BB313 - Critical Thinking: Weight Loss Industry in Australia Report

This report provides a comprehensive analysis of the weight loss industry in Australia. It begins with an executive summary highlighting the industry's growth potential due to rising obesity rates, health consciousness, and disposable income. The report explores the industry's current state, key players, and external drivers, including obesity levels, health awareness, and consumer spending habits. It delves into future trends, such as increasing alcohol consumption alongside a growing focus on fruits and vegetables, and the potential impact of reduced sports participation. The report critiques the industry's reliance on services and supplementary products and identifies nontraditional channels and multi-level marketing as top trends. It concludes by summarizing the factors driving the industry's expansion and the services offered, such as weight loss products, counseling, and fitness programs, and emphasizes the need for innovative solutions. The report is a case study analysis report based on BB313 critical thinking and decision making unit for the Melbourne Institute of Technology.

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Critical thinking and problem solving
[Type the document subtitle]
9/23/2019
student name

Critical thinking and problem solving 1
Executive summary
The discussion through this report will include weight loss industry in Australia, the reason being
it has been identified that the obesity rate in this nation has been growing for years which reflect
an opportunity for weight loss service companies in Australia. The major driver, as discussed in
the previous section includes Level of obesity, Health consciousness, and Disposable income.
Top trends in weight loss industry include Nontraditional channels, and Multi-level marketing.
One of the negative aspects identified through the trend and popularity of weight loss products
and services include the dependency of the individuals on the services provided by the
companies in Australia.
Moreover the research also reflect that people of various age groups will be spending money and
time on physical activities or weight loss products and services however the reduction in sports
participation may impact negatively to the industry of equipment and sports.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
About the industry...........................................................................................................................3
The external drivers.........................................................................................................................5
Level of obesity...........................................................................................................................5
Health consciousness...................................................................................................................5
Disposable income.......................................................................................................................6
A look into the future.......................................................................................................................6
Critique............................................................................................................................................9
Top trends in weight loss industry...................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Weight Gain and obesity have become one of the major issues in most of the nation across the
globe. The discussion through this report will include weight loss industry in Australia, the
reason being it has been identified that the obesity rate in this nation has been growing for years
which reflect an opportunity for weight loss service companies in Australia. Losing weight has
become important and dream for most of the population in the nation. There are various services
involved in weight loss services in Australia like weight loss products, weight loss counseling,
gym memberships, personal training, and nutrition advice (Aas & Rubin, 2015).
Other than this it has been identified that the scenario with indigenous have been changing since
years in Australia, in order to increase the clients, the personalization has been increased within
the industry like providing additional services including saunas, personal bathing and changing
room, rock pools. The primary activities that have gained focus on services include activities like
cardio exercise, pilots, ballet yoga, Bikram yoga, and spin classes. Moreover, the perception of
the consumer that is the consumer behavior has been changing towards the health and fitness due
to increase in obesity and population facing issues related to health like increase in cholesterol,
increase in diabetic patients. Therefore the report will discuss the Australian weight loss services
considering various factors and strategies (1.health.gov.au, 2019).
About the industry
Every company that is offering goods or services that is related to weight loss journey or solution
for weight loss is considered as weight loss providers. Traditionally weight loss advice and the
ways like counseling services were the major weight loss services provided by the company.

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However, this scenario has found to be change and include various other services, as discussed
previously (oecd, 2019). Thus from 2014 reflect that be top companies within Australia
considering top weight loss services include Nestlé Australia Limited with 60.7% market share,
light and easy with 8.1 market share and weight watchers International Private Limited with
10.1% market share. There were 1893 businesses across Australia in 2014 where the major
external drivers that have considered as the cause for an increase in this industry were obesity
level, disposable income of Australian population, health consciousness, and consumer
settlement index. Australian bureau of statistics reflects that 56.2% of females and 70% of males
in Australia are found to be obese or overweight. This is the major reason that has been
impacting cosmetics and health industry (abs.gov.au, 2019). The number of customers found to
be growing for years as they are been working towards getting healthier and thinner. They use
various methods to get leaner like having low-calorie food, implementing various diets like
dietary supplements, getting counseling services; surgery has also been the chosen service for fat
loss. It has been predicted through the statistics that industry found to be growing continuously
as the companies are looking out for innovative solutions for customers like new product
development related to dietary supplements which make the weight loss journey easier and
convenient for the customer.
Some of the key trends identified in past few years include weight loss services company to
working to words the fat free food or low-calorie food, supplements and drinks and integration of
exercise and diminishing sugar consumption as a part of fitness services and product to the
customer. New slimming programs have been offered to the customer, which includes various
types of exercises like boxing, Zumba, yoga, cardio and use of gym machines as a combination
to increase the effectiveness of weight loss journey for customers (blog.marketresearch, 2019).

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The external drivers
The major drivers, as discussed in the previous section includes
Level of obesity
As per the Australian Bureau of statistics, the survey conducted in 2017 to 18 resulted into two
third of the population of Australian adults were found to be obese or overweight that is 67% of
the population which reflect 12.5 million people. This was compared with the 2015 statistics
which reflect increase from 63.4% to 67%, which reflect increase in obesity level in Australia
from years. Increase in obesity rate as per the statistics the popularity of the products and
services offered by weight loss companies has found to be grown. This has increased the
acceptance of these services and products as they attract people with obesity rate as they are
looking for more convenient option in order to lose their weight. This also reflects that people
are becoming more concern regarding their health and fitness which increase the demand in this
industry and is expected to continue and grow in near future as well (healthdirect.gov, 2019).
Health consciousness
Government has played major role in this criteria as national obesity submits in 2018 reflected
and agreed on the obesity strategy that needs to develop and must include common wealth fund
in order to overcome this issue in the nation. The reason being the national health survey
included the findings of children age 5 to 17 years which was resulted as 24.9% of children in
this category in 2017 to 18. Moreover, 17% were found overweight and 8.1% were found as
obese category. This has increased the health consciousness among the people which is also a
result of increase in awareness by government and other private sector companies regarding the
loose in weight because of increase in body mass index which is not healthy for the Individuals

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(Chatzoglou & Chatzoudes, 2018). The level of health consciousness tends to increase by 2014
and has found to be expanding by now which reflect increase in consumption of low-calorie and
fat-free foods which has also impacted the grocery market in Australia and has provided
opportunity for weight loss services companies in the nation (collegeofweightmanagement,
2019).
Disposable income
Considering the GDP level of Australia it is found to be increased since years, which reflects that
the disposable income of individuals are also increasing and so as the increase in purchasing
power of every individual in Australia. This has reflected an increase in demand considering the
weight loss programs and demand for more luxurious services by the fitness centers. This is the
major reason that has reflected growth and change in weight loss industry in Australia. Due to
this the companies have introduced innovative products that will attract high income group
people in the nation as they are found to be having more junk and fast food especially among
adults and children (theglobaleconomy, 2019).
A look into the future
As per the research by IBIS in 2018 regarding health and wellness in Australia and weight loss
services in Australia for the next five years reflect that the alcohol consumption tends to increase
in Australian population. However the research also reflects that people will be consuming more
vegetables and fruits in next five years. However the battle for the weight loss will continue, as
the obesity level tends to still continue in Australia as the participation of population in physical
activity and organized sports are still found low for the next five years (Feng & Chari, 2018).
The health indicators as per the research consider that smoking rate, alcohol consumption,

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obesity levels, fruit and vegetable use and participation in physical recreation activities have
found to be the key indicators that reflect that need for weight loss services in Australia will tend
to increase in upcoming years. Moreover the research also reflect that people of various age
groups will be spending money and time on physical activities or weight loss products and
services however the reduction in sports participation may impact negatively to the industry of
equipment and sports (smh, 2019).
Figure 1: Sport participation (Source: (smh, 2019)

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Figure 2: Alcohol consumption per capita (Source: (smh, 2019)
Figure 3: Obesity levels in Australians aged over 18 (Source: (smh, 2019)
The graph reflects that the obesity level of people above 18 years in Australia predicted to
increase by 2023, which reflect poor health issues and lack of exercise may be pursued by the

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population. One of the major reason identified for this is increase and sugary drinks, junk food
among the children because of increased advertising in food industry like in case of food chains,
for example Dominos, McDonald’s, Starbucks, and Taco Bell (mordorintelligence, 2019).
Critique
One of the negative aspects identified through the trend and popularity of weight loss products
and services include the dependency of the individuals on the services provided by the
companies in Australia. For examples the survey reflects that people found to have perception
that the personal trainer to help them to decrease weight faster and more effective way, which
has increased the consumption and spending additional amount into the services (Craig &
Douglas, 2015). However this has decreased the traditional way of physical activities like joining
sports, swimming, playing with friends for children and has increased the use of the services and
depends on the services since early ages. Therefore it can be said that this has become part of
lifestyle or culture for Australian population. Other than this the supplementary products like
new dietary supplements may have some side-effects considering the health of individuals,
which could be one of the negative aspects and found to be increasingly consumed in Australian
weight loss industry due to increase convenience and ease your weight loss program (Adam &
Kotler, 2014).
Top trends in weight loss industry
1. Nontraditional channels - There is various mode of channel in order to provide products and
services of weight loss like through online mode. There has been the digital trend that provides
online counseling services and digital assistance, and nutrition assistance that included new

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product and service development. This has increased the competition in the market as the people
find convenient to get Dr’s personal assistance related to nutrition through online personalized
services (blog.marketresearch, 2019).
2. Multi-level marketing - This trend reflects putting pressure on the consumer to work towards
the weight loss, the reason being the companies present the details of the poor health and obesity
health issues so as to increase the consumption and demand for new dietary products like herbal
life (DuBrin, 2016).

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Conclusion
From the weight loss services in Australia, it can be concluded that Weight Gain and obesity
have become one of the major issues in most of the nation across the globe. There are various
services involved in weight loss services in Australia like weight loss products, weight loss
counseling, gym memberships, personal training, and nutrition advice. The primary activities
that have gained focus on services include activities like cardio exercise, pilots, ballet yoga,
Bikram yoga, and spin classes. Top companies within Australia considering top weight loss
services include Nestlé Australia Limited with 60.7% market share, light and easy with 8.1
market share and weight watchers International Private Limited with 10.1% market share.
The number of customers found to be growing for years as they are been working towards
getting healthier and thinner. New slimming programs have been offered to the customer, which
includes various types of exercises like boxing, Zumba, yoga, cardio and use of gym machines as
a combination to increase the effectiveness of weight loss journey for customers. The major
driver, as discussed in the previous section includes Level of obesity, Health consciousness, and
Disposable income. However the battle for the weight loss will continue, as the obesity level
tends to still continue in Australia as the participation of population in physical activity and
organized sports are still found low for the next five years. Moreover the research also reflect
that people of various age groups will be spending money and time on physical activities or
weight loss products and services however the reduction in sports participation may impact
negatively to the industry of equipment and sports.