The
Wholefood Farmacy is an idea whose time
has come. On the edge of an industry whose market
share is almost a billion dollars a day, The Wholefood
Farmacy combines the best of the golden treasures
of a forgotten age-old wisdom with today’s
need for health and weight loss, beauty, and vitality.
The
weight loss “industry” is huge and controversial.
It is also ever changing and dynamic. It is populated
by a wide variety of companies, organizations and
individuals, some famous, some not, some credible,
some outright frauds, that all seek to counsel Americans
and help them cope year after year with their growing
waistlines. Make no mistake—this is BIG business,
to the tune of nearly $40 billion in products and
services this year and estimated to grow 5.6% per
year to $48.8 billion by 2006.
The
industry is fragmented, has no coordinated trade
group or even a common publication. Everyone competes
for their own share of the American weight loss
dollar. Ongoing steady demand for weight loss centers
and services, whether delivered via the Internet,
your local weight loss center, a family physician,
a health club, a hospital, or a pill, will continue
as long as obesity rates continue to climb. Now,
it’s not just an American problem—it’s
a global one. The costs of obesity-related health
conditions in the United States is staggering, and
more pressure will be coming from the medical community,
insurers, employers and others for us to lose weight
and get back in shape.
There are some
that refer to the “medicalization” of
weight loss, that is, that diet drugs will replace
commercial programs. Market data Enterprises does
not agree. True, all the major pharmaceutical firms
are busy searching for the “magic pill”,
but one still does not exist. In addition, it’s
not likely that everyone who is overweight or obese
would WANT or qualify for a medically supervised
regimen. Many people don’t want to go to a
hospital, clinic, or physician to lose weight. Others
cannot afford the cost of such programs or the Rx
diet drugs. Most simply want to do it themselves,
in an unstructured, flexible, affordable program.
There will always be room for commercial programs,
for mail order products, and for counseling in both
group and one-to-one situations.
As one
can see from the table below, market data analysts
estimate that the total U.S. weight loss market
is estimated to have grown by 6.7% in 2001, to a
value of $37.1 billion. For the current year, we
are projecting 7.3% growth, to $39.85 billion.
The whole “pie” appears to be growing
currently, with no individual segments of the industry
displaying any contraction or decline. Of course,
growth rates vary, with some of the most rapid growth
appearing in the do-it-yourself, over-the-counter
diet aids segment compared to very moderate growth
for diet soft drinks and artificial sweeteners.
All segments appear to be in the midst of a growth
cycle, at least for 2001-2002, a rarity in the weight
loss industry. Perhaps this is due to the increasing
obesity rates in America and the realization that
this is a major health problem.
|
Industry Size - The Major Market Segments |
Following
are Market data's estimates for the
major segments of the U.S. weight
loss market.
(The figures in
this chart represent Billions)
|
| |
1999 |
2000 |
2001 |
2002 |
2006
F |
| Diet Soft Drinks |
$13.57 |
$13.90 |
$14.40 |
$14.86 |
$16.76 |
| |
|
|
|
|
|
| Artificial
sweeteners |
$1.61 |
$1.68 |
$1.74 |
$1.79 |
$2.05 |
| |
|
|
|
|
|
| Health Club
Revenues |
$10.65 |
$11.59 |
$12.52 |
$13.52 |
$17.85 |
| |
|
|
|
|
|
| Commercial
Weight Loss Centers |
$1.13 |
$1.21 |
$1.31 |
$1.44 |
$1.83 |
| |
|
|
|
|
|
| Medically Supervised
Diet Programs |
$1.50 |
$1.85 |
$1.98 |
$2.12 |
$2.44 |
| Anti-obesity
drugs |
$0.467 |
$0.663 |
$0.706 |
$0.748 |
$0.927 |
| |
|
|
|
|
|
| Low cal/diet
entrees |
$1.47 |
$1.68 |
$1.91 |
$2.07 |
$2.66 |
| |
|
|
|
|
|
| Retail &
multi-level meal replacements & appetite
suppressants |
$1.70 |
$1.71 |
$2.03 |
$2.38 |
$3.52 |
| |
|
|
|
|
|
| Diet books,
cassettes, exercise videos |
$1.04 |
$1.19 |
$1.26 |
$1.38 |
$1.76 |
| |
|
|
|
|
|
Total
Industry: |
$32.67 |
$34.81 |
$37.15 |
$39.85 |
$48.87 |
|
|
Growth Rates of The Major U.S. Weight
Loss Market Segments |
| |
2001 |
2006
F |
| Diet Soft Drinks |
3.5
% |
3.2
% |
| |
|
|
| Artificial
sweeteners |
3.6
% |
3.6
% |
| |
|
|
| Health Club
Revenues |
8.0
% |
8.0
% |
| |
|
|
| Commercial
Weight Loss Centers |
8.1
% |
6.8
% |
| |
|
|
| Medically Supervised
Diet Programs - Total |
7.2
% |
5.8
% |
| Anti-obesity
drugs |
6.4
% |
6.0
% |
| VLCD Programs |
14.0
% |
8.5
% |
| |
|
|
| Low cal/diet
entrees |
14.0
% |
7.2
% |
| |
|
|
| Retail &
multi-level meal replacements & appetite
suppressants |
18.7
% |
12.0
% |
| |
|
|
| Diet books,
cassettes, exercise videos |
18.7
% |
12.0
% |
| |
|
|
| Total
Industry - (avg. annual rate): |
6.7
% |
5.8
% |
Source:
Marketdata Enterprises, Inc. estimates
and forecasts |
|
|
Growth Rates of The Major U.S. Weight
Loss Market Segments |
| |
2006
F |
| Commercial
Weight Loss Centers |
4,400+ |
| |
|
| OTC diet products
- retailers (food, sodas, meal
replacements, pills) |
Dozens |
| |
|
| Mail Order
Companies |
Dozens |
| |
|
| Infomercials |
Dozens |
| |
|
| MDs (all kinds) |
37,900 |
| |
|
| Dietitians |
19,965 |
| |
|
| Health Clubs |
17,800 |
| |
|
| MLM Distributors |
1+
Million |
| |
|
| Other Drug
Companies |
Dozens |
| |
|
| Hospitals |
2,949 |
| |
|
| Clinics |
Thousands |
| |
|
| Corporate Wellness
Programs |
Thousands |
| |
|
| Diet Book Authors |
Hundreds |
| |
|
| Internet-based
Services |
Thousands |
| |
|
| Low-cal/low-fat
foods |
Thousands |
| |
|
| Exercise Equipment
mfrs. (Nordic Track etc.) |
Dozens |
| |
|
| Anti-diet movement,
the happy overweight |
? |
| |
|
Total:
|
83,000+
entities |
|
Management at the major weight loss companies estimates
that 70% of dieting attempts are of the self-help
type, but they are usually not effective. In fact,
we seem to be in the middle of another do-it-yourself
dieting cycle right now. A lot more dieters are using
appetite suppressants and weight loss products sold
by multi-level marketers such as Metabolife and Herbalife
than in past years. Some infomercials have been hot
as well, but there is a short life cycle for products
and programs sold by them.
According
to the NIH and the major health organizations, obesity
is an epidemic in the U.S. The most alarming fact
is that 27% of all children in the U.S. are overweight.
Studies also show that these children will most
likely transition into adulthood with this affliction
and are more likely to contract type 2 diabetes
as well as other obesity related diseases.
Over
the last 30 years, we have learned that pills and
capsules and herbal supplements do not work. These
products are ruining people’s lives. Consumers
are frustrated and they just want to know the truth.
They want to know what is the real answer. What
is the healthiest and safest way to lose weight
and prevent disease and cancer.
The
truth about weight loss and disease prevention is
this. There is no magical pill or concoction, medical
procedure or fast fix that is safe or healthy. According
to all the major health organizations, American
Heart Association, American Diabetes Association,
Mayo Clinic, Harvard School of Medicine, National
Cancer Society, Physician's Committee for Responsible
Medicine and others say the following:
To
lose weight you need to eat a healthy whole foods
diet which is abundant in fruits, vegetables, nuts,
seeds, grains, legumes, walk 30 minutes a day at
least 3 times a week, and drink 8 to 12 glasses
of water a day. You should also reduce your consumption
of saturated fat, processed sugar, sodas, flour,
and limit meats to 3 ounces a day.
This is the message of The Wholefood Farmacy. We
believe it is time for people to get the truth about
health, weight loss, and disease prevention and
also give people the products, education and support
they need to take control, lose the weight on their
own and do so in a safe and healthy manner.
|