Covid-19 could lead to £21.1bn in additional wellness-related business revenue across the UK hospitality and leisure sector by 2023, according to new research from Barclays Corporate Banking.
Beyond increased hospitality and leisure revenues, these changes could have a knock-on effect for the wider economy, adding a potential £11.1bn in gross value add to the UK.
The virus has accelerated consumer demand for health and wellness offerings, driving the additional potential revenue boost by £2bn. Before the lockdown, additional health and wellness options would have led to an estimated £19.3bn in sector revenue by 2023.
Before Covid-19, under a quarter (23%) of UK consumers felt health and wellbeing was extremely important to their day-to-day lives.
Following the pandemic, this has soared to 1 in 3, representing an additional 4.8 million people, or 9% of the UK population. On average, respondents ranked the importance of health & wellness as 8.1 out of 10, with the average score post-pandemic around 7% higher than before the onset of Covid-19.
With nearly half (49%) of respondents saying Covid-19 negatively impacted their mental health, consumers are craving breaks.
The most popular types of post-lockdown leisure activities to improve mood and mental health were reported to be short breaks (44%), long holidays (33%) and restaurant visits (30%).
Crucially for UK businesses, nearly a quarter of people (22%) reported plans to take more UK-based holidays over the next 12 months, with the top reasons being consumers do not feel comfortable travelling abroad (42%) or worry about travel advice changing while they’re away (35%).
The top priorities for post-Covid holidays are resting and recharging (54%), spending time with loved ones (42%) and experiencing nature (33%).
When visiting restaurants after Covid-19, consumers are hoping for healthier options, the most popular of which are low sugar (16%), low fat (12%) and low calorie (12%) options.
Mike Saul, Head of Hospitality and Leisure, Barclays Corporate Banking, said: “Hospitality and leisure businesses face uncertainty following the shut-down in March and continuing change as we adjust to a new normal but this is not a time for companies to delay investment or ignore consumer trends. While difficult in the short-term, firms making the right investments now, such as in health and wellness offerings, have the potential to bounce back stronger.
“Understanding the need for rest, mental health and healthier food options for a public still adjusting to the lifestyle changes forced by Covid-19 will allow businesses to better serve their customers and help to make up for lost revenue post-pandemic.”