Is there a business that will never slow down? It is a very interesting question and I am sure a lot of strategy leaders struggle with it. One industry that jumps out is that of weight loss (I include dieting, exercising, and plastic surgery). Considering that people just can’t seem to stop eating and being lazy (the trend is rapidly spreading to what we think are poor countries). Here are some very encouraging numbers from Marketdata Enterprises:
- Total U.S. weight loss market is $55.4 billion in 2006.
- In 2006, 68% of dieters preferred a diet program they could access from home/online/by phone, and 56% want a plan based on regular (not diet) food.
- Weight loss surgeries reached record levels of 177,000 in 2006, representing a $4.4 billion market. However, major insurers still don’t cover these surgeries and growth slowed to only 4%. More obese Americans are having the procedure overseas, where the cost is substantially less.
- Diet food home delivery grows into an $800 million market segment, fueled by NutriSystem, Jenny Direct, Medifast and a few dozen others. Not all companies provide national delivery. Many only cater to local markets in Los Angeles, Chicago or New York, delivering premium priced gourmet fresh food. The average monthly cost for consumers is $725.
- Diet soft drinks share has risen to 29.5%, almost the historical peak, and this is forecast to rise to 31%. This segment was worth $19 billion in 2006.
- The prescription $459 million diet drugs (despite the fact that Alli may not do much to your waistline) market did grow somewhat in 2006, but still awaits the FDA’s approval of Rimonabant (Acomplia).
So put some resources in analyzing how your business could participate in this exciting industry.