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Most people on weight loss drugs are spending less on restaurants and takeout, survey says
๐ Abstract
The article discusses the impact of weight loss drugs called GLP-1s on consumer spending habits, particularly on restaurants, takeout, and grocery purchases.
๐ Q&A
[01] Most people on weight loss drugs are spending less on restaurants and takeout
1. What are the key findings from the Morgan Stanley survey on how people taking GLP-1 medications are changing their spending habits?
- Most people taking GLP-1 medications say they are spending less on eating out at restaurants and ordering takeout.
- A smaller share of those surveyed say they are tightening their purse strings in the grocery store.
- The survey found that people tend to stick with the same restaurants but change the types of meals they order, often ordering smaller portions.
2. How are these findings expected to impact the restaurant and packaged food industries?
- The findings add to concerns that soaring demand for GLP-1s could take a bite out of the bottom lines of some of the biggest restaurant companies and packaged food makers.
- Healthier fast-casual restaurants and coffee shops are better positioned to manage the increasing consumer use of GLP-1s, while domestic service restaurants and "more indulgent" fast-casual restaurants could face more pressure.
- Among packaged food companies, Hershey is viewed as the most at-risk given its American consumer-focused snacking portfolio.
3. What are the expected impacts on specific consumer behaviors and product categories?
- Consumption of ice cream, cakes, cookies, candy, chocolate, frozen pizzas, chips, and regular sodas could fall 4-5% by 2035.
- Consumption of alcohol, frozen popcorn or pretzels, crackers, cereals, cheese, gum or mints, and energy drinks could decrease by around 3%.
- Pre-packaged fruit juices, soups, sports drinks, coffee, frozen diet meals, tea, granola, and energy bars are expected to see the least reduction in consumption.
[02] Impact on addictive behaviors
1. What did the survey find regarding the impact of GLP-1 medications on addictive behaviors like smoking?
- The survey found that 40% of participants reported smoking traditional cigarettes at least weekly before starting a GLP-1, but that number declined to 24% after treatment.
- Weekly e-cigarette use similarly fell from 30% to 16% of respondents.
- However, Morgan Stanley said it is cautious about drawing conclusions from the survey on the impact of GLP-1s on addictive behaviors, and is monitoring the ongoing medical research in that area.
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