Health & Welfare Funds in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: April 2024
NAICS 52512Revenue
$53.1bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
16,988
Businesses
1,120
Wages
$X.Xbn
Health & Welfare Funds in the US industry analysis
The industry provides healthcare coverage and welfare benefits to employees, unions and other professional associations. These funds function similarly to pension funds and employee benefit programs, which aim to provide cost-effective medical and welfare coverage on a nonprofit basis for the benefit of members. The current period has been tumultuous for the industry. The pandemic caused states and localities to shut down businesses and enforce social distancing rules, which hindered growth in stock prices. In addition, the Federal Reserve cut interest rates significantly in 2020, hindering investment income from the bond market for health and welfare funds. Overall, since health and welfare funds invest heavily in the stock market, this helped temper revenue declines in 2020. Asset markets have been volatile in recent years because of high inflation, the war in Ukraine and recessionary fears, which have hindered revenue.
Trends and Insights
- Revenue for health and welfare funds is anticipated to slump during the current period because of the volatile US economy. High inflation has increased volatility in asset markets, hindering revenue. In addition, the war in Ukraine and recessionary fears have contributed to economic uncertainty, also contributing to falling revenue.
- More consumers are putting their money into different types of health insurance, as concern over the pandemic has made Americans more health-conscious. As baby boomers get older, a greater share of the population becomes elderly, raising demand for hearing aids and audiology check-ups, boosting investment in hearing benefit funds.
- The Mid-Atlantic region contains large cities that have big public unions that increase representation in the public sector. The high unionization rate means health and welfare funds have a major presence in the region.
- Large health and welfare funds cannot consolidate because the range of customers they can sell to is very limited. Most employees that use these funds are public employees or unionized workers, so large players can't expand their market share by getting other types of workers to invest in them.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.3 % over the past five years, to reach an estimated $53.1bn in 2024.
Trends and Insights
The pandemic hinders returns for health and welfare funds
- The pandemic caused state and local governments to shut down businesses and enforce mask-wearing and social distancing measures.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Stable incomes and consumer markets will support revenue growth
- Despite high inflation, the war in Ukraine and recessionary fears, consumer spending and per capita disposable incomes are forecast to increase steadily during the outlook period.
Biggest companies in the Health & Welfare Funds in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Health & Welfare Funds in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Healthcare benefits, Audiology benefits and Life insurance coverage. Healthcare benefits is the largest segment of the Health & Welfare Funds in the US.
Trends and Insights
Health funds surge because of the worldwide pandemic
- Health funds include money put aside for dental work, eye care, prescription drugs, supplemental insurance, podiatry and medical and drug reimbursements.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Portfolio Management in the US
- Health & Medical Insurance in the US
- Third-Party Administrators & Insurance Claims Adjusters in the US
International industries
- Global Insurance Brokers & Agencies
- Health Insurance in Australia
- Health & Medical Reinsurance in the UK
Table of Contents
About this industry
Industry definition
This industry comprises legal entities (i.e., funds, plans and programs) that provide medical, surgical, hospital, vacation, training and other health- and welfare-related employee benefits, exclusively for the sponsor’s employees or members. Unlike private insurers, health and welfare funds operate on a nonprofit basis for the benefit of members and their sponsors, not shareholders.
What's included in this industry?
Providing health insurance plansProviding plans to pay for hearing aids and other hearing medicines and devicesProviding life insurance plansProviding retirement or pension counselingProviding legal servicesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
CONTINGENT WORKERASSET MANAGEMENTDEFINED BENEFIT PROGRAM (DB)Industry Code
NAICS 52512 - Health & Welfare Funds in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Revenue for health and welfare funds is anticipated to slump during the current period because of the volatile US economy. High inflation has increased volatility in asset ma...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
More consumers are putting their money into different types of health insurance, as concern over the pandemic has made Americans more health-conscious. As baby boomers get ol...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Mid-Atlantic region contains large cities that have big public unions that increase representation in the public sector. The high unionization rate means health and welfa...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Large health and welfare funds cannot consolidate because the range of customers they can sell to is very limited. Most employees that use these funds are public employees or...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Health and welfare funds have no major companies because the industry is very decentralized. The industry's services are very similar and barriers to entry are low, so signif...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Most of the regulations that health and welfare funds are subject to relate to health insurance and pensions. The Affordable Care Act (ACA) expands health insurance for milli...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit climbs and flows with the performance of investment accounts. The stock market has grown despite high inflation, rising interest rates in the latter part of the period...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Health & Welfare Funds in the US industry in United States in 2024?
The market size of the Health & Welfare Funds in the US industry in United States is $53.1bn in 2024.
How many businesses are there in the Health & Welfare Funds in the US industry in 2024?
There are 1,120 businesses in the Health & Welfare Funds in the US industry in United States, which has grown at a CAGR of 2.5 % between 2019 and 2024.
Has the Health & Welfare Funds in the US industry in United States grown or declined over the past 5 years?
The market size of the Health & Welfare Funds in the US industry in United States has been declining at a CAGR of 1.3 % between 2019 and 2024.
What is the forecast growth of the Health & Welfare Funds in the US industry in United States over the next 5 years?
Over the next five years, the Health & Welfare Funds in the US industry in United States is expected to grow.
What does the Health & Welfare Funds in the US in United States include?
Providing health insurance plans and Providing plans to pay for hearing aids and other hearing medicines and devices are part of the Health & Welfare Funds in the US industry.
How competitive is the Health & Welfare Funds in the US industry in United States?
The level of competition is moderate and steady in the Health & Welfare Funds in the US industry in United States.
