Since starting Wegovy, one of the GLP-1 medications that more and more individuals are taking to treat diabetes or reduce weight, Tori Allen says she is overjoyed to have shed 80 pounds.
However, the 39-year-old Chicago resident stated that she is more than eager to pay the price of losing weight. In particular, Allen had to spend over $5,000 on new clothing to fit her slimmer body. Her recent fashion zeal also has a psychological component.
Allen told MarketWatch, “I want to reward my body because I look better.”
Furthermore, Allen is not the only GLP-1 user who is changing her spending patterns. Many users of these weight-loss medications, such as Ozempic, Wegovy, Zepbound, and Mounjaro, say they’re spending more money on clothing and other products to suit their evolving lives. In addition, several claim that their shopping and eating-out spending has drastically decreased, which is a normal side effect of taking a drug that can severely reduce appetite.
Prashant Agrawal, founder and CEO of software-as-a-service startup Impact Analytics, said the expanding influence of GLP-1 medications on the U.S. economy may be just as big as the changes brought about by the artificial intelligence boom. His words, “It’s going to be a big shift,”
It’s all because so many individuals are currently using these drugs, of course. About one in eight persons had taken them, according to a 2024 survey conducted by renowned health researcher KFF.
“I want to treat my body because I look better.”Wegovy has helped Tori Allen lose 80 pounds.
Even while these drugs are still quite expensive—without insurance, they can easily cost $1,000 per month—sales have remained robust. Due in great part to the success of the GLP-1 drugs, Novo Nordisk (NVO), a Danish pharmaceutical firm that produces Ozempic and Wegovy, is currently the largest corporation in Europe by market capitalization. (The U.S.-based Eli Lilly & Co. (LLY), the manufacturer of Mounjaro and Zepbound, is much bigger.)
Because of the medications, there will be winners and losers in different retail sectors, according to Mansur Khamitov, an assistant professor of marketing at Indiana University’s Kelley School of Business. “The impact is undeniable,” he stated, nevertheless.
Research companies that monitor consumer spending are already discovering that some apparel brands may be among the winners. For instance, a survey of New York merchants by Impact Analytics revealed a 12.1% rise in sales of women’s shirts in smaller sizes. It should come as no surprise that sales of larger sizes decreased. However, experts generally agree that people who are losing weight are also more likely to spend money on new clothing, if not a whole new wardrobe, out of pure need.
But not all sectors benefit from the GLP-1 effect. On the other hand, a number of reports have demonstrated that people taking GLP-1 medications are spending less on food. As an example: According to a recent joint poll conducted by market research firm Numerator and Cornell SC Johnson College of Business, households with at least one person taking a GLP-1 medication see a 6% drop in grocery consumption.
Numerator Chief Economist Leo Feler cautions that this may be the beginning of a developing trend, indicating that injectable GLP-1 drugs will probably become more affordable and easier to administer (oral versions are expected to be the next big thing).
People using the drugs have fascinating stories about what they’re buying—and not buying—beyond the consumer reports.
One such example is Marie Watkinson, a Long Island, New York resident who runs a spa-event business. She lost 75 pounds after climbing Mount Kilimanjaro over a year ago. Because her husband also takes a GLP-1 prescription, she has also reduced the grocery budget for her household by about $550 per month. She claimed that while her family consists of three members, including her son, they used to eat as if they were five.
She remarked, “It was all food all the time,”
Watkinson has also reduced his consumption of alcohol and restaurant expenditures; he no longer orders lunch delivery. “We have this gorgeous wine fridge in our kitchen that stays empty,” she stated.
However, Watkinson may not have ultimately saved money. This is because she spends money on weekly facials and massages in addition to clothing. “I felt like crap for so long,” she explained. I’m now making an investment in myself.
That is consistent with what several analysts and experts have noted. They identify workout equipment and skincare and haircare goods as two areas that could benefit financially from the GLP-1 trend. All of this is because drug users are probably going to choose a new, better way of living.
I felt awful for a very long time. I’m now making an investment in myself.Marie Watkinson, who used a GLP-1 medication to lose 75 pounds
In some strange and surprising ways, the story can transcend beyond that. According to 64-year-old Rich Friedman of Wilton Manors, Florida, who has shed roughly 30 pounds since starting GLP-1 medication, he is now spending less on petrol because he walks more rather than drives. He clarified that he is now in a better position to do so.
“I find that losing weight feeds off itself,” he stated.
they businesses, particularly in the food sector, have dismissed the notion that GLP-1 medications will reduce sales, despite the fact that they have occasionally seen drops in stock values as a result of these worries.
A “mild year-on-year [sales] impact” due to the drugs was mentioned by Michelle Buck, the CEO of Hershey Co. (HSY), on an analyst call in November. She also stated that “it’s in line with what we expect, and we are carefully monitoring that behavior.”
Naturally, businesses can figure out how to counteract any change in eating habits, and some are already doing so.
Nestlé (CH:NESN) (NSRGY), for instance, has launched a line of “delicious, high-protein meals with essential nutrients” called Vital Pursuit, which the company claims “provide dietary support for GLP-1 users and consumers focused on weight management.”
However, not all of the big businesses are changing. Recently, PKN, a brand of pecan-based nut milk, introduced a “Zero” variant that has no added sugar. According to the business, the product was developed in part in response to demand from GLP-1 users who wanted to stay away from sweetened beverages.
Allen, who purchased the new clothes, stated that while she is not cutting back on her food expenditures, she is shifting her shopping habits to include more protein-rich foods.
She added that she has discovered more methods to treat herself in appreciation of her successful weight loss. She just spent $10,000 on a quick trip to Europe that included stops in Amsterdam, Budapest, Vienna, and Prague.
“I’m more physically able to do that adventure,” Allen stated.
