Getting fit has never been more popular. Record amounts are being spent on losing weight, packing on muscle and taking the right supplements. Our enthusiasm for getting in shape has created a $1.5 trillion global wellness industry that analysts expect to grow by up to 10% a year*.
But what are the companies – and investment funds – that are most likely to benefit from this super trend? Here’s where to potentially focus your attention.
Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and tax rules can change. Chelsea does not offer advice and so if you are unsure of anything please contact an expert adviser.
Overall drivers
According to McKinsey & Co research, consumers are spending large sums on six main wellness categories*:
- Health: over-the-counter medicines and vitamins.
- Fitness: gym memberships, wearable tracking devices and home equipment.
- Nutrition: foods, diet programs, supplements, and subscription services.
- Appearance: skincare, healthcare and nonsurgical procedures.
- Sleep: digital trackers and natural sleep aids.
- Mindfulness: therapy and mental health apps
Digital solutions
This is one of the main boom areas. Digital health trackers monitor what we’re eating, how much we’re moving, and our bodies’ responses. The main tech giants are all involved.
Top of the list is Apple. Its Apple Watch is a comprehensive fitness hub that can monitor your heart rate and track your sleep. The company also offers an Apple Fitness+ subscription-based service that provides trainer-guided workouts and meditation programs. Then there’s Alphabet, the parent company of Google, which owns Fitbit, a popular provider of trackers and smartwatches with over 33 million active users**.
Both companies are owned by the Pinnacle Life Cycle Global Equity Select fund***. This is a core global equity fund that invests in all types of businesses. Its managers, Peter Rutter, Will Kenney and James Clarke, adopt a life cycle approach in which different fundamentals apply depending on the stage reached by a company. This means that what matters most for an accelerating-growth company will differ from what is relevant to a turnaround business.
Weight loss
They’re causing plenty of controversy, but weight loss drugs are big business. The obesity medicine market was worth $66 billion last year – and could hit $200 billion by 2027****. Two companies dominate this landscape: Eli Lilly and Novo Nordisk. Both produce medication for diabetes and weight loss.
Eli Lilly is behind tirzepatide, a medicine used to manage type 2 diabetes and obesity. It’s the active ingredient in injectable Mounjaro. The company’s share price has soared more than 400% over the last five years and has increased by almost 54% since last summer^.
The stock is one of the largest holdings in the CT Responsible Global Equity fund^^, which invests in quality growth companies worldwide with a focus on sustainability. Its managers, Jamie Jenkins and Nick Henderson, are long-term stock pickers who have the help of an independent sustainability team. This makes the fund stand out from the crowd.
Sporting goods
Nike and Adidas are two of the world’s largest sporting goods companies – and Amazon is a popular place to buy products made by both brands. Amazon is among the 10 largest holdings in the Aegon Global Equity Income fund^^, which focuses on generating reliable, growing dividends, alongside long-term capital appreciation. The managers invest in a concentrated portfolio of 40-50 high-quality companies with strong balance sheets, steady cash flows and consistent earnings. We particularly like the clarity and repeatability of the team’s process behind this fund – and its remarkable consistency across different market cycles.
Separately, there’s Alibaba Group Holding. This is the giant Chinese technology and e-commerce business whose marketplaces supply gym equipment and sportswear. Alibaba is held by the T.Rowe Price Global Focused Growth Equity fund^^. This invests in a diversified portfolio of global companies with the potential for above-average, sustainable earnings growth. David Eiswert, its lead manager, draws on the best ideas from the firm’s analysts to help create a portfolio with the potential to deliver long-term returns across all market conditions.
Supplements and nutrition
Dietary supplements are another growing market. The UK market’s estimated value was $4.79 billion in 2024, and it’s expected to reach $9.65 billion by 2033, according to Grand View Research^^^.
One of the key players in this industry is Applied Nutrition, a Liverpool-based wellness brand. It’s a holding in the WS Raynar UK Smaller Companies fund^^, which is run by Philip Rodrigs. He puts together a portfolio of 70 to 90 stocks and favours those with strong management teams.
Elsewhere, there’s Nestlé. It might be more closely associated with chocolate, but the Swiss giant is actually one of the world’s largest nutrition companies. The company is a significant holding in the IFSL Evenlode Global Income fund^^^^. Its managers, Ben Peters and Chris Elliott, believe high-quality businesses are underestimated by the market. This fund, which aims to balance income received today with future dividend growth, is not afraid of taking a radically different stance from its benchmark.
Appearance
There are also plenty of companies operating in skincare and nonsurgical procedures, all of which come under the broad wellness banner. AbbVie, for example, operates in this area via its Allergan Aesthetics division. It’s particularly well known for manufacturing brands such as Botox. You can get exposure to AbbVie via the JPM Global Equity Income fund^^. This is a core equity income fund that has a value tilt. It invests worldwide in large- to mega-cap stocks. We like how its huge team of analysts help the managers narrow down the large global market to a portfolio of 40 to 90 stocks.
