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Employee Assistance Program Services in the US - Market Research Report (2014-2029)

Dmitry Diment Dmitry Diment New York, United States Last Updated: December 2024 NAICS OD5746

Revenue

$3.7bn

2024

$3.7bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

21,367

Businesses

351

Wages

$X.Xbn

Employee Assistance Program Services in the US industry analysis

Over the past two decades, the number of businesses using employee assistance programs (EAPs) has more than doubled. A 2020 Society for Human Resource Management (SHRM) report states that 79.0% of businesses offered EAP services. In particular, many companies have rapidly adopted these services to help lower costs associated with employee ailments. According to data from the Employee Assistance Trade Association (EASNA), mental health disorders and substance abuse problems have been prevalent among working-age individuals, with 25.0% of adults having a diagnosable mental disorder. Employees with untreated mental health and substance abuse problems can increase employer costs, including absenteeism, limited productivity, high turnover and more disability claims.

Trends and Insights

  • EAP providers' sucecss ahss been hampered by low usage rates. Low participation rates mean clients gain less value from EAPs, encouraging them to seek alternatives.
  • Nutrition and health services are increasingly popular components of EAPs. As adult obesity rates climb, these services will gain even more significance, addressing the growing need for health education.
  • EAP providers strategically establish themselves in high-growth regions to enhance service delivery. With their thriving financial and technology sectors, New York and California are particularly appealing for their potential client base.
  • Reputation, quality and effectiveness are vital to an EAP provider's success. Buyers seek services that can demonstrably enhance worker productivity, making these factors key differentiators.

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  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 3.5 % over the past five years, to reach an estimated $3.7bn in 2024.

Trends and Insights

Following the pandemic, companies have increased spending, albeit wearily

  • During the pandemic, the economic slowdown led companies to cut workforces, reducing the number of employees needing coverage. Contracting corporate profit made funding employee benefit programs unfeasible for most businesses, deterring many companies from adding EAPs.
  • Additional trends and insights available with purchase
Employee Assistance Program Services in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Participation rates will remain a critical issue for providers

  • To increase usage, EAP providers will work with employers to emphasize employee assistance programs and these programs' abilities to address various health problems, ranging from mental illness to poor nutrition.

Biggest companies in the Employee Assistance Program Services 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 Employee Assistance Program Services in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

Employee Assistance Program Services in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Substance and alcohol abuse counseling, Stress counseling and Nutrition and health education services . Substance and alcohol abuse counseling is the largest segment of the Employee Assistance Program Services in the US.

Trends and Insights

Substance and alcohol abuse counseling remains a steady source of need

  • This segment includes counselors approaching employees with solutions to prevent and overcome alcohol and substance abuse. Counseling may consist of a social norms approach, which examines how factors beyond the employee's personality and values are key determinants for alcohol and substance abuse behavior.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry provides employee assistance program (EAP) services, which includes support for family, financial, career and legal issues through an employee’s benefits package. Industry operators provide a variety of services, including health coaching, nutrition and naturopathic advice.

What's included in this industry?

Providing alcohol and substance abuse programsProviding emotional, personal and stress support programsProviding marital and family counseling

Companies

Purchase this report to view all major companies in this industry.

Related Terms

PPACAINTAKE COORDINATORHEALTH ASSESSMENT EXCEPTED BENEFITS

Industry Code

NAICS 2017

NAICS 52512 - Employee Assistance Program Services 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

EAP providers' sucecss ahss been hampered by low usage rates. Low participation rates mean clients gain less value from EAPs, encouraging them to seek alternatives.

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

Nutrition and health services are increasingly popular components of EAPs. As adult obesity rates climb, these services will gain even more significance, addressing the growi...

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

EAP providers strategically establish themselves in high-growth regions to enhance service delivery. With their thriving financial and technology sectors, New York and Califo...

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

Reputation, quality and effectiveness are vital to an EAP provider's success. Buyers seek services that can demonstrably enhance worker productivity, making these factors key...

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

The EAP industry is highly fragmented. However, ComPsych stands out by capturing a significant market share through effective marketing and a wide range of services.

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

    EAP providers must abide by stringent confidentiality and privacy laws, such as HIPAA, to safeguard client information. Adherence to these regulations ensures trust in the pr...

    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

    EAP providers contend with substantial wage costs, a significant component of their industry expenses. The demand for highly skilled workers with advanced degrees and certifi...

    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)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Employee Assistance Program Services in the US industry in United States in 2024?

    The market size of the Employee Assistance Program Services in the US industry in United States is $3.7bn in 2024.

    How many businesses are there in the Employee Assistance Program Services in the US industry in 2024?

    There are 351 businesses in the Employee Assistance Program Services in the US industry in United States, which has declined at a CAGR of 0.7 % between 2019 and 2024.

    Has the Employee Assistance Program Services in the US industry in United States grown or declined over the past 5 years?

    The market size of the Employee Assistance Program Services in the US industry in United States has been declining at a CAGR of 3.5 % between 2019 and 2024.

    What is the forecast growth of the Employee Assistance Program Services in the US industry in United States over the next 5 years?

    Over the next five years, the Employee Assistance Program Services in the US industry in United States is expected to grow.

    What does the Employee Assistance Program Services in the US in United States include?

    Providing alcohol and substance abuse programs and Providing emotional, personal and stress support programs are part of the Employee Assistance Program Services in the US industry.

    How competitive is the Employee Assistance Program Services in the US industry in United States?

    The level of competition is moderate and increasing in the Employee Assistance Program Services in the US industry in United States.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • HR Consulting in the US
    • Human Resources & Benefits Administration in the US

    Complementors

    • Psychologists, Social Workers & Marriage Counselors in the US
    • Family Counseling & Crisis Intervention Services in the US

    International industries

    • Global HR & Recruitment Services
    • Human Resources & Benefits Administration in Canada
    • Human Resources Provision in the UK

    View all industries in United States

    Methodology

    How are IBISWorld reports created?

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    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.

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