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The U.S. Self improvement Market - Overview & Forecasts
1. Overview & Status of
The U.S. Self-improvement Market
Market Size, Segments,
Emerging Trends & Forecasts
November 2013
John LaRosa, President, Marketdata Enterprises
2. Value of the Major Market Segments
($ millions)
2007
2009
2011
$1,520
$1,041
$898
Motivational Speakers #
333
296
350
Personal Coaching
750
650
707
Holistic Institutes & Training
475
541
556
Self-improvement Books
808
727
549
Self-improvement Audiobooks
420
406
445
Public Seminars
385
285
308
5,809
5,910
5,818
320
315
208
$10,820
$10,171
$9,839
Infomercials
Weight Loss Programs (medical &
commercial, excl. surgeries)
Stress Management Programs
Total:
* Includes top 10 speakers only
Source: Marketdata estimates
3. 2012-2016 Forecast Annual Growth
10.0
Infomercials
Motivational Speakers #
6.8
Personal Coaching
4.5
Holistic Institutes & Training
4.2
Self-improvement Books
4.8
Self-improvement Audiobooks
6.0
Public Seminars
6.0
Weight Loss Programs (medical & commercial,
excl. surgeries)
6.2
Stress Management Programs
0.0
Total:
* Includes top 10 speakers only
Source: Marketdata estimates
5.5
4. Nature of The Market
Products & services to improve oneself: mentally,
spiritually, physically, financially
•
Mostly (70%) female customers, affluent, living on
east & west coasts of U.S.
•
Fragmented market populated by small, private
firms, low barriers to entry, many entrepreneurs
•
No trade association or magazine or national
conference
•
Driven by gurus
5. What Has Not Changed
in 19 Years
Still no industry trade association
Still no industry trade journal or magazine
Just as many scams & frauds, moved online
70% of the market is female clients
Low barriers to entry – lots of entrepreneurs
6. Multiple Distribution Channels Are Key To
Success For Top Players
Income Sources:
Speaking engagements (public & private)
Book, audiobook, DVD sales
Personal coaching departments, staffs
Workshops & retreats (high priced)
Direct to consumer sales via websites
Webinars and podcasts
Cross promotions with other gurus
Online course and “universities”
7. Major Market Developments: 2012
Last recession had major impact, consumer spending weak
Market suffers from bad publicity: scams, frauds, bankruptcies,
deaths at James Ray sweat lodge, shady models exposed
No major hits like The Secret, lack of the next “big thing”
Shift to digital/Internet delivery of products, information.
Older gurus are dying or retiring, new young ones emerging?
Customer confusion: content quantity increases, but not quality
Customers more focused on practical skills, financial & business
topics, less spiritual
8. Market Problems: Lack of Credibility
Does self-improvement work? Where’s the proof?
People, Baby Boomers still need “gurus” to hold their hand
Scandals abound: Peter Lowe goes bust, James Ray sweat
lodge deaths, Robert Kiyosaki bankruptcy, Suze Orman
criticized over her advice
Few gurus for younger generation
Oprah Winfrey leaves void in market when her show ends
9. Motivational Speakers Market
Live events attendance down a lot, due to cost, travel
Changing of the guard coming: older gurus retire or
die
Fees for top speakers stable ($20-50K per speech)
Speakers giving away more free content as teaser to
buy
High-priced retreats/seminars not selling well
More online home study courses offered
5,000+ pro speakers in U.S., but only handful make
big money
Best-selling book is the usual ticket to enter the field
10. Personal Coaching Market
Worth $707 mill. in U.S. $1.5 bill. worldwide
Avg. Coach makes $46,400 - $65,300
Estimated 13,750 pro coaches active in the U.S.
Coaching still popular but hit hard by last recession
Projects for corporations, government held up better than
personal coaching
Consumer price resistance, no. of clients per coach fell
Services delivered mostly by phone, email
Consumers now opting for less costly solutions: books,
CDs, free webinars, podcasts, MP3 downloads, rather than
$200-500/month coaching.
11. Public Seminars Market
Estimated $308 million U.S. market
Mostly 1-day events, travelling roadshows
Tough business to make profitable – high overhead
Stadium type events by Peter Lowe, others few in
number (5+ major speakers: celebrities, politicians,
military, business gurus)
Major competitors: Fred Pryor/Career Track, Landmark
Education, Skillpath, Natl. Seminars Group, Peak
Potentials
Hay House becoming more active in the market
Many acquired by Universities, for non-profit status
12. Infomercials Market
All infomercial retail sales = $2.82 bill. – selfimprovement shows account for 45% or $1.26 billion
SI sales down 40% from 2007-2011
Health & fitness equipment sells best, followed by
weight loss programs, then business opportunities/financial, then personal development
Sales should improve with the general economy
General motivational category is weakest – consumers
want more concrete and specific programs or products
13. Holistic Institutes & Training Organizations
16 holistic institutes in the U.S.
152,000 people attended in 2011, up 10% from 2009
Stable mature market, no new entrants
Good venue for gurus to hold workshops, seminars
Dale Carnegie is largest training company - $136
million in U.S.
Toastmasters – public speaking skills
Gaiam Inc. - $275 mill. Retailer
Hay House $45-75 mill., growing, filling seminar void
by closure of Peter Lowe Intl./Get Motivated shows
14. Self-improvement Books Market
Segment fell 20% since 2007, to $549 million, lack of
any blockbusters like The Secret
SI books sold retail, online and via 4,000 small new
age bookstores/retailers
Avg. new age bookstore does only $125,000/year
Diet books comprise big chunk of SI book sales
Avg. annual growth to 2016 forecast: 4.8%
15. Self-improvement AudioBooks Market
Total audiobooks mkt. worth $2.97 bill. In 2011.
SI audiobooks account for 15% or $445 million
24 million Americans listen to audiobooks regularly
Customers have higher than average income, education
Market strong: grew 10% in 2010, 13% in 2011
Popular because consumers spending more time
commuting, portability, low cost
16. The Weight Loss Market
Commercial programs worth $3.42 bill. In 2012
Medical programs worth $2.41 bill. In 2012
108 million Americans diet per year, 4-5 weight loss
attempts each/year, fickle customers
83% are do-it-yourself dieters
Fads still abound via mail order, Internet, supplements
Most diet company revenues down or flat in 2013
Weak economy is main reason for lackluster growth
Strong performance of MLM distributors
Free/low-cost apps, websites, gain traction
Weight loss still large part of SI market
17. American Adults On a Diet
60%
54%
50%
40%
30% 37%
1996
27%
24%
2000
24%
1998
26%
1989
20%
33%
2010
2004
0%
1986
10%
Source: Calorie Control Council , National Consumer Surveys
18. Why Do Our Diets Fail ?
•
•
•
•
•
•
•
•
•
•
•
Don’t exercise enough – 69%
Feel metabolism slowing down – 62%
Splurge on favorite foods too often – 49%
Not enough self-discipline – 50%
Snack too much – 52%
Often overeat at mealtimes – 37%
Often eat for emotional reasons – 41%
Eat too many high fat foods – 30%
Don’t eat properly at restaurants – 33%
Only watch fat, not calories – 19%
Only watch calories, not fat – 14%
Source: Calorie Control Council, 2010 survey
19. Where Will Future Growth Come From?
Next 5 Years
Programs catering to under 30 generation
Hispanic population, as their income grows
International markets
Lower cost Internet-based programs: webinars,
webcasts, MP3 downloads
Practical financial & real estate programs
Courses teaching entrepreneurship, starting a business
Audiobooks
Programs/services for men
Low-cost weight loss programs
20. Need Self-improvement Market Research?
Contact Us Today
Put Our 19-Year Track Record to Work for YOU!
MarketdataEnterprises.com
John@MarketdataEnterprises.com
BestDietForMe.com
DietBusinessWatch.com
John LaRosa, MBA - President
Phone: 813-907-9090
Fax: 813-907-3606