Survey shows weight loss drug patients spend less on restaurants, takeout | Wilnesh News

A group of extremely popular weight loss and diabetes drugs are reducing some consumers’ appetites, and how much they spend on food.

A Morgan Stanley survey released on Tuesday showed that most people taking the drugs, known as GLP-1s, said they spent less on restaurant meals and ordering delivery. A small number of respondents said they are tightening their purse strings at the grocery store.

The findings add to concerns that soaring demand for GLP-1 could impact profits at some of the largest restaurant companies and makers of packaged snacks such as Doritos, Oreos and Hershey’s Kisses. GLP-1 includes Novo NordiskThe blockbuster weight loss injection Wegovy and the diabetes drug Ozempic, as well as Eli Lilly and CompanyPopular weight loss treatment Zepbound and diabetes injection Mounjaro.

Growing demand for these four drugs is not expected to ease anytime soon. In a new survey, Morgan Stanley analysts said they expect the GLP-1 market to be worth $105 billion by 2030. They also estimate that by 2035, 31.5 million people (about 9% of the U.S. population) will be taking GLP-1.

“There is growing evidence that these drugs are having a significant impact on consumer behavior and spending on groceries and restaurants,” Morgan Stanley analysts said in the survey. “All of these dynamics suggest that as drug adoption increases, “The impact of GLP-1 drugs on the consumer landscape will increase as consumption increases and the drugs reshape the behavior of demographic groups that consume a disproportionate number of calories.”

However, many food and beverage companies Reassure investors Over the past few months, it has been unclear how much the drugs would reduce their revenue. Morgan Stanley also stated in the investigation that GLP-1 is a controllable long-term pressure for restaurants, rather than an “existential risk.”

“Restaurants provide convenience and/or experiences in addition to food, and this will not change with the use of GLP-1,” analysts said. But they noted that some restaurants may have to adapt to health-conscious consumer behavior.

Healthier fast-casual restaurants and coffee can better manage consumers’ growing use of GLP-1, including vein, Chipotle, sweet green and StarbucksAccording to Morgan Stanley.Home service restaurants and “more indulgent” fast-casual restaurants may face greater pressure, including jack in the box, Wendy’s, wing stop, shake cabin and Portillos.

At the same time, Morgan Stanley believes Hershey’s The company is the most exposed among packaged food companies given its snack portfolio focused on U.S. consumers.Companies that provide healthy foods should benefit from GLP-1, including Vibrant Farm, ring bell brand, Simply good foodthe company said.

Among beverage companies, those that produce alcoholic beverages face the highest risk.These include Molson Coors, boston beer, Constellation brand and DiageoAccording to Morgan Stanley.

Morgan Stanley surveyed 300 consumers currently taking GLP-1 drugs in February. The company says these people are “early in their weight loss journey” but are making significant changes to their diet and spending.

When asked how monthly spending on restaurant meals had changed since the start of GLP-1, 63% of consumers said they were spending less, 28% said they were spending about the same, and 9% were spending less. Respondents said they spent less. Meanwhile, 61% said they were spending less on restaurant delivery or delivery, 31% said they were spending about the same, and 8% said they were spending more.

Fewer participants said they spent less on groceries since starting GLP-1: 31% said they spent less, 46% said they spent about the same, and 23% said they spent more .

The survey also found that people tend to choose the same restaurant but change the types of meals they order.

When asked if they eat less food in one sitting when dining out, 42% of participants said “always” or “most of the time” and 44% said “occasionally”. 41% said they “always” or “most of the time” order smaller portions overall, while 43% said they only sometimes do so.

According to the Morgan Stanley survey, participating consumers reported an overall decrease in food consumption, but the differences were most significant in snacks, candy, carbonated and sugary drinks, and alcohol. About half said their consumption of regular soda, alcohol and salty snacks had decreased by 50% or more since starting taking diet pills. Twenty-two percent reported stopping drinking altogether.

Based on these results, Morgan Stanley predicts that consumption of ice cream, cakes, cookies, candy, chocolate, frozen pizza, chips and regular sodas could decline by 4% to 5% by 2035. The amount will drop by about 3%, including alcohol, frozen popcorn or pretzels, cookies, cereal, cheese, gum or mints, and energy drinks.

Food items such as pre-packaged juices, soups, sports drinks, coffee, frozen diet meals, teas, cereals and energy bars have seen the smallest reductions in consumption, the company said.

Notably, the survey also found that 40% of participants reported smoking traditional cigarettes at least weekly before starting GLP-1, but this number dropped to 24% after treatment. The proportion of respondents who use e-cigarettes weekly also dropped from 30% to 16%.

However, Morgan Stanley said it is cautious about drawing conclusions from investigations into the impact of GLP-1 on addictive behaviors such as smoking. The company said it is monitoring ongoing medical research in this area.