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. For both health and cosmetic reasons, there is growing pressure on Australians to change this statistic. An ever-growing amount of consumer spending is being directed towards getting thinner and healthier. During 2013-14, Australians are estimated to spend $643.7 million on weight-loss counselling services, low-calorie foods and dietary supplements in their quests to slim down. This is up 3.6% from the previous year, and with annualised growth of 2.8% over the past five years. Stronger industry growth has returned in 2012-13 and 2013-14 following two years of low growth in 2010-11 and 2011-12, when uncertain consumers cut back on discretionary spending... 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 still 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.
Labour costs are estimated to account for 30.3% of industry revenue in 2013-14, while depreciation expenses are expected to make up 2.9%. The capital intensity of the industry can be determined by the ratio of depreciation to wages, which is the amount of labour used for each unit of capital. IBISWorld estimates that for every dollar spent on capital, another $10.44 is spent on labour... purchase to read more