Market Size of Gen Z Mental Health Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 30.89 Billion |
| Market Size (2029) | USD 45.91 Billion |
| CAGR (2024 - 2029) | 8.25 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Gen Z Mental Health Market Analysis
The Gen Z Mental Health Market size is estimated at USD 30.89 billion in 2024, and is expected to reach USD 45.91 billion by 2029, growing at a CAGR of 8.25% during the forecast period (2024-2029).
The major factors driving the Gen Z mental health market are the rising prevalence of mental disorders in Gen Z individuals, increasing technological advancements in digital health, the growing accessibility of online therapies, and the high cost-effectiveness of online therapy.
The increasing prevalence of mental health diseases in Gen Z is expected to increase the demand for digital solutions that are used for counseling for the effective management of mental disorders, which will ultimately drive the market studied over the forecast period. For instance, a report published by the US Department of Health and Human Services (HHS) in November 2023 found that as per a federal survey in 2022, among nearly 15,000 Gen Z individuals between ages 12 and 17, one in five had a major depressive episode in the previous year. Among adolescents aged from 12 to 17 in 2022, around 13.4% (or 3.4 million people) had serious thoughts of suicide. Hence, the increasing prevalence of mental health issues in the Gen Z population is expected to drive the market studied over the forecast period.
Furthermore, the increasing advancements in digital solutions boost the adoption of online therapy more easily because of the accessibility and affordability of new technologies, which is expected to further drive the Gen Z mental health market over the forecast period. For instance, in March 2024, Headspace, a digital mental health company, reported the launch of Headspace XR, an app that utilizes virtual reality and mixed reality to help users strengthen their mind-body connection through movement and breathwork. With the apps, the company wants to focus mainly on Gen Z patients. Hence, such technological advancements are expected to increase the accessibility of digital mental health solutions for Gen Z, which will ultimately drive the market studied over the forecast period.
Furthermore, increasing investments in Gen Z mental health-related startups are also expected to drive the market studied over the forecast period. For instance, in December 2023, Joon Care, a teletherapy startup, raised USD 6 million in funding to extend its runaway as it grows its mental health software platform. Joon delivers therapy sessions online and provides digital mental health tools and resources to teens and young adults. It supports therapists with evidence-based care strategies and patient assessments to track progress. Such investments in online therapy-providing companies are expected to increase accessibility and affordability through the launch of new platforms, which will ultimately drive the market studied over the forecast period.
Thus, the rising prevalence of mental health diseases in Gen Z, growing advancements in digital solutions, and rising investments in Gen Z mental health startups are expected to drive the market studied over the forecast period. However, the stigma and misconceptions around mental health diseases are expected to restrain the market over the forecast period.
