March 1, 2021
Marketdata and DietBusinessWatch.com continue to release major findings from its ongoing current research of the weight loss market, contained in our upcoming study; “The U.S. Weight Loss & Diet Control Market”, due out shortly.
Based on interviews with management at the major medical weight loss center chains and franchises, Marketdata analysts are estimating that revenues fell by 27%, from $950 million in 2019 to $697 million in 2020.
Most of the franchised chains reported operating less centers than in 2019.
Marketdata estimates that there were 638 centers or sites operated by these companies, with revenues of $357 million (chains & franchises). There are many more medical professionals such as independent MDs, bariatricians, and and hospital-based programs in this market, that we estimate account for another $340 million in revenues.
Most of the medical centers management we spoke to expect this year to return to 2019 levels of business. However, Marketdata doesn’t think we’ll see a 27% bounce-back. The ranks of medical franchises are thinner, and the first half of this year is not likely to be a “normal” year yet, since most Americans are still not full vaccinated.
With this year likely to be divided into two halves, economically, we think patient volumes will still be depressed until June or July. New stimulus payments will not go out until mid-March. Consumers may still be wary of going to a physician’s office for weight loss, or a hospital-based program. And medical weight loss chains that closed a few centers last year may be reluctant to sell or open more of them.
Some medical chains pivoted to survive. One example is Smart For Life, which switched from being a medical program to a commercial DIY plan. It closed or converted all its 38 centers and now sells diet food products online directly to consumers.
This segment of the market does NOT include the revenues generated by prescription diet drugs or weight loss surgeries (bariatric surgery).
The above is a sample of the type of hard to find weight loss industry information contained in Marketdata’s weight loss reports — the ONLY place you will find it, since 1989. Marketdata LLC, Tampa, FL (813-971-8080). www.marketdataenterprises.com.