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 1,300 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.
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.
High Customer Failure Rate
Most consumers fail to achieve or maintain weight loss through traditional programs.
Industry size & Structure
The average diet or weight reducing company operates out of a single location, employs about 16-17 workers and generates $1-2 million annually.
- The diet and weight reducing services industry consists of about 1,300 firms that employ about 22,400 workers and generates almost $2 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), Jenny Craig, Medifast, and Nutrisystem (Tivity), may have international operations.
Industry Forecast
Diet and Weight Reducing Centers Industry Growth
Recent Developments
Mar 22, 2023 - WeightWatchers Adds Prescription Weight Loss Service
- WW International, known as WeightWatchers, is acquiring telehealth company Sequence, which offers virtual visits with doctors who can prescribe popular diabetes and weight loss drugs such as Ozempic and Wegovy, according to the Wall Street Journal. Known for its meal plans and point system, WW will pay $106 million for Sequence's parent company Weekend Health. Sequence members pay $99 monthly for telehealth appointments with doctors, an app to track weight loss, and meetings with dieticians and fitness coaches. WW's CEO Sima Sistani said, "This is the biggest innovation in our industry today. There's real excitement for the health outcomes of these medications." WW plans to create programs for customers who are using weight-loss drugs to help them counter losing muscle mass by focusing on strength training and consuming high-protein foods.
- Consumer confidence levels declined in February 2023 for the second consecutive month, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 102.9 in February 2023 from 106 in January 2023, as high prices and rising interest rates affected consumers’ willingness to spend. According to Ataman Ozyildirim, a senior director of economics at The Conference Board, “Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more.” Plans to purchase homes, vehicles, and appliances have cooled, in addition to a drop in vacation intentions, per Ozyildirim.
- The global weight loss and weight management market size is expected to grow at a CAGR of 6.8% from 2022 to 2030, reaching $495 billion, according to a new report from Facts and Factors. The market was valued at $224 billion in 2021, and Europe was the leading revenue-generating region in 2021. The expected high growth rate for the industry is due to the growing obesity rate in the world. According to the report, the World Health Organization finds that obesity and overweight levels are growing at epidemic proportions, with more than four million deaths annually arising from the complications associated with excessive weight.
- The Centers for Disease Control (CDC) has announced new funding for the “High Obesity Program” (HOP), providing funding to counties with an adult obesity prevalence of over 40%, according to HealthNews. The program will run for five years, starting August 30, 2023. Thirty states have counties that meet the requirement. US states with the highest obesity prevalence include Alabama, Louisiana, Mississippi, South Carolina, and West Virginia. According to the CDC, 41% of adults and nearly 20% of children in the US are considered obese; healthcare costs for obesity total $147 billion annually. In addition, the HOP will fund land grant universities to leverage strategies for food and nutrition security, safe and accessible physical activity, family health weight programs, and early care and education settings. From 2014 to 2018, the HOP boosted access to healthier foods for more than 1.5 million and expanded access to physical activity for nearly 1.6 million individuals in the US.
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