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 NVO Wegvoy (semaglutide) and Eli Lilly And Co’s 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 CAVA, Chipotle Mexican Grill Inc CMG, Sweetgreen Inc SG, and Starbucks Corporation SBUX are expected to fare better than traditional fast-food establishments.

On the other hand, packaged food companies like The Hershey Company 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