The growing rate of obesity and rising disposable incomes will spur growth.
New York, NY (PRWEB) January 14, 2014
During the past five years, a growing number of overweight or obese Americans tipped the scale in favor of the Weight Loss Services industry. Currently, 69.2% of Americans are either overweight or obese, according to the Centers for Disease Control and Prevention (latest data available). Since physicians began to promote weight loss as a form of preventive care, many individuals demanded industry services to support their health and wellness.
The recession, however, hampered Weight Loss Services industry revenue, as low discretionary spending caused consumers to implement do-it-yourself weight loss and nutrition plans. As a result, industry revenue is expected to decline at an annualized rate of 3.7% to $2.4 billion over the five years to 2013. From 2011 to 2013, however, industry revenue is anticipated to increase in line with higher discretionary spending, as more individuals practice healthier lifestyles. While this growth includes an increase of 3.1% in 2013, profit is expected to decline from 12.1% of revenue in 2008 to 11.8% in 2013. This contraction is due to numerous weight loss companies offering discounts and other promotional services to attract consumers.
According to IBISWorld Industry Analyst Sarah Turk, “During the recession, many individuals curbed their demand for nonmedical health expenditures, including weight loss services.” As such, smaller companies exited the industry or were acquired by larger competitors. Conversely, many nonemployers entered the industry, which caused the number of weight loss companies to increase over the five-year period. This trend, coupled with the growing prevalence of weight loss surgery, which reduces demand for industry services, has caused competition for weight loss companies to intensify. “Also, clinics and hospitals typically offer similar services such as nutrition programs, exercise planning and counseling, which further limits revenue growth,” says Turk.
The percentage of Americans that are overweight or obese is expected to reach 75.0% of adults by 2015. Moreover, deteriorating health trends and rising per capita disposable income are expected to increase demand for weight loss services in the next five-year period. From 2013 to 2018, industry revenue is forecast to increase as more industry operators will also attract additional male consumers, as women currently account for the majority of weight loss clients. As such, going forward, men's weight loss services represent a relatively large untapped market for the industry.
For more information, visit IBISWorld’s Weight Loss Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Weight Loss Services industry provide nonmedical services to clients and assists these individuals with losing or maintaining a desired weight. Services typically include individual or group counseling; menu and exercise planning; and weight and body measurement monitoring. Industry operators may also sell food supplements and other weight reduction products. This industry does not include fitness centers, health resorts and spas, or medical or surgical weight reduction services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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