(NewsNation) — After signs America’s weight-loss drugs were taking a bite out of the food industry’s profits, experts say the spending is shifting toward fitness equipment and gym memberships.
Walmart’s CEO John Furner previously said weight loss drugs like Ozempic and Wegovy were impacting food sales because people’s appetites were decreasing. He backtracked saying there were positive shifts toward the sale of fitness items, in discussions with Morgan Stanley analysts.
Walmart tracked a small group of customers taking the drug and found they were spending slightly less on food year over year.
The customers who purchase 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. Because of the known side effects like nausea and diarrhea, the overall spending of these customers is higher compared to those who don’t buy weight-loss drugs.
“For most patients, the benefits of the medication will likely outweigh most of these concerns, but it’s vital that patients understand the costs that could accumulate during treatment,” Dr. Christopher McGowan, a gastroenterologist, obesity medicine specialist told Healthline.
Studies have shown that semaglutide and similar drugs can help achieve and sustain weight loss when used in conjunction with lifestyle adjustments. Providers say that these modifications include engaging in physical activity which might also come at a cost, such as purchasing exercise equipment or gym memberships.
“They also spend money on fitness equipment and gym memberships because cardio and strength training are critical strategies to preserve muscle mass and maintain weight loss long-term,” said Dr. Katherine H. Saunders, an obesity expert and clinical assistant professor of Medicine at Weill Cornell Medicine.
Due to the spending shifts, food and beverage companies are keeping a close eye on the purchasing trends.
Coca-Cola’s CEO, James Quincey, is not concerned about the impact of drugs like Ozempic and Wegovy on the company’s sales.
Coca-Cola has been investing in diet and zero-sugar alternatives to its popular products, including the classic Coca-Cola, Sprite, and Fanta, which suggests that they are well-prepared to face any challenges posed by these drugs. As of now, there has been minimal impact on the company’s sales.
“As we stand here today there’s very little data on what’s actually happening other than some anecdotal stuff,” Quincey told CNBC’s ‘Squawk On The Street’, adding that even projections don’t envision a “fundamental change” to the beverage industry.
It’s estimated that by 2035, the global market for weight-loss drugs could reach $100 million, according to Forbes.