Many people count on you keeping your weight-loss resolution for New’s Year, or at least giving it a try in the first quarter. Professionals working in the fitness industry, weight-loss clinics, and nutrition and coaching businesses eagerly expect the start of the year to lure in new customers.
Since one-third of Americans are deemed obese and losing weight still tops the list of New Year’s resolutions this year, health and fitness centers expect a big surge in new clients. Past years had shown that the first quarter of the year is the most profitable.
Fitness industry which includes clubs, gyms and health centers is worth about $30 billion every year. Retailers that sell sporting goods and other sports equipment expect to cash in $100 billion annually, while weight-loss and nutrition industries are worth an extra $12 billion each year.
Nevertheless, representatives of the industries said that the business does not always run smooth since customers are often picky and some of them fail to stick to their resolutions. This is why, businesses that this year are thriving, next year could become stone cold.
For instance, Weight Watchers which was the thing for weight loss in the 1990s and early 2000s saw profits narrow as people gained access to new gadgets that helped them keep track of calories and dieting programs.
The Apple Watch, Fitbit, and free apps currently help people monitor their physical activity, heart rate, calorie they burn, and food they consume. This may be one of the reasons why Weight Watchers had 600,000 fewer members in 2014 than six years prior.
Additionally, the company’s stock plunged 70 percent from the peak recorded nearly five years ago, despite the company’s best efforts to revive the business. Two months ago, however, Oprah bought 10 percent of the company and pledged to appear in two TV commercials.
Since then, the stock tripled, but it is still below last year’s level.
Companies involved in nutrition businesses, however, seem to fare better than fitness industry. For instance, Nutrisystem which delivers more than a hundred menu choices and prepackaged, portion-controlled meals directly to your doorstep saw its profit triple last year.
And the business may move even farther since it has recently acquired the South Beach Diet brand, which had a huge success in recent years. Plus the diet plan is easy to access and understand since more the 23 million books on it were published to date.
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