We examine how consumers modify their food purchasing behavior after adopting appetite-suppressing GLP-1 receptor agonists, such as Ozempic and Wegovy

The No-Hunger Games: How GLP-1 Medication Adoption is Changing Consumer Food Purchases

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2025-01-01 18:30:10

We examine how consumers modify their food purchasing behavior after adopting appetite-suppressing GLP-1 receptor agonists, such as Ozempic and Wegovy. Utilizing a unique dataset linking survey responses on medication adoption and timing with transaction data from a representative U.S. household panel, we document the prevalence, motivations, and demographic patterns of GLP-1 adoption, including off-label use. Households with at least one GLP-1 user reduce grocery spending by approximately 6% within six months of adoption, with higher-income households reducing spending by nearly 9%. These reductions are driven by significantly larger decreases in purchases of calorie-dense, processed items, including a 11% decline in savory snacks. In contrast, we observe directional increases in nutrient-dense purchases, such as yogurt and fresh produce. We also examine food-away-from-home spending at limited-service establishments, such as fast-food chains and coffee shops, finding reductions at breakfast and especially during dinner times. Our findings highlight the potential for GLP-1 medications to significantly reshape consumer food demand, a trend with increasingly important implications for the food industry as adoption continues to grow.

Keywords: GLP-1 Medications, Food Consumption, Weight Loss Drugs, Pharmaceutical Innovation, Dietary Changes, Food Industry D12, I12, L66, M31, L11, O33