Increasing integration across various products and services will drive industry demand and revenue.
Melbourne, Australia (PRWEB) August 07, 2014
According to the Australian Bureau of Statistics, more than 70.0% of Australian males and 56.2% of females are overweight or obese (Australian Health Survey 2011-12: 4364.0). For both health and cosmetic reasons, there is growing pressure on Australians to change this statistic. According to IBISWorld industry analyst Alan Allday, “an increasing amount of consumer spending is being directed towards becoming thinner and healthier.” During 2014-15, Australians are expected to spend $603.3 million on weight-loss counselling services and related low-calorie foods and dietary supplements. This is a boost of 1.4% from the previous year for the Weight Loss Services industry in Australia. Over the five years through 2014-15, industry revenue is expected to grow by an annualised 0.6%. Revenue declined in 2012-13, as consumers cut back on discretionary spending, but returned in 2013-14.
Market share concentration in the industry is low. Major players include Jenny Craig Weight Loss Centres Pty Limited, Weight Watchers International Pty Limited and Matchlow Pty Ltd. Industry growth has been driven by traditionally prominent companies, such as Weight Watchers and Jenny Craig. However, competitors such as Lite n' Easy and Tony Ferguson have also gained market share through the development of new dietary products and services. This indicates that Australians are seeking out “innovative, convenient and more effective methods of weight loss than those that have been on the market for some time”, says Allday. Opinions are mixed regarding the effectiveness of low-fat foods that have high-sugar content, and the role exercise plays in long-term weight loss that does not include reducing sugar consumption.
Other key trends over the past five years have been the move by traditional weight-loss companies towards the development of low-calorie or fat-free food, drinks and supplements, and the incorporation of these products into their counselling services. Such products have been growing in popularity and have become increasingly available to all consumers through wider distribution channels. The Weight Loss Services industry is expected to grow over the five years through 2019-20 as economic conditions improve, obesity levels increase, and physical appearance and health awareness return to the forefront of people's minds. This will occur as consumers continue to look for new slimming programs and products, and companies endeavour to create them. However, the growing prevalence of larger firms and increasing integration across various products and services mean that fewer small companies are likely to succeed in the increasingly crowded industry.
For more information, visit IBISWorld’s Weight Loss Services industry in Australia report page.
Weight-loss providers include any company offering goods or services specifically promoted as a weight-loss solution. Apart from traditional weight-loss advice and counselling services, companies in this industry offer foods and beverages targeted at those wishing to lose weight. This industry does not include gyms, personal trainers and other exercise-oriented companies.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.