The therapy industry is booming as more and more people move towards prioritizing their mental health, according to a new analysis of data.
Mental Health Conversations Rise
The last few decades have seen a significant push to get more and more Americans talking about their mental health.
Talking Taboo No More
With scientific studies showcasing the positive impact this can have on people and a growing awareness in all generations, the stigma surrounding mental health is gradually diminishing.
Mental Health Matters
Despite this, 90% of the American public thinks that the U.S. is in the midst of a mental health crisis – according to a 2022 KFF/CNN survey.
America’s Mental Health Journey
33% of respondents stated that they struggled to access the mental health support that they needed, and when asked for more details, over 80% of these respondents pointed to the costs of therapy as the main obstacle.
Therapy Goes Digital
In 2024, however, there’s never been an easier and more affordable time to seek out a therapist than today.
The Zoom Boom
The mass adoption of Zoom and Microsoft Teams by millions of people during the pandemic has propelled therapists’ business, as many people opt to use an online therapist over expensive in-person therapy sessions.
A Cost-Effective Option for All
The average price of online therapy is typically 30% cheaper than in person, although prices vary and are also dependent on whether people are paying out of pocket or are able to get their insurance to cover it.
The Economics of Mental Health Care
In the years between 2019 and 2022, the number of adults seeking therapy jumped from 9.5% to 12.6%.
Spending Surge
During this time, overall spending on mental health services by average Americans increased. From March 2020 to August 2022, spending actually rose by a massive 53% – an indication that therapy was becoming both more acceptable and more accessible.
Therapy Anytime, Anywhere
The ease of obtaining online therapy has compelled thousands more Americans to get involved, as now patients can have either a video, phone, or even text appointment, all from the comfort of their homes.
The Importance Of Mental Wellness
But these stats also point to an increasing acceptance of the importance of mental health. As many younger Americans are struggling with anxiety, depression, and loneliness – partly an issue of the pandemic but one that has remained a constant for a long time now – there’s been a growing recognition that mental health is as crucial as physical health.
A New Era of Mental Health Support
This shift in the younger generation has led to more people seeking help and discussing their mental well-being openly, breaking down long-standing barriers and reducing the stigma.
Affordability Matters
USA Today found that in a 2022 survey of 1000 therapy users, one-third had reported canceling sessions because of high out-of-pocket costs and two out of five had to cut down on sessions to save money.
Therapy in the Digital Age
But now, pretty much 100% of therapy providers offer cheaper telehealth options – and over 50% of all therapy sessions take place online or over the phone, according to Federal data.
Transforming Youth Mental Health
There’s also been a significant uptick in online therapy in schools. A recent report by the Associated Press found that over $70 million has been invested in contracts with providers in at least 16 of the largest school districts nationwide.
The App Revolution
All of this is in part thanks to wealthy investors, who invested over $5 billion in companies offering online mental health services in 2020 and 2021. This level of investment has started cooling, although the signs are pointing towards a big swing in investments in mental health apps for children and teens.
Forecasting the Future
One report by venture capital firm Telosity claimed that the next three years will see the youth mental health app market skyrocket to around $26 billion.
The Shift in Mental Health Tech
Investors are now more interested in seeing how an entrepreneur’s app or tech platform pays off – like how it helps lessen symptoms, lower healthcare bills, and save money overall – while also making healthcare more accessible.
Personal Connection
Despite this shift to apps, one-on-one online therapy is still incredibly popular. Many people prefer the personal touch and direct interaction with a therapist, which most apps don’t provide – although expect to see this change in the future.
The Path to Progress
As more people realize how helpful therapy can be for mental health, there should be a push to make it cheaper for everyone in the U.S. While that may be some time away, the outlook is positive.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
