Wellness Economy: A Megatrend Riding On Demographic And Social Change

Across the world, more people are paying attention to their health, fitness, and overall quality of life. From nutrition apps and wearable fitness trackers to preventive health check-ups and workplace wellness programs, the “wellness economy” has become part of everyday life. According to the Global Wellness Institute, the global wellness economy reached USD 6.3 trillion in 2023 and is forecast to grow to USD 9 trillion by 2028.1 It spans areas like healthy eating, personal care, physical activity, mental health, and wellness tourism.

This growing focus is not just about lifestyle—it mirrors deeper demographic and social shifts that could continue shaping consumer choices in the years ahead.

Table of contents

• Where megatrends fit in
• Demographic drivers of wellness spending
• Social change and cultural shifts
• Implications for investors
• The takeaway

Where megatrends fit in

This is where the idea of megatrends becomes relevant. Megatrends are broad, long-term forces—such as demographic change, social behaviour shifts, and technological progress—that could reshape economies and societies for decades. The rise of the wellness economy reflects these larger forces in action.

For investors, the significance lies in understanding that wellness is not just a passing fashion but part of a deeper transformation. The exact trajectory is uncertain—consumer preferences can shift, regulations may change, and not all companies will succeed—but the underlying drivers suggest a structural shift rather than a short cycle, which can offer opportunities for potential long-term growth and a portfolio that may stay relevant over time, despite market ups and downs.

Read Also: What Is a Megatrend & Why It Matters for Investors

Demographic drivers of wellness spending

Several demographic changes are directly linked to rising interest in wellness:

• Ageing populations: As life expectancy increases, people may spend more on healthcare, nutrition, and preventive measures to maintain an active lifestyle. Today, people aged 65 or older make up about 10.3 % of the world’s population, and this share is expected to almost double by 20502.
• Rising middle class: In emerging economies, more households now have disposable income to allocate to fitness, organic food, or personal care products. The global middle class is projected to expand from 3.8 billion in 2020 to over 5 billion by 2030, with Asia driving most of this growth3.
• Generational differences: Younger consumers, especially millennials and Gen Z, tend to prioritise mental health, sustainability, and balanced living in ways that earlier generations may not have4.
• Urbanisation: With urban lifestyles often linked to stress and reduced physical activity, there may be more demand for fitness centres, yoga studios, and stress management programs5.

These shifts may not play out evenly across all regions, but together they suggest that wellness is gradually being viewed as essential rather than optional.

Read Also: Megatrends in Investing: AI, Climate & Clean Energy

Social change and cultural shifts

Cultural attitudes towards health are also evolving. Awareness around preventive care has risen sharply since the COVID-19 pandemic, encouraging more people to take proactive steps rather than waiting for illness to strike. Workplaces are also introducing wellness initiatives, acknowledging that employee well-being may be linked to productivity.

Technology has added another layer: digital health platforms, meditation apps, and online communities are making wellness more accessible and visible. Social media amplifies these conversations, often creating new norms around diet, exercise, and self-care.

Implications for investors

Companies active in healthcare, nutrition, personal care, and fitness might benefit from this megatrend over time. Still, outcomes will depend on many factors, and not every business operating in this space will thrive. This is why investors may look to mutual funds as a way to gain exposure.

Mutual funds, particularly thematic ones, pool investor money and invest across a range of companies connected to a theme. In the case of the wellness economy, such funds could allow participation without needing to choose individual stocks. That said, thematic funds carry risks of concentration and performance variability, so investors should evaluate them carefully in line with their goals and risk appetite.

Read Also: What Makes a Trend a Megatrend? Key Traits & Examples

The takeaway

The wellness economy is more than an industry label—it reflects how societies are changing. Ageing populations, higher incomes, and shifting cultural attitudes are pushing health and wellness higher up on personal and policy agendas. For investors, this trend highlights the importance of watching how demographic and social change may open up new areas of demand and provide a lens for thinking about long-term investment opportunities.

Sources:

1. Global Wellness Institute (2023), The Global Wellness Economy: 2023 Report
2. United Nations, Department of Economic and Social Affairs, Population Division. World Population Prospects 2024: Summary of Results.
3. Kharas, H. & Hamel, K. (2021). The Unprecedented Expansion of the Global Middle Class. Brookings Institution / World Data Lab.
4. Deloitte (2023). Global Gen Z and Millennial Survey.
5. United Nations, World Urbanization Prospects 2018 (latest major release with long-term urbanisation projections).

At Bajaj Finserv Asset Management Ltd, we aim to harness the power of megatrends by offering investors access to themes shaping the world’s future — from clean energy to technology, innovation, demographic shifts and more. Many of our funds follow a megatrends investment approach to help you participate in these long-term shifts, with a focus on growth potential and diversification. Build your future-focussed portfolio with Bajaj Finserv AMC.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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