Weight-loss drugs are causing Walmart shoppers to buy less food

Anti-obesity drugs like Wegovy and Ozempic have already transformed Denmark’s economy, as well as the healthcare industry. Next up: the food industry. Walmart, the world’s largest retailer, revealed this week that it’s already seeing an impact on shopping demand from people taking these medications.

Why it matters: Americans are increasingly gravitating towards anti-obesity/appetite suppression drugs. According to Trilliant Health, prescriptions of those medications quadrupled from late 2020 to 2022, with 9 million prescriptions filled in the last three months of last year.

And if this pace of growth continues, it could have a real impact on the food industry’s bottom line.

• Research from Morgan Stanley indicates the number of patients taking anti-obesity drugs could reach ~7% of the US population by 2035.
• If that occurs, consumption of baked goods and salty snacks could fall 3% – or even more if the new eating habits of the people using the treatments extend to their broader households and friends.

Walmart is seeing some early signs that back this up. The retail giant sells anti-obesity drugs at its pharmacy, and, using anonymized data, is able to compare the shopping habits of those taking the medications with those who are not. Those taking the drugs are buying less products and consuming slightly less calories, though Walmart says it’s too early to draw definitive conclusions based on the data.