GLP-1 medications, such as Ozempic, Wegovy, and Mounjaro, are revolutionizing how people allocate their budgets during weight loss journeys.
Over 400,000 Australians currently use these GLP-1 weight loss drugs, which can cost up to $5,000 annually depending on dosage strength and eligibility for subsidies like the Pharmaceutical Benefit Scheme.
Circana Tracks GLP-1 User Spending Habits
Market research firm Circana monitors household spending for GLP-1 users in Australia and conducts detailed analysis in the US.
US data shows a 2% decline in food and beverage spending during 6-12 months of GLP-1 use, with spending rebounding after discontinuation.
Pre-Existing Trends Among Weight-Conscious Shoppers
Circana Insights Director Daniel Bone notes that GLP-1 users often already spend more on food and beverages.
- 46% of Australians buy weight management products for themselves or household members.
- These shoppers spend 10% more in pharmacies on average.
- Grocery spending matches the general population, but shifts across categories.
"Just because you are focused on weight management doesn't necessarily mean that you are inherently spending less, it just influences how you are distributing your spend across product categories," said Bone.
Increased Spending on Beauty and Self-Care
GLP-1 users boost spending in self-care and beauty products, partly to address medication side effects.
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"That results in high levels of spending on health and beauty products... there is a discernible uplift in spending," Bone explained.
Protein Product Boom Driven by GLP-1 Use
Australian supermarkets see protein-led products grow 40% year-on-year—six times the overall grocery rate.
GLP-1 medications cause weight loss including muscle mass, prompting users to seek protein-forward foods.
"There is that growing understanding that one of the side effects of using GLP-1 is that you're losing weight, but you're losing muscle mass as well," Bone stated.
This trend accelerates launches of protein-rich items across categories, marketed to appeal to weight loss drug users without direct GLP-1 branding.
Opportunities for Functional Foods
GLP-1 users prioritize products high in protein, fiber, nutrients, or smaller portions to optimize medication outcomes.
- Creates premiumization chances for higher-priced functional health items.
- Demand spikes during use, normalizing post-discontinuation.
Bone predicts oral GLP-1 pills in Australia will expand adoption, intensifying trends in beauty, pharmacy, groceries, and functional foods.
