With the rising popularity of weight-loss drugs, gluttony is fast becoming like the fifth Beatle of the seven deadly sins. “Six deadly sins – and one dietary misstep” doesn’t have quite the same ring to it.

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Consumers take a bite out of the food industry

The new weight-loss drugs, like Ozempic, Wegovy and Mounjaro, seem to be a godsend for those looking to shift pounds. But their soaring popularity is giving the consumer staples sector food for thought.

The worry is that as these drugs become more popular – Morgan Stanley projects that 7% of the US population, 24 million people, could be taking these drugs within 10 years – people will start buying less food, particularly high-calorie snacks and fast food.

It might seem premature to worry about this. We don’t know how effective these drugs will be in the long term – in fact, like AI models and antidepressants, we don’t really know how they work. But they’re already having an effect.

Walmart, mining its own pharmacy and grocery data, has noticed that customers taking Ozempic are buying less food, and shares in Jell-O maker Kraft Heinz, Pringles maker Kellanova, and soda giant PepsiCo all hit new 52-week lows on Friday.

There’s also evidence that the drugs can curb your urge for nicotine, alcohol – even gambling. So cigarette, beer and spirits manufacturers, as well as the gaming industry, may be impacted.

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