Ozempic Boom Shakes Up Snack And Gym Industries

The growing popularity of weight loss drugs like Ozempic is shaking up industries that have long thrived on consumer habits. While gyms and snack companies are feeling the early tremors, the full impact of this shift may significantly alter these sectors in the years to come. As more people turn to these medications, businesses are forced to rethink their strategies and adapt to changing consumer behaviour.

The Snack Industry Faces Shrinking Demand

The snack industry, valued at $110.3 billion, is poised for an unexpected disruption. Weight loss medications such as Ozempic, originally intended to treat diabetes, have proven effective in helping people reduce their cravings and appetites. As a result, snack companies are seeing their traditional customer base shrink.

A substantial portion of snack sales relies on impulse purchases and emotional eating, often driven by hunger and cravings. However, Ozempic users report a notable reduction in these urges. For instance, Walmart has observed that customers taking these medications are buying less food overall, including fewer high-calorie snacks and sugary drinks. This shift is potentially alarming for a sector that counts on snacking habits to drive its annual growth.

Sales Impact Projections

The market's response to the growing number of Ozempic users is already being felt. Analysts from Morgan Stanley predict that as many as 24 million people could be using these drugs by 2035, which could lead to a 3% drop in the sales of items like sodas, baked goods, and salty snacks. While a 3% dip may sound minor, for a multi-billion-dollar industry, this loss could result in billions in reduced sales over time.

Moreover, some consumers report spending up to $200 less per month on food, as their smaller appetites lead them to purchase fewer snack items and more protein-rich, lower-calorie options. This behaviour is already influencing the food retail landscape, as shoppers adjust their grocery baskets to reflect these changing needs.

Adapting to Survive

Snack companies are not taking this threat lightly. They are racing to adjust their products and marketing strategies to appeal to a new kind of consumer. For example, Nestlé is developing a new range of products under its Vital Pursuits line, which will include GLP-1-friendly options like protein-infused pasta. Meanwhile, major brands like Coca-Cola and Danone are promoting higher-protein, lower-sugar offerings aimed at this evolving market.

Smaller portion sizes and healthier ingredients are increasingly at the forefront of new product development, as food manufacturers acknowledge the shift in consumer habits. The days of endless snack aisles may be numbered, but the industry is clearly making efforts to stay relevant in a changing landscape.

Gyms Brace for New Challenges and Opportunities

Unlike the snack industry, gyms may feel the impact of Ozempic’s rise in a different, albeit still profound, way. The fitness industry is accustomed to its role in weight loss journeys, yet with drugs like Ozempic promising significant reductions in body weight without the need for intense exercise, some may question the necessity of gym memberships altogether.

Shifts in Membership and Motivation

The fear is that people might start skipping the gym, relying instead on these medications to manage their weight. However, there’s another side to this story. Many users of Ozempic are realising that while they may be losing weight, they still need exercise to maintain muscle tone and overall health. As a result, gyms are experiencing a shift in focus from cardio and weight loss programmes to strength training and muscle preservation.

The challenge for gyms is to position themselves as essential in complementing the weight loss journey, rather than being viewed as an optional extra. Gyms that can cater to the unique needs of those using weight loss medications—offering personalised fitness plans that emphasise muscle building and long-term health—are likely to attract and retain these customers.

Evolving Services

To stay competitive, many gyms are expanding their offerings to include services that align with the medical nature of these weight loss medications. High-end gym chains such as Equinox have introduced personal training programmes specifically tailored to people taking weight loss drugs like Ozempic. These programmes focus on preserving muscle mass while managing the potential side effects of rapid weight loss.

Furthermore, some gyms are integrating healthcare services directly into their business model. Life Time, a luxury athletic club, now offers on-site medical testing, personalised training, and access to weight loss drugs through partnerships with healthcare providers. This approach could signal a broader shift in how gyms operate, transforming them from purely fitness centres into comprehensive health and wellness hubs.

Broader Economic Ripples

Beyond the immediate effects on snack companies and gyms, the widespread adoption of weight loss drugs is likely to ripple across other sectors. If weight loss drugs continue to prove effective in reducing obesity rates, the healthcare industry could experience a significant decline in costs related to obesity-related conditions. Currently, such health issues cost the U.S. around $173 billion annually.

In addition, the fashion industry may see increased demand for new clothing as people shed pounds. Restaurants could also feel the pinch, with patrons ordering smaller portions or opting for healthier, lower-calorie menu items. Across the board, businesses will need to monitor these trends and adjust their strategies to stay competitive in a changing consumer landscape.

Looking Ahead: A Changing Health Landscape

The future of weight loss is being rewritten by drugs like Ozempic, and it’s not just individuals feeling the effects. Industries built around people’s habits—whether it’s eating snacks, going to the gym, or dining out—are being forced to evolve in real-time. Companies that are quick to adapt will likely find opportunities within this disruption, but those that fail to respond could see their market share shrink.

While it’s too early to predict the full economic impact, the early signs point to a major shift in how we think about health, weight management, and consumer behaviour. As Ozempic and similar drugs continue to rise in popularity, the industries that surround us will need to be just as nimble.