Households that include at least one person taking an appetite-suppressing drug like Ozempic spend about 5.5% less on groceries within the first six months of use, according to a recent study.
Findings from a Cornell SC Johnson College of Business research paper indicate GLP-1 receptor agonists such as Ozempic, Wegovy and Mounjaro could significantly reduce food industry revenues. In the paper, researchers predict a continued shift away from processed and snack food consumption, and suggest manufacturers rethink product portion sizes or packaging.
Appetite-suppressing drugs were initially created for diabetes management. However, in recent years they’ve become popular for obesity and off-label weight-loss treatment.
Overall, researchers found a gradual decline in spending on groceries in the sixth months after an individual starts taking these medications. Households with at least one GLP-1 user cut spending by about 5.5% in this time period, which translates to an annual savings of $416 per household.
Households earning over $125,000 saved more — 8.6%, the paper said, or more than double the 4.2% decline for households earning less than $125,000.
When expanded to a full year after adoption, there were still spending reductions but they were less significant. The paper's authors attributed this to potential compliance challenges, lessening drug efficacy or measurement limitations.
Households also reduced spending at restaurants like fast food and coffee shops by nearly 4% at breakfast and 6% for dinner.
The paper also found that more people are beginning to use the drugs to lose weight than they are to control diabetes. Those taking it for weight loss saved slightly more than those using it for diabetes, but the reduction was not statistically significant.
Researchers also examined changes in grocery spending by food group. Overall, they found GLP-1 users reduced spending the most by buying fewer high-calorie, high-sugar or high-fat items like chips, sweet baked goods and cookies. Chips and savory snacks saw the most reductions, at approximately 11.1%.
There was a small increase in spending on “traditionally healthier products” like fresh produce and yogurt, particularly among those using the medication for weight loss. However, researchers said the primary change was a reduction in high-calorie items, which proportionally shifted spending toward healthier options.
“Essentially, the composition of their grocery baskets becomes healthier more by cutting back on unhealthy items than by adding more healthy ones,” the researchers wrote.
Researchers cited recent shifts in the market like Mars’ acquisition of Kevin’s Natural Foods as examples that the industry is already pivoting toward healthier product lines and looking to diversify offerings. Additionally, researchers note that consumers on GLP-1 medications are likely to move toward smaller portions and products that advertise health and convenience like portion-controlled options for fresh produce, yogurt and nutrition bars.
“Repackaging to provide these formats will be critical for targeting this evolving consumer segment,” researchers wrote. “These shifts go beyond broader health trends, addressing the distinct changes in purchasing behaviors driven by GLP-1 adoption and requiring the food industry to adapt strategically to remain competitive.”
The study can be downloaded here.
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