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U.S. Commercial Weight Loss Centers: A Market Analysis

U.S. Commercial Weight Loss Centers: A Market Analysis

The U.S. weight loss market has entered a new phase of flat to low growth, constrained by a strong shift to do-it-yourself plans, the proliferation of free apps for smartphones, and more healthy eating by consumers. This is a completely revised and updated analysis of this $2.6 billion market. This is the most comprehensive investigation of the U.S. commercial weight loss centers/chains market published by anyone worldwide. Brick & mortar weight loss centers have high overheads and shrinking profit margins, and must operate lean and tap new niche markets to survive and grow. In addition, they face more competition from retailers and medical programs.

This report includes… An overview and summary of the total weight loss market (all 10 segments), with 2016 forecasts, 2015 performance, the Oprah Winfrey effect, historical market size, latest market and company developments.

Dollar value & growth rates for commercial weight loss centers (1980s to 2014, 2015 and 2019 forecasts), latest market trends and developments, status reports for 2015 and 2016 diet seasons, demand drivers, extensive national and state operating ratios & market potentials, sample income statement, discussion of why franchising is no longer a strong growth model, revenues through past recessions, and a Reference Directory.

Contains in-depth competitor profiles for: Weight Watchers, NutriSystem, Jenny Craig, Medifast, Diet Center (HMG), and Metabolic Research.


Overview of the Total U.S. Weight Loss Market
Discussion of diet market mega-trends: shift from diet products to services, medical programs gain momentum under ACA, what’s wrong with commercial chains, importance of counselors, franchising pros & cons, consumer clean eating trend, move to retail outlets
Paradigm shift from diet “products” to “services”
Performance of 2015 diet season, discussion of rise of MLM firms, DIY trends, Companies’ new programs, competition from apps, advertising strategies
Why medical weight loss programs now have the momentum, ACA effects
2016 market forecasts and trends, 2016 diet season, Oprah Winfrey effect
Summary of major market developments & trends of 2013-2016
Tables:
2013-2015 $ value of diet products vs. services
Historical market revenues $ size, by market segment: 1989-2015
Revenues of top commercial chains: 2009-2015
$ size of market and its 9 segments, forecasted 2015-2019 growth rates for segments
Commercial Weight Loss Centers
Summary & status report/major developments since 2013
(no. of centers left, avg. cost of major commercial plans vs. medical and self-help plans 2013-2015 segment performance, 2016 outlook, revenues of leaders
In-depth discussion of Weight Watchers implosion, success of NutriSystem, Jenny Craig/Curves merger, how apps and medical programs are strong competitors, factors affecting 2015 & 2016 diet seasons, program customization, latest fad diets
Obamacare’s effects on commercial programs, competitive disadvantage
Positive/negative factors seen affecting growth from 2015-2019
Why the franchise growth model no longer works for commercial diet centers
Tables:
Avg. cost of popular diet programs (Forbes)
1982-2019 F commercial weight loss center revenues
No. of U.S. weight control services (1991-2015)
Number of commercial centers (2007, 2008, 2010, 2012, 2014 - top chains)
Sales of the top chains (incl. Wt. Watchers, Jenny Craig, NutriSystem, Medifast): 2001-2015
Industry Structure
2012, 2007, 2002 industry snapshots for commercial diet centers: no. of establishments, legal form of firms, top 50 firms mkt. share, ratios by firm’s receipts, top states
Sample income statement for a typical commercial center: (expenses by type, profits)
Avg. revenues per co.-owned/franchised center for Jenny Craig & LA Weight Loss
Avg. cost to acquire new customers
What commercial centers have in common, expansion of 1980s/contraction of 1990s 1982-88 diet franchise avg. revenues per unit, no. of centers/ sites operated by top chains.
Franchising: status of, use as growth strategy, investment costs, profiles of Wt. Watchers, Jenny Craig franchises, why franchising may be less viable, commercial chains survival actions.
Census Bureau Operating Ratios: 2012, 2007, 2002 (Commercial diet centers/services) (no. of estabs., firms, receipts, receipts per estab., payroll as % sales, etc.)
U.S. Census Tables
Industry snapshot: no. of estabs., receipts, avg. per estab. & employee, payroll as % sales, etc.
Employee sales/payroll productivity
Establishments, by legal form (corporations, partnerships, sole proprietors)
Market share for largest 4, 8, 20, 50 firms
Ratios, by single vs. multi-unit firms
Ratios, by receipts size of firms & establishments
No. of diet centers, by state & region, avg. receipts per estab. By state
No. of diet centers, by state, ranked by sales and avg. receipts per establishment
2013 no. of estabs. payroll, estd. receipts, by state, ranked (County Business Patterns)
Company profiles: in-depth company history, current status, recent developments, how programs work, costs, franchise systems, 2009-2015 & historical revenues, new programs, strategies, address/website):
Weight Watchers International
Jenny Craig
NutriSystem
Medifast
Health Management Group (Diet Center)
Metabolic Research Centers
Reference Directory of Weight Loss Information Sources
Industry & government trade associations, journals, newsletters, magazines, consultants

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