The economics of GLP-1

 [[{“value”:”From Frank Fuhrig: Lean protein “emerged as the biggest winner” on supermarket shelves among shoppers who have taken popular new weight-loss drugs, according to a report using consumer surveys. Data analytics firm Grocery Doppio’s “State of Digital Grocery Performance Scorecard: H1 2024” found reduced grocery spending among 97% of consumers who had taken GLP-1 medications — glucagon-like peptide-1
The post The economics of GLP-1 appeared first on Marginal REVOLUTION.”}]] 

From Frank Fuhrig:

Lean protein “emerged as the biggest winner” on supermarket shelves among shoppers who have taken popular new weight-loss drugs, according to a report using consumer surveys.

Data analytics firm Grocery Doppio’s “State of Digital Grocery Performance Scorecard: H1 2024” found reduced grocery spending among 97% of consumers who had taken GLP-1 medications — glucagon-like peptide-1 receptor agonists, including semaglutide drugs Ozempic, Rybelsus and Wegovy, prescribed for diabetes or obesity.

Their grocery bills were down by an average of 11%, yet they spent 27% more on lean proteins from lean meat, eggs and seafood. Other gainers were meal replacements (19%), healthy snacks (17%), whole fruits and vegetables (13%) and sports and energy drinks (7%).

Snacks and soda took the brunt of reduced spending by consumers after GLP-1 treatment: snacks and confectionary (-52%), prepared baked goods (-47%), soda/sugary beverages (-28%), alcoholic beverages (-17%) and processed food (-13%).

In an accompanying survey of U.S. grocery executives, 77% said they would respond to the trend among users of the fast-spreading medications by expanding and deepening assortments including more portion-control sizing and packaging. Another 71% said they would increase digital marketing efforts on health and “food as medicine.”

Past diet trends such as low-carb keto plans have also favored lean protein. A Rabobank research report in March examined the dietary benefits of a greater focus on lean protein and suggested that industry could reformulate ultra-processed foods to raise protein and combat obesity.

Despite the rapid adoption of GLP-1 drugs, grocery sales in January to June 2024 hit $458 billion, up 3.8% compared to the first half of last year, the report showed.

Here is the gated link, via J.  I wonder if the behavior of the later adopters will be any different.  There is, after all, an alternative equilibrium where people simply eat a lot more ice cream, knowing they can do so and still lose weight.

The post The economics of GLP-1 appeared first on Marginal REVOLUTION.

 Economics, Food and Drink, Uncategorized 


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