Changing Frugal Eating Habits – How Novo Nordisk/Eli Lilly’s Weight Loss Drugs Reshaping Food Spending
A recent survey conducted by Morgan Stanley reveals that the use of GLP-1 drugs, popular for weight loss and diabetes, is affecting consumers’ spending habits, particularly in the food industry.
Novo Nordisk A/S’s (NYSE:NVO) Wegvoy (semaglutide) and Eli Lilly And Co’s (NYSE:LLY) Zepbound (tirzepatide) have amassed stupendous popularity as miracle weight loss drugs, as makers struggle to cope up with the demand.
Related: Patients Find Weight Loss Drug Zepbound A Game Changer, But Makers See Production Delay Until 2025.
The survey, involving 300 individuals currently on GLP-1 medication, indicates a significant decrease in appetite among users, leading to reduced spending on food in restaurants and grocery stores.
The survey findings suggest that most GLP-1 users are cutting back on dining out and ordering takeout, with 63% reporting reduced spending on restaurant meals.
Similarly, 61% mentioned spending less on deliveries or takeout, highlighting a shift in consumer behavior towards more frugal eating habits.
Although the increased demand for GLP-1 drugs poses potential challenges for food and beverage companies, CNBC, citing Morgan Stanley analysts, highlights that certain sectors are better positioned to navigate this shift.
Healthier fast-casual restaurants and coffee chains like Cava Group Inc (NYSE:CAVA), Chipotle Mexican Grill Inc (NYSE:CMG), Sweetgreen Inc (NYSE:SG), and Starbucks Corporation (NASDAQ:SBUX) are expected to fare better than traditional fast-food establishments.
On the other hand, packaged food companies like The Hershey Company (NYSE:HSY) may face higher risks due to their focus on indulgent snacks.
However, according to the survey, companies offering healthier food options are likely to benefit from the rise in GLP-1 usage.
In addition to impacting food consumption, the survey also suggests a potential influence of GLP-1 drugs on addictive behaviors such as smoking.
A notable decline in both traditional cigarette and e-cigarette use was observed among respondents after starting GLP-1 treatment.
While the survey provides valuable insights into the changing consumption patterns associated with GLP-1 medications, Morgan Stanley remains cautious about drawing definitive conclusions regarding their impact on addictive behaviors.
Ongoing medical research in this area will be crucial in understanding the full extent of GLP-1 effects.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Vidmir Rais via Pixabay
