Will the Weight-Loss Drug Boom Affect the Snack Industry? 

Obesity and diabetes drugs, such as Wegovy and Ozempic, have taken off. Many patients seek the prescription as an aid to weight loss because the drugs suppress appetites by mimicking a gut hormone.

 

According to a report by Trilliant Health, more than 9 million prescriptions were written for these weight loss drugs in the U.S. in the fourth quarter of 2022. Additionally, reports show that Ozempic accounted for more than 65% of total prescriptions as of the end of 2022.

 

Some patients taking Ozempic and Wegovy even reported aversions to foods with higher sugar and fat content, according to CNBC. This is a category that includes many major snack brands and some people believe it could have a lasting impact on the industry.

 

Morgan Stanley, a multinational investment banking company, estimates that nearly 7% of the U.S. population could be taking weight-loss drugs by the year 2035. If this happens, consumption of baked goods and salty snacks could reportedly fall 3% or even more due to consumers adopting new eating habits and consuming less.

 

However, not everyone believes Americans will cut back on snacking. Mark Smucker, CEO of Smucker, explained to analysts on a conference call, “There are multiple ways that consumers will continue to snack. … And given that consumers are going to continue to seek all different types of snacks, and sweet snacks are going to continue to be on the radar, we view that our projections here are sound.”

 

Also, an analyst for RBC, Nik Modi, stated in a research note that lower-income individuals are likely to consume more junk food. And considering some insurers do not cover drugs like Wegovy and Ozempic, those consuming the snacks are unlikely to spend roughly $1,000 a month on the medication.

 

It seems that whether the snack industry will be affected by weight-loss medications is to be determined.