Diet and Weight Reducing Centers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,400 diet and weight reducing centers in the US help individuals attain or maintain a desired weight using non-medical methods. Weight loss services account for the majority of industry sales. Firms may also sell weight reduction products, such as food supplements or prepared food products.
High Customer Failure Rate
Most consumers fail to achieve or maintain weight loss through traditional programs.
Competition from Alternative Service Providers
Diet and weight reducing centers compete with a range of alternative service providers, including health care providers, fitness centers, pharmaceuticals, self-help programs, and surgical procedures.
Industry size & Structure
The average diet or weight reducing company operates out of a single location, employs about 10 workers and generates $1.2 million annually.
- The diet and weight reducing services industry consists of about 1,400 firms that employ about 14,000 workers and generates $1.7 billion annually.
- Franchises account for half of the industry. Franchisees account for 21% of establishments.
- The industry is highly concentrated; the top 50 companies account for 72% of industry revenue.
- Large firms, which include WW (Weight Watchers), Nutrisystem and Jenny Craig (both owned by Wellful), and Medifast, may have international operations.
Industry Forecast
Diet and Weight Reducing Centers Industry Growth
Recent Developments
Jan 27, 2025 - Services Sector Expansion, Employment Rises
- Economic activity in the services sector expanded in December 2024 for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December. Employment increased in November 2024 while labor costs declined, according to the US Bureau of Labor Statistics (BLS). Industry employment rose nearly 4% in November 2024 compared to a year ago. Average wages for nonsupervisory employees in the other personal care services industry, including diet and weight reducing centers, declined 4.5% in November 2024, reaching $25.03 per hour. Consumer spending levels were up 2.9% in November 2024 from the previous year and up 0.3% from the previous month, according to the Bureau of Economic Analysis.
- State lawmakers are finding coverage of GLP-1 medications an ongoing issue due to their high price tag, according to a recent report by the National Conference of State Legislatures (NCSL). According to the NCSL, about a dozen states addressed coverage of GLP-1 drugs during their 2024 sessions. In 2024, Illinois expanded coverage for GLP-1s like Ozempic and Wegovy for weight loss under its state employee health plan while North Carolina stopped coverage for GLP-1 drugs for weight loss the same year. According to The Colorado Sun, Colorado will limit insurance coverage of prescription weight-loss drugs for state employees to three specific conditions in a cost-cutting measure effective July 2025. Some diet companies such as WeightWatchers have started offering access to GLP-1 medications as well as nutritional counseling related to weight-loss medications.
- According to US News and World Report, researchers in a Lancet Journal study found that about 260 million Americans could be overweight or obese by 2050. Researchers estimate that two in three adults, one in three teens, and one in five children in the US will be obese by 2050. The change is expected to create a crisis of chronic illnesses and serious health conditions in the nation, including diabetes, heart attacks, cancer, and other conditions. The research also showed that people are becoming obese at earlier ages in the US. According to lead study author Emmanuela Gakidou, a professor with the Institute for Health Metrics and Evaluation (IHME) at the University of Washington, “Our analysis lays bare the decades-long failure to tackle the growing overweight and obesity epidemic in the USA.” Obesity rates can be a demand indicator for diet and weight reducing centers, which court consumers seeking to improve their health.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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