U.S. Weight Loss Market Suffers 21% Contraction in 2020

U.S. Weight Loss Market Suffers 21% Contraction in 2020

March 17, 2021

Marketdata has just published its new study: “The U.S. Weight Loss & Diet Control Market” – 16th Edition since 1989.  438 pages, 160 table & Charts, 34 Competitor Profiles

The U.S. weight loss market reached a record $78.4 billion in 2019, but suffered a 21% decline in value to $61.8 billion during 2020 due to the Covid-19 pandemic and recession. However, there were bright spots. Commercial chains held up well, as did the meal replacements market, frozen diet entrees, and multi-level marketing channels. Health clubs and most medical weight loss programs were hit the hardest, with contractions of 37% and 27%, respectively. Weight loss providers had to pivot to virtual client meetings and drop shipping of products. Technology became more important, as Zoom meetings, apps and streaming services soared in usage. Due to pend-up demand and consumer weight gain in 2020, most providers are looking for a strong rebound in 2021, as Americans are vaccinated and businesses reopen.

Some Findings:

The health clubs industry was hit hard, as facilities closed during the pandemic and 17% of them closed. Revenues dipped by 37% to $22 billion, from $35 billion in 2019.

Medical weight loss programs overall saw their revenues fall by 27% and bariatric surgeries fell to 205,000.

Revenues of the major commercial weight loss chains such as WW, NutriSystem,
Jenny Craig, Medifast and others actually held up well last year, growing by 6.8% in
2020 to $4.07 billion. WW had a very moderate dip in sales as it shifted from inperson
studio business to virtual meetings. And, Medifast, with its Optavia MLM
model, posted very strong 31% growth to a record $934 million..

Retail and MLM meal replacements sold well, reaching sales of $3 billion in 2020. They were popular as shelf stable and easily obtained diet products during the pandemic.

Sales of frozen diet dinners and low-carb foods are estimated to have risen to
$2.1 billion, as homebound consumers stocked up on them for convenience during
the pandemic.

Companies that have weathered the recession and the pandemic well include: WW
Intl., Noom, Herbalife, Medifast, Simply Good Foods (Atkins brand), Nestle (Lean
Cuisine), HMR Boston, Glanbia (SlimFast brand), weight loss apps, and meal
replacements producers.

These findings and many more can be found in the new Marketdata report, which can be ordered from this website (Report FS67). There is also a 46-page, $99 Overview for those on a budget (Report OV4). Call for questions: 813-971-8080.