Ozempic and other similar medications based on semaglutide are revolutionizing healthcare. They are helping people treat their obesity as a medical condition, rather than as a moral failing.
But there are pitfalls in this shift toward treating fat people as worthy of help. These include an influx of larger-size clothing into resale stores.
1. Increased Product Demand
As Ozempic and other GLP-1 drugs have taken the media by storm, people across America are clamoring to try them. But many pharmacies have seen their supplies dwindle as the demand for the drug outpaces its supply. And the shortage of Ozempic has left some pharmacies hesitant to stock it at all.
Taking Ozempic Weight Loss and other GLP-1 medications suppresses appetites, leading to reduced food consumption. This has led to decreased sales for many retailers that sell processed foods and sugary drinks. In fact, according to a report from the grocery store industry publication Supermarket News, departmental stores and supermarkets that focus on these products have experienced sales decreases of up to 9% for certain categories in households that include people using GLP-1 medications.
The high demand has also prompted many people to buy the medication online from unlicensed sources, which can be dangerous. It’s not uncommon for these shipments to contain fake, diluted or unevaluated variants of the pharmaceutical ingredient that is used to make Ozempic. Some people have even been hospitalized as a result of buying these illegal medications.
In response to the shortage, telemedicine companies like Him & Hers, Henry Meds and Ro have stepped in with a solution. These companies combine telemedicine with pharmacy services, allowing customers to visit with a healthcare professional over video and receive prescriptions for their GLP-1 medications. These companies can then ship the medication directly to patients so that they can start losing weight in a matter of days.
A number of large retailers are also offering weight loss programs that incorporate Ozempic and other GLP-1 medicines. For instance, Costco Wholesale has teamed up with a health care company to offer members access to a weight-loss program that includes the medication. The company says that members can use the program to work with a weight loss specialist and gain personalized support as they lose their excess pounds. In addition to one-on-one coaching and regular scheduled visits with a healthcare professional, Costco members can also get their Ozempic and other prescriptions at discounted rates. The price of a three-month subscription is $179, compared to the standard fee of $195 for non-members.
2. Decreased Sales of Snacks and High-Calorie Foods
The Ozempic and similar GLP-1 drugs’ appetite suppression properties have had an indirect impact on consumer spending habits. People taking these medications are reported to be buying fewer snack foods and other high-calorie foods. This has affected retailers that rely on sales of such products, including convenience stores and grocery chains.
However, the overall retail impact of Ozempic and its cousins is likely a bit more nuanced than some might think. For example, resale platforms like Goodwillfinds are seeing an increase in donated clothing from people who have lost weight thanks to these medications. The impact is likely due to a combination of factors, such as the GLP-1 medication’s reputation for helping individuals lose weight while still being able to enjoy their favorite foods.
One of the most important aspects of a successful diet is portion control. For this reason, a lot of consumers are turning to snack food manufacturers to meet their dietary needs. These snacks can help people adhere to their calorie and fat limits while also giving them energy and satisfaction. These snacks are also easy to store and transport, making them an ideal option for those who are on the go.
However, it is worth noting that while these snacks are healthy, they aren’t necessarily low in calories or fat. As such, they can still have a negative impact on one’s health when used in excess.
Due to the popularity of Ozempic, a number of pharmacies have had trouble keeping the drug in stock. In fact, many pharmacies have had to resort to a back-ordering system where they’ll place a order with Novo Nordisk and wait for the semaglutide to come in. This process is not only inconvenient for customers, but it’s also costly for pharmacists who aren’t reimbursed for the cost of Ozempic by their pharmacy benefits managers.
The shortage of Ozempic has caused it and its counterparts (Wegovy and Rybelsus) to become a scarce drug. Moreover, the manufacturer of Wegovy, Novo Nordisk, has sued six generic-drug makers, alleging that their plans to make cheaper versions of the drug infringe on its patents.
3. Increased Sales of Healthy Foods
After gaining momentum in the 2010s, movements like body positivity, wellness and size inclusivity caused demand for diet programs and weight loss products to stagnate. But in 2022, a new drug called Ozempic exploded into the spotlight. The GLP-1 medication was hailed by scientific studies and celebrity endorsements, driving a massive increase in prescriptions for the appetite suppressant. It and its pharmaceutical cousins, including Wegovy, have seen a triple increase in prescriptions since 2020, according to healthcare-analytics firm Trilliant Health.
The rise of Ozempic has also spurred new business models that integrate the drug into other healthcare services. Some companies, such as Weight Watchers and Med Spas, have created telemedicine divisions that offer access to the drug. Meanwhile, companies that initially focused on a behavioral health approach to weight loss, such as Noom and Sesame, have expanded their offerings to include the medication.
These new business models are reshaping the market for weight loss drugs and other GLP-1 medications. As Ozempic and its rivals gain popularity, more people will seek out healthcare professionals that can oversee their care with these medications. This is creating a new kind of competition among healthcare providers and e-commerce companies. For instance, traditional club retailer Costco has partnered with Sesame to offer medical weight management visits with providers that may include the medication.
Unfortunately, the rise of demand for Ozempic has also spawned a booming black market in the drug. Criminals can make a lot of money by selling counterfeit versions of the drug on TikTok. Some even ship the fake drugs to the US from Mexico and resell them. In fact, a woman from New York City has been charged with selling fakes of the hunger-suppressing drug.
In the meantime, pharmacies are struggling to keep up with consumer demand. Many stores are selling out of Ozempic, while others have stopped carrying the drug altogether. In the case of independent pharmacies, this can leave customers with nowhere to turn. To address this issue, some pharmacies are allowing customers to order the medicine through their Rappi or DoorDash apps, which can deliver the drug to their homes for a fraction of the price.
4. Increased Sales of Exercise Equipment
Initially developed as a diabetes treatment, Novo Nordisk’s Ozempic (brand name for semaglutide, part of the GLP-1 drug class) is now widely used to help patients lose weight. The medication works by slowing down the stomach’s emptying process, reducing appetite, and limiting fat absorption. Ozempic’s success has boosted sales of related products such as healthy snacks, fruits and vegetables, low-sugar beverages, and exercise equipment.
The drug’s popularity has also led to an increase in demand for weight loss programs. Companies such as Weight Watchers, which has rebranded itself as WW International, have reported an uptick in enrollments as a result of the Ozempic-driven shift. Other diet-related businesses such as gyms and fitness clubs have also seen increased activity as people seek to make the most of their newfound energy levels.
GLP-1 drug users have also been shifting their shopping habits at the grocery store. A recent Morgan Stanley report found that shoppers taking Ozempic and similar medications have decreased purchases of food at the grocery store by as much as 20%. Departments that saw a decrease in sales include beans and grains; deli and prepared foods; packaged bakery; refrigerated foods; and meat. At the same time, consumers have increased their spending on items such as health supplements, produce and dairy.
Retailers with pharmacy businesses have also felt the effects of the weight loss drugs boom, and many are struggling to keep pace with increased customer demands. For example, Kroger reported a 5% increase in sales at its pharmacies during the second quarter of 2023. However, the company’s overall revenue remained flat. Walmart and other major retailers with pharmacies have reported similar gains.