How GLP-1 drugs change consumer spending
2025-02-06
I think GLP-1 drugs might be the most underrated technological change currently underway. We're talking about big shifts in what people eat, how they look and feel about themselves that run counter to the last ~50 years of consumer trends.
With this in mind, I found this Cricana report to be eye opening.
First, I love that the report using real transaction data - this isn't what about what consumers are saying, but what they're doing compared to what they were doing before.
Spending went up on:
🫗 Drinkware and water filtration (+28%)
⌚️ Fitness trackers and wearables (+183%)
🧴 Skin care (+12%)
💋 Lip care products (+14%)
And down on:
🥗 Refrigerated salad dressing (-19.5%)
🥩 Dried meat snacks (-17%)
🍷 Alcoholic beverages (-10-12%)
My simple model here is that people drift away from unhealthy foods and towards healthier ones. As they do this, they start getting out more and doing more things (see the spending on wearables, cosmetics). They're also spending more on the things that mitigate the downsides of the drug (mints for bad breath, tea to soothe stomachs).
The entire thing is worth a read.
(Hat tip to Dan Frommer whose New Consumer newsletter flagged this for me)