Shoppers look at blankets on sale at a Costco warehouse Thursday, Aug. 24, 2023, in Sheridan, Colorado. On Wednesday, the Department of Labor releases its consumer price report for the month of August. (AP Photo/David Zalubowski)
(NewsNation) After signs that U.S. weight-loss drugs were cutting into the food industry’s profits, experts say spending is shifting toward fitness equipment and gym memberships.
Walmart CEO John Furner previously said weight-loss drugs like Ozempic and Wegovy were impacting food sales because people’s appetites were diminishing. He backtracked, saying there were positive changes in fitness sales in discussions with analysts at Morgan Stanley.
Walmart tracked a small group of customers taking the drug and found that they spent slightly less on food from year to year.
Customers who buy weight-loss drugs also tend to spend more on lifestyle, fitness and medications to relieve drug side effects, according to analysts who spoke with Walmart. Due to known side effects like nausea and diarrhea, the overall spending of these drugs The number of customers is higher than those who do not purchase weight loss drugs.
For most patients, the benefits of the drug will likely outweigh most of these concerns, but it’s critical that patients understand the costs that could accrue during treatment, says gastroenterologist Dr. Christopher McGowan and obesity medicine specialist, told Healthline.
Studies have shown that semaglutide and similar medications can help achieve and maintain weight loss when used in conjunction with lifestyle adjustments. Providers say these changes include engaging in physical activity that may also have a cost, such as purchasing exercise equipment or a gym membership.
They also spend money on fitness equipment and gym memberships because cardio and strength training are essential strategies for preserving muscle mass and maintaining weight loss long-term, said Dr. Katherine H. Saunders, obesity expert and clinical assistant professor of medicine at Weill Cornell Medicine.
Due to changing spending, food and beverage companies are closely monitoring purchasing trends.
Coca-Colas CEO James Quincey isn’t worried about the impact of drugs like Ozempic and Wegovy on the company’s sales.
Coca-Cola has invested in diet and sugar-free alternatives to its popular products, including classics Coca-Cola, Sprite and Fanta, suggesting they are well prepared to deal with the challenges posed by these drugs. For now, the impact on the company’s sales is minimal.
As we stand here today, there is very little data on what is actually happening, other than some anecdotal evidence, Quincey told CNBC.Scream in the streetadding that even the projections do not envision fundamental change in the beverage industry.
It is estimated that by 2035, the global market for weight loss drugs could reach $100 million, according to Forbes.
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