Obesity Drugs: Shifting Appetites Could Shake Up Food Industry, Report Says
San Francisco, CA – February 3, 2024 – The burgeoning use of obesity drugs could trigger significant behavioral changes among consumers, impacting the food industry in far-reaching ways, according to a new report from Morgan Stanley Research.
With the popularity of hunger-suppressing drugs on the rise for both weight management and related conditions like diabetes and heart disease, Morgan Stanley estimates 24 million Americans, or 7% of the population, could be taking them by 2035. While investors acknowledge the potential disruption to the food industry, some have questioned the extent of the impact.
However, Morgan Stanley Research remains bullish on the transformative potential of these drugs, predicting broad and lasting changes across food-related sectors. Analyst Pamela Kaufman, covering tobacco and packaged food, says, “This shift could significantly reduce demand for unhealthy options like confections, baked goods, sugary snacks, and sugary drinks.”
Conversely, the report sees opportunities for companies offering healthier alternatives and weight-management solutions. “As consumers’ habit shift due to obesity drugs,” Kaufman adds, “businesses with existing healthy options and those developing weight-management and energy-boosting products stand to benefit from this evolving landscape.”
This report highlights the potential ripple effects of advancements in healthcare, and how they can impact seemingly unrelated sectors like the food industry. As the obesity drug market continues to expand, it will be interesting to see how consumer behavior evolves and how companies adapt to capitalize on the changing landscape.
Key takeaways:
- Obesity drug use is projected to significantly increase in the coming years.
- This could lead to reduced demand for unhealthy food options.
- Companies offering healthier alternatives and weight-management solutions stand to gain.
- The report underscores the interconnectedness of various industries and the potential for cascading effects from advancements in one sector.