Multi-level Market For Weight Loss Products In U.S. Worth $2.2 Billion
Sales in United States Equal 42% of Worldwide $5.3 billion Market
“Weight loss products have become more important to MLMs since the mid-1990s. The share of MLM sales accounted for by weight loss products has risen from 9% in 1995 to 27% by 2012, amounting to an estimated $2.2 billion in 2013, in the United States. Worldwide, Marketdata estimates that weight loss products sold via two dozen MLMs were valued at $5.25 billion last year. Consequently, the U.S. market represents about 42% of the world tally.”, according to Research Director, John LaRosa.
Major Study Findings:
· Marketdata estimates that weight loss products sales in the U.S. totaled $26.6 billion last year (incl. diet soft drinks, diet dinner entrees, retail meal replacements and diet pills, diet food sold by Jenny Craig, NutriSystem and Medifast). Diet products sold via MLMs represented 8.3% of this total, up from just 1.65% in 2001.
· MLM as a sales method is increasing in popularity in the U.S. Based on data from the Direct Selling Association, $31.6 billion worth of products were sold this way in 2012. In addition, there are 16 million U.S. independent multi-level distributors or contractors.
· The average annual earnings per distributor of 15 of the largest MLMs in the business was only $3,642 in 2012 (before expenses). This leads us to believe that the majority of them are not really distributors but customers that join to get the discounted price of products for their personal use.
· Weight loss products sold via MLMs consist primarily of meal replacements such as shakes and nutrition bars. These products are safe to use, with no side effects. In recent years, such products have become more popular with budget-conscious dieters that seek easily obtained and inexpensive diet products.
· Fully 83% of the nation’s 108 million dieters are do-it-yourself dieters, and meal replacements are one of the primary products used in a DIY program.
· Over the past year, Wall Street has paid a lot of attention to the MLM nutritional supplements company Herbalife, as it became a hedge fund battleground stock shorted by William Ackman, who alleges that the firm is an illegal pyramid scheme. However, no government agency has found evidence to support this. Marketdata does NOT believe that Herbalife (#2 weight loss company by sales) is operating illegally, and it will NOT be shut down. Medifast faced similar charges in the past and was cleared.
· 2013 looks like it was a strong year for the U.S. market. In 2013, U.S. weight loss product MLM sales grew by an estimated 12%.
· Marketdata forecasts that the total U.S. weight loss market will grow by only 1.2% in 2014, to $61.2 billion. However, MLM channel weight loss product sales are expected to grow a lot faster – 12% to $2.4 billion.
· To 2018, Marketdata forecasts 6% annual gains in sales of meal replacements overall, sold via ALL distribution channels. We expect the United States MLM market for weight loss products to grow at an average annual pace of 8.5%. By 2018, the market should be worth $3.23 billion.
· Herbalife was estimated to have $717 million in sales of weight loss products in the U.S. in 2013 – or 32% of the total market. Visalus (Blyth Corp.) accounted for another $245 million (or 11%). Medifast (Take Shape For Life) had sales of $228 million (or 10.3%). Isagenix generated $224 million (or 10% of the U.S. market). Therefore, these four companies combined captured nearly 55% of the market. Another 7 firms each had sales between $47 and $90 million, and another 9 had sales of $5-10 million.
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ABOUT THE STUDY
The Multi-level Market For Weight Loss Products is an off-the-shelf, independent market research report that is 107 pages long, with 25 tables and 25 in-depth competitor profiles. Price: $1,095. Overview $99. Also sold by chapters at lower cost. Methodology involved both primary and secondary research, and proprietary analyses and market and company sales estimates. Covers: $ value/growth rate of the U.S. market from 1995-2018 forecast, worldwide sales of weight loss products via MLMs, number of distributors, the MLM sales model, state and government regulations, why Utah is home to most MLMs, why the business is attractive to consumers seeking a flexible home-based business, effect of recessions on recruitment of distributors, average earnings per distributor for top 15 MLMs, rankings & revenues of top 15 weight loss MLMs (2012, 2013), and a Reference Directory.
Marketdata Enterprises, Inc., is an independent market research firm that covers a variety of service sectors. It has a specialty and 25-year track record of analyzing the U.S. weight loss industry. Marketdata publishes many weight loss market studies and performs consulting. It also operates a leading, free weight loss industry news website: www.DietBusinessWatch.com. Other weight loss studies available: The Total U.S. Weight Loss & Diet Control Market, Diet Food Home Delivery Market, Diet Websites Market, Worksite Weight Loss Programs Market, and a Guide: How To Start & Run A Profitable Weight Loss Business.
Also available: custom research, consulting, teleconferences with the nation's leading weight loss market business analyst, John LaRosa.
Marketdata Enterprises, Inc., Tampa, FL
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Page Updated Last on: Apr 15, 2014