New research from Cornell University has tracked how households change their spending after someone starts taking GLP-1 medications like Ozempic and Wegovy, and the numbers are material enough to explain why food industry earnings calls keep blaming everything except the obvious culprit.
The study analyzed transaction data from 150,000 households linked to survey responses on medication adoption. Households cut grocery spending by 5.3% within six months of a member starting GLP-1s; high-income households cut by 8.2%. Fast food spending fell 8.0%. Savory snacks took the biggest hit at 10.1%, followed by sweets and baked goods. Yogurt was the only category to see a statistically significant increase.
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New research from Cornell University has tracked how households change their spending after someone starts taking GLP-1 medications like Ozempic and Wegovy, and the numbers are material enough to explain why food industry earnings calls keep blaming everything except the obvious culprit.
The study analyzed transaction data from 150,000 households linked to survey responses on medication adoption. Households cut grocery spending by 5.3% within six months of a member starting GLP-1s; high-income households cut by 8.2%. Fast food spending fell 8.0%. Savory snacks took the biggest hit at 10.1%, followed by sweets and baked goods. Yogurt was the only category to see a statistically significant increase.
As of July 2024, 16.3% of U.S. households had at least one GLP-1 user. Nearly half of adopters reported taking the medication specifically for weight loss rather than diabetes management. About 34% of users discontinue within the sample period, and when they stop, candy and chocolate purchases rise 11.4% above pre-adoption levels.
Further reading: Weighing the Cost of Smaller Appetites.