Weight-loss drugs, particularly GLP-1s like Wegovy and Ozempic, are reshaping US consumer behavior, creating both winners and losers in the economy. One in 10 Americans now uses these drugs, upending traditional spending patterns. Alan Horowitz's bespoke suit business in Manhattan has lost clients as weight-loss drugs reduce customer sizes, cutting revenue by 10-12% due to free lifetime alterations that become costly with frequent size changes. The drugs, originally for diabetes, trigger appetite suppression and are projected to expand as cheaper generics emerge by the 2030s. 38 million Americans actively use GLP-1s as of June, with 5% of UK adults on the drugs.
Industries must adapt: gyms and supplements gain customers, while restaurants and alcohol brands face declining sales. More than 200 publicly traded companies discussed GLP-1 impacts in recent earnings calls, with brands like PepsiCo and Domino's citing dietary shifts as business risks. In the UK, GLP-1 use has cut grocery spending by an estimated £780 million annually.
Source: Financial Times Companies · Summarized by HeadlinesBriefing