“We examine how consumers modify their food demand after adopting appetite-suppressing GLP-1 receptor agonists, such as Ozempic and Wegovy. Using survey responses on medication adoption and timing linked to transaction data from a representative U.S. household panel, we document the prevalence, motivations, and demographic patterns of GLP-1 adoption. Households with at least one GLP-1 user reduce grocery spending by 5.5% within six months of adoption, with higher-income households reducing spending by 8.6%. These reductions are driven by large decreases in purchases of calorie-dense, processed items, including an 11% decline in savory snacks. While most food categories see spending declines, spending on nutrient-dense options, such as yogurt and fresh produce, shows directionally positive but statistically insignificant changes. We also find an 8.6% decline in spending at fast-food chains, coffee shops, and limited-service restaurants.”

From Cornell SC Johnson College of Business.