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Uptake and interest in leading weight-loss drugs is increasing, and people using them are spending less on groceries, according to Morgan Stanley.
The latest molecular survey of 92,000 people found that 12.3% of households Members take GLP-1 like Novo Nordisk (NVO) Ozempic, Wegovy, Eli Lilly (New York Stock Exchange: Lilly) Munjaro and Zepbound.
Analyst Pamela Kaufman and her research team found that “the categories of monthly spending that GLP-1 users have the most negative impact on weight loss include snacks, pastries, and ice cream, but not yogurt, “Fish and vegetable snacks have been most positively affected.” “Our previous research studies suggest that intake of unhealthy categories is significantly reduced when taking GLP-1 drugs.”
Households “spend more on groceries than non-GLP-1 HHs, but that spending decreases when they start drug use. Before starting treatment, GLP-1 HHs spend more than non-GLP-1 HHs. On average, they spent more than $150 a month more on groceries than in the US,” Kaufman said. . “Part of the difference reflects larger household sizes, higher incomes, more children, and generally higher spending on food.”
“When monthly grocery spending is indexed to adjust for the aforementioned differences, monthly grocery spending for GLP-1 households is 6% to 9% more than the change in spending for non-GLP-1 households. It has decreased.”
Major grocery stocks include Walmart (WMT), Target (TGT), Kroger (KR), and Albertsons (ACI).
