Are Ozempic and Wegovy encouraging Americans to spend more?

(NewsNation) After signs that U.S. weight-loss drugs were cutting into the food industry’s profits, experts say spending is shifting toward fitness equipment and gym memberships.

Walmart CEO John Furner previously said weight-loss drugs like Ozempic and Wegovy were impacting food sales because people’s appetites were diminishing. He backtracked, saying there were positive changes in fitness sales in discussions with analysts at Morgan Stanley.

Walmart tracked a small group of customers taking the drug and found that they spent slightly less on food from year to year.

Customers who buy weight-loss drugs also tend to spend more on lifestyle, fitness and medications to relieve the drug’s side effects, according to analysts who spoke with Walmart. Due to known side effects like nausea and diarrhea, the overall spending of these customers is higher than those who do not purchase weight loss drugs.

For most patients, the benefits of the drug will likely outweigh most of these concerns, but it’s critical that patients understand the costs that could accrue during treatment, Dr. Christopher McGowan, Gastro, told Healthline. -enterologist and specialist in obesity medicine.

Studies have shown that semaglutide and similar medications can help achieve and maintain weight loss when used in conjunction with lifestyle adjustments. Providers say these changes include engaging in physical activity that may also have a cost, such as purchasing exercise equipment or a gym membership.

They also spend money on fitness equipment and gym memberships because cardio and strength training are essential strategies for preserving muscle mass and maintaining weight loss long-term, said Dr. Katherine H. Saunders, obesity expert and clinical assistant professor of medicine at Weill Cornell. Medicine.

Due to changing spending, food and beverage companies are closely monitoring purchasing trends.

Coca-Cola CEO James Quincey isn’t worried about the impact of drugs like Ozempic and Wegovy on the company’s sales.

Coca-Cola has invested in diet and sugar-free alternatives to its popular products, including classics Coca-Cola, Sprite and Fanta, suggesting they are well prepared to deal with the challenges posed by these drugs. For now, the impact on the company’s sales is minimal.

“As we sit here today, there is very little data on what is actually happening, other than some anecdotal evidence,” Quincey told CNBC. “Crying in the street”adding that even the projections do not envision a “fundamental change” in the beverage industry.

It is estimated that by 2035, the global market for weight loss drugs could reach $100 million, according to Forbes.