Key Weight Loss Market Segments – New “Market Looks” Reports by Marketdata
Commercial Weight Loss Centers, Bariatric Surgery, Meal Replacements
"Many weight loss markets are industries in and of themselves, with their own nuances."
July 18, 2016 -- Marketdata Enterprises, Inc., a leading independent market research publisher, has released three new weight loss market studies, covering the Weight Loss Surgery Market, Commercial Weight Loss Centers, and the Meal Replacements Market. These are a new brand of Marketdata reports called “Market Looks” – concise and affordable reports that still contain lots of analysis, forecasts and competitor profiles.
“Market research consumers have been trending toward shorter, less costly reports, ones that get to the point and identify a market’s size, outlook, major trends and status. They don’t have thousands of dollars to spend on one-off reports and they don’t want to commit to subscription plans. These reports fit the bill—each usually between 50-80 pages, focused on the U.S., priced at only $695 ($300 less than competitors such as IBIS World), still with very detailed analysis.”, according to Marketdata’s Research Director, John LaRosa.
Commercial Weight Loss Centers
Marketdata estimates that the top commercial diet chains had combined revenues of $2.49 billion in 2014. Adding in all other commercial centers, estimated to account for another 20% of the market, this comes to a total of $2.99 billion. This is down 11% from 2013 sales volume. We estimate another 11.3% decline in sales for the commercial chains in 2015, to $2.65 billion. This is largely due to the further decline in revenues last year at Weight Watchers.
Marketdata estimates that the “average” commercial weight loss center last year had annual revenues of $453,000. Franchises are a tough model, due to high overhead costs and royalties, and shrinking profit margins due to intense competition.
The median cost of a commercial diet program is $85.79 a week – 57% more than the $54.44 the average single American spends on food.
Weight loss programs are moving to more retail channels (CVS, Walgreens, Rite Aid, Costco, Walmart and Target stores). Diet Services are overtaking diet Food in dollar sales volume. Medical programs are growing more rapidly. The DIY dieting trend is still strong, with free and low-cost diet/fitness apps popular with consumers. Consumers want to eat “clean” – less artificial ingredients, and diet soda sales are tanking.
Weight Loss Surgery
Marketdata estimates that 196,000 Americans underwent weight loss surgery in 2015—only a 1.6% increase from the prior year. A minimal 1.6% gain is forecast for 2016. This is largely because the average cost of this elective gastric bypass surgery is $25,238, and many insurers don’t cover the procedure. In addition, expected coverage under the Affordable Care Act did not happen, as nearly half of the state exchanges still do not cover this procedure.
A total of 25% of patients considering bariatric surgery are denied coverage three times before approval, according to the ASMBS.
Roughly 2,400 bariatric surgeons operate in the U.S., creating a $4.9 billion market.
New technology and devices are impacting the market. The recent FDA approval of the less invasive and less costly Orbera gastric balloon by Apollo Endosurgery is one such example.
The Meal Replacements Market
Marketdata estimates that there are 108 million dieters, and the share of all U.S. adults using meal replacements alone is about 6% (or 6.5 million people). More than 35% have used them at some time. These shakes and bars are a mature and fragmented market but they are still very popular with dieters, due to their easy availability, low cost, convenience, and lack of side effects. They are also easily private labeled for MDs and entrepreneurs and multi-level marketers.
Marketdata estimates that the meal replacements market was worth $2 billion in 2015, up from $1.1 billion in 2011. Retail diet pill sales are also worth $2 billion. Marketdata analysts think that meal replacements and OTC diet pills sales will grow at about the same pace over the next four years, with each market reaching $2.5 billion in sales by 2019.
“Growth in meal replacement behavior is driven by an increase in rushed lifestyles among U.S. consumers. High protein shakes and bars are used to curb one’s appetite and provide an energy boost.
About The Reports
All Market Looks reports cost only $695, and are available in digital or print format. Each report covers: the nature of the market, demand factors, customer demographics, market size (2005-2020 forecast), major trends and market developments, competitor profiles, statistical tables, and a reference directory of industry sources.
About Marketdata Enterprises
Marketdata Enterprises, Inc., is an independent market research firm and 27-year analyst of the U.S. weight loss market since 1989. The company publishes many weight loss studies covering all diet market segments, performs consulting and custom research projects, has diet market teleseminars on You Tube, hosts teleconferences, webinars and conferences. It also operates a leading free weight loss news website: DietBusinessWatch.com. Mr. LaRosa is available for interviews.
Marketdata Enterprises, Inc., Tampa, FL
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- Contact Information
- John LaRosa
- President, Consultant
- Marketdata Enterprises
- (1) 813-971-8080
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