GLP-1 weight-loss drugs such as Ozempic and Wegovy are driving down grocery spending, according to a new study from Cornell’s SC Johnson College of Business and consumer data firm Numerator.
The study, which analyzed U.S. household transaction data over two years, found that households with at least one GLP-1 user reduced their grocery spending by about 6% within six months of starting the medication. High-income households, in particular, saw a reduction of nearly 9%.
What’s driving the shift? Consumers are ditching calorie-dense processed foods like savory snacks and turning to healthier options such as fresh produce and yogurt. The savory snacks category alone saw an 11% drop, with spending on chips, sweet baked goods, and cookies seeing some of the largest declines.
As a result, some consumers’ grocery baskets have become more nutritious, the report notes.
As adoption increases, the impact of these weight-loss drugs is extending beyond grocery stores. The study also found reduced spending at fast-food chains and coffee shops, particularly during breakfast and dinner hours. Higher-income households were more likely to cut back on breakfast, while lower-income households made more significant reductions in dinner spending.
The changes in consumer behavior following GLP-1 adoption are already being felt by the food industry. Major food companies, such as Kraft Heinz (KHC+0.21%) and Campbell’s, have reported sales declines, especially in processed foods and snacks. In response, these companies are diversifying their product lines to cater to health-conscious consumers. For example, confectionary king Mars acquired Kevin’s Natural Foods, reflecting the growing demand for nutritious options driven by the popularity of GLP-1 medications. Meanwhile, Walmart’s (WMT-0.39%) CEO Doug McMillion acknowledged “margin pressure” due to the rise in GLP-1 use during the company’s Nov. 19 earnings call.
As GLP-1 adoption continues to grow, retailers and food manufacturers will need to adapt to these new consumer trends. This could mean introducing additional items, changing packing sizes, and adjusting market strategies. The report notes that to stay competitive, companies must prioritize healthier products and make them more accessible to a wider audience. The shift toward fresh, nutrient-dense foods is no longer a passing trend – it’s a key factor shaping the future of food. Retailers and food producers that adapt quickly will be best positioned to meet the rapidly changing needs of consumers.
The post Weight loss drugs seem to be driving down grocery bills appeared first on Quartz.
