Slimming down: Intensifying competition tightens profit margins and revenue growth

Obesity is one of the leading causes of illness and premature death in Australia. As a result, many Australians are seeking ways to manage their weight, including through operators in the Weight Loss Services industry. Australians are expected to spend $452.5 million on industry weight loss counselling services and related low-calorie foods and dietary supplements in 2019-20. Industry revenue is expected to grow at an annualised 0.6% over the five years through 2019-20, including anticipated growth of 0.8% in the current year. The relatively modest growth reported over the past five years is largely due to the strong competition that industry operators face from both internal and external more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Strong competition from cost-effective substitute services has constrained industry revenue growth
  • Industry firms have been expanding their weight loss products and services to boost demand
  • Industry profitability will likely continue to be constrained by strong competition
  • Industry Report - Industry Key Buyers Chapter

    The Weight Loss Services industry exhibits high market share concentration. The industry's three biggest firms are well established and have a significant presence in the industry. In particular, Lite N Easy dominates the industry, accounting for over 50% of revenue. As Australians have continued to spend more on weight loss solutions, there has been a steady supply of new products and services. Major players have sought to boost growth over the past five years through the continued diversification of their products, providing personal and online counselling services together with prepared food.However, the number of smaller competitors entering the market has increased over the past five years, and these firms have attempted to capture market share from the larger firms. The...purchase to read more.

    Additional Insights for the Weight Loss Services Industry

    IBISWorld has determined the most important Key Success Factors for the Weight Loss Services are:

  • Market research and understanding
  • Establishment of brand names
  • Development of a symbiotic relationship with another industry
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Levels of obesity in the Weight Loss Services industry impact industry performance..

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    What's in this report

    What is the Weight Loss Services Industry?

    Weight loss providers include any company offering goods or services specifically promoted as a weight loss solution. Apart from traditional weight loss advice and counselling services, industry companies also offer food and beverages targeted at those wishing to lose weight. The industry does not include gyms, personal trainers and other exercise-oriented companies. The industry also excludes pre-prepared meal services not specifically marketed for weight loss purposes.

    Industry Products
  • Diet meal provision
  • Online weight loss programs
  • Personal weight loss counselling
  • Diet shakes, bars, powders and supplements
  • Other products and services
  • Group weight loss counselling and programs
  • Industry Activities
  • Weight loss centre operation (non-medical)
  • Weight loss counselling services
  • Provision of low-calorie foods and beverages
  • Sale of products and supplements to assist with weight loss
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Levels of obesity
  • Demand from gyms and fitness centres
  • Real household discretionary income
  • Consumer sentiment index

  • Current Performance
  • Fierce competition
  • New strategies
  • Tough male market
  • Chart: Revenue Growth

  • Industry Outlook
  • Weight loss trends
  • New products and markets
  • Table: Weight Loss Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Weight Loss Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Newsagents and Book Retailers
  • Supermarkets and Grocery Stores
  • Consumers

  • Key Selling Industries
  • Babysitting and Other Personal Services
  • Health Services
  • Organic Farming
  • Specialist Medical Services
  • Wholesale Trade

  • Products & Services
  • Diet meal provision
  • Online weight loss programs
  • Personal weight loss counselling
  • Diet shakes, bars, powders and supplements
  • Group weight loss counselling and programs
  • Other products and services
  • Chart: Weight Loss Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 31 to 50
  • Consumers aged 18 to 30
  • Consumers aged 51 to 70
  • Consumers aged 71 and over
  • Chart: Major Market Segmentation for the Weight Loss Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Weight Loss Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Weight Loss Services Industry

  • Industry Globalization
    G.D. Mitchell Enterprises Pty Ltd, Jenny Craig Weight Loss Centres Pty Limited, Weight Watchers International Pty Limited,
  • Table: G.D. Mitchell Enterprises Pty Ltd - financial performance
  • Table: Jenny Craig Weight Loss Centres Pty Limited - financial performance
  • Table: Weight Watchers International Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Weight Loss Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Weight Loss Services Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fad Diet
  • A program that encourages rapid weight loss, sometimes using unproven or potentially dangerous methods.
  • Meal Kit
  • A prepared meal, or a collection semi-prepared ingredients designed to easily prepared.
  • Naturopathic
  • Naturopathy is a form of alternative medicine, any associated weight loss products generally contain plant extracts.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Weight Loss Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Weight Loss Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Weight Loss Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Weight Loss Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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