about 1 month ago • 2 mins
The US is working on its fitness. But the gym’s old news: this time, Americans are relying on Hollywood’s latest obsession, weight-loss drugs, to slim their waistlines. The companies that made those drugs – Novo Nordisk, most famously, the maker of Ozempic and Wegovy – have already been gobbled up by investors, and analysts are wondering what’s next on the menu.
Goldman Sachs pointed out two of the most common side effects of these new weight-loss drugs: sickness and diarrhea. And using data from consumer analytics firms like Nielson, the big bank drew up a profile of the typical American household that’s been buying up more drugs designed to treat the less glamorous side of fitting into smaller jeans. Anti-sickness and diarrhea drugs are being snapped up by households with a female head aged between 45 and 54, kids between six and 17, and a combined income from $50,000 to $100,000. Goldman found that it’s these households taking the most weight-loss drugs, so the investment bank took a deeper look at these families’ other spending habits.
The research suggests that this specific American household seems to be buying less beer and wine for a start. And with sales of alcohol overall still holding firm, it seems beer and wine’s reputation for showing up on the scales is coming back to bite them. After all, weight-loss drugs tend to be associated with heightened self-care – and that may also explain why a few beauty categories are becoming more popular with this household type, and why most snack categories have dropped off this year.
Meanwhile, foods like nutrition bars and healthy shakes seem to be a big hit with these households. And don’t forget mini muffins: they’re being funneled into these homes’ cabinets, suggesting folk on weight-loss drugs still want to treat themselves, just with smaller portions.
Now, Goldman does warn investors against jumping to conclusions, as other factors could be influencing this data. For example, shoppers have picked up fewer snack foods over the last couple of years anyway, and spirits have been stealing drinkers away from beer and wine for some time too. That said, it’s certainly worth watching to see if these early trends turn into something more meaningful.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.
/3 • Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.