Industry Analysis & Industry Trends
According to the Australian Bureau of Statistics, more than 70.0% of Australian males and 56.2% of females are overweight or obese (Australian Health Survey 2011-12: 4364.0). For both health and cosmetic reasons, there is growing pressure on Australians to change this statistic. An increasing amount of consumer spending is being directed towards becoming thinner and healthier. During 2014-15, Australians are expected to spend $603.3 million on weight-loss counselling services and related low-calorie foods and dietary supplements. This is up 1.4% from the previous year. Over the five years through 2014-15, industry revenue is expected to grow by an annualised 0.6%. Revenue declined in 2012-13, as consumers cut back on discretionary spending, but returned in 2013-14... purchase to read more
Industry Report - Industry Investment Chapter
While weight-loss provision is less labour-intensive than other personal services, it is still a highly labour-oriented industry. Many providers offer interpersonal interaction, while investment in capital remains fairly negligible. Companies that provide diet food and supplements tend to outsource their production facilities to existing food manufacturers and pay for branding rights.
The capital intensity for the industry can be determined by depreciation and wages data from the industry cost structure. Wages are estimated to account for 26.9% of industry revenue in 2014-15, while depreciation expenses are expected to make up 2.1%. Therefore, IBISWorld estimates that for every dollar spent on capital, another $12.80 is required for labour inputs... purchase to read more