My perspective:
1) States started requiring degrees (in psych, socialwork, counseling) instead of just the $30 license fee to be a certified counselor.
+
2) 40,000,000+ without health insurance, and double that underinsured (no mental health benefits, or deductibles so high that there's no way to pay them).
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3) Degreed & Licensed therapists run $100-$200 per hour... And "short term" therapy usually lasts for several months. More average time = 1-2 years. Without health insurance that's an average cost of 5,000-10,000 per year. Meanwhile a "life coach" is usually only a couple weeks, by an untrained / uneducated person (who may be brilliant at what they do, but nonetheless is missing 7 years of focused study, and 1-2 years of supervision, and ongoing education mandatory for maintaining their licensure). Grand total $500-$1000
AND
1) Increasing secularizing of the nation (where in the past many people would have been counseled by their priests/rabbi/etc.), secular folk don't have that resource available to them.
AND
1) Loss of time. Aka most families are dual income. Both for dual income families and working singles... Work days are longer, flexible schedules are rare. Not a lot of time for Friendships NOR Regular Weekly Counseling.
2) People who generally have many deep/close friendships rarely need counseling or sideline cheering... Because those things are fulfilled by their friends. Not always the case (sometimes things are outside of the scope of knowledge of their friends), just often the case.
AND
1) Cultural emphasis on the "quick fix". Be it get rich quick, get thin quick, get healthy quick, etc. Life coaching is the definition of a quick fix.
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This all may sound very negative towards life coaching. That's not my intent. All someone may need is a cheerleader, a different perspective, etc., and they're good to go. And that's awesome. Insta-friend for the short period of time one needs them for. It also gets enthusiastic & helpful people PAID. Molto Bene. But I personally see the explosion of life coaches as a symptom of several much larger problems. Life coaching itself not being the problem, the opposite, in fact. ANY finger in the dam as better than none! The underlying causes, however... Especially anorexic mental health care, I see as a HUGE problem.