Los Angeles, CA (PRWEB) May 12, 2012
In 2012, Americans are expected to spend about $2.7 billion on weight loss services. As the percentage of Americans who are overweight or obese continues to rise, the demand for this industry's services strengthens. Currently, 68.0% of Americans are either overweight or obese, according to the Journal of the American Medical Association. Although the Weight Loss Services industry experienced high growth for the first part of the decade, with a greater variety of substitute services available demand began to slow. Furthermore, according to industry analyst Caitlin Moldvay, “lower disposable income decreased consumers' propensity to spend on discretionary weight-loss products and services during the recession and slow recovery period.” In the five years to 2012, industry revenue declined at an average annual rate of 2.4%. Over 2011 and 2012, demand has begun to improve along with gains in per capita disposable income. In 2012, industry revenue is estimated to increase 3.6%.
The industry is highly competitive; there are currently 24,901 companies in the industry, including major players Weight Watchers and NutriSystem. During the recession, with adverse demand conditions, some companies were forced to exit the Weight Loss Services industry or be acquired by competitors. Moldvay says, “over the five-year period, the number of operators declined at a moderate rate of 0.2% per year.” In addition to industry competition, players faced competition from sales of over-the-counter weight loss pills, such as Alli, which was introduced to the market in 2007 and is one of the few FDA-approved weight loss pills. Furthermore, weight loss surgery has become more common. As clinics and hospitals typically offer similar services, such as nutrition programs, exercise planning and counseling, this factor presents competition for the industry.
The percentage of Americans who are overweight or obese is expected to rise to 75.0% of adults by 2015. Worsening health trends and rising per capita disposable income are expected to increase demand for weight loss services. From 2012 to 2017, industry revenue is projected to increase as a result of this trend. Over the five-year period, more industry operators will begin targeting men for weight loss programs, since women currently account for the majority of clients. As such, men's weight loss services represent a relatively large untapped market for the industry.
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Companies in this industry provide nonmedical services to clients to assist them in losing weight 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.
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Products & Services
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