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Weight-loss Medication Impact on Grocery Bills Impact of Weight-loss Medications on Grocery Expenditure

Personal perspective of a shopper pushing shopping trolley along product aisle while shopping in a supermarket. Super Market tinned and canned produce Aisle with Blurred shelves and products to make it generic.

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Major weight-loss medications have sparked increased interest and usage, leading to a noteworthy observation by Morgan Stanley. According to an updated Numerator survey of 92,000 individuals, a significant 12.3% of households reported the use of GLP-1s such as Novo Nordisk’s Ozempic and Wegovy, and Eli Lilly’s Mounjaro and Zepbound.

Analyst Pamela Kaufman and her team stated, “Monthly expenditure on categories most negatively impacted by GLP-1 users for weight loss include snacks, pastries, and ice cream, while yogurt, fish, and vegetable snacks exhibit the most positive impact. Our prior survey work points to a substantial reduction in the consumption of less healthy categories when using GLP-1 drugs.”

Furthermore, Kaufman highlighted, “Households initially spent more on groceries than non-GLP-1 households, but their expenditure declined after commencing medication use. Before the initiation of treatment, GLP-1 households spent over $150 more per month on groceries on average compared to non-GLP-1 households. Part of the variance reflects larger household size, higher income, more children, and generally greater spending on food.”

She continued to note, “When monthly grocery expenditure is indexed to account for the aforementioned differences, GLP-1 households experienced a decrease ranging from 6% to 9% more than the change in spending among non-GLP-1 households.”

The impact of this trend is likely to have reverberating effects in the retail sector, affecting major grocery stocks such as Walmart (WMT), Target (TGT), Kroger (KR), and Albertsons (ACI).

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