$33.8 Billion U.S. Medical Weight Loss Market Now Dominated by GLP-1 Drugs

At no other time in the U.S. weight loss market history has one product so dominated the market as have the new GLP-1 weight loss drugs. American dieters have flocked to them, shunning commercial weight loss programs such as Weight Watchers, Medifast, as well as retail and MLM meal replacements.

Demand soared in 2023 and 2024 for Ozempic, Wegovy,  Saxenda, Mounjaro and Zepbound — with more new drugs coming in the next few years.

The booming market for GLP-1 drugs has attracted physicians, nurses, dieticians, telemedicine services, medical weight loss franchises, compounding pharmacies, and entrepreneurs — all looking to cash in. However, the party may soon be over for the compounders, as the FDA declared an end to the shortage of the major drugs.

What to Know About the U.S. Medical Weight Loss Market

The value of the U.S. medical weight loss market is estimated to have more than tripled since 2019, to $33.8 billion in 2024. Average annual growth of 12% is forecast through 2028. The prescription obesity drugs market soared from $5.0 billion in 2022 to $26.4 billion by 2024, due to the high demand for new GLP-1 drugs. More than 8% of Americans are now estimated to be using them. The number of weight loss surgeries has declined 25% since 2022, to 211,000 procedures, as Americans opted for the new drugs instead. This market segment is worth $5.29 billion. Hospitals have had a mixed record with weight loss programs. Only 29% of the nation’s hospitals (about 1,400) provide some form of weight loss program — surgery or a non-surgical program. Medical weight loss programs represented 11.7% of the total U.S. weight loss market in 2022, but this share is forecast to triple to 36% by 2028. Prescription weight loss drugs have stolen major market share from commercial weight loss companies, the meal replacements market, health clubs, the bariatric surgery market, and more. The top 11 medical weight loss franchises and regional chains are estimated to generate $264 million in system-wide sales annually. Most franchises are not growing.

Where to Learn More

For more in-depth information, be sure to check out the new report The U.S. Medical Weight Loss Market: The Impact of GLP-1s on Doctors, Hospitals, Clinics and Franchises by Marketdata, which presents a complete picture of the market all in one place with extensive primary research.

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About the Author: John LaRosa is the President of Marketdata LLC and is the author of 100+ industry and market studies. His research appears in top media outlets including ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Times, and a variety of trade journals.