With an increasing awareness of the importance of nourishing our bodies and staying active, the health sector is set to reap the benefits. However, this trend, while accentuated at the start of the year, is part of a broader movement as consumers become increasingly health-conscious. The UK Health and Wellness sector has been valued at over £180bn – the fifth biggest globally – and businesses of all sizes stand to gain from this growing trend.[1]
Beyond the new year, other periods, such as the return to routine in September after the summer break, often signal a boost in health-related activities. Additionally, the increasing popularity of sporting events like marathons, triathlons and Hyrox have also contributed to sector growth.
The focus on health and wellness in the UK is therefore not just a fleeting resolution but a sustained lifestyle choice that is reflected in consumer spending and habits. A recent consumer survey found that 78% of people plan to make sport and wellness purchases by late 2025, showing just how much of a priority it is for people[2]. With this sector growth, it is clear to see why setting up a business in the industry is appealing to entrepreneurs.
As well as the new year being a time when consumers typically engage most with companies in the health and wellbeing sector, driven by a widespread sentiment of self-improvement, it is also a time for change for many. This is evidenced by an uptick in Start Up Loans applications in January, as entrepreneurs decide that this year is the year to follow their dreams and launch something new.
One example of a company capitalising on this trend is Varun Bhanot, founder of Magic AI, a retailer of AI powered mirrors that real-time correct form and enhance your workouts.
“We’ve observed a significant shift in consumer behaviour, with a growing emphasis on health and fitness. People are not just seeking traditional workout equipment; they’re looking for cutting-edge technology that can revolutionise their health regimes.
By integrating AI into our fitness products, we’re able to offer a personalised experience that can dramatically improve exercise form and effectiveness. This kind of innovation is what allows new businesses to disrupt the market and cater to the evolving demands of fitness consumers.”
The rise of low-alcohol and health-conscious drinking is another facet of the wellness industry’s growth. Consumers are now seeking out beverages that align with their lifestyle choices, opting for lower-alcohol or alcohol-free alternatives, that can offer the social experience of drinking without as many health implications. Research has found the no/low-alcohol segment experienced 47% growth between 2022 and 2023 and is projected to continue expanding at an annual rate of 19%[3].
Rohan Radhakrishnan, co-founder of Quarter, used a Start Up Loan to establish his brand in the burgeoning mid-strength spirits market.
Rohan says: “Reducing alcohol consumption has become a significant trend, with independent businesses at the forefront of this market segment. By creating spirits at 15% ABV, we’re offering seamless moderation so that people can enjoy a drink while mitigating the negative impacts associated with higher-proof beverages.”
For those looking to capitalise on the wellness industry’s expansion this year, there is a wealth of support available. Start Up Loans offers not only funding but also mentoring and guidance to new businesses. Comprehensive guides are available on our website to navigate the complexities of starting a business, from initial concept to market launch and beyond.
The data from 2024 paints a promising picture for the health and fitness sector, with a significant number of new businesses, around 275, having been started last year alone with the support of Start Up Loans. This reflects the sector’s vitality and the entrepreneurial spirit of those entering the market.
As we progress through the year, the potential within the fitness and health-related business sector is immense. With consumer trends firmly favouring wellness, and the support mechanisms in place to foster new ventures, entrepreneurs who are passionate about health and wellness have an opportunity to make a significant impact in this sector. Start Up Loans is committed to supporting these businesses, recognising both the positive impact they have on individual health and the broader economy.
[1] https://globalwellnessinstitute.org/press-room/press-releases/wellness-economy-reort-uk-2024/#:~:text=The%20report%20shows%20that%20the,which%20ranks%2021st%20globally.
[2] https://www.paconsulting.com/newsroom/pa-consulting-survey-4-in-5-consumers-plan-new-wellness-and-fitness-purchases-by-2025-18-june-2024
[3] https://www.theiwsr.com/no-and-low-alcohol-drinks-outperform-a-declining-uk-alcohol-market/#:~:text=The%20overall%20no%2Flow%2Dalcohol,%C2%A30.8bn%20by%202028.
