Millions of Americans are spending potentially hundreds of dollars each month on GLP-1 medications, but that comes at a cost: Their weight-loss journey is shaking up how they spend their money.
In the five years since these medications were approved for chronic weight management by the Food and Drug Administration, they’ve grown in popularity, such that an estimated 11% of American adults are now taking some form of a GLP-1 to lose weight. While that’s led to some very visible trends—say, the protein-ification of many everyday foods—others aren’t so obvious.
Take jewelry, for example.
The broader apparel industry has understandably benefited from the GLP-1 craze as 26% of users say they spend more on clothing overall, according to a survey conducted earlier this year by PwC. After being on the medication for 6 to 8 months, many people seemingly adopt a “treat yo self” mentality, spending on higher-quality and more expensive brands, according to the report. While it makes sense that the weight-loss drug users are spending more on clothing—spending on jeans rose 66%, for example, while spending on swimwear was up 31%—it’s harder to account for why people are spending 36% more on jewelry.
And then there’s the impact on tailors. While the initial drop in weight can be good for business, many people end up regaining weight after they go off the medication—and that’s testing the free lifetime alterations offered by Brooklyn-based Alan David Custom, as Alan Horowitz, owner of the fifth-generation bespoke suit-maker business, told The Financial Times.
“The wild swings in weight . . . It’s been a tailoring nightmare,” Horowitz told the outlet.
THE WINNERS/LOSERS
The fitness industry likewise points to some contradictions. The PwC survey found that 36% of GLP-1 users are walking, running, cycling and swimming more frequently, but they’ve perhaps become more selective about their workouts. In fact, 14% of people currently on these medications have decreased the frequency they’re attending group fitness classes, while only 11% have increased it.
Because doctors recommend strength training for patients on GLP-1 medications—to combat the loss of muscle mass or bone density during weight loss—that’s caused some gyms to reimagine their spaces. Chains like PureGym, Planet Fitness and the The Gym Group have dedicated a greater share of floorspace to strength and functional training, as The Financial Times reported.
The airline industry is another such example. If the 178 passengers on a Boeing 737 plane were to lose 10% of their body weight, that would add up to about $580 million in combined savings each year for American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines, as Sheila Kahyaoglu, an analyst at Jefferies, calculated earlier this year.
Given that airlines are always trying to contain costs, the savings could be significant, as Kahyaoglu told The Financial Times. “It actually could move the needle, especially because oil is so high right now.”
But even if a slimmed-down populace might be more prone to travel, they might be less likely to indulge in buying snacks or alcohol in-flight, as the outlet reported.
A MIXED BAG ON FOOD
Some of the biggest shifts in how Americans are spending their money is on food.
Quick-service restaurants are among the casualties of the GLP-1 era as household spending at these establishments fell nearly 9% after 6 to 8 months on the medication. And that weekly pizza night is especially out of favor, as spending fell 22% in that same timeframe.
Grocery store sales also look different, as the PwC survey found that 61% of current GLP-1 users are buying fewer sweet treats, while sales of sugary drinks and alcohol also suffer. People are still headed to the grocery store, of course, but their carts look a bit different. Americans on these meds are spending more time on the perimeters—44% say they’re buying more fresh produce, while 34% are buying more fresh protein—and they’re opting for healthier items, like Greek yogurt, jerky or nutrition bars.
Those spending habits show that people are taking their weight-loss journey seriously while on the medications, even if many struggle to keep the weight off after they go off them.
“It’s perhaps not a surprise that people who are willing to pay this much for their health through GLP-1s will also pay more for healthier and better options,” Saxon Moseley, head of leisure and hospitality at accounting firm RSM UK, told The Financial Times.
