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GLP-1 drugs are reduce grocery spendingaccording to new information study from Cornell University’s SC Johnson College of Business and consumer data company Numerator.
The study, which analyzed two years of U.S. household transaction data, found that households with at least one GLP-1 user saw their grocery spending decrease by about 6% within six months of starting the medication. . In particular, the decline was nearly 9% for high-income households. GLP-1 agonists include Ozempic, Wegovy, and Zepbound, but only the latter two drugs are approved by the FDA for weight management.
What’s driving the change? Consumers are avoiding high-calorie processed foods such as savory snacks and turning to healthier options such as fresh produce and yogurt. The savory snacks category alone was down 11%, with spending on chips, sweet baked goods, and cookies seeing the biggest declines.
As a result, some consumers’ grocery carts have become more nutritious, the report said.
The impact of these weight loss drugs is expanding as adoption increases Beyond the grocery store. The study also found that spending at fast food chains and coffee shops was down, especially during breakfast and dinner hours. Higher-income households were more likely to cut back on breakfast, while lower-income households cut back on dinner spending more significantly.
Changes in consumer behavior following the introduction of GLP-1 are already being felt in the food industry. Major food companies such as Kraft Heinz (KHC+0.15%) and campbellsa decline in sales of processed foods and snacks in particular has been reported. In contrast, these companies Diversification of product line To cater to health conscious consumers. for example, Sweets King Mars Acquired Kevin’s Natural FoodsThis reflects the increased demand for nutritious options due to the popularity of GLP-1 therapeutics. On the other hand, Walmart’s (WMT+0.82%) CEO Doug McMillion Increased use of GLP-1 during the period of the company Financial results briefing on November 19th.
As adoption of GLP-1 continues to grow, retailers and food manufacturers will need to adapt. new consumer trends. This means that Introduction of additional itemschange the packaging size, and Adjust market strategy. The report notes that to remain competitive, companies must prioritize healthier products and make them more accessible to more people. The shift to fresh, nutritious food is no longer a passing trend, but a key element Shaping the future of food. Retailers and food producers who adapt quickly are best positioned to meet rapidly changing consumer needs.
This article was updated on January 3 to clarify that while Wegovy and Ozempic are both prescribed for weight loss, only the former is approved by the FDA as such a treatment. .
