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Home > Healthcare > Medical > Telemedicine, IT & Ehealth
Weight Reduction Services
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| Published Date:
October 2008
Published By:
First Research, Inc.
Page Count:
10
Order Code:
R3470-1936
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The US weight reduction services industry includes about 1,300 companies with combined annual revenue of almost $2 billion. Major companies include Weight Watchers, Nestlé's Jenny Craig, NutriSystem, and the online-only eDiets. The industry is highly concentrated: the 50 largest companies account for 80 percent of industry revenue and the four largest, for 60 percent. A typical company is small, with one location, fewer than 10 employees, and annual revenue less than $500,000.
The industry doesn't include companies that provide primarily medical or surgical weight reduction, or that operate physical fitness facilities, health resorts, or spas.
COMPETITIVE LANDSCAPE
Consumers' excess weight, personal income, and leisure time drive demand. The profitability of individual companies depends on effective marketing, customer acquisition and retention, and efficient operations. Large companies have advantages of scale in marketing, infrastructure, and partnerships. Small companies can compete effectively by offering individualized services or upscale facilities. The industry is labor-intensive: average annual revenue per worker is under $50,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product lines are program fees, food supplements, and other merchandise sales related to diet and weight reduction. Fees account for almost 60 percent of industry revenue, and food and other merchandise sales for about 40 percent. Products include DVDs, CDs, food scales, journals and other record-keeping materials, cookbooks, and motivational and self-help guides. Specialty products include exercise accessories, magazines, and packaged food, often available for home delivery. Weight Watchers' branded magazine ...
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