GLP-1s have revolutionized the treatment of obesity and can compel companies to lead through disruption and reinvent themselves

The news has been nearly impossible to miss: A tidal wave of interest in medications that are revolutionizing the approach to weight loss for those with obesity is swiftly evolving. Unlike past diet and weight-loss trends, GLP-1 receptor agonist drugs are generating levels of enthusiasm that have rarely been seen. By increasing insulin production, regulating blood sugar and inducing a sense of fullness, these medications lead to significant weight loss.

There are few examples from history that have generated such impact. GLP-1 growth is reminiscent of influential medications like statins for heart disease and cholesterol. What once started as a little-known effort to lose weight has brought us to the cusp of a health revolution, leaving many businesses wondering how this will affect their future.

PwC US conducted an in-depth consumer study of roughly 3,000 people to explore the influence of these medications on lifestyles, spending habits and consumption patterns. The results reveal that a seismic shift is underway. Individual changes in consumer behavior are combining to have big impacts across healthcare, food, beverage, retail, travel, entertainment and more. These shifts create a need for companies to reinvent their business models and lead through disruption to take advantage of evolving consumer expectations and needs.

Unprecedented results drive broad, accelerated interest in GLP-1s, despite several challenges

It is evident that GLP-1s are becoming crucial for weight loss and can offer emerging health benefits to a wide range of individuals. This discovery has fueled an unprecedented surge in interest and demand for these medications. Our survey showed that anywhere from 8% to 10% of Americans are currently taking GLP-1s, while 30% to 35% of Americans are interested in using them. Demand for prescriptions has been so high that suppliers often struggle to meet demand.

Some analyst projections show the GLP-1 market reaching $150 billion by 2030. This has been driven by the easing of some manufacturing constraints, improved side effect profiles, new market entrants, increased acceptance by payers, introduction of a simpler-to-take and easier-to-produce oral form, and further penetration into the mainstream.

Purpose for taking GLP-1

• Note: Percents do not add up to 100% due to the ability to select multiple options.

Q: What is the purpose of taking your GLP-1 medication? Select all that apply.

Source: PwC's GLP-1 Trends & Impact Survey, June 2024 base of 2,404.

As the understanding of the benefits and safety profiles continues to evolve, there is also discussion of how GLP-1s may reach pediatric populations. The obesity rate in adolescents has quadrupled over the last 30 years. With the relatively newfound public interest and evolving understanding of potential benefits, 82% of the parents we surveyed were unopposed to using GLP-1s for their children. While current adoption by children and adolescents 12 years and older is a very small fraction of the current users, adoption has been quickly growing and is providing children and their families with newfound hope for a healthier future.

Willingness to provide GLP-1 for children

• Note: “Unopposed” is inclusive of neutral/unsure, somewhat likely, and highly likely responses.

Q: If your child(dren) were diagnosed with childhood obesity, how likely would you be to put them on GLP-1 medication?

Source: PwC's GLP-1 Trends & Impact Survey, June 2024 base of 1,129.

Reasons for considering GLP-1 use for your children

• Note: Question asked to respondents that answered “highly likely” and “somewhat likely” in previous question.

Percents do not add up to 100% due to the ability to select multiple options.

Q: Why? Select all that apply.

Source: PwC's GLP-1 Trends & Impact Survey, June 2024 base of 628.

That said, a major barrier to achieving widespread adoption lies in affordability — according to our survey, 45% of current patients cite cost as one of the primary reasons for discontinuing their medication. Increased affordability of GLP-1s is largely dependent on improved health plan coverage levels from employers, insurers and government medical plans. A 2024 study from the International Foundation of Employee Benefit Plans showed that employer coverage of GLP-1s is still limited, with 34% of corporate plans currently providing coverage for non-diabetic patients who want to lose weight (up 8 percentage points from 2023).

Clinical research is propelling forward at an aggressive pace, delving into short and long-term effects of the medication as well as other therapeutic applications beyond weight management and diabetes. Demand and insurance coverage will likely continue to increase as GLP-1s are used to treat a broader set of issues like sleep apnea, cardiovascular disease, kidney disease, Alzheimer’s and even Parkinson’s.

While insured patients may see overall lower costs of therapy, the out-of-pocket expenses can vary significantly, ranging from nominal copays to hefty cost sharing for medications indicated primarily for weight loss. For compounded GLP-1s, some pharmacies are authorized to prepare medications currently in short supply with a similar pharmaceutical ingredient and are generally more affordable than cash prices for branded medications. Manufacturers are beginning to take steps to expand supply and access, for example, by releasing the brand name drug in a vial form that costs at least half as much as the same medication available in an autoinjector.

Reasons for not yet starting GLP-1 medication

Q: Why have you not started taking GLP-1 medication?

Source: PwC's GLP-1 Trends & Impact Survey, June 2024 base of 301.

Side effects also present a challenge. For current GLP-1 users, our survey suggests that non-diabetic patients are planning to stay on their medicine for an average of 1.5 years, with negative side effects (e.g., nausea, gastrointestinal issues) among the top reasons for discontinuing treatment. With advancements that reduce the impact of side effects, we think that GLP-1s may eventually be used as a long-term solution for weight management, since 42% of previous GLP-1 users told us that they would be “highly likely” to continue their treatment if cost and side effects lessen.

Weight loss trends can change the way people live, likely impacting businesses across sectors

We believe that a significant increase in the number of patients seeking and obtaining treatment will likely result in macro-level shifts across many industries, creating opportunities for companies to develop products and value-add services that are relevant for different segments.

Healthcare, wellness and fitness: Ripple effects can drive unexpected consumption patterns

In fitness and exercise habits, we noticed a sizable spread in behavior changes while taking GLP-1s. Fifty-seven percent of patients told us they exercised the same amount or more, whereas the remaining 43% of people exercised less or not at all. This difference in behavior may be attributed to personal preferences and attitude toward overall health. For some, as weight loss continues during drug therapy, patients may feel less incentive to begin or continue an exercise program since the medication alone can deliver the desired results. Others commit to making more fundamental and overarching changes to improve their overall health — perhaps due to their doctor’s encouragement or perhaps due to their own intrinsic motivation, they add exercise to complement their journey to better health and weight loss.

Changes in spending for fitness-related categories while taking GLP-11

Q: While taking your GLP-1 medication, how has your spend in fitness related activities changed?

Source: PwC's GLP-1 Trends & Impact Survey, June 2024 base varies.

For users motivated to exercise while taking GLP-1, fitness companies could focus on marketing and selling the most demanded workouts (e.g., strength training for rebuilding lean muscle mass). For all GLP-1 users, broader wellness-focused companies could also focus on outstanding areas of health improvement unrelated to being overweight. For example, patients who eat smaller portions may benefit from products that supplement nutritional or energy gaps.

Health and wellness businesses could try to reach previously untargeted customers and shift strategies from decreasing needs (e.g., durable medical equipment for chronic conditions) to newly emerging ones. For example, developing sales programs centered around smart scales, fitness trackers, meal planning or wearable devices that help monitor fitness progress.

Chronic health problems are growing costlier to treat as overall life expectancy increases. Research from the Journal of Gerontology and Geriatric Medicine shows that obesity and its associated health conditions have contributed to a larger utilization of medical services, including inpatient hospital admission, specialty care and prescription medication. A reversal of this trend may reduce the number of patients seeking treatment, subsequently reducing strain on an already burdened health system and shifting focus to health specialties that focus on preventative health.

Food and beverage: People are eating, drinking and spending less

For those living with diabetes or obesity, daily choices regarding food and beverage consumption are top-of-mind. GLP-1s fundamentally change the way people think about their food and beverage intake and could dramatically change the industry’s relationship with consumers for years to come.

On average, GLP-1 users spent about 11% less on most categories of food. Not only were our respondents eating less in aggregate, but the biggest reductions were in sweet and salty snacks and baked goods. Over half said they wanted to make even healthier food choices and about a third said that they were binge eating less or drinking less during treatment. There is some indication that heavy drinkers in our sample reduced their alcohol consumption, since a third of them had moved into a lower category (e.g., heavy drinking to moderate drinking).

While we don’t expect consumers to cease eating all unhealthy foods, the volume of purchases may change and overall caloric consumption per person may meaningfully decrease, suggesting that restaurants and food companies that focus on indulgent occasions should consider how to better tailor their products to a market that may be looking to experience their food in a different way (e.g., portion sizing, take-home).

Similarly, establishments catering to healthier occasions may come out on top if they can sustain prices and appeal to the changing demographic or preferences. Promotion of “functional” food by clearly communicating nutritional or other health benefits will be more important than ever. Meeting nutritional goals with less food means that CPG and food companies should consider how they could develop products that meet the full range of nutritional requirements for people consuming smaller meals. Some industry players already have plans to introduce a line of meals marketed toward the GLP-1 community.

Food and beverage companies with a highly concentrated customer base are more likely to be affected by GLP-1-related shifts in behavior and should be cautious about the potential bottom-line impact if their target customer begins treatment. For instance, one estimate shows that the top 10% of alcohol drinkers in the United States account for nearly 60% of total alcohol sales. If this relatively small group of heavy drinkers were to start GLP-1s and reduce drinking, this could amount to significant disruptions in revenue.

Clothing and apparel: Changes in body composition can drive the quest for an ideal appearance

Even moderate changes in weight can be enough to require new apparel. The positive impact on confidence from losing weight can compound this desire to buy a new wardrobe. Nearly a third of our consumer respondents indicated that they felt more positive about their body and were more comfortable wearing a wider variety of clothing than while at their former weight, and a quarter of GLP-1 users were buying smaller sizes. A broader change in lifestyle may also fuel more shopping — a fifth of those that currently or previously took medication were investing in more workout and activewear.

The extent to which GLP-1 users shop and invest in new wardrobes also depends on their confidence in keeping their weight off, which would go up as people stay on GLP-1s as a long-term weight loss solution. Our survey shows that GLP-1 users who plan to stay on their medication for over a year indicated the largest increase in apparel spending. Browsing in person may grow in popularity because GLP-1 users may need to try on clothes to reassess their current sizing. If purchasing patterns shift with sufficient magnitude, apparel retailers and manufacturers may have to take extra care in forecasting for the proper level of demand across sizes and styles, which may no longer follow a predictable distribution.

Travel, entertainment and leisure: The pull between newly found confidence and tighter budgets

Surveyed GLP-1 users reported spending the same or slightly less on out-of-home entertainment such as theaters, live sports, concerts and amusement parks. We suspect that current out-of-pocket costs for these drugs (as well as existing budgetary pressures from inflation and rising costs) may put pressure on discretionary spending over the course of treatment.

While this seems concerning in the near-term for entertainment and travel providers, the long-term spending habits could reverse as overall cost of care decreases and users gain a more positive attitude toward their physical appearance and newfound energy. In fact, we observed a 15% increase in surveyed GLP-1 users who reported having a more positive body image. We believe that more confident and happier people are likely to be more active, which may lead to more people participating in enjoyable activities. That said, not all types of travel and entertainment may benefit in the same way. GLP-1 users, for example, might favor more active vacations over more sedentary ones focused on eating and drinking.

Self-reported body image / confidence

• Note: “Positive” indicates a response of 7, 8, 9, or 10; “Neutral” indicates a response of 4, 5, or 6; “Negative” indicates a response of 0, 1, 2, or 3.

Q: On a scale from 0-10, 10 being the most positive, how would you rank your body image / confidence before and while using GLP-1 medication?

Source: PwC's GLP-1 Trends & Impact Survey, June 2024 base varies..

Opportunity to reintroduce yourself to customers and cater to a new set of needs

GLP-1 use is very individualized. Treatment patterns can vary, and the impacts on consumer behavior and business will likely depend on expected usage duration, adherence, persistence and the conditions treated. To bring clarity and react to this transformative era, it’s key to understand and segment the GLP-1 population according to their habits, wants, needs and attitudes. Variables such as duration of care, age and adherence may create possible strategic starting points for companies looking to better serve customers. A consumer food company, for instance, may look to address the long-term GLP-1 users by introducing a wide range of meal options to keep patients engaged with their products over a longer period. For the ephemeral user, the same company might adopt an approach focused on convenience or simplicity, so important food habits can be quickly incorporated.

We attribute the current high demand of GLP-1s for weight loss primarily to those exploring this medication in the short term (up to a year), and they’ll be the ones charting the path to mainstream awareness. As GLP-1 makes its way into the social vocabulary, these users sharing their experience may lead to a broader increase in confidence in safety and efficacy.

The path forward – lead disruption or get left behind

We believe adoption of GLP-1 drugs will likely continue to grow dramatically, especially when the medical and institutional community begins to recommend GLP-1s as the standard of care for treating obesity. Consumer-facing companies should prepare for conditions to change quickly and consider whether business-as-usual is at risk.

There remains a major opportunity to support GLP-1 users through this transformational period and capture the value from enabling their new behaviors. By acting now, businesses can increase the odds they learn from these customers, better serve them and develop a long-term strategy based on the market’s direction.

It’s challenging to fully anticipate the many impacts from weight loss, diet changes and behavior shifts that may occur over the next decade. In our study, we asked people about their own behaviors and opinions. While we cannot forecast the full extent of what lies ahead, we believe a changing society can have trickle-down effects on other sectors that may require high vigilance. For instance, with a healthier population that lives longer, could retirement become more challenging to plan for? Will life insurance become less expensive? Will employees be more productive at work? Will health technology become the next vital home good?

PwC’s survey begins to tell a rich story about what is top-of-mind for consumers both now and in years down the road. We can work together and explore the insights that are most important for your business and the implications for your company. We can help you prepare for this unprecedented shift, and it is time to start thinking about the ways your company can navigate through disruption created by GLP-1s and similar medical breakthroughs.

About the survey

In June 2024, PwC surveyed approximately 3,000 US male (43%) and female (57%) adults. Respondents were randomly selected across 49 of the 50 states. For estimates of GLP-1 adoption, a subsample representative of national demographics (n=506) was polled.