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
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Nov 30, 2022 - Study: Some Weight Loss Success Remains Long-Term
                            • In a recent study published in Lancet Public Health, people who participated in a weight loss program tended to keep at least some of the weight off for an extended period. Keeping weight off after completing a weight-loss program proves difficult for many. The study checked on people five years after they had participated in a 12- or 52-week WW (formerly Weight Watchers) program. On average, most participants’ weight had gone back up, but they’d managed to keep an average of about two kilograms off.
                            • A new generation of weight loss medications may offer hope for patients who have struggled with their weight, but some healthcare professionals worry about the drugs’ costs – both for patients and for healthcare systems, according to Kaiser Health News. The new drugs – which mimic a hormone that can make the brain to feel full – are expensive. Novo Nordisk’s Wegovy helped patients lose about 15% of their body weight over 68 weeks in clinical trials, but it costs about $1,300 per month. Some healthcare experts suggest the cost of the drugs combined with high rates of obesity could push up the cost of healthcare for everyone. Others maintain that the drugs could help patients lose weight and avoid poor long-term health outcomes, which could reduce overall healthcare costs. Annual obesity drug sales could grow from a current $1.6 billion to $31.5 billion by 2030, according to Morgan Stanley.
                            • In August, the Women’s Preventive Services Initiative (WPSI) published recommendations for healthcare providers, urging them to have conversations with their older female patients about the importance of maintaining a healthy weight. Extra pounds later in life can lead to health complications, including hypertension, stroke, diabetes, heart disease, and some cancers. The group, which advises the federal government on women’s health issues, suggests doctors talk to patients between 40 and 60 about maintaining a healthy weight and body mass index (BMI). The WPSI says that during midlife, women typically gain about 1.5 pounds per year due to aging, less exercise, and hormonal changes brought on by menopause. In determining its guidance, the WPSI studied clinical trials of more than 50,000 middle-aged women that compared interventions for weight gain relative to no interventions. Four out of five trials that involved weight intervention counseling showed “favorable weight changes.”
                            • Of people on calorie-restricted weight loss plans, those who chose high-protein diets improved their dietary outcomes more so than people who had lower protein intake, according to a study published in Obesity. Those on high-protein diets had less lean body mass loss and tended to eat more green vegetables while consuming less refined grain and added sugar.
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