GLP-1 Beauty Boom: Ozempic Reshaping Ulta Sales & CEO Bet
The GLP-1 beauty boom is underway, fueled by diabetes and weight-loss drugs like Ozempic, Wegovy, Mounjaro, and Zepbound. Kecia Steelman, who has been running Ulta Beauty for less than a year, has identified this force as a game-changer for beauty retail. In a recent interview with Business Insider, she explained how these weekly injections—now used by tens of millions of Americans—are driving demand for haircare, skincare, and supplements to counter side effects like hair thinning and sagging skin.
What Are GLP-1 Receptor Agonists and Why Do They Matter for Beauty?
GLP-1 receptor agonists mimic the glucagon-like peptide-1 hormone to regulate blood sugar, slow gastric emptying, and promote satiety, leading to significant weight loss—often 15% to 20% of body weight in under a year. Brands like Ozempic (semaglutide) and Mounjaro (tirzepatide) have exploded in popularity, with IQVIA reporting more than 40 million prescriptions filled in the United States in 2024 alone. Morgan Stanley projects that 30 million Americans could be on these drugs by 2035, roughly the population of Texas.
This rapid weight loss triggers cosmetic side effects known as "Ozempic face" and "Ozempic hair." The skin loses elasticity as collagen production, already declining with age, fails to keep pace. Subcutaneous fat diminishes, causing hollowed cheeks, loose jawline skin, and a gaunt appearance. Hair loss, documented in clinical data and patient reports, stems from nutritional shifts, stress on follicles, and telogen effluvium triggered by dramatic body changes.
Clinical Background on GLP-1 Side Effects
Medical experts have extensively documented these changes. Dr. Paul Jarrod Frank, a New York celebrity dermatologist, coined "Ozempic face" in 2023 and noted a surge in patients seeking dermal fillers or PRP therapy. While some opt for invasive treatments, many turn to over-the-counter solutions. Dr. Shereene Idriss, a board-certified dermatologist, emphasizes that topical retinoids and peptide serums help mild cases, but significant volume loss often needs medical intervention—no serum replaces lost fat.
Ulta CEO Kecia Steelman's Vision for the GLP-1 Opportunity
Steelman sees GLP-1 users shopping Ulta more frequently for targeted products. "We are seeing that the consumer who is on GLP-1 is shopping us more frequently," she told Business Insider. These customers seek volumizing shampoos, scalp treatments, collagen-boosting serums, firming creams, and ingestible supplements.
Ulta, with over 1,400 U.S. stores and robust e-commerce, blends prestige and mass-market brands to serve all income levels. Steelman is collaborating with partners on GLP-1-specific formulations. Examples include Nutrafol's hair growth supplements (acquired by Unilever in 2022), which spiked among GLP-1 users, and Augustinus Bader's Rich Cream for post-weight-loss skin laxity. Newer products explicitly target this group, a segment that barely existed five years ago.
"Ulta wants to be a 'trusted resource' and not just a place to buy products." – Kecia Steelman, via Business Insider
Market Data and Wall Street's Take
The numbers back Steelman's bet. Ulta's stock fell 25% in 2024 due to slowing prestige beauty and Sephora competition but stabilized in early 2025. Piper Sandler maintained an overweight rating, highlighting haircare's "medically adjacent beauty demand." Goldman Sachs estimates the "GLP-1 beauty economy" at $3 billion to $5 billion in annual U.S. spending by 2028, covering products to procedures.
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Ulta's 44 million loyalty members provide granular data on buying patterns, like increased scalp serums and firming moisturizers, enabling precise assortment tweaks.
Practical Guidance for GLP-1 Users Managing Cosmetic Side Effects
If you're on Ozempic or similar, monitor changes early. Consult a dermatologist for severe issues, but for mild thinning or sagging:
- Haircare: Use biotin-enriched shampoos, minoxidil scalp treatments, or Nutrafol supplements.
- Skincare: Apply hyaluronic acid serums, peptide firming creams, or retinoids for elasticity.
- Nutrition: Boost collagen via diet or ingestibles; stay hydrated.
- Tracking: Apps like Shotlee can log symptoms, side effects, and product trials to discuss with doctors.
Not all experience severe effects—many find quality topicals sufficient, enhancing confidence post-transformation.
Challenges in the GLP-1 Beauty Boom
Demand may fluctuate if patients stop GLP-1s due to cost, side effects, or supply—weight regain reverses issues but creates cycles. Credibility is key; beauty claims often exceed science. Ulta invests in consultations and education to guide realistically.
Competitors like Sephora (expanding wellness), Amazon, Target, and Walmart see double-digit growth in scalp-care and firming per NielsenIQ 2024 data. Ulta differentiates via salons for integrated services—consult, treat, sell.
How Ulta Stands Out Against Competitors
| Retailer | GLP-1 Focus | Unique Edge |
|---|---|---|
| Ulta | Hair/skin products + salons | Consultations, loyalty data |
| Sephora | Wellness supplements | Prestige brands |
| Amazon | Hair growth online | Convenience |
| Target/Walmart | Scalp/skin aisles | Affordability |
The Broader Shift: Beauty Meets Pharmacology
GLP-1s accelerate wellness-cosmetics convergence. Supply chains strain for biotin, collagen peptides, hyaluronic acid, and minoxidil. Private labels innovate within FDA rules. Steelman frames this as "solution-oriented beauty," positioning Ulta as health-focused.
These aren't fads—chronic therapies for millions. As Novo Nordisk and Eli Lilly expand access, the market grows. Steelman inherited challenges like matured prestige growth and competition; GLP-1 offers a data-driven narrative.
Key Takeaways for Patients and Retail Investors
- GLP-1 side effects like Ozempic face and hair loss are real, tied to rapid fat/collagen loss.
- Ulta leads with targeted products and services; expect more launches.
- Consult pros; combine topicals, nutrition, and tracking for best results.
- Wall Street sees $3-5B opportunity by 2028—watch Ulta's execution.
Conclusion: A Bold Bet on Medically Adjacent Beauty
The beauty industry, shaped by pharmacology, finds Ulta's CEO betting on turning GLP-1 side effects into a franchise. Data suggests she's right. Patients: Discuss cosmetic concerns with doctors. Retailers: Prioritize education. This GLP-1 beauty boom reorients shelves toward health solutions.