GLP-1 Drugs Shift Food Spending Habits for Americans

The increasing use of GLP-1 receptor agonist drugs, such as Ozempic, is fundamentally transforming how Americans purchase food. A study conducted by researchers at Cornell University reveals significant changes in consumer spending habits following the adoption of these weight-loss medications. The findings suggest that this shift is reshaping the food industry in ways that could have long-lasting implications.

In a detailed analysis, the Cornell team utilized transaction records from Numerator, a market research firm that monitors grocery and restaurant purchases from approximately 150,000 households in the United States. By correlating these records with surveys tracking household members’ use of GLP-1 medications, the researchers were able to assess food spending patterns before and after the initiation of these drugs.

The results were striking. Within six months of starting on a GLP-1 drug, households reduced their grocery spending by an average of 5.3%. Notably, higher-income shoppers reported an even more significant drop of 8%. Fast-food chains, coffee shops, and specialized eateries also experienced a downturn, with sales at these establishments declining by about 8%.

Sylvia Hristakeva, a researcher at the Cornell SC Johnson College of Business, noted, “The data show clear changes in food spending following adoption. After discontinuation, the effects become smaller and harder to distinguish from pre-adoption spending patterns.”

The decline in grocery spending was not uniform across all categories, indicating a notable shift in eating habits among GLP-1 users. Foods that are ultra-processed and calorie-dense suffered the most, with sales of sweets and savory snacks decreasing by around 10%. Interestingly, even staples such as eggs and meat saw reduced sales. Conversely, some categories experienced growth, particularly yogurt, which saw the most significant increase. Fresh fruit, nutritional bars, and meat-based snacks also gained popularity.

Hristakeva elaborated, “The main pattern is a reduction in overall food purchases. Only a small number of categories show increases, and those increases are modest relative to the overall decline.”

As the use of GLP-1 medications continues to rise, the number of US households with at least one member on these drugs has jumped from 11% in late 2023 to over 16% by mid-2024. Among those surveyed, approximately one-third discontinued their use of GLP-1 drugs during the study period, which was reflected in their purchasing habits; these individuals reverted to prior shopping behaviors, leading to increased purchases of less healthy foods.

Researchers anticipate that demand shifts are not likely to be temporary. They project that by 2035, the number of Americans utilizing GLP-1 medications could reach 24 million. In response, food manufacturers are already strategizing on how to retain their customer base, with expectations of targeted marketing towards individuals on these medications.

Justin Shimek, CEO of food innovation firm Mattson, which works with clients like PepsiCo, General Mills, McDonald’s, and Starbucks, remarked during a recent webinar, “These medications are both a risk and opportunity for the food industry. Clearly, we believe this is going to be a time of disruption.”

Data from Mattson indicates that GLP-1 users are consuming 66% less soda and alcohol, while 93% report eating smaller meals. Furthermore, over 60% of respondents indicated they think about food less frequently. In light of these trends, food giant Conagra Brands has already begun labeling its Healthy Choice products as “GLP-1 Friendly,” despite no changes being made to the meals themselves.