The wellness economy encompasses industries and sectors that directly or indirectly contribute to people’s physical, mental and social well-being. This includes traditional sectors such as healthcare, fitness and nutrition, as well as emerging areas such as mental health services, wellness tourism and sustainable living. At its core, the wellness economy prioritises people’s health and happiness, placing these values at the same level, or even above, traditional economic indicators such as GDP.
The Global Wellness Institute defines the wellness economy as “industries that enable consumers to incorporate healthy activities and lifestyles into their daily lives.” These industries contribute significantly to global economic output, with the wellness economy estimated to be worth over $4.5 trillion globally. Not only is this sector growing in size, but it is also becoming increasingly influential in shaping consumer behavior, corporate strategies, and government policies.
Now, why the importance of well-being in national administration?
Integrating wellbeing into national governance goes beyond improving health systems. It involves a fundamental shift in how governments measure success and allocate resources. Traditionally, economic success has been assessed through GDP growth, employment rates and trade balances. However, these indicators often overlook critical aspects of human life, such as mental health, environmental sustainability and social wellbeing.
Countries embracing wellbeing economics recognise that a healthy and happy population is more productive, innovative and resilient, therefore more cost-effective and less expensive for the public health budget. This shift is evident in the rise of alternative economic indicators, such as the Gross National Happiness (GNH) index used in Bhutan, which measures the collective happiness and well-being of its citizens as a central government objective.
Let’s talk about the key and impact areas in a perception economy:
1. Public Health: By prioritizing well-being, governments can reduce healthcare costs and improve citizens’ quality of life. Preventive health measures, mental health support, and access to nutritious food are essential components of a well-being-driven public health strategy. Countries that invest in these areas can expect long-term savings in health expenditures and a more robust, healthier workforce.
2. Sustainability: The wellbeing economy is inherently linked to the environment. Sustainable practices in agriculture, energy and urban planning contribute to a healthier planet and, by extension, healthier populations. Governments that adopt green policies not only protect the environment, but also invest in the wellbeing of future generations.
3. Economic Resilience: The wellbeing economy fosters economic resilience by diversifying economic activities and reducing dependence on traditional, often unsustainable industries.
4. Social Welfare: Under the law of a squat, we are all equal, and this in analogy to a well-being-centred approach can also address social inequalities. Access to well-being services, such as mental health care, healthy food and safe recreational spaces, must be inclusive. Governments and private companies that ensure these services are accessible, regardless of affordability, income or social status, contribute to a more cohesive society.
So… what is the role of policy and regulation in welfare economics?
For the wellness economy to thrive, it requires supportive policies and regulations. Governments can play a critical role by creating environments that foster the growth of wellness industries, while ensuring that these industries operate ethically and sustainably. This includes regulating the marketing of wellness products to prevent misinformation, providing subsidies or incentives to companies that promote wellness, and investing in public and private infrastructure that supports healthy living, such as parks, gyms, and clean air initiatives.
