Consumer Spending on Top Wellness Apps to Rise by 15% YoY to $1.6 Billion in 2021

After a record-breaking 2020, the velocity of some mobile wellness apps has slowed down considerably. But top apps in the segment, particularly under the telehealth subcategory, will continue to enjoy elevated demand throughout 2021.

According to the research data analyzed and published by ComprarAcciones.com, the top US telehealth apps posted a surge of 33% in first-time downloads in Q1 2021. The upsurge drove the total to 7 million installs.

It is interesting to note that the pandemic accelerated the growth of telehealth apps to a greater extent than most other subcategories. In comparison to other subcategories, telehealth app downloads remained consistent throughout 2020.

On the other hand, workout and running app adoption skyrocketed during quarantine months. However, their robust performance was short-lived, as the rise was attributed to the closure of in-person fitness classes and gyms. With the release of vaccines in 2021 accelerating re-openings in 2021, the apps continue to struggle with adoption.

For the top 100 apps under the overall wellness category, monthly active users (MAUs) rose by 26% year-over-year (YoY) in January 2021. February was another great month, with an increase of 25% YoY.

Growth seemed to slow down in March 2021 as a result of the outsized performance posted at the start of the pandemic. However, the month still saw an uptick of 16% YoY in MAUs.

 

Revenue from UK’s Top 100 Wellness Apps Soared by 82% in Q1 2021 to $45 Million

As was the case in the US, Europe continued to enjoy a lift in the adoption of wellness apps. In January 2021, the top 100 wellness apps by revenue surpassed $45 million in consumer spending. That marked an increase of 134% YoY.

For the entire first quarter of 2021, the UK led the growth in the region in terms of revenue. The region generated $45 million in consumer spending, up by 82% from the $25 million recorded in Q1 2020 and $18 million in Q1 2019.

Germany also posted considerable growth, with revenue surging by 72% YoY to $25 million. In 2020, the country generated $15 million during the first quarter, and in Q1 2019, $10 million.

According to Sensor Tower, most of the growth came from in-app subscriptions. 96 out of the top 100 wellness apps feature an option of setting up recurring payments.

Overall, there has been consistent growth in consumer spending on subscription apps. Wellness apps are among the key beneficiaries of the model.

 

Patient-Centric Healthcare App Market to Grow At 37% CAGR to $64 Billion by 2027

MAU growth for wellness apps in 2020 peaked in April as shelter-in-place orders went into effect in the country. In that month, there was an uptick of 44% YoY, followed by a 43% in May as well as in June.

April 2020 went on record as the first time in history that worldwide downloads of the top 100 wellness apps surpassed 200 million. It reached 200 million in that month, more than double the 115 million posted in the previous month.

The number of installs crossed the 100 million mark in March and remained above it through September. In total, there were 1.2 billion downloads during the year.

In terms of monthly spending, the figure crossed $100 million in March and remained above it through the rest of the year. During the first ten months of 2020, global consumer spending on mobile wellness apps hit a record $1.1 billion.

North America took center stage, with its consumers accounting for 53% of the total. EMEA followed with a 30% share.

According to Sensor Tower’s forecast, consumer spending and adoption on these top wellness apps will remain high this year. It projects a 15% uptick in spending from $1.4 billion in 2019 to $1.6 billion in 2021.

In 2020, the number of first-time installs hit their peak in Q2, rising to 530 million, totaling 1.4 billion for the year. The quarterly figure is projected to remain significantly higher than 200 million in 2021. By the end of the year, top apps in wellness will post over 1 billion downloads. It will mark a 42% increase over the 730 million recorded in 2019.

According to a recent report by Allied Market Research, the worldwide patient-centric healthcare app market was worth $4.73 billion in 2019. It is projected to grow at a 37.2% CAGR between 2020 and 2027, to reach $64.33 billion by the end of the forecast period.

The remarkable growth is attributed to a rise in the penetration of smartphones. There has also been a surge in demand for a patient-centric ecosystem and personalized care apps. Moreover, there is increased collaboration between healthcare providers and app developers.

About Nica San Juan PRO INVESTOR

Nica is a BA Political Science graduate, startup founder and financial expert. She has an entrepreneurial spirit and started several startups from a young age, eventually becoming fascinated with stocks, cryptocurrencies and the blockchain economy. She specializes in financial tech and her expertise is in writing detailed tutorials and guides on how to invest in stocks and cryptocurrencies.

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