With Eastern philosophies growing in popularity in the West, ancient medicines like Ayurveda and other herbal remedies are in the spotlight more than before.
- Personalized Medicine. As online shopping grows, consumers are beginning to value the customer experience more and more. With subscription-based companies like Gainful offering personalized products (like protein powders), building consumer loyalty through a branded customer experience is paramount.
- At-Home Health Kits. DNA tests to reveal genealogy and health profiles, and allergy test kits are all on the rise. Companies like Everlywell offer over 30 at-home kits to help you test everything from food sensitivities to overactive thyroids.
- Integrative Health. As weekly workout routines become more common among the general public, integrative health practices like cupping, cryotherapy, and even sauna baths for muscle repair are growing in demand.
- Nutraceuticals. Immunity support supplements and nutraceuticals are growing in popularity as Millennials and Generation Z become more conscious of the flu and other severe viruses.
- Natural Products. There’s a growing demand to cut out the chemicals and use natural ingredients. Many companies are moving away from using harmful chemicals like aluminum in deodorant and body wash and towards more natural ingredients that are also vegan and cruelty-free.
Among the trends above, personal care and beauty is another growing market in the holistic health space, accounting for around $1,084 billion in the wellness economy. For example, skincare routines are seen as more than just beauty products, as they’ve positioned themselves as a viable way to foster and protect the body’s largest organ — our skin.
The Future Is Digital
As online shopping grows, the health and wellness industry is becoming increasingly digital. Virtual fitness and health apps are growing in popularity in the holistic health and wellness space, and a major purchasing ground for holistic health products is through e-commerce. It’s essential for e-commerce companies in this space to understand the importance of meeting their customers where they are, which is largely online.
Another aspect of capitalizing on consumer behavior is the ability to deliver on their expectations. As online shopping in health and wellness continues to experience growth, holistic health businesses must focus on areas like order fulfillment and accuracy to increase customer satisfaction and build brand loyalty.
Finding a 3PL Experienced in Healthcare Logistics
As orders increase in volume within the health and wellness industry, e-commerce companies are finding it increasingly difficult to keep up with demand. Because of this, e-commerce businesses may turn to a 3PL (third-party logistics) provider.
When doing so, it’s important to understand what to look for in a healthcare 3PL, especially when you operate in an industry with a lot of regulations.
FDA Registered
You want to partner with a 3PL that understands the sensitive process of handling, storing, packing, and shipping your products in compliance with government regulations. Your provider should be a registered partner with the Food and Drug Administration (FDA).
CGMP Compliant
CGMP (Current Good Manufacturing Practice) regulations are put in place by the FDA to make sure high-quality standards are met. These practices ensure products like pharmaceuticals, dietary supplements, and medical devices are handled correctly in warehouses. CGMP also requires the implementation of processes to keep the warehouse clean, well-controlled, and pest-free.
Hazardous Materials Certified
In addition to processes, it’s important to make sure the team managing your products is trained in handling hazardous materials. That way, they can quickly and appropriately respond to any accidents.
You’ll want to find a team trained in the following:
- Code of Federal Regulations (49 CFR)
- International Air Transport Association (IATA)
- International Maritime Dangerous Goods (IMDG)
As the focus on holistic health continues to grow, it’s up to e-commerce companies in the space to capitalize on this by offering products and services of substance and value. Today more than ever, customers are watching closely to see how companies will respond to their demand.
Do you operate a business in the health and wellness industry? To learn more about how a 3PL can help you succeed in this growing space, contact us.
