Wellness industry growth driven by Gen Z and millennials

As wellness becomes a daily practice and even way of life for many (rather than just occasional activities or purchases), the global wellness industry is now valued at around $2 trillion. Younger consumers are pushing the industry forward, according to a survey from McKinsey.

Supplements, fitness, nutrition, aromatherapy, and even wearable tech: Wellness covers a broad range of categories with appeal to a wide range of demographics. Though Gen Z and millennial consumers are largely driving growth in the sector, the survey shows that older consumers are also increasingly interested in wellness, too.

The survey shows that wellness has become a priority for many consumers, meaning it will likely be a resilient category going forward. In the event of economic stress, consumers reported they are less likely to cut spending on wellness products like menstrual care products, analgesics, supplements, and even skin care products than they are to cut spending on things like clothing, entertainment, and home decor.

Younger consumers prioritize wellness

The survey found that younger consumers are increasingly tapped into wellness. In fact, 30% of Gen Z and millennial respondents said they are now prioritizing wellness ‘a lot more’ than last year, with 23% of older generations saying the same.

Young respondents were most concerned with better health, sleep, nutrition, and mindfulness. Gen Z and millennial respondents were also significantly more concerned with better fitness and appearance than the overall average.

This focus on overall wellbeing is a trend being seen across the board with younger people, especially in the US. Younger people have been reporting higher levels of burnout and worse overall health compared to older people. They also happen to be more exposed to wellness-related content, especially on social media, which could explain why they prioritize it more.

In the US alone, consumers spend more than $500 billion annually on wellness, with the industry growing by around 5% each year. A total of 84% of US consumers said wellness is a "top" or "important" priority, compared to 79% in the United Kingdom, and 94% in China.

Areas of growth in wellness

Functional-nutrition products – food and beverages that claim to deliver health benefits – are increasingly popular. In the US, UK, and Germany, around half of consumers and two-thirds of Gen Z and millennials say they purchased functional-nutrition products last year. In China, that percentage is even higher.

These are products like fortified foods (with extra protein, for example) and supplements used for a wide range of perceived health benefits. The most popular products, according to the survey, were those related to energy, gut health, and immunity.

This trend has been fueled by a growing awareness and focus on preventative medicine, as consumers become more aware of how food and beverage choices affect their health. Rather than only thinking of healthy food as foods that are free from certain components (like gluten or sugar), consumers are now also looking for foods that contain extra protein, nootropics, or other ‘super food’ ingredients.

Longevity is another category seeing significant growth, with skin care products, wrinkle prevention, and supplements standing out. A majority of respondents said they see healthy aging as a ‘top’ or ‘very important’ priority. Longevity-focused products and services are not only for older consumers. – younger generations have also been taking a proactive approach to healthy aging.

Many consumers are also now more focused than ever on weight management and exercise. That includes things like weight loss supplements, meal plans, juice cleanses, and workout plans. Spending on fitness classes and wellness retreats has also been on the rise, with the US seeing the most growth in this niche.

Mental health has also been a huge part of the wellness industry, especially since the stress of the pandemic and related lockdowns, which marked a major change in attitudes towards work-life balance. Burnout and anxiety are really high, especially among younger generations, and many have been focusing more on their mental health.

The research found 42% of Gen Z and millennials in the US put ‘very high priority’ on mindfulness, compared with only 29% of baby boomers. Younger generations tend to be more attuned to their mental health and open to trying a range of solutions to address it.

Older generations, on the other hand, tend to think of mental health solutions as those that are explicitly tied to treatment (like talk therapy), younger generations have embraced a wide range of ‘self-care’ routines, from skin care regimens to sleep hygiene and fitness routines.

“In surveys, consumers typically say they plan to reduce discretionary spending if their finances worsen. But we believe wellness is a resilient category,” said Anna Pione, partner with McKinsey and one of the authors of the report.

“As wellness continues to evolve from a niche interest into a mainstream lifestyle priority, Gen Z and millennials are setting the pace – reshaping expectations and pushing the boundaries of what wellness means. Other generations, too, are adopting an expanding definition of wellness.”