Digital weight loss providers have managed to establish reputable and trusted brands. Current market leaders are set for stiff competition to keep control of the industry as reported by Research2Guidance. Despite the fact, these apps are yet to establish foothold globally this is likely to change in the medium term.
Apps designed for weight loss have in some cases been around since 2008 in the App Store. Others such as Mevo have launched in more recent years. With every passing year more exercise and digital weight, loss providers become available.
These types of apps and weight loss providers are likely to become the industry leaders in the coming months and years. The likes of Weightwatchers (WW) and Noom are therefore likely to lose their position as industry leaders.
Digitial weight loss providers set to dominate the industry
The mobile weight loss market now has around 6,000 solutions offered by over 4,200 different providers. This is generally split into two different market streams, Commerical (B2C) and Business (B2B).
The former, which is much more consumer orientated, dominates the market taking around an 84% share of total revenue. WW, Noom and Under Armour are currently the leaders in this sector but after increasingly under threat by newcomers.
In terms of the B2B segment of the market, this is mainly dominated by reimbursement payer services. To a lesser extent, white-label tech licencing solution providers also play a role. The leaders on this side are Omada Health and Livongo.
It is important not to over simply the market as it is a very diverse ecosystem. However, WW and Noom account for 60% of the total market revenue so are currently dominant. This is a reflection of their dominance of the US market. A similar, over-concentration on the U.S. market is also observable on the B2B side.
There are several factors for this success
The great success of these weight loss solutions in the US is down to several factors. Firstly, the impact of the obesity pandemic created high consumer demand with purchasing power. It also garnered the interest of insurers and employers.
The US also appears to be one of the only markets that has a developed understanding of the concept of structured digital coaching. Other markets are still focused on non-sustainable fad diets and non-systemic fitness activities.
However, as these digital weight loss solutions begin to spread across the globe their dominance is likely to wane. Regardless of cultural differences, what has been successful in the US is likely to spread across the world.
In the medium term, this is likely to decrease the over-concentration of the market. Local players will emerge in their own territories by leveraging the understanding of regional specificity.