Weight Loss Products: A Lost Opportunity?

More than half of American adults—55%—are trying to lose weight, up from 52% in 2015. And a quarter—25%—are trying to maintain their weight, according to the International Food Information Council’s (IFIC) 2016 Food & Health Survey.

IRI reports that weight control was among the top 10 fastest-growing nonfood consumer product categories in 2015. Weight loss pill sales totaled $2.1 billion, according to the Nutrition Business Journal (NBJ), and 41% of consumers bought sports nutrition products to help with weight loss. However, despite weight loss being the top reason to make dietary changes, per IFIC, the food industry has yet to realize the revenue potential that weight loss products afford.

With 41% of consumers trying to avoid low-calorie sweeteners in general and 55% of frozen food purchases influenced by clean label, free from, and nutrient concerns, according to Deloitte’s 2015 Evolving Values report, it’s not surprising that 77% of adults surveyed for Mintel’s 2015 Diet Trends—U.S. report think that traditional diet products are unhealthy.

As a result, many weight loss marketers have shifted to simply offering healthier foods. While the demands of those trying to eat healthier align well with those trying to manage their weight, priorities differ for the larger group—those who are trying to go beyond weight maintenance and lose weight.

Half of those trying to lose weight monitor their calorie intake, according to Mintel. Prominently displaying lower calorie counts, offering calorie-driven portion packs, and categorizing fresh foods by calorie content (e.g., Subway sandwiches with fewer than 400 calories) are smart strategies.

After calorie counting, carb reduction diets (e.g., Atkins or South Beach) represent the second most popular approach to dieting. This approach is used by 22% of consumers, followed by reducing fat, eliminating sugar, and taking the high-protein route, according to FMI’s 2016 Shopping for Health report.

According to FMI data, 7% of adults have tried the Flat Belly Diet; 6% opt for Paleo; and 6% for a fasting/detox regimen. Jenny Craig, Weight Watchers, and a vegetarian diet, each draw 5% of dieters. In addition, 4% turn to the Mediterranean diet; 3%, the Zone diet; 3%, a packaged food diet; 2%, the DASH diet; and 2%, a vegan diet. Insulin resistance–based diets have also started to get some attention.

Over the past five years, men drove 69% of the growth in the weight control sector, and those aged 18–34 accounted for 43% of the gains in the weight maintenance segment, according to Packaged Facts’ 2015 report, Weight Management, U.S. Consumer Mindsets. Nutrisystem’s Turbo 10 men’s weight loss plan has met with unprecedented success.

With one in five dieters wanting to lose 20–49 pounds and 13% seeking to shed more than 50 pounds, it is not surprising that the market for very low calorie, medically supervised diet plans reached $7.8 billion in 2015, per Marketdata Enterprises. With obesity rates highest among minorities, weight loss programs tailored to ethnic groups represent a missed opportunity.

Improving one’s appearance leads the list of weight loss goals, followed by reducing body fat, health reasons, longevity, increasing metabolism, managing cholesterol, lowering blood pressure, and managing diabetes, according to Natural Products Insider’s 2016 Mind of the Consumer report.

NBJ projects that sales of weight loss meal replacements will reach $4.1 billion in 2016, up 7.2%. For the year ended May 15, 2016, sales of Atkins weight control meal replacements jumped 22.5%, and sales of Premier Protein were up 95% in mass channels, per IRI.

Nearly two-thirds of consumers believe that protein aids weight loss; 87% agree that it builds muscle; 73%, helps you feel full; 68%, increases lean body mass; 59%, suppresses hunger between meals; and 33%, boosts metabolism, according to IFIC.

Not surprisingly, consumers continue to look for convenient, easy approaches to weight loss. Slim-Fast’s fall 2015 rollout of its 15-item Advanced Nutrition line helped it secure a spot among IRI’s Top 10 “Breakthrough Healthcare Brands” for 2015.

In May 2016, Nutrisystem successfully tested a single-day kit of frozen meals that includes breakfast, lunch, dinner, and snacks for $12 at 400 Walmart stores; a shelf-stable, five-day kit is now available, according to Drug Store News. Marketdata Enterprises’ 2016 Prepared Foods Delivery Market estimated the home delivery diet food market at $910 million in 2015. Can fresh diet foods and meal kits be far behind?

Lastly, the global weight loss opportunity is unprecedented: more than 1.4 billion people are obese, according to the World Health Organization. In China, more than half of men and 46% of women aged 30 years and older are overweight.

A. Elizabeth Sloan, PhD, Contributing Editor
President, Sloan Trends Inc., Escondido, Calif.
[email protected]