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
Sep 26, 2024 - Employment Up, Wages Down
- According to the US Bureau of Labor Statistics (BLS), average wages for nonsupervisory employees in the other personal care services industry, including diet and weight reducing centers, declined 0.5% in July 2024, reaching $25.26 per hour. Industry employment increased 6.5% in July 2024 compared to a year ago. Consumer spending levels were up 2.6% in June 2024 from the previous year and up 0.2% from the previous month, according to the Bureau of Economic Analysis.
- The rate of adult obesity in the US has remained steady at 40% in 2023 while adults with severe obesity rose to almost 10% of adults, according to data from the US Centers for Disease Control and Prevention reported in HealthDay. The rate of adult obesity has been the same between 2013 and 2023, with rates generally the same for men and women. The rate of adults with severe obesity (defined as a BMI of 30 or above) has increased from 7.7% of adults in 2013 to 9.7% in 2023. Middle age is the peak time for obesity, with 46.4% of adults aged 40 to 59 considered obese.
- The weight loss and obesity management market is expected to grow at a 12.8% CAGR from 2024 to 2034, reaching $48.3 billion, according to a forecast by Future Market Insights. The market is projected to reach $14.5 billion in 2024. Factors driving growth include the rising prevalence of obesity and related health issues such as diabetes, heart disease, and hypertension. Drugs are becoming a key part of the industry with an expected 48.6% of market share in 2024. Institutional sales, such as hospitals and weight loss clinics, are expected to drive growth with a 75.7% market share in 2024.
- A new line of frozen meals aimed at GLP-1 users adds a new layer of competition to weight-loss management food options, according to Fast Company. Calling it an “emerging category,” Nestle announced a new brand aimed at those on the weight loss medicines called Vital Pursuit, which has portion-controlled meals with high fiber and other essential nutrients. Other companies have also added products to target the growing group of consumers taking GLP-1 medicines such as Ozempic and Wegovy. GNC is adding vitamins, supplements, and shakes focused on GLP-1 customers. Weight Watchers has recognized the opportunity, establishing a GLP-1 Program to help users build healthy habits while on the medicine.
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