The 4th Quarter: Deep-Dive on Social Health & Wellness Consumer Startups
Our Thesis on Social Wellness Consumer Startups + A Feature from Othership’s Founder & CEO
In addition to our weekly “Latest In Sports-Tech” articles, we decided to drop a monthly “Deep-Dive” on startup opportunities that founders + investors should have on their radar. We’ve done the hard work & composed a thesis on why consumer startups that connect people through social wellness experiences will become the next wave of multi-billion dollar companies.
While most investors in our space are currently chasing the shiny objects in AI, we believe the overlooked alpha lies in understanding the deep motivations and behavior patterns of younger generations.
Startups that solve for loneliness, connection, and mental health will not just be labeled as “wellness-tech” - they’ll bleed into the broader TAM of “dating & social” as well.
Hope you enjoy this one.
Gen Z’s Scary Dilemma
Gen Z has been burdened with a hyperactive digital ecosystem, conditioned to form connections almost exclusively online via addictive social media and dating apps - made even more cumbersome by personalized AI algorithms. While previous generations found their third place at the church, the cafe, or the local bar, ours seek comfort in a new third place: the endless doomscroll on yours truly: TikTok, Reels, and even Hinge.
This unique circumstance has made it rudimentary for older generations to define us as dopamine-craving, phone-addicted anti-socials, and this will only persist as these virtual ecosystems strengthen.
The thing is… They’re not entirely wrong.
Our cohort is the midst of a serious mental health crisis, and disconnection is the primary culprit:
Stress: According to a 2023 APA survey, 18-34 year-olds reported an average stress level of 6.0 out of 10, nearly double that of adults over 65 (3.4). And it's only rising: the year prior, the average was 5.8. The primary culprit? Social isolation. A staggering 74% of young adults said it’s harder to build meaningful connections today than in the past.
Depression: 1 in 3 young adults report feeling depressed with 20% experiencing a “major depressive” episode in the past year. A key driver was relationship deficits - 44% of young adults said they don’t truly matter to others.
Loneliness: 73% of Gen Z say they experience deep feelings of loneliness - directly linked to high-volume online interactions failing to fill the void by the absence of genuine, in-person connections.
This isn’t just a crisis - it's white space.
Despite being the most connected generation online, Gen Z knows that the digital infrastructure we inherited wasn’t built for emotional connection. And we’re becoming painfully aware of what that’s costing us.
A viral TikTok trend sums this perfectly: raw footage of high school life in the late 90’s and early 2000s - where the top comments aren’t about the fashion - they’re about how present everyone looks. No phones. More smiles. More eye contact. More happiness.
Whether or not that era was objectively better, it feels like it was - and that quiet craving for real, unfiltered connection is growing louder.
Gen Z is getting fed up - and we’re taking matters into our own hands. In the process, we’re creating one of the most investable cultural shifts of the next decade.
What We’re Getting Right
While we may not have the best online habits, we’re becoming increasingly vigilant in other areas - with a primary focus on improving our physical & mental wellness. Most importantly, there’s real potential for these habits to converge into real-world communities, replacing the bar & Instagram as our social hubs.
Gym Culture is Real
Compared to any other generation, we are obsessed with staying in shape - 56% list fitness as their main priority compared to just 40% overall. Fixated on achieving that shredded six-pack, chiseled chest, or firm booty, GenZers turn to their favorite TikTok fitness influencer for advice - from maintaining low-calorie, high-protein diets to planning the best chest / back workout split. We then hit the gym in full force: Gen Z gym memberships have nearly doubled since 2020. Today, 30% of GenZers frequent the gym, almost twice the rate of older generations (15-25%).
The Opportunity: The gym can be more than just a place for us to work out - there’s a growing demand for a fitness-oriented, community-focused third place. Think Equinox meets Soho House, but built for a younger, wellness-obsessed crowd.
Good Pills, Not The Addictive Ones
Because of unlimited access to information, younger generations have had the privilege of leveraging it for health-related purposes. Millennials prefer to Google an ailment or symptom before visiting a doctor; Gen Z probably prefers to ChatGPT it. But our main priority? Preventing those ailments in the first place. We’re constantly looking for vitamins or supplements that reduce the risk of what older generations were burdened with - from stress to gut inflammation to heart disease. Just ask a GenZer what their stack is: odds are it includes ashwagandha, magnesium, or vitamin D3 + K2.
The Opportunity: Gen Z’s obsession with preventative health is generating powerful tailwinds for new supplement brands, functional wellness products, and biohacking. This is a $50B+ market - and the winner is the startup who builds a real-world social layer around it.
Sober is the New Black
Interestingly, Gen Z is the first to “put down the bottle” - the share of adults under age 35 who have ever consumed alcohol dropped 10%, from 72% in ‘01 - ‘03 to 62% in ‘21 - ‘23. Some research indicates that Gen Z consumes one-third less beer & wine than older generations. Why? We’re more cognizant of the negative impact alcohol has on our health - driving trends like Dry January and fueling demand for non-alcoholic beverage brands like Athletic Brewing and Tom Holland’s BERO.
The Opportunity: We want to go out and party - but we don’t want to feel like sh*t the next morning. This unique predicament creates a blue ocean opportunity for sober-first community / entertainment events.
Sauna & Cold Plunge Craze
Our stress relief is transitioning from grabbing a pint with our buddies to plunging into freezing water and enduring the warmth in hot wooden saunas. While the physical health benefits are still up for debate, young people reflect that the rapid heart-rate spike - that 15-minute exhilaration - delivers a strong, remedial feeling of euphoria.
This isn’t just about a workout recovery - it is becoming a social ritual. Gen Z is turning to sauna & cold plunging the way older generations turned to happy hours. Studios now host cold-plunge socials, breathwork circles, and guided group sessions that draw 20-somethings who prioritize self-care - but looking to make friends while doing it.
The Opportunity: Sauna & cold plunging is evolving into a high-margin ritual and a premium social experience. Expect to see a wave of wellness clubs centered around contrast therapy over the next few years.
Why Shared Experiences Matter
What makes these Gen Z wellness habits lucrative is when they evolve into movements - and they only become movements when they’re shared. Community is the force multiplier: 84% of Gen Z say they’re more likely to stick with a healthy habit if it's done with others. It’s not just about feeling better - it’s about belonging while doing it.
That’s where a new wave of startups comes in: designing wellness-first spaces that support both physical and mental health - while building community along the way.
Two Unique Startups That Are Capturing This Market:
Othership
Othership is an immersive breathwork, cold plunge, and sauna studio with locations in NYC and Toronto. It offers unique group contrast therapy sessions that double as a relaxing social space - where individuals can truly connect, without alcohol or their phones, while reaching that upper echelon of focused meditation.
The goal? A full release from deep-rooted troubles like burnout, anxiety, and loneliness. Othership is designed to transform its members - so they leave feeling like completely new human beings.
These aren’t your typical sauna lounges. With soft, golden lighting under the benches, a surround sound system, and an alluring scent that clears the air with every breath, Othership has mastered the experience economy for wellness. Founder & CEO Robbie Bent personally explained this to us:
“We want people to walk in and feel like they’ve entered a different world. The lighting, the scent, the music - it’s all there to help you drop into the moment and leave your stress behind. But beyond that, it’s about a feeling of safety, somewhere you can actually let your guard down, maybe meet someone new, maybe feel something you didn’t expect.”
Social commons: young strangers vulnerably letting their guard down in bathing suits, waiting for a ritual-like experience.
A breathwork app that guides users through personalized cold plunge, breathwork, and wellness journeys—even for those outside studio cities.
Exclusive events - via a partnership with Daybreaker, Othership’s Flatiron studio hosted a sauna rave this January for members to celebrate their embark of the Dry January challenge
The white space: The sober-curious market is growing rapidly, and social spaces like Othership are poised to build cult-like communities around contrast therapy as a preferred release. While memberships are premium and primarily attract affluent millennials (average age of 32), the next wave will be Gen Z. As they stack their bread, Othership might be the first thing they sign up for - maybe even before their local country club.
Coffee & Chill
Best described as a sober-first wellness café series, Coffee & Chill hosts bi-weekly pop-up darties (day parties) in cities like Venice, Miami, San Diego, Austin, and NYC. These events pack everything you'd expect from a great night out - a groovy house DJ, Instagrammable venues (rooftops, beaches, etc.), and dancey vibes - with one big twist: no alcohol.
Instead, guests sip on high-end coffee and matcha while enjoying wellness perks that get the day started right. The brand does a phenomenal job attracting unique sponsors to each location, curating experiences you won’t find anywhere else. For example, here are some of the amenities at Coffee & Chill Miami’s upcoming Swim Week Event:
Functional coffee by Everyday Dose
Cold plunges by The Cold Life
Sparkling energy drinks by Bloom Nutrition
Bikinis by Strait. The Label (first 100 guests)
Liposomal vitamins by Rho Nutrition
Hydration by Smart Water
B-12 shots by Drip Hydration
The goal? Embrace Gen Z’s culture - vibing to house music, meeting new people, sharing clips on socials - while promoting a healthy, sober lifestyle. Instead of chasing a tequila shot before the dance floor, you’re taking a B-12 shot before hitting the cold plunge.
According to a recurring member, Coffee & Chill nails the vibe of a club—without the chaos:
“I was always looking for a social event that didn’t involve just getting plastered... Coffee & Chill let me conquer this social aspect while focusing on something that actually makes my body healthier.”
The white space: GenZers are craving a social wellness club that can give them the healthy party experience they’ve been waiting for. Coffee & Chill delivers that in a scalable, high-margin format.
By franchising the brand, running lean pop-up events, and locking in brand-aligned sponsors, they reduce venue overhead while generating real revenue - without overcharging their core audience of college students and young grads.
Coffee & Chill might just be Gen Z’s gateway drug into their wellness journey.
Final Thoughts
While it’s impossible to fully predict what our generation’s social dynamics will look like over the next decade - especially with the rapid rise of AI, VR, and tech in general - one thing is clear: we’re starving for more real, in-person connection.
And startups like Othership and Coffee & Chill are building the infrastructure to make those connections happen.
It’s time to start partying like it’s 2025.
Great read! Love this deep dive content!
As always, really cool thought guys! I'm curious to know what are some of the key challenges these startups face in scaling their operations as they grow their communities and invest more in infrastructure and marketing their brand?