GLP-1 medications: Transforming health and spending habits

GLP-1 medications: Transforming health and spending habits 

01.17.2025

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GLP-1 medications: Transforming health and spending habits

Appetite-suppressing medications like Ozempic, Wegovy, and Zepbound are reshaping more than waistlines — they’re transforming personal budgets, food habits, and even the economy. These GLP-1 receptor agonists, initially developed to treat diabetes, are now being hailed as breakthrough tools for weight loss.1

A growing trend in weight loss

GLP-1 medications are rapidly gaining popularity, with one in eight U.S. adults (12%) having tried them and 6% currently using them, according to the Kaiser Family Foundation (KFF).2 Their impact is measurable: For the first time in over a decade, U.S. obesity rates are declining, with research in JAMA attributing GLP-1s as a contributing factor.3

Initially approved by the FDA for diabetes treatment, semaglutide (Wegovy for weight loss) and tirzepatide (Zepbound for weight loss) have expanded into broader use.4,5 Ozempic, another semaglutide product, is commonly prescribed off-label for weight loss. In 2023, Americans spent over $50 billion on weight loss drugs like GLP-1s and the market is projected to reach more than $120 billion by 2031.6,7

The cost of GLP-1 medications

For many Americans, the expense of these medications can be a hurdle. Monthly out-of-pocket costs range from $900 and $1,400 without insurance coverage, and only 34% of corporate insurance policies cover them for weight loss.8,9 As a result, 53% of users report the cost is difficult to afford.10

The medications can be paid for with a Health Savings Account (HSA) so that before-tax dollars are used. One in four Americans have money in an HSA, according to Empower research.

However, the financial impact extends beyond the medication itself. Many users find they spend more on health-related expenses such as fitness memberships, supplements, or new wardrobes. For instance, on New York’s Upper East Side, where there’s a high percentage of non-diabetic weight-loss prescriptions, purchases of smaller clothing sizes have risen by 5% since 2022, underscoring broader shifts in consumer behavior.11

Read more: What can I use my HSA for?

Changes in spending and eating habits

GLP-1 medications are influencing food choices and shopping patterns. A Cornell and Numerator study found that U.S. households with at least one person using GLP-1 drugs reduced grocery store spending by about 6% during the six months following adoption, while higher-income households over $125,000 cut spending by nearly 9%.12 These savings are driven in part by an 11% decline in savory snack purchases. Additionally, spending on dining out has decreased, with breakfast and dinner purchases down by 4% and 6%, respectively, in the first six months of medication use. 

Walmart reports an impact on food purchases from those on GLP-1 medications, with people buying fewer items.13

Food companies are responding to these changes. Nestlé introduced a line of portion-controlled frozen meals, while Conagra Brands has rebranded some of its products as “GLP-1 friendly” with an emphasis on protein and fiber.14,15 Daily Harvest launched a GLP-1 collection last year and just added a line of high-protein smoothies.16

Healthcare shifts and potential savings

GLP-1 medications aren’t just shaking up food habits — they’re also transforming the healthcare landscape. Bariatric surgeries declined 25.6% between 2022 and 2023, with GLP-1 prescriptions up 132.6% during the same period.17

These medications may also lead to significant savings in healthcare costs over time, with a JAMA study showing that losing as little as 5% of body weight could translate into an 8% savings in healthcare costs for individuals each year.18 

Read more: Influenced: How persuasion powers purchasing decisions

A game-changer for the economy

It’s rare for a single class of drugs to affect so many aspects of daily life, but GLP-1 medications are proving to be more than just a medical breakthrough.19 They’re reshaping how people spend money, how industries operate, and how society approaches health and wellness.

As obesity rates continue to decline and these medications become more widely used, with 26% of Americans planning to use GLP-1 medications to reach their 2025 New Year’s resolution goals, their impact on the economy could grow.20

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1 The Economist, “GLP-1s like Ozempic are among the most important drug breakthroughs ever,” October 2024

2 Kaiser Family Foundation KFF Health Tracking Poll, May 2024: The Public’s Use and Views of GLP-1 Drugs,” Accessed: 01-13-2025

3 JAMA Network, “Changes in Adult Obesity Trends in the US,” December 2024

4 U.S. Food & Drug Administration, “FDA Approves New Drug Treatment for Chronic Weight Management, First Since 2014,” June 2021

5 U.S. Food & Drug Administration, “FDA Approves New Medication for Chronic Weight Management,” November 2023

6 PBS, “The many ways new weight loss drugs could transform the economy,” June 2024

7 MarketWatch, “Obesity drugs’ next wave: These companies could snag 20% of GLP-1 market, analysts say,” August 2024

8 The Minnesota Star Tribune, “Analysis finds that after 2 years GLP-1 drugs for weight loss don’t justify their price,” October 2024

9 PWC, “From molecules to milestones: Reinventing for the future of weight loss drugs,” October 2024

10 Kaiser Family Foundation KFF Health Tracking Poll, May 2024: The Public’s Use and Views of GLP-1 Drugs,” Accessed: 01-13-2025

11 The Washington Post, “Weight-loss drugs change shopping habits,” September 2024

12 Cornell, “The No-Hunger Games: How GLP-1 Medicine Adoption is Changing Consumer Food Purchases,” December 2024

13 Bloomberg, “Ozempic is Making People Buy Less Food, Walmart Says,” October 2023.

14 Bloomberg, “Nestlé Courts People Taking Weight-Loss Drugs With Frozen Pizza,” May 2024

15 The Wall Street Journal, “Big Food Is Learning to Love Weight-Loss Drugs,” October 2024

16 Food & Wine, “1 in 8 People in the U.S. Has Taken a GLP-1 Drug and Food Brands Are Taking Notice,” January 2025

17 Becker’s Hospital Review, “Bariatric surgeries plunge in GLP-1 era: New study,” October 2024

18 TCTMD, “Could Pricey GLP-1 Drugs Cut Healthcare Costs? The Math Isn’t Simple,” December 2024

19 The Economist, “GLP-1s like Ozempic are among the most important drug breakthroughs ever,” October 2024

20 The Intake, “26% plan to include GLP-1 meds in 2025 goals, led by 37% of Gen Z,” December 2024

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The Currency editors

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