Market Trends of Gen Z Mental Health Industry
Depression Segment Expected to Hold a Significant Market Share Over the Forecast Period
Generation Z can be affected by depression due to various factors, such as high academic pressure, economic concerns, and a high level of isolation. The major factors driving the segment are the rising prevalence of depression cases in Gen Z and increasing strategic activities such as product launches and investments.
The rising prevalence of depression in the Gen Z population is expected to increase the demand for mental online digital solutions that help in the effective management of diseases, further driving the segment studied over the forecast period. For instance, according to an article published by Harvard University in October 2023, a study of 709 young adults aged 18 to 25 years old demonstrated that 29% of them reported experiencing depression in 2022, and 58% of young adults reported experiencing little or no purpose or meaning in their lives in the previous month. Hence, the significant prevalence of depression in the Gen Z population is expected to increase the demand for online therapy digital solutions to provide counseling for the effective management of depression, which is ultimately expected to drive the market studied over the forecast period.
Furthermore, increasing strategic activities such as acquisitions, investments, and new service launches by market players are expected to drive the market over the forecast period. For instance, in March 2023, Wave Life, a mental health platform designed for Gen Z, raised a USD 6 million seed investment. The company is expected to use this funding to expand its business further into the employer market and conduct research on its depression care model’s outcomes. Hence, such strategic activities increase the launch of new digital products in the treatment of depression, which is ultimately expected to drive the market studied over the forecast period.
Thus, the rising prevalence of depression in the Gen Z population and increasing strategic activities by key players are expected to drive the segment’s revenue over the forecast period.
North America Expected to Hold a Significant Market Share Over the Forecast Period
Factors such as the increasing prevalence of mental disorders in the Gen Z population, advanced healthcare infrastructure, and increasing strategic activities such as acquisitions and new solutions launches are expected to drive the Gen Z mental health market in North America over the forecast period.
The increasing prevalence of mental disorders, such as depression and anxiety, boosts the demand for digital solutions for the effective management of Gen Z mental health issues, which is ultimately expected to drive the market studied over the forecast period. For instance, according to an article published in the Interactive Journal of Medical Research in February 2024, a survey conducted in the United States in September 2022 with 1,055 Gen Z adult participants demonstrated that more than 42% of the studied population had a diagnosed mental health condition. Anxiety and depression are the two largest mental health issues among Gen Z, with 9 out of 10 individuals diagnosed with a mental health condition having anxiety and 8 out of 10 having depression. Similarly, in the Canadian Men’s Health Report published in May 2024, the Canadian Men's Health Foundation highlighted that young men aged 19-29, along with gay, bisexual, and racialized men, face a notably elevated risk of depression and anxiety. Hence, the high prevalence of mental disorders in the Gen Z population in North America is expected to increase the demand for Gen Z mental health digital solutions, which will ultimately drive the market studied over the forecast period.
Furthermore, the increasing strategic activities, such as acquisitions by key players to increase the accessibility of digital mental health solutions, are also expected to drive the market studied over the forecast period. For instance, in July 2024, Uwill, a mental health and wellness provider, reported the acquisition of Virtual Care Group, which delivers telehealth and wellness support to students at more than 100 colleges. Uwill already serves more than 2 million students at 300 institutions in 50 states and 40 countries. Such acquisitions are expected to increase access to digital mental health solutions, which will ultimately drive the market studied over the forecast period.
Hence, the increasing prevalence of mental health disorders in the Gen Z population and rising strategic activities such as acquisitions are expected to drive the market studied over the forecast period in North America.
